Aldebaran PEA for the Altar Project Reports 48 Year Mine Life, After Tax NPV (8%) of US$2 Billion, and 20.5% IRR
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Aldebaran Resources has released the results of a Preliminary Economic Assessment (PEA) for its flagship Altar Copper-Gold Project in San Juan, Argentina. The PEA outlines a large-scale, long-life mining operation with robust economics.
Key highlights from the PEA include: - Mine Life: 48 years at a throughput of 60,000 tonnes per day. - Economic Metrics: An after-tax Net Present Value (NPV) at an 8% discount rate of US$2.01 billion and an after-tax Internal Rate of Return (IRR) of 20.5%. - Capital & Payback: An initial capital expenditure (CAPEX) of US$1.59 billion with a 4-year payback period. - Production: Average annual production of 101,413 tonnes of copper equivalent (CuEq). - Cash Flow & Costs: Life-of-mine (LOM) free cash flow of US$10.63 billion, with C1 cash costs of US$2.02/lb Cu and All-In Sustaining Costs (AISC) of US$2.59/lb Cu.
The study proposes a combination of open-pit and underground block caving mining methods.
The release of the PEA is a significant de-risking event and a major positive milestone for Aldebaran. The results confirm that the Altar project has the potential to be a world-class, long-life, and economically robust copper-gold mine.
- Economic Validation: The NPV of US$2.01 billion (~C$2.75 billion) stands in stark contrast to the company's current market capitalization of approximately C$625 million, highlighting a substantial valuation gap and significant re-rating potential. An IRR of 20.5% is very attractive for a large-scale copper porphyry project.
- Strategic Partner Milestone: This PEA is a crucial step in the option agreement with Nuton Holdings (a Rio Tinto venture). Its delivery is the condition for Nuton to make its next payment of US$30 million, further strengthening Aldebaran's already healthy treasury. This payment will fund the company through the completion of a Pre-Feasibility Study (PFS).
- Project Progression: The PEA provides the first comprehensive economic picture of the project, establishing a baseline for optimization and forming the foundation for the PFS, which is targeted for completion in Q4 2026.
- Timeline Execution: While the PEA was delivered later than initially guided (first Q2 2025, then Q3, then Q4), the delays were justified by the need to incorporate the Nuton heap-leach technology case, which is critical for project optimization. The strength of the final numbers mitigates concerns about the timeline slips.
Following a series of positive developments over the past year—including the game-changing Nuton partnership in November 2024, a massive resource increase, and the strategic spin-out of non-core assets into Centauri Minerals—this PEA successfully delivers on a key promise to the market.
Aldebaran Resources Inc. is a Canadian-based mineral exploration company. Its flagship asset is the Altar copper-gold project located in San Juan Province, Argentina. Altar is a very large porphyry copper-gold deposit cluster. The company recently announced a strategic reorganization to spin out its other exploration projects in northern Argentina (including Rio Grande and Aguas Calientes) into a new, separate entity named Centauri Minerals Inc., allowing Aldebaran to focus exclusively on advancing the Altar project.