Why am I invested in this company.
1. I am a former institutional investor, and remember having lunch one day in Bejing with Robert Friedland. He is a smart fellow, but also too much of a showman, MS is more technical and I prefer his style. They both run the only viable scandium projects out there, and RF will do a great job of introducing Scandium to institutions along with Mark. Their success will help Niocorp succeed as well.
2. The recent purchase of 16.5 percent of Cleanteq by a Chinese conglomerate does several positive things. It gives some proof of concept to a scandium project that is paired with other products. Cobalt for Cleanteq and Niobium for Niocorp.
3. With the newly announced investment in Cleanteq by a Chinese conglomerate, they will most likely lock up the scandium and cobalt produced for Chinese benefit. They will also help to develop even more uses.
4. This really just leaves Niocorp, large investors and the US government knows this.
5. Trying to predict prices of Scandium is a fools game. One could make assumptions, but the variability of demand going forward (the timing of the uptake) will be bumpy. Ordinarily this would mean financing would have to have a larger equity componant, but Niobium pricing is extraordinarily stable and the German government can provide a certain level of debt financing which can be subordinated thereby lowering the overall cost of capital.
6. There are other positives, there are other uncertainties. On balance for me, these positives announced make the project worthy of investment. Size to your risk tolerance and hold for the longterm.
