Fig. 2: The required rate of return for the back-ended risk premium.
From: Artificial intelligence investments reduce risks to critical mineral supply
This figure illustrates the differences in the required rate of return to investors between front-ended and back-ended minerals. We define these differences as the back-ended risk premium. \({R}_{b}\) is the required rate of return for back-ended critical minerals and \({R}_{f}\) is the required rate of return for front-ended minerals. \({T}_{1}\) and \({T}_{2}\) denote the beginning and end of the project development.
