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 and US$2,800/oz Au for years 1-3 then US$2,500/oz Au for 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 stream and 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
The 26% after-tax IRR places this project in the top quartile of the 27 copper projects we track, well above the ~15% threshold typically required for project finance and the 20%+ hurdle for single-asset juniors. The 8% discount rate is within standard reporting range but on the lower side, which flatters the $4.60B NPV. The NPV-to-market-cap gap of roughly 3.2x is a two-sided signal: it may indicate the market has not yet priced in the asset’s value, or it may reflect skepticism around financing, permitting, or jurisdiction risk in Ecuador.
Initial capex of $3.68B, at 80% of NPV, is moderately capital-intensive but poses material funding risk given the company’s market cap—dilution is a real concern for a developer. The study’s copper price assumption of $4.50/lb sits well below the current spot of $6.14/lb, suggesting potential upside if prices hold, though the returns are already strong at the study price. The single most important risk is jurisdiction: Ecuador is a higher-risk mining jurisdiction, and any deterioration in fiscal or regulatory stability could undermine project economics or delay development.
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.