How long the mine takes to earn back its construction cost.
The time required for a mining project to recover its initial capital investment from net cash flows. Shorter payback periods indicate lower risk and are preferred by investors. Typical payback periods for mining projects range from 2-5 years.
In a cyclical industry, a short payback is worth a great deal, because it reduces how much of the return depends on where prices sit a decade out. Under three years is strong for a junior project.