Niocorp Developments Ltd (NB)

[walterc]

It is a matter of connecting the right dots Stark.
I know you are a believer. I am not trying to convert the non believers to believers so non believers please put me on ignore as I did with you.
I will try to explain why I think these verticals are key in the development of Niocorp. here is my reasoning ;

We need big financing and that appeared to be more difficult than anybody anticipated. With the feasibility results of the past we did not do the job. .
Scandium revenue makes up a large part of the NPV but that market needs to be developed . The total scandium market is 25 tons and Niocorp is going to produce 100 tons. Is Niocorp ever going to be able to sell that amount of scandium and if yes at what price?. Financers however do not like uncertainty . They want to be sure they get their money back. They want to see that this market really exists.
If Niocorp can show offtake agreements with large respected partners that show we can sell the 100 tons I am certain we will get our financing both from Exim and other equity and debt financers.
This is what Niocorp is doing right now by developing the market themselves. Mark told us that customers are not buying scandium on its own but they will buy AL-SC lingots; So we decided we are going to produce these lingots ourselves and cooperate with OEMs which will produce parts and components for Ev's.
We found out this week that Niocorp technologies a subsidiary in the UK will be cooperating with a top UK university and with OEMs to recycle automotive components which will be a mass market.

Niocorp needs to start developing that market now to be ready by the time the mine opens . And more important They have to show the financers offtake agreements .
Setting up these verticals will result not only in offtake agreements but most probably in JV's and thus additional cashflow.

I hope this helps . I could elaborate a lot more; I had my " aha erlebnis" on scandium a few years ago when I visited the lab of Arcelor Mittal in Ghent where they howed me the potential markets for scandium , so nobody on this board is going to convince me that we are not going to sell 100 tons of scandium .

So to summarize ; These verticals will be key in getting offtake agreements which will help to get us financed.