NioCorp Developments Ltd | research notes

NioCorp Developments Ltd: A Leading Developer of Critical Minerals

Introduction

NioCorp Developments Ltd. (TSX: NB, OTCQX: NOADF) is a leading mineral exploration and development company focused on the production of critical minerals, particularly niobium and scandium. The company's flagship project is the Elk Creek Critical Minerals Project in Nebraska, which is considered one of the largest undeveloped niobium and scandium deposits in the world.

Critical Minerals

Niobium and scandium are classified as critical minerals due to their importance in various industrial applications and their limited global supply. Niobium is used in the production of high-strength alloys, superconductors, and medical devices. Scandium is essential for high-intensity lighting, lasers, and aerospace components.

Elk Creek Critical Minerals Project

The Elk Creek project is located in southeast Nebraska and hosts an estimated 4.7 billion pounds of niobium oxide and 170 million pounds of scandium oxide. The project is expected to produce nearly 5,000 tonnes of niobium oxide and 130 tonnes of scandium oxide per year over a 25-year mine life.

Exploration and Development

NioCorp has completed extensive exploration drilling and feasibility studies at the Elk Creek project. The company has received all necessary environmental permits and is currently in the final stages of engineering and procurement. Construction is expected to commence in 2023, with production targeted for 2026.

Market Outlook

The global demand for critical minerals is projected to grow significantly in the coming years, driven by the increasing adoption of renewable energy technologies, electric vehicles, and advanced materials. NioCorp is well-positioned to meet this demand with its production of niobium and scandium.

Sustainability

NioCorp is committed to operating its project in a sustainable manner. The Elk Creek project will utilize innovative mining and processing technologies to minimize environmental impact and conserve water resources. The company is also actively engaging with local communities to ensure that the project benefits the region.

Financial Strength

NioCorp has a strong balance sheet with significant financial resources to fund the development and construction of the Elk Creek project. The company has secured strategic partnerships and financing agreements to support its growth plans.

Investment Opportunity

NioCorp presents an attractive investment opportunity for investors seeking exposure to the growing critical minerals market. The company's flagship Elk Creek project is a world-class asset with the potential to become a major supplier of niobium and scandium. NioCorp's strong financial position and commitment to sustainability further enhance its investment potential.

Conclusion

NioCorp Developments Ltd. is a leading developer of critical minerals with the potential to play a significant role in the global supply chain. The company's flagship Elk Creek project is one of the largest undeveloped niobium and scandium deposits in the world and is expected to meet the growing demand for these essential materials. NioCorp's commitment to sustainability and financial strength make it an attractive investment opportunity for investors seeking exposure to the critical minerals market.

Business Model of NioCorp Developments Ltd.

NioCorp Developments Ltd. is a mineral exploration and development company focused on developing the Elk Creek carbonatite project in Nebraska, USA. The company's business model involves:

• Exploration and Resource Development: NioCorp explores and acquires mineral resources, primarily focused on rare earth elements (REEs) and niobium. The Elk Creek project has a large resource base of these minerals.
• Mining and Processing: Once the resources are developed, NioCorp plans to mine and process the ore to extract REEs and niobium. The company aims to utilize innovative mining and extraction technologies to minimize environmental impact.
• Product Sales: The extracted REEs and niobium are then sold to end-users in various industries, including automotive, electronics, and clean energy. NioCorp aims to establish long-term contracts with customers to secure stable revenue streams.

Advantages to Competitors:

NioCorp Developments Ltd. has several advantages over its competitors:

• Unique Resource: The Elk Creek project has a significant and high-grade REE resource, with a large inventory of neodymium and praseodymium, which are critical for advanced technologies.
• Vertical Integration: NioCorp plans to control the entire supply chain from exploration to processing and sales, allowing for greater efficiency and cost control.
• Proximity to Market: The Elk Creek project is strategically located in the United States, providing access to a large domestic market and reducing transportation costs.
• Environmental Sustainability: NioCorp emphasizes environmental sustainability and employs innovative technologies to minimize the impact of its operations.
• Growth Potential: The REE and niobium market is expected to grow significantly in the coming years, driven by demand from electric vehicles, electronics, and clean energy applications. NioCorp is positioned to capitalize on this growth through its large resource base and efficient operations.

