Uchucchacua Feasibility Study: $35M NPV Over a 5-Year Mine Life
Compania de Minas Buenaventura S.A.A.'s Uchucchacua in Peru - Oyón, Lima department; Yanahuanca, Daniel Alcides Carrion, Pasco department has a Feasibility Study outlining an after-tax NPV of $35M. The proposed mine plan runs 5 years.
Compania de Minas Buenaventura S.A.A.'s Uchucchacua has reported Feasibility Study results for the silver project in Peru - Oyón, Lima department; Yanahuanca, Daniel Alcides Carrion, Pasco department. The study headlines an after-tax net present value of $35M at a 6.04% discount rate. It reflects Compania de Minas Buenaventura S.A.A.'s (BVN) latest disclosed economics for the asset.
Economics. The after-tax NPV is $35M using a 6.04% discount rate. Economics are based on US$27.5/oz silver, US$2,515/t lead, US$2,624/t zinc.
Production and mine plan. The project envisions an underground operation. Life of mine is 5 years.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Compania de Minas Buenaventura S.A.A.'s technical disclosures and reflect the most recent Feasibility Study 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 | 620 (000 t) | 7.95 oz/t Ag, 1.06% Pb, 1.69% Zn, 6.94% Mn, 3.96% Fe | — |
| Indicated | 1,607 (000 t) | 7.86 oz/t Ag, 1.1% Pb, 1.85% Zn, 6.85% Mn, 5.61% Fe | — |
| Measured & Indicated | 2,227 (000 t) | 7.88 oz/t Ag, 1.09% Pb, 1.8% Zn, 6.87% Mn, 5.15% Fe | — |
| Inferred | 7,029 (000 t) | 11.73 oz/t Ag, 1.49% Pb, 2.2% Zn, 6.58% Mn, 6.57% Fe | — |
Our Analysis
- NPV after-tax
- $35M
higher than 0% of 25 projects we track
- Mine life
- 5yrs
- Study price assumption
- US$27.5/oz silver, US$2,515/t lead, US$2,624/t zinc
- Spot silver today
- $58.86/oz
A feasibility study carrying a US$35M after-tax NPV places this silver project at the very bottom of the 25-project peer set we track, ranking higher than none of them. That is a stark position, and it should frame every other consideration. The study itself is build-ready, a FS with the typical plus or minus 15% band, so the numbers carry unusual weight; this is not a scoping-level hope. The problem is not confidence in the estimate, it is the scale of the outcome. A five-year mine life producing a single-digit-millions NPV is a small, finite asset, and the market's indifference is rational unless the price deck is the whole story.
The study uses US$27.5/oz silver, against a live spot of US$58.86/oz. That gap is the only thing that makes this project interesting. At spot, the NPV would be dramatically higher, but the study's own price assumption is conservative to the point of being dated. The question is whether an investor believes the elevated silver price persists through a five-year build and production window. If it does, the ranking is misleading; if it reverts toward the study's assumption, the project is marginal. The lead and zinc by-product prices, US$2,515/t and US$2,624/t, are secondary but add a buffer that a pure silver play would lack.
The jurisdiction is Peru, a significant silver producer with established mining infrastructure, which lowers execution risk relative to frontier regions. The company runs a diversified portfolio of 16 tracked projects, so this is one asset among many, not a bet-the-company build. That diversification is a double-edged sword: it dilutes the impact of any single project's success, but it also means the equity is not hostage to this one five-year mine. The decisive question is whether the market is pricing the asset at the study's conservative silver price or at today's spot. If the former, the gap between NPV and market value is a genuine mispricing; if the latter, the project has already been valued for what it could be, and the FS adds little. That distinction, not the IRR or the grade, is what separates a buy from a pass.
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.