Niocorp Developments Ltd (NB)

[tedro84]

End of August is a very good estimate.

As of 3/31/20 they had $48k in cash. The smith loan was capped at at $2.5MM and drawn to $2.345MM. As you noted the cap was increased twice during the quarter, ultimately to $3.5MM, so they had $1.155MM to work with in Q4.

They also had $193k from the questionable PPP loan and $32k from the Shah/Sims options.

We don’t know how much they drew from the smith facility in Q4, but we can make a couple of other assumptions.

Accounts payable only increased by $38k during Q3 to $3.45MM. Seems fair to assume that whoever got stiffed in Q3 continued to get stiffed and this value probably didn’t increase much if any. Frequently AP is just a product of the reporting date. Let’s assume it’s unchanged.

Actual monthly expenditures, per the most recent filing, are $310k per month. $275k is for corporate overhead, which is nearly exactly what was spent or accrued in Q3. The smith loan increased by $785k. Add the $38k increase in AP, divide by 3 and there’s your $275k. Let’s assume the same for Q4, again assuming AP remained constant this time.

So, this means $825 was spent in Q4, while they had accessibility to an additional $1.38MM. That gives them accessibility to almost dead nuts $550k plus their apparent ~$50k cash buffer as it stands today - which covers them exactly through August.

So what’s the next move?