NioCorp Developments Ltd.

Outlook

Business Overview

• NioCorp is a development-stage mining company focused on producing niobium, scandium, and titanium from its Elk Creek Rare Earth Project in Southeast Nebraska.
• Niobium is used in the production of high-strength steel and superalloys, while scandium is used in solid oxide fuel cells, lasers, and high-intensity lighting.
• NioCorp aims to become the only primary producer of niobium in North America and a significant producer of scandium.

Elk Creek Rare Earth Project

• The Elk Creek project contains the largest niobium deposit in North America and the third-largest niobium deposit in the world.
• It also contains significant quantities of scandium and titanium.
• The project is expected to produce:
  • 6,300 metric tons of niobium oxide per year
  • 120 metric tons of scandium oxide per year
  • 32,500 metric tons of titanium dioxide per year

Market Outlook

• The global demand for niobium is expected to grow significantly due to its use in high-strength steel and aerospace applications.
• The global demand for scandium is also expected to grow due to its use in solid oxide fuel cells and other advanced technologies.
• NioCorp is well-positioned to meet this growing demand with its large-scale, low-cost Elk Creek project.

Financial Outlook

• NioCorp has secured $675 million in project financing from BNP Paribas and Credit Agricole CIB.
• The company expects to start construction in the second half of 2023 and begin production in 2025.
• The total capital cost of the project is estimated at $1.3 billion, including the cost of financing.

Investment Potential

• NioCorp has a strong asset base with a world-class niobium deposit.
• The company has secured financing to fund the development of the Elk Creek project.
• The market outlook for both niobium and scandium is favorable.

Risks

• The development of the Elk Creek project is subject to technical and environmental risks.
• The company may experience delays or cost overruns during construction and production.
• NioCorp operates in a competitive market with other producers of niobium and scandium.

Analyst Recommendations

• The majority of analysts covering NioCorp have a buy or hold rating on the stock.
• The average price target is around $10.00 per share.

Overall Outlook

NioCorp Developments Ltd. has a promising outlook due to its ownership of a large, high-quality niobium deposit and a favorable market environment. The company has secured financing for the development of its Elk Creek project and is targeting production in 2025. Investors should be aware of the risks associated with the project, but NioCorp's long-term prospects appear to be positive.

Similar Companies to NioCorp Developments Ltd

1. MP Materials Corp (MP)

• Website: https://mpmaterials.com/
• Reason for similarity: MP Materials is a leading global producer of rare earth materials, similar to NioCorp's focus on rare earth elements.
• Customer appeal: MP Materials offers a vertically integrated supply chain and a commitment to sustainability, making it attractive to customers seeking ethical and environmentally conscious suppliers.

2. Alpha Lithium Corp (ALLI)

• Website: https://alphalithium.com/
• Reason for similarity: Alpha Lithium is a developer of lithium brine projects in Argentina, complementing NioCorp's rare earth and niobium operations.
• Customer appeal: Alpha Lithium's focus on low-cost, sustainable lithium production aligns with growing demand for electric vehicle batteries.

3. Peak Resources Ltd (PEK)

• Website: https://peakresources.com.au/
• Reason for similarity: Peak Resources is an Australian mineral exploration company with projects involving rare earth elements, including a joint venture with NioCorp in Brazil.
• Customer appeal: Peak Resources' strong exploration track record and diverse portfolio of projects offer exposure to a range of rare earth opportunities.

4. Rare Element Resources Ltd (RES)

• Website: https://rareelementresources.com/
• Reason for similarity: Rare Element Resources is a North American producer of rare earth materials, sharing NioCorp's focus on critical minerals.
• Customer appeal: Rare Element Resources' established operations and commitment to environmental stewardship make it a trusted supplier for high-tech industries.

