Niocorp Developments Ltd (NB)

[chico237]

Niocorp's Improved Economics into 2022:
“L3’s work to further optimize the Elk Creek Project’s flowsheet in preparation for final engineering, and to map out a pathway to the potential production of high-purity rare earth elements, has demonstrated the potential to make some very important improvements in how we produce all of our planned products,”
https://www.niocorp.com/niocorp-reports-significant-advance-in-plan-to-process-critical-minerals-in-nebraska/

Scott Honan, NioCorp’s Chief Operating Officer. “If these flowsheet enhancements prove out at the demonstration plant level, they could lead to some very significant increases in pay metal recovery rates and potentially large reductions in capital and operating expenses. We look forward to validating these preliminary findings at the demonstration plant level and to communicating the final results of this effort when completed.”

Looking at Niocorp's 2019 Economics:
(Form your own opinions & conclusions regarding what the addition of REE's & optimized recovery rates for Niobium & Titanium could do...)
https://secureservercdn.net/198.71.233.33/gx0.d43.myftpupload.com/wp-content/uploads/180001_FINAL_43-101_FS_NioCorp_AS_FILED.pdf
25.10 Capital and Operating Costs

Total LOM capital costs, including initial, sustaining and reclamation costs, are US$ 1,565 million. The initial capital estimate of US$ 1,143 million can be partially offset by a Gross Pre-production Revenue Credit of US$ 265 million (generated by pre-production product sales) to net to a cost of US$ 879 million.

Compare the numbers & current share price $12/share to ILUKA's "Separation" Facility without a MINE! (Niocorp's Elk Creek Mine will be a mine with a fully operational Separation facility once financed!)
Iluka Resources is building Australia's first rare earths refinery after lining up A$1 billion ($749 million) in cheap debt from the government. Outstanding shares are close to what Niocorp may have? (Financings are beginning to happen!)
https://www.marketscreener.com/quote/stock/ILUKA-RESOURCES-LIMITED-6491402/news/Backed-by-Australia-Iluka-greenlights-750-million-rare-earths-refinery-39953921/

See Jim's response to higher purity niobium & titanium & ponder what increased recovery rates %'s & purity %'s for just Niobium & Titanium oxides could mean once proven at scale utilizing the optimized processes now underway...

Repost of Jim's response to questions-3/17/2022-
A) Could you comment on what the production of higher purity niobium & titanium could be utilized for once realized?

If the higher purity niobium and titanium intermediates that L3 was able to produce at bench-scale are replicated and proven at demonstration scale, this would put us in a position to more easily move to other products beyond those outlined in our 2019 Feasibility Study. Niobium oxide for use in Li-Ion batteries is one possible example, although the production of that product would require additional processing steps beyond the higher-purity niobium intermediate that we discussed in last week’s news release. The company is not yet in a position to make a determination on whether or not, and when, to possibly expand our Niobium product offering. Higher grade TiO2 could expose us to additional markets where higher margins could be obtained. But, again, we are not in a position to speak to those possibilities in any detail yet.

B)Niocorp’s preferred separation method is SX. Are these higher purity processes part of an improved SX process or “something else”?

No, the processes we recently discussed occur in the earlier stages of the flowsheet, prior to any SX processing. We look forward to unveiling those details once these processes are verified at the demonstration plant level and once all associated work needed to complete an updated Feasibility Study is completed.

(L3 & team Niocorp are diligently working on that now! Interested parties could most certainly be watching IMHO!)
****Please take into account the possible increases to NPV from completing the FINAL -Hydro-Met- optimization of the "NEW"- HPGR ground ore & Pilot Plant testing (starting in April 2022) - to Production Scale (For Titanium, Niobium, Scandium & Rare Earth Minerals!) ***Consider what higher recovery rates & improved oxides could bring to the table including viable REE's***

NIOBIUM
* Niocorp's recovery rate for Niobium currently is 83% & 165,000T. The optimization could lead to higher recovery rates over 93%plus -IMHO.
*The last remaining 25% of production has yet to be placed under an enforceable contract! (Why?)
*Niobium Oxide upgrading is also a future possibility for battery grade oxides.
TITANIUM
*Titanium recovery rate currently sits at 40% & 418,000T. I can easily Imagine 70% recovery & upgrading to "pigment grade oxide" is a possibility.
*L3/Eric LaRochelle hold current Patents on "Titanium Oxide" production.
See Also L3's Eric Larochelle's patent- Process for recovering titanium dioxide from titanium containing materials
https://uspto.report/patent/grant/10,480,047
Refer to Jim's response to Dougnil 4/12/22
Q/Can you provide any information about about the elements, grades and pounds of REEs that may be included in the revised 2022 FS?

