Very committed to the country. There's a lot of people operating in Mexico right now that are considering diversifying and leaving the country. We've decided that's what we know best, so we're going to stay there. The capital structure. Again, we have one mine in production. We just received a permit on our second mine that we started construction in August, and we have a third mine that will be built two years thereafter. Los Ricos South, with no debt. We have a good institutional following. About 50% is institutionally owned. About 15%-20% would be insiders and friends and family. Management is very much vested, and it's the same with the shareholders. Again, Parral is an asset that's in production. We built that in 2012, on time and on budget. It's been operating ever since.
Last year, it made about $80 million in free cash flow before taxes, and it'll continue to make about $80 million in free cash flow for the next four years. It has about four years left in reserves. This has done a great job in funding a lot of the exploration, as well as G&A and whatnot over the last number of years while we explored Los Ricos South and Los Ricos North. But the true future of the company is in Los Ricos. We acquired this project in 2019. We paid $7.5 million for it from a private family. It's a well-known project. We've been following it for almost 10 years. It has a long history. It went through a bankruptcy process, and ultimately, we purchased it out of that bankruptcy process in Mexico.
We've since spent about $60 million or $70 million on exploration, engineering, and now we have studies and we are building Los Ricos South. Los Ricos is really two projects. It'll ultimately be a district. There'll be multiple mines here over the next 10 years. But the first mine is Los Ricos South. We drilled this off about 120 million silver equivalent ounces. We did several studies. The most recent study was a full feasibility study published last year. This one, we had applied for permit a while ago. We received the permit in June. We immediately broke ground in August, and construction is ongoing. Again, we have $284 million in cash in the bank, U.S. The capital on this project, the original feasibility study was $227 million. Our current budget is about $260 million-$ 265 million, and we've already spent $15 million of that. We're well-funded.
Plus, keep in mind, Parral is generating that excess cash flow. During the build, our cash balance will never drop below $100 million. We're fully funded and going to execute on this build. Los Ricos North, again, we drilled off 160 million silver equivalent ounces here. We did a PEA on it. It's an 8,000-tonne a day mill. The average production is 8.8 million silver equivalent ounces in the north. I forgot to mention, in the south, the one we're building today, it has 7.4 million silver equivalent ounces per year. Some highlights of the Los Ricos South feasibility study. Again, average production for the first five years, 7.3 million ounces. The initial CapEx was $227 million. Like I said, we're 90% fully engineered. Sorry, the detailed engineering is at 90% complete.
When we were waiting for the permit, just like Vizsla talked about, we were doing all the engineering. We were ordering parts. We have ordered the mill. We have ordered all the filters. Everything is on time. Actually, the mill itself is way ahead of schedule, which is a great problem to have. Again, all-in sustaining costs on Los Ricos South in the study was about $12 an ounce. We expect with some inflation, maybe that will end up at $15 an ounce, but still very low cost, very profitable mine. Again, it is a 2,000- tonne a day underground mine, only gold and silver. By value, 60% silver, 40% gold. One of the advantages of Los Ricos South is the average stope width is 11 m, which in Mexico is somewhat uncommon.
There is a lot of mines that are, say, 2 m to 3 m, and you can imagine, even in this room, a 2-m wide vein is two of these panels, and our veins are almost as wide as this room. It is going to be much easier for us to fill a mill, and quite frankly, it should be much more efficient. Again, this is the metal sensitivity. This has both the north and the south, but our feasibility study was done at $26.80 silver and $23.30 gold. You guys can choose whatever price you want to do your valuations at. But at spot price, it is in and around $1.3 billion, $1.4 billion. Here is an image. We have broke ground, like I said, in August. We are well on our way with earthworks. The general key milestones for the South. Earthworks commenced in August. Underground mine optimization.
One thing that happened here is because we were so far advanced in detailed engineering, we had to find a way to bring forward some ounces, because otherwise the mill was going to be ready before the underground was ready. We have re-optimized the underground. We have gone in, and we are going to do a second portal to access ore that will fill the mill immediately when it is ready. Again, I did not mention it before, but first pour is scheduled for June 2028, with full commercial production before the end of 2028. The power line, we were on hydropower. We are running that line. That installation will begin in November. We are just in the final stages of negotiation with the contractor. Concrete foundations we poured in January. The portal, right now, the earthworks is building the road up to where the portal will be.