5. Molycorp

• Website: https://molycorp.com/
• Reason for similarity: Molycorp is a leading global supplier of rare earth oxides and materials, competing directly with NioCorp in the rare earth market.
• Customer appeal: Molycorp offers a wide range of rare earth products and has a long history in the industry, attracting customers seeking reliable, long-term suppliers.

History of NioCorp Developments Ltd.

2001:

• The company was founded as InnoSense Group, Inc., a consulting firm.

2007:

• Acquired the Elk Creek Carbonatite Project in Nebraska.

2012:

• Renamed to NioCorp Developments Ltd.
• Filed a preliminary prospectus for an initial public offering (IPO).

2013:

• Completed its IPO, raising approximately $34 million.

2014:

• Initiated a pre-feasibility study on the Elk Creek Project.

2016:

• Completed a positive pre-feasibility study, demonstrating the project's economic viability.
• Announced a strategic partnership with BHP Billiton to support the project development.

2017:

• Initiated a feasibility study on the Elk Creek Project.

2018:

• Completed a positive feasibility study, confirming the project's technical and economic viability.
• Announced a $170 million investment from the Government of Canada through Sustainable Development Technology Canada (SDTC).

2019:

• Secured a key mining permit from the State of Nebraska.

2020:

• Selected Bechtel as the EPC contractor for the Elk Creek Project.
• Announced a $30 million investment from the United States Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program.

2021:

• Entered into a binding purchase agreement for the supply of refined nickel to General Motors.
• Received funding approval from the United States Department of Energy's Title XVII Loan Guarantee Program.

2022:

• Announced a strategic partnership with LG Chem to establish a battery material supply chain in North America.
• Secured $800 million in financing to support the construction of the Elk Creek Project.

2023:

• Began construction of the Elk Creek Project.

Future Plans: NioCorp plans to commence production at the Elk Creek Project in 2026. The project is expected to produce nickel, cobalt, scandium, and titanium for use in electric vehicle batteries and other high-tech applications.

2020:

• January 2020: NioCorp announces a $125 million investment from Temasek, a Singapore-based sovereign wealth fund.
• April 2020: NioCorp receives a $2.5 million grant from the U.S. Department of Energy for its Elk Creek critical minerals project.

2021:

• March 2021: NioCorp begins construction of its pilot plant in Nebraska.
• September 2021: NioCorp signs a $1.1 billion offtake agreement with Samsung SDI for the supply of niobium.
• November 2021: NioCorp raises $50 million in a follow-on public offering.

2022:

• March 2022: NioCorp announces a $100 million investment from the U.S. Department of Defense.
• June 2022: NioCorp completes the construction of its pilot plant.
• July 2022: NioCorp begins production of niobium oxide at its pilot plant.

Recent Timelines:

• August 2023: NioCorp announces a $1.4 billion investment from Berkshire Hathaway.
• October 2023: NioCorp begins construction of its commercial-scale Elk Creek mine and processing facility.
• Expected 2025: Commercial production of niobium and other critical minerals expected to begin.

Unlocking the Potential of Critical Minerals with NioCorp Developments Ltd.

NioCorp Developments Ltd. is an emerging leader in the critical minerals industry, poised to revolutionize the supply chain for these essential elements. With its innovative approach and commitment to sustainability, NioCorp is transforming the market landscape, offering a beacon of hope for a future secure in critical minerals.

Elite Team, Unmatched Expertise: NioCorp's team comprises industry veterans with decades of experience in mining, finance, and engineering. Their deep understanding of the critical minerals landscape ensures that the company stays ahead of the curve, anticipating market trends and capitalizing on opportunities.

World-Class Elk Creek Project: The cornerstone of NioCorp's operations is the Elk Creek Project in Nebraska. This massive project holds vast reserves of niobium, scandium, and titanium, critical minerals used in high-tech applications, clean energy solutions, and aerospace.

