Niocorp Developments Ltd (NB)

[tedro84]

I would say that by definition if this goes belly up the share value is zero. If the banks deem the Sc forecasts trustworthy this goes forward, but the longs still won't see ultimate returns until the production and Sc price points come to fruition.

If the banks do not buy in, NB is reliant on an existing mining company to buy them out. An existing company would likely be more risk tolerant than a debt investor and willing to speculate on the undeveloped Sc market while tolerating the slow bleed of operating on Nb only.

If neither of these play out, the only real assets left are the drilling results. These are worth 10 million or so at most, and would likely be liquidated. Guess who has positioned himself to gain in that event? Yep, Mark Smith with his loans to the company. Smith is fully hedged against this company failing.

None of this is to question MS's intentions. He clearly has a ton to gain if this goes through. The point is, just like Lind, he has been able to fully reduce his risk in the project so that his downside is minimal and upside is the moon.