That will start in January as well. Again, the underground, it would be a paste backfill. About 60% of the tailings will go back underground. 40% will be in the dry stack tailings. That paste plant will begin construction in January as well. In and around where the portal is, we wanted a lay down area. There is some mineralization up the side of a bank that we felt was unsafe, so we are going to take that down. Just a slower grade material, but we will use that during the commissioning process. Again, SAG mill and all the filters were ordered over six months ago. They are still on schedule, scheduled to arrive in May 2027. Again, the scheduling is the plant commissioning should begin in January 2028.
Again, we modeled out the cash outflows over per quarter, plus the inflows from Parral, just to show people that we don't see our cash balance going below $100 million during the build. We had received some questions as to whether we were going to do a cost overrun facility or any type of revolver, but we don't think it's necessary at this time. There's the hydro plant. We're running that power. We've signed a contract with CFE securing the power. Now we just have to run the line, and there is ample power there for both Los Ricos South, as well as Los Ricos North when we get to it. Here's a schematic of where the mill is. Luckily, the drawing will soon be a reality as we continue to break ground, and looking forward to pouring foundations.
The structure here that we're mining is about 1,100 m long. This is the mine plan over as we develop. The colors are by year, not necessarily by grade. You can see it's pretty straightforward. We're not chasing after ore in offshoots. It's really pretty dense, nice thick ore zones. One of the things about this project is this mine was in production from 1909 to 1929. We've been able to obtain all the old historical records in an archive. One of the things that's interesting is our reserves stop here. When they mined this in 1929, and ultimately, they got kicked out because of the revolution, not because they ran out of ore to mine, they were mining down here at some of the highest grades in the history of the mine.
We have drilled a couple drill holes down there, and we've confirmed what we expected to see. The issue is they're 900-m holes, and we decided we're going to wait until we get underground. We'll drift out some drill stations and drill it from underground. But we know that this mine will continue with high grade for a long time. That's Los Ricos South. In Los Ricos North, key highlights of that, initial CapEx. Again, this is a larger 13-year mine life. The PEA was a larger open pit. It does on average 8.8 million silver equivalent ounces a year, and all-in sustaining costs in and around $12. Very similar to Los Ricos South. Sorry, I meant $10. Both projects in production, we expect will be Look, the studies both said they'll be under $12.
We're telling people maybe it'll be $15 now with some inflation, but they're still very profitable projects. If we go back again, when we look at this as a district, and we look at Los Ricos South and the North, you can see, again, you choose your metal prices. But we think at $60 and $4,300, pretty much spot pricing, we're talking about $3 billion net asset value for these two projects. Again, it's a series of five open pits. The El Favor is the main pit, definitely the largest one of them. Our strategy here now is we're going to start speaking with the environmental department about what's the fastest way to get this permitted. There's two avenues. One of the biggest bottlenecks in Mexico right now is of water and access to water.
Our view is, in this company, we are focused on cash flow and getting these projects into production as fast as we can. We are taking a little different approach. We are going to speak to the Government about this and suggest this as our approach. This area right here is a higher grade, smaller open pit. We may downsize the mill to 2,000- to 3,000- tonne a day initially, and then expand it later on, because this is an old underground mine. We know there is excess water in there that we can drain and use, and there is enough water to service a 2,000- to 3,000- tonne a day mill, but probably not enough water to service an 8,000- tonne a day mill. We are going to start, this here is a small pit, a 3:1 strip ratio, 140 g open pit.
It will service a 2,000- to 3,000- tonne a day mill about six years. In Casados, where we are draining that water, we will likely start going underground there as well. The key is what this will do, based on our experience getting the permits and our dealings with the Government, we believe we can get this permitted in one year, and we plan to submit permits in the first quarter of 2027. That way, we have more time to find the water to build the larger pit down the road. It would be more of a step build. That is ultimately Los Ricos. It is two mines.
