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You mean the $3-4MM in accounts payable with $100k in cash soon to be reported?
Lind almost certainly still has shares. I’m sure they enjoyed this pump.
You received fully expected news so you choose to gloat here? Lind undoubtedly still holds shares if the last conversion was 10/17. I bet they appreciated the pump yesterday. How will Nio pay the nearly $4MM in accounts payables without another PP or Lind? Clocks got to be ticking on some of those liabilities. Meanwhile CLQ trends with the commodities it aims to produce. Some recent anomaly’s in nickel pricing and LME exchange have concerned investors throughout the sector. I’m looking to average down here.
I could be wrong, but I don’t think so. The final Lind loan was $1M. They were given a $1.2M security in exchange and I believe the debt was recorded as 1.2 immediately. The extra $200k was two years worth of interest at 10%, all prepaid by lumping it into the principal. You should see a million less in convertible debt, as that is what was remaining at the end of June.
There are $800k in other convertible notes that also should have expired this month. Be interesting to see if those were converted or extended.
I don’t think it means much of anything. The interest was all prepaid through July 2020. I think that is basically saying that Niocorp does not get reimbursed for prepaid interest that technically is yet to accrue.
Significant federal government assistance is probably about it. I’m not talking a one time buy, there would need to be some sort of guarantee like the Germans can offer. I don’t expect this.
A large scandium offtake with a disclosed price floor somewhere in line with the FS numbers would certainly change my tune as well, but the likelihood of that is even less than the slim to nil chances of government support.
They owed 2.9 million at the end of June with just a couple hundred grand on hand. 10K says the burn is $370k/month. MS added $125k since then.
The homers are right. Big news is coming soon. $3-4 million in current liabilities with less than $200k in cash on hand. All major land options expire this spring. (The company is worth nothing without the mineral resource rights) The optimists are right, big news is definitely coming soon.
Proofs in the pudding. Show it at the 200+ tons per year Niocorp projects. The burden is on the company until they prove today’s pricing is viable on the large scale that would be required for mass use by auto, aviation, and SOFC (bloom) manufactures. I’m still waiting for my E21 golf clubs and fishing rods to be worth a damn.
If you want to be petty then put me on the record for more “competitive tension” come the meeting.
You’re right. That was wrong. I had a big typo. The project is not bankable without scandium sales. I accidentally (or was autocorrected) typed with.
The land option contracts all expire within a year. The most significant ones all expire within 6 months. I don’t think the terms of any of them are public info but I’m working to confirm.
If one wishes to analyze this project they should look at the economics less the Scandium. One should then take the time to study the projections and cost of production of the other potential scandium producers and only then make a decision as to whether NB’s assumptions seem valid. Hint: NB assumes pricing 2-3 times higher than anyone else with costs up to 10x some of the others. By their own admission, the project is not “bankable” with scandium sales. The FS also assumes that the worldwide Sc market will instantly increase 10x upon production.
One should also check their PM’s tomorrow at 3pm while they are free to to all members.
Are we know upbeat on the Lind investment? That seems like quite a tone change, but it does make for a good time to repost this comment from “superalloys”.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=119406656
Pay special attention to two things:
First, the emphasized portion, “Lind will earn greater returns from its investment in Niocorp if NioCorp’s share price appreciates.”
Nearly four years later this fact remains. Lind has never had any reason to depress the share price, as I’ve suggested.
Second, read his comments on the four month hold. It was only a hold for the four months following the closing of the agreement. The subsequent agreement was the same. I was incorrect in my initial response to grunt. There never was a hold on converted shares outside of those within the first four months of closing on the subsequent agreement.
