Niocorp Developments Ltd (NB)

[chico237]

Speculation on a Debt/Equity Finance scenario & ****I too had a few questions for management. Sharing responses below to questions asked May 22, 2205

1) Is NioCorp continuing to work behind the scenes to complete final OFF-Take agreements for all probable Critical Minerals (Nb, Ti, Sc, REE's & Byproducts production) with both private & govt. entities? Can shareholders expect material news on the completion of such endeavors in the coming months ahead?

RESPONSE:

"Yes"

2) Did NioCorp participate in the recent ~ (Notice of Request for Public Comments on Section 232 National Security Investigation of Imports of Processed Critical Minerals and Derivative Products) Federal Register :: Notice of Request for Public Comments on Section 232 National Security Investigation of Imports of Processed Critical Minerals and Derivative Products

Offering commentary in either public or private format? as over 495 responses are registered as we await U.S. govt. clearing responses for viewing....

RESPONSE:

"No, filing public comments was not necessary given ongoing comms with senior Administration officials."

3) Are additional sources other than (EXIM, U.K. or German) loan guarantees for Debt) ** I.E. Potential Equity Agreements in play via private &/or govt. entities ongoing? ??

RESPONSE:

"Yes."

4) I know Mr N. has asked, but so will I. Will it be possible to get a drilling update from the site at some point in the future with more pictures or input from NioCorp's REE guru Scott? 😉 at some point in the future??

RESPONSE:

"Yes"

Conceptualized SPECULATION on how NioCorp might achieve the $400 million equity financing for the Elk Creek Project, especially given the partial debt structure now forming with U.S. EXIM, UK, and Germany potentially backing up to $800 million in loan guarantees. Constructed a realistic hybrid financial model. This model will factor in:
• Current share float (~100M shares)
• 2022 Feasibility Study (F.S.) metrics
• Existing offtake agreements (ThyssenKrupp: 50% Nb, CMC Cometals: 25% Nb, plus 12% Sc)
• Scarcity and strategic value of Scandium, Niobium, and other REEs
• U.S. industrial policy emphasis on critical mineral independence
• Ongoing demand from aerospace, defense, and clean-tech sectors



Comment: Listening to recent Video Presentations (Belgium/Crux) Mark stated that some of these avenues may be in the mix. DoD monies for Scandium are possibly in play, Anchor Investor/s, Shelf shares etc. Mark mentioned "Royalties & take offs" & I still can't rule out the DoE/LPO yet either!
• Preferred equity issuance allows NioCorp to raise capital without immediate dilution to common shareholders. ***** "I sure Hope so!!"
• A strategic investor (e.g., Stellantis, Lockheed Martin, Raytheon, Boeing, or ATI Metals) could justify equity participation due to the high defense utility of Scandium and Niobium.



TITANIUM TiCl4 "Tickle" is an interesting play & Defense Metal & as Mark had stated could indeed generate some good revenues moving forward. NIocorp can produce 400,000 tons of Titanium Oxide but can also (thanks to completion of all hydrometallurgies with L3 leading to a NEW PROCESS). Niocorp can also make "Tickle" TiCl4. Note: Only 70,000 tons is used but this "Might" be more or less. T.B.D. whenever they get that darm F.S. done????
Really looking for Govt. Offtake agreements for SCANDIUM & Titanium ASAP that would break open the door for private entities IMHO...



NOTE: SCANDIUM estimating a low-end sales to start of 30 to 50 tons/year & ramping up to 103/tons as markets firm (DoD Stockpile etc..). The price used was $2,500/kg & even that might go higher!



(Potential Anchor Investors include all the obvious players (I would add Neo Performance (Thinking Mine to MAGNETS & RECYLING & maybe a few others...)



I believe the DoD will indeed make an offtake agreement for Scandium & Titanium & An Anchor Investor or two show up soon to get this party started. Some Entity has to be First to Blink soon imho... & "IF NOT NOW WHEN" indeed...!!



Final summary.
I've ran a few scenarios & each one plus or minus lands firmly around my $24/share once in production call. Could it be more or less? "Most definitely!" & we are all hoping for more but as this plays out look for 5$ to 10$ preconstruction. NOT Financial advice just all SPECULATION!
However "IF" Niocorp does indeed attain finance $14 to $24 is doable & maybe more... All to be determined!



Run your own numbers & see what you find. We should be finding out what exactly the team at Niocorp has in store in the not-too-distant future. Waiting with many for material news as it becomes available in my front row seat!
Chico