Warintza PFS: $4.60B NPV, 26% IRR
Solaris Resources Inc.'s Warintza in Ecuador has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $4.60B, an after-tax IRR of 26%, and initial capital of $3.68B. The mine plan runs 22 years at about 242 kt CuEq per year.
Solaris Resources Inc.'s Warintza has reported Pre-Feasibility Study (PFS) results for the copper project in Ecuador. The study headlines an after-tax net present value of $4.60B 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 $4.60B using a 8% discount rate. After-tax IRR is 26%. Initial capital expenditure is estimated at $3.68B. The study models a payback period of 2.6 years. All-in sustaining costs are pegged at 1.07 USD/lb. Economics are based on US$4.50/lb Cu, US$20.00/lb Mo, US$28.00/oz Ag, US$2,800/oz Au years 1-3 then US$2,500/oz years 4-22.
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. The open-pit strip ratio is 0.53:1.
Resources and ownership. Royalties and streams: Royal Gold gold stream and NSR royalty.
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, 0.05 g/t Au, 0.02% Mo, 1.37 g/t Ag | 3,884 kt CuEq, 2,957 kt Cu |
| Probable | 503 Mt | 0.28% CuEq, 0.22% Cu, 0.03 g/t Au, 0.01% Mo, 1.19 g/t Ag | 1,410 kt CuEq, 1,123 kt Cu |
| Proven & Probable | 1,300 Mt | 0.41% CuEq, 0.31% Cu, 0.04 g/t Au, 0.02% Mo, 1.30 g/t Ag | 5,294 kt CuEq, 4,080 kt Cu |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1,196 Mt | 0.45% CuEq, 0.35% Cu, 0.04 g/t Au, 0.02% Mo, 1.31 g/t Ag | 5,428 kt CuEq, 4,149 kt Cu |
| Indicated | 2,550 Mt | 0.25% CuEq, 0.20% Cu, 0.03 g/t Au, 0.01% Mo, 1.13 g/t Ag | 6,392 kt CuEq, 4,986 kt Cu |
| Measured & Indicated | 3,746 Mt | 0.32% CuEq, 0.24% Cu, 0.04 g/t Au, 0.01% Mo, 1.19 g/t Ag | 11,820 kt CuEq, 9,135 kt Cu |
| Inferred | 2,092 Mt | 0.20% CuEq, 0.16% Cu, 0.02 g/t Au, 0.01% Mo, 1.11 g/t Ag | 4,276 kt CuEq, 3,341 kt Cu |
Our Analysis
- IRR after-tax
- 26%
higher than 74% of 27 projects we track
- NPV after-tax
- $4.60B
- Initial capex
- $3.68B
80% of NPV
- Payback
- 2.6yrs
- Mine life
- 22yrs
- Discount rate
- 8%
- Study price assumption
- US$4.50/lb Cu, US$20.00/lb Mo, US$28.00/oz Ag, US$2,800/oz Au years 1-3 then US$2,500/oz years 4-22
- Spot copper today
- $6.38/lb
The 26% after-tax IRR places this project in the upper half of our tracked copper peer group and comfortably clears the 15% threshold typically required for project financing—and the 20%+ hurdle for single-asset juniors. The 8% discount rate used for NPV reporting is standard but relatively low, which flatters the $4.60B NPV figure; a higher rate would compress it meaningfully. The NPV-to-market-cap gap of roughly 3.4x is a two-sided signal: it could imply the market has not fully priced the asset, or it could reflect skepticism about execution risk, given the jurisdiction and the $3.68B initial capex—80% of NPV—which represents substantial funding risk for a developer of this size.
The study’s copper price assumption of $4.50/lb sits well below the current spot of $6.38/lb, suggesting the returns may be conservative on the commodity side. However, Ecuador is a higher-risk jurisdiction for mining, and the single most important watch-item is the ability to secure financing for a $3.68B capex in that environment without excessive dilution, given the market cap. The 2.6-year payback and 22-year mine life are moderate positives, but capital intensity relative to market cap remains the critical risk.
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.