Ask and you shall receive. I’m surprised others haven’t done this DD. The initial Lind deal had the four month hold, subject to a prospectus that would nullify the hold. I didn’t look for this as the initial agreement is no longer in effect anyways. The subsequent Lind agreement is the only one in effect today. The agreement is linked below. It had an initial four month hold from the date of closing. There is no holding period for conversions after that initial four months from the end of June 2018. The initial $350k/$275 30 day/monthly conversion limits still apply.
https://www.sec.gov/Archives/edgar/data/1512228/000161577418006090/s111190_ex4-1.htm
I reiterate, this is largely insignificant. Lind does not pursue these investment opportunities with a long term view. Their goal is to get out as soon as possible and trade shares for cash via retail investors that are still accumulating in the company. Best case for Lind is a steadily increasing share price. I’m willing to bet they would trade this for a non-volatile flat price and take their 15% premium, 20% interest, and legal fees and run away.
Grunt,
Don’t put too much faith into the four month hold. There have been many amendments filed that I have not dug into. These may be in one of the many short term prospectus. The holding period was removed from the first conversion and may have been removed altogether.
More importantly, Lind does not aim to hold shares. They made 20% in interest when they signed the deal and their entire business model revolves around cashing out as soon as possible. It is extremely unlikely they hold 8 million shares. Their goal is to convert and sell as soon as they are allowed. A stable share price is almost certainly their preference as it reduces risk. Short of that they benefit most in a rising share price environment. The key point is that Lind does NOT accumulate shares and has no incentive to see the share price fall. If anything they act as a market maker and provide share price stability.
Here’s the original news release on the matter. This has been amended four or five times so the holding period may not be the same anymore.
https://www.niocorp.com/niocorp-developments-ltd-completes-convertible-security-funding-agreement-institutional-investment-us-10-5-million/
You asked for sources that Mountain Pass was funded through equity. Do with them what you wish.
$400MM in IPO.
https://www.bloomberg.com/news/articles/2010-07-29/molycorp-reduces-planned-rare-earth-ipo-by-18-to-394-million
$500MM in secondary offering. Later upgraded to nearly $600MM.
https://www.businesswire.com/news/home/20110609006885/en/Molycorp-Announces-Pricing-Secondary-Offering-10000000-Shares
38,000,000 shares at 6.00 in 2013.
https://m.marketscreener.com/MOLYCORP-INC-4885620/news/Molycorp-Inc-Molycorp-Prices-Offerings-of-Common-Stock-and-Convertible-Senior-Notes-15966449/
All this while executives were selling.A good legal read here:
https://www.rlf.com/mobile/showarticle.aspx?show=6133
Finally the Neo deal. More dilution and $650MM in debt:
https://www.jonesday.com/en/practices/experience/2012/03/molycorp-acquires-rare-earth-processor-neo-material-technologies-in-cdn13-billion-us126-billion-transaction
All of these can be verified elsewhere with some DD.
RW, did you see this announcement?
https://clients3.weblink.com.au/pdf/CLQ/02158012.pdf
Obviously nobody is thrilled with a further delay on an investment decision, but the MCC agreement never was well received. The assumption was always that MCC was a gateway to Chinese state money.
Riggall recently said there was an influx of interest from European and North American auto manufacturers. I take this recent news as affirmation that discussions with these parties are going well enough that CLQ feels they can cut ties with MCC despite the funding they may have access too. Lots of discussion on hot copper on that.
Switching to the reputable Fluor (HQ just outside Dallas) gives them more local control and likely far more traction with partners in Europe and NA.
Finally, I wouldn’t read too much into it, but Secretary of Commerce Wilbur Ross was in Australia this week to discuss why Australia should trade more minerals to the US and less to China.
I believe it’s actually a four month holding period. Lind is not in this for the long term, they are here to cash out as quick as they are allowed and secure their profits. Obviously they create selling pressure, but they make a lot more money when the price rises during the holding period than otherwise. Since they convert on a monthly basis, they always have shares within the holding period.
This is not correct. The Mountain Pass reopening was funded almost entirely by equity. The share price was high due to the rare earth speculation at the time so dilution was not bad.
Moly acquired Neo for 1.3 billion in which nearly a billion was financed. This was the start of their downfall.
Do you know this to be factual? This has long been my suspicion and with 2.9M in accounts payable it makes sense, but I am not aware of any source that definitively confirms Nordmin and Olsson have been working without pay to this point.
