Niocorp Developments Ltd (NB)

[Spunkmeyer]

With a debt-to-equity ratio of 73%, IB can be considered as an above-average leveraged company. This is not unusual for small-caps as debt tends to be a cheaper and faster source of funding for some businesses.

But since IB is presently unprofitable, there’s a question of sustainability of its current operations. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.

Forget this share at the moment.