Niocorp Developments Ltd (NB)

[tedro84]

None of it is odd. I don’t think the market needs 3 years of production, but it is clearly looking for some sort of evidence that scandium is a viable market. That could mean an offtake, financing, or some sort of production. I don’t think full value will be seen until there is a minimum of 12 months of operation with revenues similar to those forecasted in the BFS AND an optimistic market for the future of scandium.

If you take a look at the BFS numbers and back out the NPV of the Scandium production, the project has a negative value. This company going forward is 100% dependent on a new scandium market. If you believe that market will unfold as management and Andrew Matheson predict then there will be plenty of money to be made. As of now, the market is very skeptical of these forecasts. You want some evidence? Take a look at the CleanTeq PEA. They based all numbers on nickel and cobalt alone and the stock is trading very near NPV. Scandium is the gravy for them. Niocorp is nearing their own NPV without scandium.

CleanTeq did just release a new mineral reserve estimate. All minerals were increased, but scandium the most, which certainly suggests some optimism on their part in this developing market.