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Which July? I feel like we often hear "we will know by ..." but then those dates pass and here we are waiting. Still.
Why all the negativity? Just over 2 weeks ago I was told that JPMorgan Chase wouldn't have engaged with NioCorp if they thought we'd default. They were going to help with EXIM financing. This was another positive sign.
Then a week later management says that it will be at least 9 months longer for EXIM due to more drilling needed.
Which is it? Are things great or abysmal? Stock price says the latter.
But this is why management is terrible.
It is a recurring theme though. There is always something else to move the goalposts.
I was frustrated but patient years 1-9 when we were constantly hovering between about $0.50-$0.80 because I was generally about even and usually slightly positive gains. Now I'm just mad.
Since the October 2022 announcement of the SPAC deal everything has gone to hell in a hurry. We have no revenue and almost no cash on hand. We have lost hundreds of millions in market capitalization and share price hovers just above multi-decade lows. We can't really even raise capital on NASDAQ because that would just dilute us even more We seem to be paying a lot of fees for studies and crappy financing deals. Mark made sure he got his money out plus his interest.
All this happened while salaries, bonuses (Mark got a $100k bonus in 2023 while the stock crashed 80%?), and equity compensation went up significantly, even for the part timers. Now we are told that we need to wait another year after what was effectively a commercial for what should be a vendor to our operations. Nice job management.
So a few years ago I heard a lot about how this project was de-risked and shovel ready except for that Air Permit and financing. Seems like it isn't quite a shovel ready as advertised if we need to drill more to get REE data to sufficiently de-risk it from "probable to proven" in order to get financing.
Didn't we just do some additional drilling in 2021 "in order to compile sufficient data with the aim of publishing an updated Mineral Resource for the Elk Creek Critical Minerals Project (the “Project”) that includes individual rare earth elements (“REEs”) grades and tonnage that may exist in the deposit."
Now we have to do more drilling and analysis? Why didn't management have this completed then?
Oh well, next year is going to be our year. Every year.
Quantum Rare Earths didn't collect or analyze for REEs over a decade ago? Whose decision was is to focus on the niobium? Then add scandium and titanium? Then add REEs?
Mark has been compensated about $500k/year for a decade at this part time job and doesn't have REE ore information when he took over a company called Quantum Rare Earths?
Sounds like it is bonus and raise time at NioCorp Academic Studies Corporation.
So the same problem as ... ever?
T&T, seems unreasonable to have expected the NioCorp management to consider or include rare earths in the earlier feasibility studies. I mean, come on, they're NioCorp not Quantum Rare Earths.
Quantum Rare Earth Announces Board Addition, Impending Company Name Change;
I'm using exaggeration for the purposes of illustration since it seems that was too difficult and some people are taking that post literally. NioCorp has a long history of misleading news releases and deals.
SPAC deal
Please feel free to explain why they use vague language then instead of concrete terms. "Engages" JPMC - what exactly does this mean and what are they doing? Did they close a loan deal or not?
Financing was "imminent" years ago but never happened. Clear concise press releases would be refreshing. But then it would be harder to hide their failures.
I don't like how much they use vague terms like "engages". What specifically are they doing?
For all we know, Mark could have walked into a JP Morgan Chase office without an appointment to ask who he could talk to about a loan and never talked to anyone who could even set up a meeting let alone make a decision. That would also qualify as NioCorp "engaging" JPMC. Doesn't mean anything will happen just like nothing happened with the German government loan from a decade ago.
It sounds nice, but still too vague to get excited yet.
Your question is moot because you changed the terms. Your original post state:
There is a big difference between applying for a loan and actually receiving the money. NioCorp has yet to close a deal that has been beneficial to shareholders in their entire history.
I can apply for a $1B loan but for some reason the Ferrari dealership won't accept my promise to pay. They kept mentioning something about insufficient funds to cash my check.
Please share this wonderful news that they received a low interest loan for $800,000,000. I have yet to see such wonderful news. I understand that it was imminent about 7 years ago though.
If only they would hire someone to manage these types of public relations and communications. Maybe call them something like a "Chief Communications Officer" or something like that.
I bet these types of people don't come cheap though. Probably would have to pay them around $338k/year just to do it part time.
https://www.salary.com/tools/executive-compensation-calculator/jim-sims-salary-bonus-stock-options-for-niocorp-developments-ltd?year=2022
"If they deliver ..." they have been running the company for over a decade and have yet to deliver anything in the interest of shareholders. Especially in 2023 when the stock tanked well over 75% there is no justification for a salary increase of over 36%
Mark went from: (source: https://www.salary.com/tools/executive-compensation-calculator/niocorp-developments-ltd-executive-salaries?year=2023)
2021: $106k equity + $297k salary = $403k total compensation
2022: $256k equity + $297k salary = $556k total compensation
2023: $216k equity + $404k salary = $620k total compensation - SERIOUSLY? increased salary by over $107k in a year that his deals completely destroyed all shareholder value by around 80%?
"Just do your own dd" on how he has been acting in the best interest of shareholders over these past few years let alone his entire tenure as a part time CEO at NioCorp.
Not only does management remain intact, their compensation continues to increase significantly after making horrible deals and destroying shareholder value.
Someone once posted about how CEOs of publicly traded have a fiduciary responsibility to shareholders. Not sure how increasing the salary of the part time CEO by $70k in a year when the stock value tanks by over 75% (and counting) qualifies as acting in the best interest of shareholders.
Serious question, why has there not been a plan developed to have a more palatable CAPEX plan to get things started? Can't they do something with like $500m to at least get operations started and revenue generated? I have never understood this.
Thanks in advance to any reasonable responses on such a (another) crappy day.
