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    Blue Moon outlines 13-year mine at Norway copper project

    Key Takeaways
    • 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?
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    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.

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    6 comments

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    Best Answer▲ 19 upvotes
    S
    sandra_green📊Growing (50-100k)
    Interesting news, but 13 years for a copper mine isn't exactly a long-term play, especially when you factor in permitting and ramp-up time. Gold and silver mines often have significantly longer lifespans, which is a big part of their appeal for stability. I'm usually more interested in projects with 20+ year projections when it comes to resource extraction for long-term portfolio considerations.

    Comments (6)

    0
    richard_garcia👑Elite (1m-5m)Real Investorabout 2 months ago

    Honestly, 13 years for a copper mine and they're touting it as a win? Maybe I'm just jaded from seeing so many projects get sidelined, but that timeline feels incredibly short for securing a significant long-term resource play. I'd be looking for a lot more detail on the proven reserves and the geopolitical stability of Norway before I'd consider that a serious contender for diversifying beyond precious metals.

    9
    paul_hill🏆Advanced (250-500k)Real Investor✓ Verifiedabout 2 months ago

    Interesting read, but anyone else feel like these "decade-plus mine life" announcements are starting to sound more like marketing fluff than solid bedrock for investment? I'm sitting on a decent chunk of gold in my IRA, and frankly, I'm more concerned about the next 12-24 months of regulatory headaches and global instability than 2037's projected copper output. Call me old-fashioned, but give me proven reserves and immediate geopolitical insulation over future hypothetical copper any day.

    7
    elizabeth_johnson💰Established (100-250k)Real Investor✓ Verifiedabout 2 months ago

    Investing in mining projects directly always feels a bit like throwing darts in the dark for me, even with detailed outlines like this. I prefer the tangible asset. That said, for anyone looking for good due diligence on this stuff, I've found the **Sprott Physical Gold and Silver Trust (PSLV)** quarterly reports surprisingly helpful for understanding the broader mining landscape and potential impacts of new projects on supply, even if I'm not directly investing in the miners themselves. Good luck to those with some skin in the game here!

    19
    sandra_green📊Growing (50-100k)✓ Verifiedabout 2 months ago

    Interesting news, but 13 years for a copper mine isn't exactly a long-term play, especially when you factor in permitting and ramp-up time. Gold and silver mines often have significantly longer lifespans, which is a big part of their appeal for stability. I'm usually more interested in projects with 20+ year projections when it comes to resource extraction for long-term portfolio considerations.

    7
    frank_rivera💎Premium (500k-1m)Real Investorabout 2 months ago

    Interesting. Copper and other industrial metals are definitely on my radar for diversification, but always with a major caveat. After seeing what happened with that South American lithium mine I backed in '18 (long story, short: government intervention and nationalization rumors), I'm hyper-cautious about anything outside established, stable regions. Norway usually fits that bill, but 13 years is a long game.

    5
    andrew_roberts👑Elite (1m-5m)Real Investor✓ Verifiedabout 2 months ago

    Interesting that this copper news is popping up here. My primary focus is preserving capital with precious metals, but I've kicked the tires on resource plays before. Copper's demand narrative for EVs and renewables *seems* strong, but establishing a 13-year mine in Norway – what's the all-in sustaining cost going to look like with those labor and regulatory environments? Precious metals are simpler; physical gold in a vault in Delaware doesn't require a fleet of excavators or environmental impact assessments with the Sami Council.

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