Niocorp Developments Ltd (NB)

[tedro84]

I had never heard of them before the post yesterday, but there are a couple other interesting things to pull out of it.

They had a FS in 2016 and then released another one this past February. I don't yet know why, but they had their financing package wrapped up just three months after the FS summary was released.

Market cap today is roughly $600MM USD, so let's just call it double what it was pre-financing. As you pointed out, due to dilution this resulted in a very small share price increase.

The big difference I see is the market cap to NPV ratio. Nemaska's market cap was 1/6 of its NPV prior to financing and 1/3 today.

Niocorp currently trades with a market cap 1/15 of it's NPV. A lot of this can be attributed to the fact that lithium already has a well established market, but if you trust the scandium numbers it gives you a better idea of what you can possibly expect the share price to do after the risk of financing has been eliminated.

Assume the share count doubles (this is a real possibility). To get to that 1/3 market cap to NPV, Niocorp would need to trade around $1.50. 400 million shares outstanding and a ~$600 million market cap.