Toroparu Project PEA: $1.80B NPV, 25.2% IRR
Aris Mining Corporation's Toroparu Project in Guyana has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $1.80B, an after-tax IRR of 25.2%, and initial capital of $820M. The mine plan runs 21.3 years at about 235 koz Au per year.
Aris Mining Corporation's Toroparu Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Guyana. The study headlines an after-tax net present value of $1.80B at a 5% discount rate. It reflects Aris Mining Corporation's (ARIS.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.80B using a 5% discount rate. After-tax IRR is 25.2%. Initial capital expenditure is estimated at $820M. The study models a payback period of 3 years. All-in sustaining costs are pegged at 1300 USD/oz. Economics are based on Base case gold price US$3,000/oz.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 21.3 years. Average annual production is approximately 235 koz Au.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Existing stream of $138 million.
These figures are extracted from Aris Mining Corporation's technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | — | — | 5.3 Moz Au |
| Inferred | — | — | 1.2 Moz Au |
Our Analysis
- IRR after-tax
- 25.2%
higher than 24% of 119 projects we track
- NPV after-tax
- $1.80B
higher than 79% of 192 projects we track
- Initial capex
- $820M
45% of NPV
costlier than 84% of 174 projects we track
- Payback
- 3yrs
slower than 81% of 103 projects we track
- Mine life
- 21.3yrs
- Discount rate
- 5%
- Study price assumption
- Base case gold price US$3,000/oz
- Spot gold today
- $4,181.10/oz
A 25.2% after-tax IRR puts this Guyana gold project in the bottom quartile of the 119 gold projects we track, higher than only 24% of them. That is the number to sit with, because it is the one figure here that doesn't line up with the rest. The after-tax NPV of $1.80B ranks above 79% of the 192 projects we track, and payback of 3 years is moderate, shorter than 81% of the 103 projects we track. So the asset generates a large absolute value over a 21.3-year mine life, but the rate at which it does so is unremarkable against peers. For an investor, that gap between size and rate is the point: this is a big, long-life deposit whose economics are solid rather than exceptional, and the 25.2% clears the roughly 15% after-tax hurdle developers typically need for project finance without much room to spare.
The constraint that matters most is not funding. Initial capex of $820M is about 0.2x the company's US$3.72B market cap, and at 45% of NPV it is capital-light, lower than 84% of the 174 projects we track. A mid-cap with a diversified portfolio of 5 projects we track can carry a build of this size without the dilution risk that dominates smaller single-asset stories. The NPV sits at roughly 0.5x market cap, below it, which cuts both ways: the market may be discounting the asset, or it may be pricing the study's preliminary nature, the jurisdiction, or the gold price deck.
That last point deserves weight. This is a PEA, scoping-level, potentially built on inferred resources, with a capital estimate carrying a plus or minus 50% band. The study assumes US$3,000/oz gold against a live spot of $4,181.10/oz, so the returns are struck well below today's market and carry genuine upside if that price holds. The question that decides this project: does the PEA convert into a feasibility study that holds the 25.2% IRR at a firmer capital cost, or does the bottom-quartile rate prove to be the real number?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.
Get the next one first
Be the first to know about new mining results, and how they compare to other projects.