The other project that we have that we do not talk about a lot is the Parral tailing site. Again, this is one we built 13, 14 years ago. Again, we built it on time, on budget, but we are reprocessing old tailings from a 300-year-old mine. We always believed, right now it is generating great cash flow, partly because of the metal prices, but even when it was only generating much lower levels of cash flow, this project always had great qualitative value to us because the environmental department loved the project. They have been to site several times to look at it. It really helped us, in our view, to get the permit that we did because the head of the environmental department, she toured this project and she loves it.
Ultimately, we are taking these tailings that the city was surrounded by. We are trucking them 13 km out of the city and putting them in. They were always unlined in the city, so we are putting on a proper heap leach pad. Again, we have about four years of reserves here left. One thing about this area is they have been mining here for over 300 years. There are lots of smaller tailings piles around. Our view is we will likely be processing tailings here for much, much longer than the four years, but we will continue to work through that. Here is sort of the production profile of GoGold and the growth of it. As you know, in 2027, we will be in construction. We will have Parral. After tax, it will make about $50 million. In 2028, we expect Los Ricos South to be in production.
Again, we are saying first pour in June 2028, and we will be ramping up. Then 2030 is when we expect to bring Los Ricos North into production. Then they are pretty consistent. One thing you would see if you look at Los Ricos South is the production profile peaks in 2030. There is a very high-grade area, we call it the Eagle. We'll mine through that, and then the grade does come down. One of our focuses will be going in that second horizon, like I showed you before, drill that down, and get some more high-grade ore. We'll offset some lower-grade ore. We do believe production at Los Ricos will kind of stabilize at that higher level, but until we have those reserves, this is what we know today.
If you were here for the Vizsla presentation, ultimately, our analysts would say we're trading at about 0.5x our NAV. There's a big discount between a developer and a producer, and we think our focus right now is we execute on the build. Let's get it done on time, on budget, and we think the stock will naturally re-rate to the other junior or mid-tier silver producers. That's all I have. If there's any questions. Yep.
Thank you very much. What are you doing for security?
We haven't had any issues with security in Mexico. Again, the team has been down there for definitely 25 to 30 years. Obviously, there's been some tough situations in the country recently, but I'll tell you, in Parral, we have had no issues whatsoever. In Jalisco, in Los Ricos, no issues whatsoever. So right now, we're trying to be smart. Obviously, we're in touch with the local authorities and just monitoring things, but I'd say we don't have a need yet to really beef up security like some other areas in Mexico. But do you have security there? We do not have armed security or anything. We obviously have security guards at our gates and things like that, but not armed security, if that's your question. Thank you. Thanks. Mike. [uncertain] .
[audio distortion].
Sorry, I can't hear you, Mike [uncertain]?
Yeah. So, you can just maybe speak to Los Ricos Norte permitting process and just your views in terms of the asset .
Did you say permitting process?
A permit.
Yeah. Obviously, we've been living the permitting process for the last three years, really. It's really been more of a nightmare than anything. But one of the things we thought about, obviously, we were three years and two months to get the Los Ricos South permit, and we've kind of reflected on are we being unreasonable thinking we can get Los Ricos North in, say, 12 months? If you think about it, the first 18 months of that process was under the López Obrador, which he really shut down mining completely. He had no interest. The file really didn't move. It just sat on somebody's desk. Then, when the current president, Claudia Sheinbaum, came in, reality is she took six months just to figure out what her priorities were in that. Saying, recognizing they're open for business, it took about 12 to 14 months to get that permit.
Obviously, our COO, Anis, you know Anis, he's very confident in our discussions with them that 12 months should be the new normal in Mexico for what I would say is a project that can prove it has the water. The bigger you get, the more disturbance you have, the longer it's going to take. The more water you need, the longer it's going to take. That is why our approach in the north, we are reconsidering how we approach it because we think we know we have the water in that underground mine. Therefore, that is going to be a checkbox. It is not going to be a question. We know it can fill a 2,000- to 3,000- tonne a day mill.
So that is why we are doing it this way, because otherwise, we think it is more important to get that cash flow flowing sooner rather than maybe delay it another two years or a year while we sort out those issues. That answer your question?
Okay, thank you. That is all the time we have today.
Thank you.