NIOCORP DEVELOPMENTS LTD

NIOCORP DEVELOPMENTS LTD Annual Report Summary – Plain Talk for Investors

Let’s cut through the noise and see how NIOCORP really did this year—no jargon, just the facts you need to decide if this stock fits your portfolio.

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What They Do & This Year’s Progress

NIOCORP is prepping to mine rare minerals (niobium, scandium, titanium) in Nebraska for tech like EVs and wind turbines. No mining yet—still securing permits, funding, and finalizing plans. Key progress: Started a drilling program to confirm mineral reserves and secured a critical water permit.

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Financial Snapshot

• Revenue: $0 (still in pre-production phase).
• Spending: $8.3 million on engineering, studies, and permits.
• Cash Raised: $25 million (up from $20M last year) via stock/warrant sales.
• Cash on Hand: $40 million (up from $15M last year).
• Debt: $2 million (minimal).

Growth Angle: Progress = moving closer to mine construction, not sales. Cash runway now 4-5 years for prep work, but they’ll need billions later.

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Wins vs. Challenges

Wins:

• Preliminary approval for a $1.1B loan from the U.S. EXIM Bank (not finalized).
• Secured water permit in Nebraska.
• Added a seasoned COO to streamline operations.

Challenges:

• EXIM Bank loan delays (needs updated mine plans/costs).
• Share dilution from fundraising (your ownership % shrank slightly).
• Rising material/labor costs complicating planning.

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Competitive Edge

NIOCORP’s U.S. location appeals to “made-in-America” supply chains, and scandium (used in aerospace) could be a standout. But they’re unproven vs. established global miners.

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Risks to Watch

1. EXIM Loan Fails: Without that $1.1B, funding the mine becomes a huge hurdle.
2. Permit Delays: More red tape = higher costs.
3. More Dilution: Likely more stock sales ahead, shrinking your stake further.

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What’s Next?

• Finalize EXIM Bank loan (critical).
• Complete drilling program and update mine feasibility study.
• Secure buyers for future minerals.

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Why This Matters in 2024

• Clean Energy Demand: Scandium/niobium demand could surge with EVs and renewables.
• U.S. Policy Tailwinds: Government favors domestic critical mineral projects.
• Interest Rates: Higher rates could make loans pricier.

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The Bottom Line

High Risk, High Reward. NIOCORP is a bet on the future of U.S. critical minerals. They’ve bought time with $40M cash, but the EXIM loan is make-or-break.

Good For: Patient investors comfortable with:

• Long timelines (mining likely 3-5+ years out).
• Regulatory/political risks.
• Potential dilution.

Red Flags: No revenue, reliance on uncertain loans, and execution risks.

Final Thought: If you believe in U.S. mining and can stomach volatility, watch for EXIM loan progress. If not, this stock might keep you up at night.

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Note: NIOCORP’s annual report focused heavily on future plans rather than past performance. Always balance their optimism with independent research.