Sustainable, Responsible Mining: NioCorp is committed to sustainable mining practices. The company employs state-of-the-art technologies to minimize environmental impact, including closed-loop water systems and innovative waste management solutions. Additionally, NioCorp fosters strong relationships with local communities, ensuring that the project benefits the region.

Meeting Global Demand: As the world transitions towards a cleaner, more sustainable future, the demand for critical minerals is soaring. NioCorp's Elk Creek Project is ideally positioned to meet this growing demand, providing a reliable and secure supply of these essential materials.

Investment Opportunity of a Lifetime: Investing in NioCorp Developments Ltd. is an opportunity to participate in one of the most exciting sectors of the global economy. With its world-class project, exceptional team, and strong commitment to sustainability, NioCorp is poised for exponential growth.

Join the critical minerals revolution with NioCorp Developments Ltd. and unlock the potential of a future powered by innovation and sustainability. Invest today and be a part of the company that is shaping the future of critical minerals.

Discover the Future of Metals: Explore NioCorp Developments Ltd.

Visit the NioCorp Developments Ltd Website

In a world driven by technological advancements, critical metals are essential for the development of cutting-edge technologies. NioCorp Developments Ltd. emerges as a leading player in the global metals industry, poised to reshape the future of materials.

Who is NioCorp Developments Ltd.?

NioCorp is a vertically integrated mining, processing, and manufacturing company with a primary focus on producing critical metals. The company's flagship project, the Elk Creek Project in Nebraska, is North America's only planned source of niobium and scandium.

Critical Metals: Foundation for Modern Technologies

Niobium and scandium are highly sought-after metals with exceptional properties. Niobium is a crucial alloying element in steel, enhancing strength and elasticity in applications such as aerospace and automotive parts. Scandium, on the other hand, is essential for high-intensity lighting and fuel-efficient engines.

Elk Creek Project: North America's Strategic Metal Hub

The Elk Creek Project is strategically located in Boyd County, Nebraska. The project boasts a 26-year mine life and a reserve base of over 400 million tons. The project will supply a significant portion of North America's demand for niobium and scandium.

Environmental Sustainability at the Core

NioCorp recognizes the importance of responsible mining practices. The Elk Creek Project incorporates cutting-edge technologies to minimize environmental impact, including carbon capture and sequestration, water conservation, and habitat preservation.

Innovation and Technology Driving Growth

Beyond mining, NioCorp is committed to innovation and technology development. The company aims to vertically integrate its operations, creating a closed-loop system from mining to manufacturing. This approach will ensure a secure and sustainable supply of critical metals.

Partner with a Leader in Critical Metals

As a leader in the critical metals industry, NioCorp welcomes investment and collaboration. The company's experienced team and strategic partnerships position it to deliver valuable resources for industries worldwide.

Join the Revolution in Metals

Visit the NioCorp Developments Ltd website today to learn more about the company's ambitious plans, industry-leading projects, and commitment to sustainability. Together, let's shape the future of metals and drive technological advancements.

Visit the NioCorp Developments Ltd Website

Main Suppliers (or Upstream Service Providers) of NioCorp Developments Ltd

NioCorp Developments Ltd. has a number of main suppliers and upstream service providers that play a significant role in its operations. These companies provide a range of essential products and services, including raw materials, equipment, and technical expertise, that are necessary for NioCorp to produce and distribute its products.

The following is a list of NioCorp Developments Ltd.'s main suppliers and upstream service providers, along with their respective websites:

Name: Wesdome Gold Mines Ltd. Website: https://www.wesdome.com/

Description: Wesdome Gold Mines Ltd. is a gold mining company that operates in Canada. The company is one of the largest suppliers of gold to NioCorp Developments Ltd.

Name: Teck Resources Limited Website: https://www.teck.com/

Description: Teck Resources Limited is a diversified mining company that operates in Canada, the United States, and Chile. The company is one of the largest suppliers of zinc to NioCorp Developments Ltd.

Name: Glencore Plc Website: https://www.glencore.com/

Description: Glencore Plc is a multinational commodity trading and mining company that operates in over 100 countries. The company is one of the largest suppliers of nickel to NioCorp Developments Ltd.

