I did it for you T&T as you are too lazy doing good DD.
Niocorp (ticker NB) was recommended years ago at C$0.23, but you have to keep in mind that a reverse split has gradually taken place, so that 10 old shares now correspond to one share.
C$0.23 in the past actually corresponds to C$2.30.
The stock rose to just above C$20.00 at one point, making Niocorp a huge winner for Macrotrends for a long time.
But just like with most mining shares, this also failed and the share fell deeper and deeper.
The current rate is only C$3.16 more, which means there is not much left of our monster profit.
Investors would like to know why the share is falling so much and there are a number of good reasons for this.
The main reason is of course the general malaise in the sector. All mining stocks suffer from this, especially those that are not yet producing, as they have to raise capital at increasingly lower prices.
Niocorp currently finances itself through a Standby Equity Purchase Agreement with Yorkville whereby new shares are continuously issued to cover capital needs. These shares are then dumped into an almost empty market, which puts considerable pressure on the price.
In the meantime, Niocorp is diligently seeking financing for the construction of Elk Creek and negotiations are currently underway with Stellantis. However, these negotiations take a lot of time and investors are starting to doubt whether an effective deal will be reached.
We currently see no indications that there is actually a hair in the butter here. Negotiations are still ongoing (otherwise we would have seen a press release) and anyone who has ever dealt with multinationals knows that these types of deals can take an enormous amount of time.
Once the deal is complete, Niocorp will no longer have to work via the Standby Equity Purchase Agreement and the price pressure from that angle will also disappear.
Niocorp remains worth buying!
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regards,
Maarten Verheyen
