Yerington Copper Project PFS: $694M NPV, 14.6% IRR
Lion Copper and Gold Corp.'s Yerington Copper Project in Nevada, USA has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $694M, an after-tax IRR of 14.6%, and initial capital of $724M. The mine plan runs 12 years at about 120 Mlbs Cu cathode per year.
Lion Copper and Gold Corp.'s Yerington Copper Project has reported Pre-Feasibility Study (PFS) results for the copper project in Nevada, USA. The study headlines an after-tax net present value of $694M at a 7% discount rate. It reflects Lion Copper and Gold Corp.'s (LEO.CN) latest disclosed economics for the asset.
Economics. The after-tax NPV is $694M using a 7% discount rate. After-tax IRR is 14.6%. Initial capital expenditure is estimated at $724M. The study models a payback period of 6.7 years. All-in sustaining costs are pegged at 2.67 USD/lb payable. Economics are based on $4.30/lb Cu base case.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 12 years. Average annual production is approximately 120 Mlbs Cu cathode. Average head grade is 0.21% CuT (reserve). Metallurgical recovery averages 67.4%. The open-pit strip ratio is 0.32:1.0.
Resources and ownership. The company holds a 35% interest in the project.
These figures are extracted from Lion Copper and Gold Corp.'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 | 115.3 M Tons | 0.28 TCu% | — |
| Probable | 226.4 M Tons | 0.20 TCu% | — |
| Proven & Probable | 341.7 M Tons | 0.23 TCu% | — |
| Proven | 110.2 M Tons | 0.19 TCu% | — |
| Probable | 54.6 M Tons | 0.16 TCu% | — |
| Proven & Probable | 164.8 M Tons | 0.18 TCu% | — |
| Proven & Probable (Total) | 506.5 M tons | 0.21% CuT | 2.14B lbs Cu |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 293.3 M tons | 0.18% CuT | 989M lbs Cu |
| Inferred | 158.1 M tons | 0.14% CuT | 443.4M lbs Cu |
Our Analysis
The 14.6% after-tax IRR lands in the bottom quartile of tracked copper peers and sits just below the ~15% threshold typically required to secure project financing for a developer. At 7%, the discount rate is on the lower end of the reporting range, which flatters the $694M NPV—a figure that is roughly 8x the company’s market cap. That gap cuts both ways: it may signal the market has not priced in the asset, but it more likely reflects skepticism about financing, given that initial capex of $724M exceeds the NPV itself, implying significant dilution risk for a single-asset junior.
The 6.7-year payback and 12-year mine life are both long, adding execution risk. Nevada is a low-jurisdictional-risk setting, which helps. The study’s $4.30/lb copper price sits well below the current $6.36/lb spot, so returns could prove conservative if that price holds. The single most important watch-item is the capital intensity: with capex at 104% of NPV and a market cap far smaller than the build cost, funding the project will require substantial equity dilution or a financing structure that may not be available at the projected returns.
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.