Blue Moon outlines 13-year mine at Norway copper project
- •A 13-year mine life is pretty solid, and that after-tax NPV of $235 million with a 19% IRR sounds decent, especially for a European project.
- •I always try to dig a bit deeper into these numbers because sometimes they can be a bit rosy-giddy, but it's a good starting point.
- •My first thought is, how much risk are we really talking about with a project in Norway?
Hey everyone, just read this article on Mining.com about Blue Moon's new 13-year copper project in Norway: https://www.mining.com/blue-moon-outlines-13-year-mine-at-norway-copper-project/. This definitely caught my eye because I've been looking at diversifying a bit more into base metals given the whole EV push, and copper is obviously a huge play there. A 13-year mine life is pretty solid, and that after-tax NPV of $235 million with a 19% IRR sounds decent, especially for a European project. I always try to dig a bit deeper into these numbers because sometimes they can be a bit rosy-giddy, but it's a good starting point.
My first thought is, how much risk are we really talking about with a project in Norway? Stability is high, environmental regulations are probably tight (which can mean higher CAPEX), but execution risk might be lower than, say, some of the African or South American plays I've looked at in the past. I've got a bit of exposure to copper already through some ETFs in my retirement portfolio, but I'm thinking about whether a direct investment, or maybe a smaller-cap stock tied to this specific project, would be a good move. My kids are getting closer to college age, so I'm trying to be a bit more strategic with growth plays without taking on too much volatility.
What are your thoughts on this one? Does anyone have any experience with Blue Moon or similar projects in Scandinavia? The 19% IRR is decent, but what's an acceptable benchmark for you guys in mining projects these days? Always appreciate hearing your insights before I dive deeper into the rabbit hole of due diligence.