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Here is the DoD report that has been referenced multiple times in the news today. A google search for Department of Defense Critical Minerals will bring up quite a few articles. Note that this is NOT the report due under the critical minerals list executive order. This one was a different order from 2017. The more relevant report for Niocorp’s business will come from the Department of Commerce between now and mid November.
https://s3.amazonaws.com/static.militarytimes.com/assets/eo-13806-report-final.pdf
I don’t have a problem with him as CEO of both companies and a director for another. It’s common in this industry and others. The reality is that none of these are “full-time” jobs as most people think of them. He gets paid for what he knows as much as for what he does. You can’t just go bang on doors 40 hours per week asking for money. In this regard, I think Sims government experience is actually much more valuable than everything Smith brings to the table.
My number one complaint about management is still the lack of updates. Smith hasn’t directly addressed shareholders for about a year now and that is inexcusable. A quarterly update letter is not too much to ask for, and issues such as the 408 permit should have been communicated directly and not through the senate hearings.
What are the individual values that would lead to a sum of the parts valuation of $20-$50? How do you propose each of the three business units would achieve that value?
Every HOG farmer is Affected. No farmer exports directly. They typically work in coops so that large companies are the ones actually shipping, like Seaboard or Smithfield. Additionally, in a global economy when one producer is faced with an over supply due to a sudden decline by a major consumer, the price drop will transcend the sector, that is basic economics and not specific to pork.
Finally, China frequently is the difference between profit and just breaking even for this industry as they are consumers of parts of the animal that most Americans will not touch, which are frequently called the “variety meats”.
https://www.nationalhogfarmer.com/business/chinese-retaliation-us-pork-exports-will-harm-rural-economy
That statement jumped out at me when I read the article this morning. That is exactly how I view the company and the only reason I haven’t sold. I still think the scandium revenue forecasts are bogus and that this company will not turn enough profit in private industry alone to satisfy financiers requirements.
On the other hand, you can’t really quantify the strategic value of niobium to governments in the context of NPV in a feasibility study. I will be looking for some sort of verbiage in the report that is similar to this. This is really what the German Untied Guarantee does for Germany.
The report actually has not been delayed. The due date was always mid November. It is due 180 days after the critical minerals list came out. Some articles had erroneously listed the August date which was 180 days after the draft version.
Check your starting number.
You are off by a factor of ten. Please fix your post as to not mislead.
That was a nice little short term trade. I think it will keep running short term but I certainly can’t fault a little profit taking.
Not grasping at anything. You stated a buyout as if you expected it to happen, which seemed out of characteristic for you and is exactly why I asked for clarification.
My original question about personal investment into the company seemed rather straightforward and was not intended to start a debate on options. I’m still curious how the execs and directors came to own the shares they currently hold. MS’s large purchase was well documented. The others are likely buried in other filings. This information isn’t readily available for OTC stocks. I’m assuming by the responses that no one here is sure, so I’ll continue to look myself.
Some of them already have other jobs in the field with other compensation, but I’m not trying to debate the options. I disagree with your first statement, but otherwise I am confident we both understand how the options work.
Executives and directors investing funds from their own personal accounts is an extra vote of confidence from those individuals on the outlook of the company. This does not mean the opposite is also true. I was curious if any one else had already researched this, as MS is the only one I am aware of that has done this, but my research has not been exhaustive on the subject. I mostly found it strange that the executive compensation was not included in the 2018 10k, whereas in previous years it was.
It appears those issued over the last three or four years have all had 5 year expiration dates, but I don’t think that covers all of the options and/or awards. It matters enough that the SEC requires filings on these issues and it kind of interests me as well.
I am curious about your third question. Are you now in the camp that prefers a buyout by a larger existing mining company?
Stock options still require them to invest their own money. I was under the impression they were receiving stock based awards as well as the options, This does not appear to be the case over the last few years anyways. The 2017 10k shows options and current holdings of the executive employees and directors. It appears most options have never been excersiced and some of these individuals own a surprisingly low number of shares. I am curious if someone had already done the research to find out how these shares were obtained, with the exception of MS as we know he made a $10MM investment when he took over.
