Replies to post #30026 on Niocorp Developments Ltd (NB)

[tedro84]

They lowered the NB price by $4 and doubled production cost from PEA1 to the BFS.

This is pretty easy to figure out. Just find the NPV of the Sc and subtract from the BFS NPV. I did assume equal production every year and the same pricing throughout. 103 Tonnes per year at $3675/kg with $1127/kg production gives $262,444,000 per year of net Sc revenue. Assume this starts in three years and continues for 32. We know the additional capex for the Sc is very low. I thought I remembered $30MM reported. This gives the Sc an NPV of nearly $2.8B pre tax, given the overall NPV of $2.3 this means the Nb is negative. This is exactly why the NFS itself said the project would not meet investment criteria on Nb alone.

You can play with the NPV numbers here:

https://www.calculatestuff.com/financial/npv-calculator