Warintza Project PFS: $4.62B NPV, 26% IRR
Solaris Resources Inc.'s Warintza Project in Ecuador, southeastern Ecuador, Morona Santiago province has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $4.62B, an after-tax IRR of 26%, and initial capital of $3.73B. The mine plan runs 22 years at about 242 kt CuEq per year.
Solaris Resources Inc.'s Warintza Project has reported Pre-Feasibility Study (PFS) results for the copper project in Ecuador, southeastern Ecuador, Morona Santiago province. The study headlines an after-tax net present value of $4.62B at a 8% discount rate. It reflects Solaris Resources Inc.'s (SLS.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $4.62B using a 8% discount rate. After-tax IRR is 26%. Initial capital expenditure is estimated at $3.73B, with life-of-mine sustaining capital of $1.71B. The study models a payback period of 2.6 years. All-in sustaining costs are pegged at 1.07 USD/lb-Cu payable. Economics are based on Cu US$4.50/lb, Mo US$20.00/lb, Au US$2,800/oz (first 3 yrs) / US$2,500/oz (remainder), Ag US$28.00/oz; for CuEq: Cu US$4.00/lb, Mo US$20.00/lb, Au US$1,850/oz, Ag US$20.00/oz.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 22 years. Average annual production is approximately 242 kt CuEq. Average head grade is 0.41% CuEq (0.31% Cu, 0.02% Mo, 0.04 g/t Au, 1.30 g/t Ag) LOM; 0.47% CuEq first 15 yrs; 0.58% CuEq first 5 yrs. Metallurgical recovery averages 84%. The open-pit strip ratio is 0.53:1 (LOM), 0.371:1 (first 5 yrs), 0.381:1 (first 15 yrs).
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Gold streaming agreement with Royal Gold Inc.; partial offtake agreement with Orion Resource Partners for copper and molybdenum concentrates.
These figures are extracted from Solaris Resources Inc.'s technical disclosures and reflect the most recent PFS 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 |
|---|---|---|---|
| Proven | 797 Mt | 0.49% CuEq, 0.37% Cu, 0.02% Mo, 0.05 g/t Au, 1.37 g/t Ag | 3.0 Mt Cu, 171 kt Mo, 1.2 Moz Au, 35.0 Moz Ag |
| Probable | 503 Mt | 0.28% CuEq, 0.22% Cu, 0.01% Mo, 0.03 g/t Au, 1.19 g/t Ag | 1.1 Mt Cu, 43 kt Mo, 0.6 Moz Au, 19.2 Moz Ag |
| Proven & Probable | 1,300 Mt | 0.41% CuEq, 0.31% Cu, 0.02% Mo, 0.04 g/t Au, 1.30 g/t Ag | 4.1 Mt Cu, 214 kt Mo, 1.8 Moz Au, 54.1 Moz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1,196 Mt | 0.45% CuEq, 0.35% Cu, 0.02% Mo, 0.04 g/t Au, 1.31 g/t Ag | 4.1 Mt Cu, 231 kt Mo, 1.7 Moz Au, 51 Moz Ag |
| Indicated | 2,550 Mt | 0.25% CuEq, 0.20% Cu, 0.01% Mo, 0.03 g/t Au, 1.13 g/t Ag | 5.0 Mt Cu, 222 kt Mo, 2.5 Moz Au, 93 Moz Ag |
| Measured & Indicated | 3,746 Mt | 0.32% CuEq, 0.24% Cu, 0.01% Mo, 0.04 g/t Au, 1.19 g/t Ag | 9.1 Mt Cu, 453 kt Mo, 4.2 Moz Au, 143 Moz Ag |
| Inferred | 2,092 Mt | 0.20% CuEq, 0.16% Cu, 0.01% Mo, 0.02 g/t Au, 1.11 g/t Ag | 3.3 Mt Cu, 141 kt Mo, 1.6 Moz Au, 75 Moz Ag |
Our Analysis
The 26% after-tax IRR sits in the top quartile of our tracked copper projects and clears the practical financing hurdle for a single-asset junior by a wide margin, which is the relevant test. However, the 8% discount rate used to derive the $4.62B NPV is at the low end of the standard reporting range, flattering the NPV figure. The NPV-to-market-cap gap of roughly 3.2x can signal that the market has not yet priced in the project’s potential, but it equally suggests skepticism about the path to production given the $3.73B initial capex—81% of NPV—which represents substantial dilution risk for a developer of this size.
The study’s copper price assumption of $4.50/lb sits well below the current spot of $6.14/lb, implying material upside to returns if prices hold, but the jurisdiction in southeastern Ecuador carries elevated permitting and political risk that investors must weigh. The single most important watch-item is funding the $3.73B capex; with a market cap far smaller than that figure, equity dilution or a joint-venture partner is almost a certainty, and the project’s viability hinges on securing that capital on acceptable terms.
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.