PZG Paramount Gold Nevada Corp.

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Executive Summary

Paramount Gold Nevada Corp. announced an updated feasibility study for its 100%-owned Grassy Mountain Gold Project, showing after-tax NPV of $374.7M (base case $3,600/oz gold) and $608.6M (upside case $4,618/oz gold), with IRRs of 38.9% and 55.4%, respectively. The project has received a positive Record of Decision from the BLM, with state permitting expected in H2 2026. This represents a significant improvement from the 2022 study and underscores the project's potential.

Actionable Insight

Key Facts

• After-tax NPV (5%) of $374.7M at $3,600/oz gold base case; $608.6M at $4,618/oz upside case
• After-tax IRR of 38.9% (base) and 55.4% (upside); payback periods of 2.2 and 1.4 years
• Initial capital expenditure estimated at $189.8M, sustaining capital $65.1M
• Total recoverable gold: 385,800 oz; mine life 9.3 years; AISC $1,442/oz net of silver credits
• Positive Record of Decision from BLM in January 2026; state permitting in final stages expected H2 2026
• Proven and probable gold reserves of 405,000 oz; M&I resources of 1.36M oz (inclusive of reserves)

Financial Impact

Project NPV of $374.7M (base case) vs market cap of ~$117M, indicating substantial upside if financed and permitted

Risk Factors

• Financing risk: $189.8M initial capex requires funding; dilution possible
• Permitting delays beyond H2 2026 could push timeline
• Gold price decline below $3,600/oz would reduce project returns
• Construction and operational cost overruns relative to estimates

Market Snapshot

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

US Market Status