NB Initiated Coverage by Jefferies -- Rating Set to Hold

NioCorp updated its feasibility study for the Elk Creek mine, projecting gross revenue of more than $37 billion, up from $22 billion in 2022, helped by adding five rare-earth products including dysprosium and terbium oxides. Elk Creek is described as the largest known US niobium source. NioCorp also signed a nonbinding MoU with Lockheed Martin to potentially buy about 16.5 tons of scandium annually and plans an onsite natural-gas microgrid instead of grid power.

NioCorp Developments (Nasdaq: NB) updated its feasibility study for the Elk Creek niobium project in Nebraska, raising after-tax NPV at an 8% discount rate to $3.44B from $2.35B. Capital costs increase to $1.85B. The redesign expands output to eight critical-mineral products, boosting life-of-mine revenue to $37.4B and average annual EBITDA to $608M. NB shares fell 1.6% to $5.36.

NioCorp Developments (NASDAQ:NB) reported updated feasibility study results for its Elk Creek critical minerals project in Nebraska. The company said the project could run 40 years with NPV8% above $4B, including pre-tax NPV8% of $4.1B and after-tax NPV8% of $3.4B. It projects life-of-mine revenue of about $37.4B and average annual EBITDA of $608M. NB shares closed down 1.6%.

NioCorp Developments (NASDAQ:NB) reported an updated feasibility study for its Elk Creek critical minerals project in Nebraska. The study estimates pre-tax NPV8% of $4.1B (after-tax $3.4B), pre-tax IRR 24% (after-tax 22.8%), and life-of-mine revenue of $37.4B, with average annual EBITDA of $608M. It targets eight U.S.-critical minerals and an $1.85B upfront capital estimate.

Reuters reports Lockheed Martin is seeking North American supplies of critical minerals as US sourcing rules tighten. It is in talks to buy scandium from NioCorp Developments and germanium from Teck and 5N Plus. A preliminary scandium deal would supply 15 tonnes per year. The move follows a Trump executive order limiting foreign sourcing waivers.

NioCorp Developments CEO Mark Smith appeared on CNBC’s Squawk Box Asia, driving NB shares up about 12% at the open and 10.7% higher by 11:30 a.m. ET. He said Section 232 talks on processed critical minerals are ongoing with allies including Japan, the EU, and Mexico, and that NioCorp remains focused on magnetic rare-earth production at the Elk Creek Project.