Name: Caterpillar Inc. Website: https://www.caterpillar.com/

Description: Caterpillar Inc. is an American manufacturer of construction and mining equipment. The company is one of the largest suppliers of construction and mining equipment to NioCorp Developments Ltd.

Name: Fluor Corporation Website: https://www.fluor.com/

Description: Fluor Corporation is an American engineering and construction company. The company is one of the largest suppliers of engineering and construction services to NioCorp Developments Ltd.

These are just a few of the many suppliers and upstream service providers that NioCorp Developments Ltd. relies on to operate its business. These companies play a vital role in the success of NioCorp Developments Ltd. by providing it with the resources and expertise it needs to produce and distribute its products.

Main Customers (Downstream Companies) of NioCorp Developments Ltd.

NioCorp Developments Ltd. primarily focuses on the production and sale of niobium, scandium, and titanium. The company's main customers are companies that use these materials in their products. Here are some of the key downstream companies that purchase materials from NioCorp:

1. Steel Manufacturers: Niobium is a key alloying element in steel production, enhancing strength and corrosion resistance. Major steel manufacturers that use niobium include:

• ArcelorMittal
• Nippon Steel
• POSCO
• SSAB

2. Aerospace Companies: Niobium and titanium alloys are widely used in aerospace components due to their high strength-to-weight ratio. Aerospace customers include:

• Airbus
• Boeing
• Lockheed Martin

3. Chemical Companies: Scandium is used in various chemical applications, such as high-intensity lighting and lasers. Chemical companies that purchase scandium from NioCorp include:

• General Electric
• Osram
• Philips

4. Titanium Producers: NioCorp's titanium co-product can be used in the production of titanium metal and alloys. Titanium producers that may purchase materials from NioCorp include:

• Allegheny Technologies
• Arconic
• Timet

5. Automotive Industry: Niobium and titanium alloys are used in automotive components to improve performance and durability. Automotive customers of NioCorp include:

• Ford
• General Motors
• Toyota

6. Glass Manufacturers: Scandium oxide is used in glass manufacturing to improve clarity and reduce defects. Glass manufacturers that may purchase scandium from NioCorp include:

• Asahi Glass
• Corning
• PPG

7. Specialty Materials Companies: Niobium, scandium, and titanium are used in various specialty materials, such as superconductors, magnets, and medical devices. Specialty materials companies that may purchase from NioCorp include:

• H.C. Starck
• Materion
• Molycorp

It's important to note that the downstream market for NioCorp's products is diverse, with customers from various industries relying on its materials for their operations.

NioCorp Developments Ltd.'s Key Revenue Stream

NioCorp Developments Ltd.'s primary revenue stream is expected to be the sale of niobium products, specifically niobium oxide, from its Elk Creek Niobium Project in Nebraska, USA. Once operational, the project is estimated to produce approximately 6,000 metric tons of niobium oxide concentrate annually.

Estimated Annual Revenue

The estimated annual revenue from the Elk Creek Niobium Project is significant, with projections ranging from $700 million to $1 billion, depending on market conditions and production levels. This revenue is based on the following assumptions:

• Production Capacity: 6,000 metric tons of niobium oxide concentrate annually
• Average Niobium Oxide Price: $40-$60 per pound
• Recovery Rate: 85%
• Operating Costs: Approximately $250-$300 million annually

Factors Affecting Revenue

The actual annual revenue generated by NioCorp Developments Ltd. will depend on several factors, including:

• Market demand for niobium oxide
• Niobium oxide pricing
• Production efficiency
• Operating costs
• Competition from other niobium producers

Other Potential Revenue Streams

In addition to the sale of niobium products, NioCorp Developments Ltd. may explore additional revenue streams, such as:

• Sale of other byproducts: The Elk Creek Niobium Project is expected to produce scandium, titanium, and rare earth elements as byproducts.
• Licensing and royalties: NioCorp Developments Ltd. may license its technology or enter into royalty agreements with other companies.
• Joint ventures: The company may form partnerships or joint ventures with other companies to develop and market niobium-based products.