Some of this information is in the 2017 10k but it doesn’t tell the whole story. Strangely, executive compensation was not included in the 2018 10k and is due to be filed separately by the end of October.
To answer your question, I would access the investment the same as all of my others, with the caveat that I typically have a higher degree of confidence when I am part of the deduction making team. Options would certainly be converted to shares based on the option price. In many of these cases that price is above the market price.
Employees would have been a more accurate termsor some. At this point all employees are also insiders. I am asking about directors as well.
Have any insiders, except for MS, spent their own money to obtain shares of NB?
I don't like the click bait headline, but here's a good article on cobalt projections and Clean Teq.
https://oxfordclub.com/reports/how-to-make-a-fortune-from-the-coming-super-metal-shortage/
The motley fool is a joke. I rather see more updates about Clean Teq serving free coffee than read the fool’s drive.
Your benefit would be at the detriment to other holders, especially US based investors that were not even granted the opportunity to participate in the placements.
Management must consider the warrants simply as a transaction and not as a bonus or reward to certain investors. Decisions are made on behalf of shareholders as a whole, not on behalf of those that own a warrant as well. If the money is not needed (the recent $3MM placement should get them through February or so) and if financing is near, then it does not benefit shareholders to see an extra 5% dilution on top of whatever dilution is necessary for the deal.
Many warrant holders are likely not even current shareholders. Many likely took the Lind route and sold shares but kept the warrants, thus eliminating the risk by getting their cost back to zero while maintaining the upside potential with the warrant.
If you believe the warrants to hold value, the best way to 'benefit' would be to buy more shares on the open market while the price is below the strike price. Not only would you get in at a lower price than the warrant, but you would potentially drive the price upwards thus making the warrant more valuable.
It’s all in the 10k. I assumed everyone here was already reading them. Page 61 if you haven’t.
A little news on the water side. The rumor on hot copper has been that the water business may be spun off.
https://www.nasdaq.com/press-release/joint-venture-to-progress-graphene-oxide-technology-development-20180923-00021
Why is it funny or odd? None of those companies have anything to do with Niocorp, and once again you have failed to evaluate market capitalization.
What you are doing is dangerous. This company doesn’t need disingenuous projections, nor does it need to unethically recruit new investors on the hopes of unrealistic gains.
There is upside here, but these comparisons only serve to destroy any credibility that this board may have and potentially leads investors to unrealistic expectations. Please advertise the company on its merits and not irrelevant comparisons.
You are referencing something completely different.
Hello again. I heard my name.
The annual meeting is scheduled for 12/6.
The critical minerals report to the president isn’t due until 11/14.
Over 12 million warrants expire between mid December and mid January. That’s 5% dilution. Management will keep this in mind if they are negotiating financing deals and set deadlines accordingly.
Goodbye.
I’ve made it clear on the other board that I despise chart reading, but I’m confident the bottom is in on this one. The down swing was caused mostly by dropping cobalt prices but also an FS that didn’t quite meet investors expectations. It should be noted that the FS assumes $30/lb for cobalt for the life of the mine. Prices recently dropped to ~$28/lb and have rebounded to ~$33/lb.
If you want to track daily swings it is paramount that you track CLQ on the AUX. The OTC has mostly followed it. There is plenty of liquidity on that exchange. CLQ is thinly traded on the TMX. Rubber has voiced his frustration with the listing on that exchange.
If you want an extreme example just look at Australian Mines (AMSLF on the OTC). Down 60% yesterday and up 100% today. That swing is irrelevant to the value of the company and AUZ on the AUX has not seen such swings.
Check your sources before you start reading charts.
Have you seen any news on Friedlands presentation in China from Monday?
Congo is increasing royalties on cobalt from 2% to 10%. These increased royalties, continuing other political concerns, and the ethical concerns of mining in the region should direct investment to other potential cobalt producers.
https://www.businesslive.co.za/bd/world/africa/2018-09-16-drc-to-declare-cobalt-and-other-minerals-as-strategic-this-week/
https://www.bloomberg.com/news/articles/2018-09-15/glencore-china-moly-face-higher-cobalt-royalty-taxes-in-congo
US.
