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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.
So, what does a VP of Business Development do at a company with no business being generated for a decade? We have a few off take agreements, but no actual production of products or services.
Similarly, what does a CFO do at a company with no revenue? I mean other than file extensions on required quarterly earnings reports.
Of course $12-$15 is speculation. You asked "And where do you think the share price would be if the $250,000,000 came in from GX?" so I gave an answer for where I thought it would be.
And yes, even with the GXII money we would have people complaining (myself likely included) that it wasn't enough. But considering we are 7-ish years or more past when Mark said financing was "imminent" for construction to start and actual mining in 2017, we have every right to be upset that they're 9 years past the timetable he established.
In any case, it sure would have been a hell of a lot better to have the pre-SPAC price around $10/share AND $250M in the bank than $3/share and no money. Your opinion may differ.
If GXII had produced say $200m, then I'd say we would have been in the $12-15 range. We would have looked like a company that was building a war chest and an up-and-comer. We would have looked attractive to other investors that they wouldn't be the only one holding the bag. Usually it is highly desirable to spread risk across multiple stakeholders.
Example - multiple entertainment companies (like NBC, Disney, and Comcast among others) have or had a partial stake in Hulu. Rarely do ventures have a single stakeholder, especially when significant CAPEX is needed to begin operations.
Instead we didn't get any real proceeds, lost hundreds of millions in market cap, lost actual money paying out the fees, have a stock price below $5 (which limits some institutional investors and mutual funds from even investing at all), have the stigma of the reverse split, can't even report quarterly financial reports on time, and still have a management team that is only part time on the project.
So I would pose the question back to you. Would it be better to need $1B in financing (if we had received the GXII funds) or is it better to need $1.2B in financing (as our current situation)? I know what I'd pick, but Mark failed to close a good deal and instead closed a crap deal. Happy Friday.
I think you're way off here. If GXII had produced $250m into the NB coffers, then our stock price would not be down 70%. It would have meant that we would have money to fund operations and maybe even begin signing contracts to start construction instead of liabilities and facing the possibility of having to make another offering and diluting at a highly depressed stock price.
Additionally it would have spread the risk for other investors by not having to pony up the entire amount. That's actually a very attractive situation to bring in additional big investors or debt financers.
Every journey starts with a single step. The GXII step was like falling and breaking your ankle before you start the journey.
I find it odd that you consider a proposed $250m funding/financing less important because it is only 20% of total funding. That would be far and above 10-20 times anything that they have raised to date.
It actually did go through and not only did it not raise anywhere near that, but the GXII deal ended up costing NB hundreds of millions in market cap. Pretty crappy
While at the same time you have no reason to doubt that future financing will not come through?
So actual history that has had negative affects don't matter, but hopeful future events have no reason to doubt. Definitely AlwaysOptimistic.
I never said anything that EXIM would approve a loan at all, let alone "sooner".
You said "there is no reason IMO to believe either financier can't or won't come through". I keep saying that we have no reason to believe that any financing deal will actually happen since nothing has happened yet after 10 years with Mark leading the company and statements since 2015 stating that construction & actual mining should be starting.
I hope it does get finances because I'm unfortunately still in this stock. But I have no reason to believe that they will since none of the previous plans for financing have come to fruition.
If these financiers came through, why hasn't there been a PR or construction beginning? Oh, that's right, because they haven't.
Lind & Yorkville were never anything more than short term items to cover OPEX and not construction commencement.
GXII was supposed to bring in $250m but that deal didn't work out like Mark hoped and actually cost NioCorp hundreds of millions in market cap for investors.
US Govt has yet to provide funding beyond a $10m earmark.
Big 3 Auto maker has yet to close any financing or investment deal. They're still in talks.
So no financiers have come though.
In the post you are responding to I named at least 3 financiers who did not come through: Lind, Yorkville, & GXII.
We also have yet to utilize the German government loan guarantee from 2015. Nor has any of the unnamed imminent financing entities come through.
You are the one who said "there is no reason IMO to believe either financier can't or won't come through". I'm asking for any examples where a financier DID come through for NioCorp since none have in the past decade.
Lest people forget, 1 year ago the stock was at $9.59
"If this" and "if that" ... the stock needs to explode 250% just to get to where it was at this time last year. Not to make any highs, just to get to the December 2022 levels of mid-$7.
You know, back to the levels right after they doubled the 2022 stock option compensation of executives from the 2021 levels?
Which was a few years after financing was imminent and Mark had to be careful what he said according to his lawyers
Bang up job these guys are doing. No revenue for over a decade, double the stock option compensation for executives working part time, make a terrible merger & kill the remaining stock price. How is the other company these guys are running doing after nearly going bankrupt 6 months ago?
Hey, at least we got a bunch of pictures of the executives in DC. What ever happened to that?
Lots of mistakes are forgiven when people are making money. Since we are at decade lows, people are (& should be) less forgiving.
Compounding that is the “imminent” financing that never materialized so IMHO Mark has less credibility on whether or not Stellantis or EXIM deals are ever finalized.
Until a deal is closed, it isn’t real. Those are just promises like imminent financing deals from yesteryear.
I respectfully claim that you have no sense of humor or irony. If the news that NioCorp has a new auditor is a big deal, I suggest that they have some some pretty big problems.
What risk would an auditor take? They conduct audits and get paid for it whether their customer is honest & legit or a fraud. Besides, how hard can it be to audit a company with no revenue?
Such a BIG signal of confidence and yet the stock price goes down again. I'm thrilled. The stock is at 10 year lows but we now have one hell of a good auditor. Pop the champagne.
"The people who know ... know BDO." as the BDO commercial says. BDO declined to continue with NioCorp.
"Deloitte replaces BDO USA, P.C., which elected not to stand for re-election at the Company’s 2023 Annual General Meeting of Shareholders as the company's independent auditor."
Doesn't seem like a good signal for all those who routinely clamor for "news".