NioCorp Developments - Opportunities and optimisations

Since our initiation note in January, NioCorp has 1) raised c US$7.6m in debt and equity instruments, 2) de-listed from the Toronto Stock Exchange, 3) announced the results of a scoping study, which suggested that the adoption of a Railveyor system could lead to material savings in both capex and opex at its Elk Creek project as well as reducing the underground mine’s carbon footprint, and 4) announced that it has received a preliminary, non-binding indicative financing term sheet from the Export-Import Bank of the United States (EXIM) with respect to NioCorp’s application for US$800m in debt financing to develop the project. This note updates our valuation of NioCorp for all of the above as well as the construction of an aluminium-scandium master alloy line at the mine, the size and timing of future equity fund-raisings and rare earth oxide pricing assumptions.