Yandera Copper Project PFS: $1.04B NPV, 23.5% IRR
Freeport Resources Inc.'s Yandera Copper Project in Papua New Guinea (95 km SW of Madang, Madang Province) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $1.04B, an after-tax IRR of 23.5%, and initial capital of $930M. The mine plan runs 20 years at about 100000 t Cu per year.
Freeport Resources Inc.'s Yandera Copper Project has reported Pre-Feasibility Study (PFS) results for the copper project in Papua New Guinea (95 km SW of Madang, Madang Province). The study headlines an after-tax net present value of $1.04B at a 10% discount rate. It reflects Freeport Resources Inc.'s (FRI.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.04B using a 10% discount rate. After-tax IRR is 23.5%. Initial capital expenditure is estimated at $930M. The study models a payback period of 5.67 years. Economics are based on Cu $3.35/lb; Mo $10.00/lb; Au $1,400.00/oz (2017 PFS base case).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 20 years. Average annual production is approximately 100000 t Cu. Average head grade is 0.39% CuEq. The open-pit strip ratio is 1.36.
Resources and ownership. Mineral reserves: 540 Mt probable ore reserve (from 2017 PFS optimized pit shell). Mineral resources: Measured: 196,496 kt @ 0.46% CuEq; Indicated: 532,147 kt @ 0.36% CuEq; M&I: 728,643 kt @ 0.39% CuEq; Inferred: 230,643 kt @ 0.32% CuEq (0.15% CuEq cutoff, 2016 Resource Statement, SRK Consulting). The company holds a 100% interest in the project.
These figures are extracted from Freeport 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.
Our Analysis
- IRR after-tax
- 23.5%
higher than 70% of 27 projects we track
- NPV after-tax
- $1.04B
- Initial capex
- $930M
90% of NPV
- Payback
- 5.7yrs
- Mine life
- 20yrs
- Discount rate
- 10%
- Study price assumption
- Cu $3.35/lb; Mo $10.00/lb; Au $1,400.00/oz (2017 PFS base case)
- Spot copper today
- $6.36/lb
The 23.5% after-tax IRR sits comfortably in the upper half of our tracked copper peer group and clears the practical financing hurdle for a single-asset junior, which typically requires 20%+ to attract project capital. The 10% discount rate is conservative, but the NPV-to-market-cap gap of roughly 62x is a two-sided signal: it suggests the market has not priced in the asset, but also flags skepticism around financing, permitting, or jurisdictional risk given the developer’s small base.
Initial capex at 90% of NPV is moderately capital-intensive, and the 5.7-year payback is long, amplifying funding risk. The study’s copper price assumption of $3.35/lb sits well below the current live spot of $6.36/lb, implying material upside if realized, but also underscoring that the base-case returns are not dependent on today’s elevated market. The single most important watch-item is the financing gap: a $930M initial outlay against a small market cap means significant dilution or debt risk, and any permitting delays would stretch the already long payback.
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.