You are correct. I’m a nobody. I can’t touch your prestigious engineer title. That’s a point I’ve attempted to make numerous times. Nothing on this board should be assumed to be accurate. However, As a nobody, I simply suggest that all invested or considering investing read the the 10k and compare it to multiple other junior miners.
Further, as the nobody that I am, I ask that you refer to Sims comments that were directed at me and stickied by monocle. Please recall that the entire post transpired because of my prediction that financing would not occur prior to 6/30/19.
Seems like a lot of worry over a nobody, non-engineer, anonymous internet poster. I guess when you’re proven right multiple times you catch Jim’s attention.
I called out the Ricketts letter, the Senate testimony with the pipeline elimination, and predicted the FY would come to an end without the big F. The skeptics here may have dug a bit deeper with their DD.
I’m not happy with that news but at least they addressed it proactively.
The difference between me and you is I don’t wish any retail investor harm. I got suckered into this just like many others. While I was already on the edge, Jim gave me a little whistle blow to sell.
What pains me is when I see so many in my native state get hoodwinked by a management team with a documented history of making misleading statements and bullying their very own shareholders into silence.
You can make your own decisions, but I know factually that there are multiple lurkers of this board (and a few posters) that have taken this bait just like a telemarketer in a get rich quick scheme. I won’t stand by and let the good people of rural Nebraska get blatantly misled.
http://www.scandiummining.com/projects/nyngan-scandium-project/
Lots of differences that should be compared/contrasted.
Is that good news?
FS1 Summer 2017.
FS2 December 2017 because the Ontario Securities Commission demanded more information and caution language on the Scandium pricing.
FS3 this past spring because apparently the original mine design and reserve estimate was done by a bunch of amateurs. Side note, where’s the new third party review after such a substantial change?
Ask yourself a very simple question, why would an investor place an arbitrary limit on a minimum PPS to buy?
Shall I call you Cleaver or Ren?
That is just a bunch of message board fodder. Index funds may have their own self imposed limits, but smart money is smart money and they don’t put arbitrary limits on entry prices.
What is taking so long to get that institutional investor? Is three feasibility studies not enough?
When does the institutional investment from the mining experts kick in? Seems like the smart money would get in before the price skyrockets.
Actually the entire thing depends on a single “experts” prediction on scandium pricing that every other potential scandium producer disagrees with.
You need to research the Lind agreement further. The original agreement (in summary) was that Lind could exchange debt for shares at a 15% discount more or less at will. The loan is 10% a year, prepaid plus a significant closing fee paid to Lind.. Niocorp can pay it back whenever, but they don’t because they don’t have the money. The summary is that Lind can’t lose. There’s a reason they set it all up to be converted before the land options expire. There’s also good reason it’s been referred to as death spiral financing. It’s all in the 10k. Here’s the first few paragraphs:
On December 22, 2015, the Company closed a definitive convertible security funding agreement (the “Lind Agreement”) with Lind Asset Management IV, LLC (“Lind”). The Lind Agreement includes a $4,500 principal amount, 10% secured convertible security (the “Convertible Security”) and 3,125,000 transferable Common Share purchase warrants (the “Lind Warrants”). The Convertible Security had a term of two years from its date of issuance, and interest was prepaid and added to its principal amount; accordingly, the initial face value of the Convertible Security was $5,400, and the yield of the Convertible Security (if held, unconverted, to maturity) was 10% per annum, or $900. Each Lind Warrant had a term of three years from its date of issuance and entitled the holder to purchase one additional Common Share (a “Lind Warrant Share”) at a price of C$0.72 on or before December 22, 2018. Lind could increase the funding under the Convertible Security by an additional $1,000 during its two-year term. Further, provided certain conditions are met, the Company had the right to call an additional $1,000 under the funding agreement (a “First Tranche Increase”). The Agreement also provides for the issuance of a second Convertible Security on mutual agreement of the Company and Lind, in which Lind would fund up to another US$6.0 million (the “Second Tranche”), which can also be increased by US$1.0 million. The Convertible Security is convertible into common shares of the Company at a conversion price equal to 85% of the volume weighted average trading price of the common shares (in Canadian dollars) for the five consecutive trading days immediately prior to the date on which the Investor provides the Company with notice of its intention to convert an amount of the Convertible Security from time to time. The issuance of the Convertible Security and the Lind Warrants was completed on a non-brokered private placement basis. 57
Honestly mono, I’m not sure. That is a valid question. Olsonn and SRK may be in a similar situation. We saw Northcott accept shares for payment a while back.
