Niocorp Developments Ltd (NB)

[tedro84]

Well I lied. I read through the MD&A. Here’s a few things that standout:

1. They expect $6MM for continued operations in FY’19. So plan for a $500k/month burn. This suggests Nordmin, Rockwell, and Rockies Express are not currently being compensated for any work they may be performing to this point.

2. I noticed they listed their corporate tax rate at 35%. This should have been changed to 21%.

3. This is a big one. “Perhaps one of the most critical approvals likely to be needed by the operation will be a radioactive materials license from the Nebraska Department of Health and Human Services (“NDHHS”), Office of Radiological Health. Because of their limited experience with hard rock mining in the State of Nebraska, much less mining that includes Naturally Occurring Radioactive Material, the NDHHS may require additional information and more time to approve the Elk Creek Project under a Broad Scope License. Early and frequent engagement is a necessity with respect to this regulatory agency.”

Uranium mining does exist in Nebraska, so hopefully this is not as difficult to obtain as alluded to.

4. The company has a $4.4MM balance with Lind as of 8/30/2018. This equates to roughly 10 million shares that Lind can convert at any time. Could be viewed as a positive that Lind does not feel rushed to convert and is content with the 10% interest payments. Could be viewed as a negative as Lind expects a further price drop and attempt to manipulate to further their gain.

That’s all I have with this cursory review. Didn’t expect much but there’s a few bullet points.