You mentioned something about something called Mark Smith's obligation to shareholders. Interesting concept if true. Is that a new thing because I haven't noticed or heard of it before this.
IMO, no buy outs for any of management without it being tied to a commensurate stock price or market cap return to shareholders. He's already got lots of stock so that won't be attractive to him. He's made a lot of money as a part time CEO of a company with no revenue for over a decade. He has done nothing to deserve a buy out (yet).
Where did the money for his salary (and loan interest) come from?
Let's review the past decade:
1. We are going to mine Niobium in Nebraska.
2. Change name from Quantum Rare Earths to NioCorp
3. NioCorp adds Sc & Ti to production materials list.
4. No financing closed for years.
5. Consider adding REEs to production materials list, study to be conducted
6. No financing closed or FS for the added REEs completed
7. Consider adding recycling of non-mined Rare Earth magnets to potential list of products still not yet in production.
Are we trying to be a company or should we just rename to something like Quantum Rare Earth Research Association?
The spread limit is broker by broker based on their policies. There was a time when I would put the $0.65 Niocorp shares (oh the good old days) on a limit sell order with Schwab at $40.00 and it would be valid for 90 days. At the exact same time another broker that I no longer used would not let me put the limit sell that high.
I was being critical of the author and the contents of the article, not you.
I'm curious how you think this is in any way relatable to NioCorp?
NB's money has always been tight. Management seems to take home hefty salaries while not producing any revenue for over a decade. How is that anything like your story?
NB management gives raises, bonuses ($50k on top of a $200k+ salary), & doubles equity compensation while destroying shareholder value by making terrible deals.
Have I mentioned that they have been doing this for over a decade now? With no revenue even projected for several more years? How many VC's would be willing to cover a company's finances for a decade while producing nothing except bad deals?
How has NB's IPO worked out? Don't think there are any millionaire janitors here. Seem to have plenty of millionaire con artists though.
Fun story, but has no similarities to NB other than lack of revenue.
Here is another fun story. I made a small fortune in NB stock. I did it by starting out with a large fortune in NB stock.
I noticed that you didn't say March of what year? There is always a promise of waiting for something.
-March 2023 we were in the $9-$10 range.
-We were updating the FS to add REEs.
-We were applying for EXIM loan for $800m
-We were about to merge with a SPAC and have $250m available
-We were being uplisted to NASDAQ.
Then the bottom fell out and we're down over 75% with almost no cash and no loans. That's just 2023.
After a decade with Mark at the helm and longer with Quantum Rare Earth, I think the good will to wait has evaporated as nothing of substance has been delivered. Ever.
The zip code is Costa Mesa, CA
One thing seems clear. If Mark Smith says something along the lines of "financing is imminent" or "... will bring in money" or "historic advancements", that probably means you should sell and run away as fast as you can. Nothing positive for long investors seems to follow.
I noticed that you didn't state what year in "eoy" there.
Well they did predict "historic advancements" in 2024. I personally don't consider 10 year lows to be "advancements".
Ok, what year? Wait seems to be the recurring theme with NB.
Unfortunately it doesn't look like there was much support at $3.08
So they dropped the ball a long time ago & get $50k cash bonuses and double the annual equity compensation.
Clearly the type of things that a "world class management team" would do.
Again, I don't think they're overstaffed and have never stated such. I'm saying they haven't been performing well enough to be earning their huge compensation packages considering what they've delivered in the past decade. Especially the part timers.
Ok, why did they not have REE data? When they decided to do a new FS with Sc & Ti, why didn’t Mark think to include REEs since they’re redoing the FS anyway?
They had samples for initial tests & could have dug more cores (since they did that anyway).
The Obama admin was pushing green energy & EVs and all that. Solendra anyone? That might have been their best shot at a government loan other than environmentalists may have pushed back. But when Tesla was beginning to take off, they may have had interest by private investors.
Why did it take Mark & others 7-9 years to think to add REEs? Maybe he was too distracted with IBC & other part time distractions.
But they don't have 8 employees. Many are part time employees with what would be hefty salaries for full time employees. Where is the revenue to pay such salaries & compensation? After 10 years, what BD accomplishments do we have to brag about? Offtake agreements which may or may not materialize? Kudos. The ever elusive nearly complete deal that hasn't closed yet? Generate revenue (preferably profits) and they should share in the success. But they've been compensated as though they have been successful and that hasn't happened yet. They deserve a reasonable salary, but they are completely overcompensated based upon performance. 8 years ago I would have given the benefit of the doubt to build a quality staff. After 10 years, they don't get the benefit of the doubt and should have produced something beyond "next year will be big" type of promises.
Since my original post was asking what does a VP of BD do, in 2023 Scott Honan made $265,000 base pay + $50,000 cash bonus (for what accomplishment?) and $123,600 in equity compensation. I'll save you the trouble of getting the calculator out as that adds up to $438,600 in yearly compensation to be the head of business development and generate zero revenue for 10 years.
In 2021 his equity compensation alone was $52,910 but increased in 2022 to $118,371? Why did that more than double? What great accomplishments did he or NioCorp achieve to deserve such increases in compensation in 2022? Right after that the stock crashed from a high of $11.025 to sub $3.00 in 2023? Was it laying the groundwork for that amazing SPAC deal announced in the fall of 2022? One would think that a $50k cash bonus and an increase of $65k/year in equity compensation that would have something tangible to brag about. Maybe even PR worthy. Feel free to leave a link for the accomplishment which reflects this.
Correct any data: https://www.salary.com/tools/executive-compensation-calculator/scott-honan-salary-bonus-stock-options-for-niocorp-developments-ltd?year=2023
So who is the f#$$$ing brilliant one?
P.S. I'm sure Scott is a good guy. Never met him but happy to give him the benefit of the doubt that he is. But this is business.