Replies to post #71925 on Niocorp Developments Ltd (NB)

[Boilermaker1]

I talked with Jim about that
some time ago. Going from memory here but the way he explained it is that ALL expenses are CAPEX up until the plant reaches full capacity and is declared to be in commercial operation. From that point on all expenses are OPEX. However, there is approximately a 6 month period for commissioning and ramping up. In that period you produce product that can be sold. Those sales are not really operating income because you used no OPEX to produce them. The last FS has two numbers for CAPEX: Gross CAPEX and Net CAPEX. Gross is the total to build the whole thing. But, you produce some income in the last 6 months of the construction process and the costs for this production came out of CAPEX. This income is subtracted off of Gross to get Net CAPEX. (or something close to that)