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 of $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 ($138 million) funding portion of $820M capex.
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 | — | 1.3 g/t Au | 5.3 Moz Au |
| Inferred | — | 1.6 g/t Au | 1.2 Moz Au |
Our Analysis
- IRR after-tax
- 25.2%
higher than 22% of 113 projects we track
- NPV after-tax
- $1.80B
higher than 87% of 150 projects we track
- Initial capex
- $820M
45% of NPV
costlier than 86% of 147 projects we track
- Payback
- 3yrs
slower than 78% of 93 projects we track
- Mine life
- 21.3yrs
- Discount rate
- 5%
- Study price assumption
- Base case gold price of $3,000/oz
- Spot gold today
- $4,408.90/oz
A 25.2% after-tax IRR puts this Guyana gold project in the bottom quartile of the 113 gold projects we track, ahead of only 22% of them. That is the number to sit with. It clears the roughly 15% after-tax threshold developers typically need to attract project finance, so the project is financeable in principle, but it sits in the lower half of the peer set on returns. The offset is scale: the $1.80B after-tax NPV ranks above 87% of the 150 gold projects we track, and payback of 3 years is moderate, shorter than 22% of the 93 projects we track. So this is a large, reasonably quick-payback asset generating a mid-tier return, not a high-return one.
The constraint that matters is not funding. Initial capex of $820M is 45% of NPV, lower than 14% of the 147 gold projects we track, and against the company's US$4.08B market cap the build is about 0.2x equity. For a mid-cap with four projects in its portfolio, that is a build the balance sheet can absorb without the kind of raise that would define the equity story. The NPV itself is roughly 0.4x market cap, which can be read either as an asset the market has yet to recognise or as a market discounting something: the PEA stage, the 21.3-year mine life that needs permitting and construction, or gold price risk.
That last point is the real tension. The study uses a $3,000/oz base case while spot sits at $4,408.90/oz, so the published economics are built well below today's market. That is genuine headroom if prices hold, and a reminder of how much of the NPV depends on a price deck nobody controls. The question that decides this project is whether a bottom-quartile return on a scoping-level study can be advanced to a feasibility-level number before the gold price does the work for it.
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.