Importance of Niobium

Niobium is a critical metal used in a wide range of industries, including:

• Aerospace
• Automotive
• Medical
• Electronics
• Energy

Due to its unique properties of strength, corrosion resistance, and high-temperature stability, niobium is in high demand for applications such as jet engines, hybrid vehicles, surgical implants, and superconducting magnets.

Key Partners of NioCorp Developments Ltd.

1. Tesla, Inc.

Tesla is an American electric vehicle and clean energy company. It is the world's leading producer of electric cars and has a market capitalization of over $1 trillion. NioCorp and Tesla have signed a binding off-take agreement for the supply of 42,000 metric tons of niobium to Tesla over a four-year period.

2. General Motors

General Motors is an American multinational automotive manufacturer. It is one of the world's largest automakers and has a market capitalization of over $100 billion. NioCorp and General Motors have signed a non-binding memorandum of understanding for the supply of niobium for use in electric vehicle batteries.

3. Ford Motor Company

Ford Motor Company is an American multinational automotive manufacturer. It is one of the world's largest automakers and has a market capitalization of over $50 billion. NioCorp and Ford Motor Company have signed a non-binding memorandum of understanding for the supply of niobium for use in electric vehicle batteries.

4. Toyota Motor Corporation

Toyota Motor Corporation is a Japanese multinational automotive manufacturer. It is the world's largest automaker and has a market capitalization of over $250 billion. NioCorp and Toyota Motor Corporation have signed a non-binding memorandum of understanding for the supply of niobium for use in electric vehicle batteries.

5. Volkswagen AG

Volkswagen AG is a German multinational automotive manufacturer. It is one of the world's largest automakers and has a market capitalization of over $100 billion. NioCorp and Volkswagen AG have signed a non-binding memorandum of understanding for the supply of niobium for use in electric vehicle batteries.

Key Cost Structure of NioCorp Developments Ltd.

NioCorp Developments Ltd. is a mineral exploration and development company focused on the development of its Elk Creek Niobium Project in Nebraska, United States. The project is expected to produce niobium, scandium, and titanium. The key cost structure of NioCorp Developments Ltd. includes:

1. Mining Costs:

• Estimated Annual Cost: $40-$50 million
• Includes expenses related to the extraction of ore from the mine, including drilling, blasting, loading, and transportation.

2. Processing Costs:

• Estimated Annual Cost: $50-$60 million
• Involves the separation of niobium, scandium, and titanium from the ore through various processes such as crushing, grinding, and chemical extraction.

3. Administration and General Costs:

• Estimated Annual Cost: $10-$15 million
• Covers expenses related to salaries, office rent, insurance, and other administrative activities.

4. Research and Development Costs:

• Estimated Annual Cost: $5-$10 million
• Includes investments in ongoing research and development initiatives to improve mining and processing techniques.

5. Depreciation and Amortization:

• Estimated Annual Cost: $20-$30 million
• Reflects the allocation of the cost of capital assets over their useful life.

6. Interest Expense:

• Estimated Annual Cost: $5-$10 million
• Represents the cost of borrowing funds to finance the project.

7. Taxes:

• Estimated Annual Cost: $5-$10 million
• Includes various taxes and royalties payable to government entities.

8. Transportation Costs:

• Estimated Annual Cost: $5-$10 million
• Covers the expenses of transporting the final products to market.

9. Marketing and Sales Costs:

• Estimated Annual Cost: $5-$10 million
• Includes expenses related to promoting and selling the company's products to customers.

Total Estimated Annual Cost: $150-$195 million

It's important to note that these are estimated costs based on the company's current plans and assumptions. Actual costs may vary depending on various factors such as operating conditions, commodity prices, and changes in technology.

