Not only will pretax profits likely jump after Nordmin completes their work, (current EBITDA forecast is $389.6 million per year)
But I strongly suspect Scandium revenues will come in much higher than projected. The average projected price for Scandium is $3,675 per kg over 32yr mine life. But the highest purity levels sell for much higher prices. I suspect when all sales are averaged in, the "all in price average" will be $4,500 to $5,000 per kg.
Now it costs $1,127 to produce 1 kg of Scandium according to FS estimates.
Which means only $2,548 goes to EBITDA. But if the all-in-pricing-average is $4,949 ( increase of 50% of $2,548) then all of the additional $1,274 per kg goes directly to EBITDA, because there is no additional overhead whatsoever. Approximately $131 million increase in pretax. 389+131= $520 million EBITDA.
There is currently about 100 million in capex water costs and 11 million in operational water costs. They won't drop to zero but will probably see serious reductions. Another big bump to EBITDA.
Also remember the current structure is scalable. Niocorp could increase production up to 50% after operations begin and if the market demands increased supply. Another HUGE increase to EBITDA!! I suspect the demand for Scandium will be much stronger than the current conservative forecasts. Thousands of new patents for Scandium awaiting a reliable quality supplier!
Plus Niocorp will most likely participate in revenues from patents on Scandium Alloys with IBC.
This is all very important to the amount of dividends that WILL BE PAID!!!
Mark Smith has always been very clear that he will pay dividends as soon as possible!!
Food for thought!!!