Not quite yet, but we expect to release that data on specific REEs, and their ore grades and tonnages, in the Elk Creek Mineral Resource (both Indicated and Inferred) shortly. REE data for the Mineral Reserve has to await results of the demo plants™ operations, as well as many other updates across the rest of the FS.

*Two Titanium Ingot/Billet production Plants currently sit IDLE (safe-store) in the U.S. (One is in Nevada & the 2nd is in Utah!)
*Pricing Chinese Titanium Dioxide Pigment 2022
https://www.made-in-china.com/products-search/hot-china-products/Titanium_Dioxide_Pigment_Price.html
(*The Titanium "PIGMENT" grade pricing appears to be far greater than 1$ per ton)
*Russia is a major producer of Titanium & may no longer be an option moving forward.

Rare Earth Minerals
*Grunts numbers on the viable REE's (Could potentially add upwards of $100M plus)
*Recent Niocorp news releases lead me to believe they can ("Separate Them All-At the Lab Bench Scale! Form your own opinions & conclusions)
https://www.niocorp.com/niocorp-reports-significant-advance-in-plan-to-process-critical-minerals-in-nebraska/
[quote]L3 has conducted bench-scale testing at its facility in the province of Quebec, Canada to optimize the Project’s current processing flowsheet and demonstrate that NioCorp can recover and produce high purity rare earth elements, such as neodymium-praseodymium, dysprosium, and terbium, in addition to the niobium, scandium, and titanium products already planned for production by the Company, once Project financing is secured.


SCANDIUM: The Chicken & the Egg may be all put to rest soon... The REE's & Hydro-Met improvements should easily match/offset any pricing concerns. (*Note: Niocorp has continued to stand behind their numbers here. 46 months is plenty of time for a major market to form with a need for a diverse supply?)

IMHO/Speculation...Please form your own conclusions!
~Niocorp's Elk Creek Mine is permitted & stands at an advanced stage compared to the TOP 5 U.S. potential U.S. Critical Mineral Mining Projects!~
~ The NDEQ Air Permit is fully approved & the construction commencement clause has been met per NDEE!
https://www.niocorp.com/nebraska-regulators-advise-niocorp-that-the-elk-creek-projects-air-construction-permit-no-longer-requires-time-extensions-to-remain-in-force/
***The Optimizations now underway should lead to increased $$NPV & reduced CAPEX as all the minerals are ALL in solution prior to SX separation! (We may very well be looking at adding Bolt-On Skids/components to the flowsheet & P&ID's which may add some additional costs, but be offset+++ by the production of mineral oxides $$$ & end products) ~T.B.D.~
***The Underground portion of the mine is not in the least bit effected by any of the optimization processes.
***The questions for me now are:
a) Can the team now close a "Deal" for the next "Tranche" to kick off the project? ~**NOTE: Team Niocorp has been in talks with the U.S. govt., Automakers, Investors, Banks & more on in Europe & the U.S. per Jim's responses to AO**
-Preferably an Anchor Investor/Partner or Govt. loan application will precede anymore involvement from Lind??- (German loan guarantee is in play)
b) Can they successfully complete the Pilot Plant Production Scaling for all viable minerals? (The timing to do so? When?? 3-6 months?? "I think so!"- See Jim's responses to NORCAL & AO)
c) When? can we expect the final 2022 F.S. updated with all the relevant new economic data to be completed? Some-time in 2022 works for me!
d) Oh & then there is the market compliant REE NI-43-101 mineral resource report with "pounds in the ground"! We should be seeing that very soon IMHO... (I'm excited!)
"Front Row seats....with many!" Go team Niocorp
Chico