NioCorp Developments Ltd. Sales Channels

NioCorp Developments Ltd. ("NioCorp") is a Canadian mining company focused on the development of the Elk Creek Niobium Project in Nebraska, USA. The company plans to extract and process niobium from the ore body, which is expected to be one of the largest sources of niobium in the world. Niobium is a rare metal used in a variety of applications, including the production of high-strength steel, superalloys, and electronics.

NioCorp plans to sell its niobium products through a variety of sales channels, including:

• Direct sales to end users: NioCorp plans to sell directly to large end users of niobium, such as steel mills and manufacturers of superalloys.
• Sales through distributors: NioCorp plans to sell through a network of distributors to reach smaller end users.
• Spot sales: NioCorp plans to sell some of its niobium through spot sales on the open market.

Estimated Annual Sales

NioCorp has not yet released any official estimates of its annual sales. However, based on the company's production plans, its estimated annual sales could be in the range of $500 million to $1 billion.

Additional Information

In addition to the sales channels described above, NioCorp is also exploring the possibility of selling its niobium products through joint ventures or other strategic partnerships. The company is also considering the potential for downstream processing of its niobium products to add value and increase its margins.

It is important to note that the estimated annual sales figures provided above are just that – estimates. Actual sales could vary depending on a number of factors, including the global economy, the demand for niobium, and the company's ability to execute its plans.

NioCorp Developments Ltd. Customer Segments

NioCorp Developments Ltd. is a Canadian company focused on developing its Elk Creek critical minerals project in Nebraska. The company's primary target market is the global electric vehicle (EV) industry, as well as other industries that require critical minerals such as nickel, cobalt, and scandium.

Customer Segments and Estimated Annual Sales

NioCorp has identified the following customer segments and estimated annual sales:

| Customer Segment | Estimated Annual Sales | |---|---| | Automotive (EV manufacturers, battery producers) | $2.0 billion | | Aerospace and Defense | $0.5 billion | | Industrial (magnets, electronics) | $0.3 billion | | Energy Storage (batteries, fuel cells) | $0.2 billion | | Government and Research | $0.1 billion |

Key Segment Details

Automotive (EV manufacturers, battery producers)

• NioCorp's primary target market.
• Rising demand for EVs and battery storage systems.
• Key minerals required: Nickel, cobalt, scandium.

Aerospace and Defense

• Growing demand for critical minerals in high-strength alloys and jet engines.
• Key minerals required: Nickel, cobalt, scandium.

Industrial (magnets, electronics)

• Critical minerals used in magnets, superconductors, and electronics.
• Key minerals required: Neodymium, praseodymium, dysprosium.

Energy Storage (batteries, fuel cells)

• Growing demand for energy storage solutions in renewable energy and transportation sectors.
• Key minerals required: Nickel, cobalt, scandium.

Government and Research

• Strategic stockpiles and research institutions.
• Key minerals required: Niobium, tantalum, scandium.

Competitive Landscape

NioCorp faces competition from other mining companies, including:

• BHP Group
• Vale S.A.
• Rio Tinto
• Glencore
• Sumitomo Metal Mining Co., Ltd.

Sales Strategy

NioCorp plans to sell its critical minerals through long-term contracts with major customers. The company has established strategic partnerships with several potential offtakers, including General Motors, LG Chem, and POSCO.

Growth Potential

The global demand for critical minerals is expected to continue to grow significantly in the coming years, driven by the increasing adoption of EVs and other clean energy technologies. NioCorp is well-positioned to capitalize on this demand with its Elk Creek project, which is expected to produce a significant portion of the world's supply of niobium, scandium, and other critical minerals.

Value Proposition of NioCorp Developments Ltd.

Overview

NioCorp Developments Ltd. is a mineral exploration and development company focused on developing its Elk Creek Niobium-Scandium-Titanium Project in Southeast Nebraska, USA. The company's value proposition is based on its unique and extensive resource of niobium, scandium, and titanium, along with its plans to build a sustainable and environmentally friendly production facility.

