New Pacific Metals' Silver Sand Project Demonstrates Strong Economics Amid Growing Silver Demand
TL;DR
New Pacific Metals offers investors a competitive edge with its Silver Sand project's robust economics, including a 37% IRR and two-year payback at current silver prices.
New Pacific's Silver Sand project in Bolivia has a 13-year mine life producing 12M oz silver annually, with AISC of $10.69/oz and NPV of $740M at $24/oz silver.
New Pacific's silver production supports global sustainability by supplying critical metals for solar panels and electric vehicles, advancing clean energy technologies worldwide.
New Pacific's Silver Sand project ranks among the world's most advanced silver developments, poised to become one of Bolivia's largest silver mines.
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New Pacific Metals Corp. (NYSE American: NEWP) (TSX: NUAG) is positioned to benefit from intensifying global silver demand driven by industrial applications including solar panels and electric vehicles, while supply constraints persist. The company's flagship Silver Sand project in Bolivia represents one of the most advanced silver developments currently underway.
A preliminary feasibility study released in June 2024 outlines a 13-year mine life with annual production of 12 million ounces of silver, reaching 15 million ounces during initial years. The project economics demonstrate significant strength, with a post-tax net present value of $740 million and a 37% internal rate of return at a silver price of $24 per ounce. The all-in sustaining cost is projected at just $10.69 per ounce, with payback expected within two years.
The robust economics come at a critical time for silver markets. Industrial demand continues to grow substantially, particularly from renewable energy sectors and electric vehicle manufacturing, while global silver supply faces constraints. This supply-demand imbalance creates favorable conditions for new silver production projects with strong economic fundamentals.
New Pacific Metals has positioned itself as a first mover in this environment, with the Silver Sand project representing a significant development in the silver mining industry. The company maintains additional precious metal projects in Bolivia, including the silver-lead-zinc Carangas project and the Silverstrike discovery completed in 2022. Further details about the company's developments are available at https://ibn.fm/NEWP.
The project's strong financial metrics and relatively low production costs provide competitive advantages in the current market environment. With silver prices remaining elevated due to sustained industrial demand and supply limitations, projects like Silver Sand offer potential for substantial returns while contributing to meeting global silver requirements across multiple industrial sectors.
Curated from InvestorBrandNetwork (IBN)
