NioCorp Developments - Niobium husking

NioCorp is developing the Elk Creek mine in Nebraska, which currently hosts the second largest ‘indicated’ or better rare earth resource in the US and, once in production (potentially in FY27), will be North America’s only mine producing niobium, scandium, titanium and rare earths (all of which the US define as ‘critical’). A definitive feasibility study (DFS) on the project in June 2022 calculated a pre-tax internal rate of return (IRR) of 29.2% and a post-tax net present value (NPV8) of US$2,350m, or US$70.51 per existing share in issue, to which NioCorp’s shares are currently trading at a 95.6% discount. However, the project now appears poised for a material change in product mix to improve its economics and reduce its previous, heavy reliance on scandium revenue.