CA$473M Tungsten Project Reveals 48.8% IRR and Rapid 2.2-Year Payback in Europe
- •Hey everyone, Just read this article about Allied Critical Metals' Borralha Tungsten Project and it got me thinking.
- •A 48.8% IRR and a 2.2-year payback period?
- •That's pretty wild, especially for a mining project.
Hey everyone,
Just read this article about Allied Critical Metals' Borralha Tungsten Project and it got me thinking. A 48.8% IRR and a 2.2-year payback period? That's pretty wild, especially for a mining project. I've been investing for over 15 years now, and while I've seen some impressive numbers thrown around, something like this immediately catches my eye. Tungsten is definitely a critical metal, and the fact that this project is in Europe, potentially reducing some supply chain risks we've seen globally, is also a plus. I’m thinking about how this could fit into the "critical minerals" portion of my portfolio, which I've been trying to beef up for my kids' future.
My concern, as always, is whether these numbers are sustainable and what kind of CapEx is still required to get this thing fully operational. The article mentions a CA$473M project, which isn't pocket change, and PEs can sometimes be… optimistic, shall we say. I'm trying to balance high-growth potential with stability as I inch closer to my retirement goals, and while the early payback is attractive, I'd want to dig deeper into the risks and the assumptions behind these projections. Regulatory hurdles in Europe can also be a beast, as some of you might know from experience.
What do you all think? Are these numbers too good to be true, or is this a genuine opportunity? Anyone here have experience with Allied Critical Metals or similar projects? I’d love to hear your thoughts on this one. Link to the article here: CA$473M Tungsten Project Reveals 48.8% IRR and Rapid 2.2-Year Payback in Europe