What I do know is the company has $2.6MM in debt due by 6/30/2020 per the 10k. I’m willing to bet a chunk of that is to Nordmin.
Cash on hand right now is likely in the $100k range. All of the land options must be renegotiated over the next year and the two most important ones expire in the spring. These options must be repurchased and renegotiated for the company to retain any value.
Facts we know: Hallgarten is currently short Niocorp and long Neo. It hasn’t yet been discussed here but they are also long IBC.
http://hallgartenco.com/pdf/Portfolio/portfolio_Aug2019.pdf
They were once long Quantum but sold at some point in time. Your theory is the only reason they are short Nio is because Ecclestone is a “disgruntled former Molycorp investor.”
So if I’m understanding this theory correctly, the “disgruntled former Molycorp investor” is currently long the only company that survived the Molycorp restructure, is long IBC, another company with MS and JS on the team, and was long quantum before additional studies/drilling revealed the niobium was not economical to mine on it’s own and it was turned into an uneconomical scandium play. Do I have it correct? Does this make sense to anyone?
Seems to me, and I’m sure Occam’s razor would agree, the author simply changed his opinion on elk creek as more information became available and retains the intellectual capacity to look at the other companies objectively. I believe another poster on this board has worked diligently to inform people ever since PEA1 was released that the resource simply is not economical at this point in time and won’t be in the foreseeable future.
Ge, can you confirm this came from Jim? It appears Hallgarten has a different side to the story.
Recall that Hallgarten took a short position in Niocorp last fall.
http://hallgartenco.com/pdf/Portfolio/portfolio_oct18.pdf
Per you, Sims claimed that the fund manager, Chris Ecclestone, was a “disgruntled former Molycorp investor.”
Hallgarten claims they never invested in Molycorp:
Hallgarten & Company (@hallgartenco) Tweeted:
Exec @NioCorp claiming our Short call is due to "being disgruntled Molycorp shareholders". Excuse us but we NEVER held ANY shares in #RareEarth stocks let alone the worst of all, #Molycorp. Retract!
Exec @NioCorp claiming our Short call is due to "being disgruntled Molycorp shareholders". Excuse us but we NEVER held ANY shares in #RareEarth stocks let alone the worst of all, #Molycorp. Retract!
— Hallgarten + Company (@hallgartenco) March 14, 2019
1) I was never a shareholder of Molycorp and therefore never had a legal right to request the shareholder list.
2) Anyone holding through a broker would not be listed. Only the broker is listed, therefore no list released by the company could be considered absolute anyways.
No kidding. The going concern verbiage has been in the disclosures for the entire existence of Niocorp. As you allude to that is just part of being a junior miner. The substantial doubt part is new this year.
Page 18 of the pdf in the 2019 10k. CTRL + C, CTRL + F, and CTRL + V will also lead you to to the relevant statements.
It’s all public info linked on this site, the company’s site, and ultimately Sedar. Not hard to find.
Do your own DD.
Statement on the 2019 10k:
The audit opinion and notes that accompany our financial statements for the year ended June 30, 2019, disclose that substantial doubt exists as to our ability to continue as a going concern.
Statement on the 2018 and prior years 10k:
The audit opinion and notes that accompany our financial statements for the year ended June 30, 2018, disclose a going concern qualification to our ability to continue in business.
Due diligence is strongly suggested prior to the ASM.