Niocorp Developments Ltd (NB)

[bcomaha]

I also found it interesting on the niobium aspect.

Page 9 of that link under the chart.

"Firstly, we should remove the US player from contention. Niocorp is a Niobium project with Scandium credits. Niobium is essentially a monopoly with the Brazilian miner CBMM, controlling over 80% of the market and tolerating Niobec (the producer in Quebec that has an 8-10% market share) so that it does not run into anti-trust problems. CBMM can happily tolerate other miners with tiny Niobium credits being added to the global mix because it can then moderate its own production to maintain price discipline. What it will not tolerate is a new primary Niobium mine of size. This kills dead any prospect of a Scandium by-product flow."


Niocorp has 75% of its niobium in offtake agreements. 25% more under LOI from a US steel maker. 10% of the planned scandium production is also in an offtake agreement with Traxys.

Sounds more like Niocorp is a larger potential producer than he would like to admit!


Now go back 1 month read what Hallgarten wrote about the big 3 niobium mines.

http://hallgartenco.com/pdf/Mining/NioCorp_Jan2020.pdf

from pg 9:
"Brazil has two of the largest niobium deposits in the world, the Araxá and the Catalão deposits. The Araxá mine is operated by CBMM, where decreasing grades are increasing operating costs at the mine.

The Catalão mine in the state of Goias is owned by Anglo American Brazil. It has the smallest reserves of the three Niobium “majors”. There has been speculation that the mine may run out of ore if the deposit size cannot be increased."

Seems to me they may be losing some ability to control the market.

Will the Brazilian mines drive down their own profits trying to keep Niocorp from entering the market, or will they welcome Niocorp to help meet the growing demand for niobium which is surpassing supply?

From pg. 18:


"NioCorp is essentially offering three different products in formats that no-one wants."

Then why would anyone invest in Hallgarten's "Long" strategies for niobium, or scandium?


Clearly some REAL SOUR GRAPES towards Niocorp by this author/company!