I follow on the AUX as well where there is decent volume. The OTC seems to follow it but with more daily volatility due to the low volume.
Cobalt pricing is coming back up. Seems the share price has been tied to that more recently. Today was just following the AUX with the volatility you can expect on a thinly traded OTC stock.
I feel I owe you a response. My posts have been toxic to this board since my initial criticism of the Ricketts letter. I don’t wish to simply state my position, that gives me nothing more than a platform. I wish only to have dialogue and debate over various positions to engage a deeper thinking. I want my position challenged, and as such I challenge others. That dialogue is not possible here. A challenge is refuted with insults and preposterous suggestions. Apparently I am LCP, Advocate, and Tim Worstall all rolled into one.
I first invested in this company almost two years ago. I don’t desire someone to reaffirm my position. I assume it to be obvious an investor knows the positive aspects of a company. I desire a challenge to my position. I want to know why bears believe I am wrong, to ensure I am properly evaluating the holding.
I am also self aware enough to know when I am unwanted. If I receive no benefit and my presence is discouraged, then the appropriate thing to do is leave.
If I wore my boots to a dinner party and the other patrons complained about my attire then I wouldn’t try to convince them otherwise. I would respect their wishes to cater to a specific crowd that does not include me and then excuse myself, hence I ask to be excused. If you believe this mine will be built, and you’d like to further converse with me, then let’s talk in the electrical room.
I did commit to providing Australian Mines projections on the the scandium market. You will see one last post from me when their FS is released.
It’s a metaphor for self reflection.
I like you. I rather talk to a fence post than most CEO’s.
If you have zero interest in Clean Teq, why did you just ask me this morning why the stock has ‘imploded’?
I don’t care who here chooses to invest in either stock. I do care a lot about the various opinions on scandium across the industry, and I know others here do as well. Australian Mines is expected to put out a FS later this month. They own a site that is part of the same laterite that Clean Teq owns. I’ll update the board with AUZ’s Sc predictions when it is released.
I’m not surprised, nor have I complained, that financing has not occurred. I don’t expect it this year, and at this point I don’t want it this year. I would rather see those 12 million warrants expire than give up 5% equity in the company just for the potential to move the project up a few months.
If you had done research on the scandium market, you would know that many other potential producers also have agreements with alloy partners. Niocorp is not unique in that regard.
Junior mining stocks are subject to extreme volatility. Niocorp has seen similar drops. If you’d like to compare the two companies in regards to the scandium market, let’s do that. CLQ with a different mineral portfolio is an ideal ‘partner’ to help Niocorp grow the scandium market. Every potential scandium supplier I have researched agrees that without multiple suppliers the global production will stay around current levels.
I don’t care to converse over short term price volatility for either of these two companies, and I certainly don’t wish investors of either company any misfortune in their investments. I get no amusement over large drops. I’m also not a chart reader. I find it boring and mostly beneficial only to day traders. My interest in investing is driven by company fundamentals.
This is where you need to do more research on the scandium players. CLQ is not a major scandium player. They model it as a small proportion of their revenue until the market develops.
Lots of stocks have fallen drastically, so why the obsession with Clean Teq’s?
Why the obsession with the CLQ share price?
I questioned the PP success based on the sub par results of the last one. I also suggested management must be more confident in this one due to the half warrant. It certainly appears they have the $2 million worth.
Have you checked the market cap of other junior miners?
Much interest by retailers. Australian mines inked a $12MM convertible security yesterday with a US firm at 0% interest and no warrants. All of the Lind deals for NB have come with 10% interest and warrants. I’d like to see a real institutional investment into Niocorp to provide plenty of solvency while they pursue offtakes, alloy patents, and ultimately larger financing; but not before mid January.
There are about 12 million shares worth of warrants that will expire worthless if we stay under .72 CAD until 1/19. No reason to give up 5% equity over four months.
The iPhone is trying to send subliminal messages. Thou shalt reference the apple in all posts.
One little typo and autocorrect spits that out. Let’s try again.
Hearsay. Hearsay. Hearsay. Every post referencing a conversation with an analyst, management, or another is not heresy, but hearsay.