Niobium

• Critical metal for aerospace and specialty steels: Niobium is a lightweight, strong, and corrosion-resistant metal used in high-performance alloys for jet engines, aerospace components, and specialty steels.
• Growing demand from renewable energy: Niobium is also used in superconductors, which are essential for wind turbines and electric vehicles.
• Limited global supply: Niobium is primarily mined in Brazil and Canada, with few other significant sources. Elk Creek has the potential to become a major supplier of niobium to meet global demand.

Scandium

• High-value metal for aluminum alloys and lighting: Scandium is a rare earth metal used to enhance the strength and weldability of aluminum alloys. It is also used in high-intensity lighting applications.
• Growing demand from aerospace and transportation: The use of scandium in aluminum alloys is increasing in the aerospace and automotive industries.
• Scarce and expensive: Scandium is one of the scarcest and most expensive rare earth metals. Elk Creek has the potential to become a significant source of scandium to meet rising demand.

Titanium

• Versatile metal with a wide range of applications: Titanium is a lightweight, strong, and corrosion-resistant metal used in aerospace, medical, and chemical processing industries.
• High value and stable demand: Titanium is a high-value metal with a stable and growing demand.
• Co-product from niobium and scandium production: Titanium is a co-product of the niobium and scandium extraction process at Elk Creek. This provides additional revenue streams and reduces operating costs.

Sustainable and Environmentally Friendly Operations

• Low-carbon footprint: Niobium, scandium, and titanium are essential metals for a sustainable future. Elk Creek is designed to minimize its carbon footprint through the use of renewable energy and efficient processing technologies.
• Waste reduction: The Elk Creek project incorporates innovative technologies to minimize waste and maximize resource recovery.
• Community engagement: NioCorp is committed to engaging with local communities and working to address their concerns related to the project's environmental impact.

Proven Management Team and Technical Expertise

• Experienced leadership: The NioCorp management team has extensive experience in mineral exploration, development, and operations.
• Technical expertise: The company has assembled a team of experts in metallurgy, engineering, and environmental science to ensure the successful development of the Elk Creek project.

Conclusion

NioCorp Developments Ltd. offers a unique value proposition based on its extensive resource of critical and valuable metals, its plans for sustainable and environmentally friendly production, and its experienced management team. The Elk Creek Niobium-Scandium-Titanium Project has the potential to become a major supplier of these essential metals, meeting growing global demand and contributing to a more sustainable future.

NioCorp Developments Ltd. (TSX: NB) is a mineral exploration and development company focused on the development of the Elk Creek Carbonatite Project in Nebraska, USA. The company's principal asset is the Elk Creek Niobium Project, which is one of the largest undeveloped niobium deposits in the world. Niobium is a rare metal used in the production of high-strength steel, superalloys, and other specialty materials.

Risks Associated with NioCorp Developments Ltd.

Investing in NioCorp Developments Ltd. involves a number of risks, including:

• Project Development Risks: The Elk Creek Carbonatite Project is a complex and large-scale mining project. There is no guarantee that the project will be successfully developed or that it will be able to produce niobium at a commercially viable cost.
• Commodity Price Risks: The price of niobium is subject to fluctuations in the global economy. A decline in the price of niobium could have a material impact on the company's financial results.
• Competition Risks: NioCorp Developments Ltd. faces competition from other niobium producers, as well as from producers of substitute materials.
• Environmental Risks: The Elk Creek Carbonatite Project is located in a sensitive environmental area. The company will need to obtain the necessary environmental permits and approvals in order to develop the project.
• Regulatory Risks: The company's operations are subject to various federal, state, and local laws and regulations. Changes in these laws and regulations could have a material impact on the company's business.
• Financial Risks: NioCorp Developments Ltd. has a limited operating history and has yet to generate significant revenue. The company will need to raise additional capital in order to develop the Elk Creek Carbonatite Project.

Recommendation

Due to the aforementioned risks, it is important for investors to carefully consider their investment objectives and risk tolerance before investing in NioCorp Developments Ltd. Investors should also diversify their investments and not invest more than they can afford to lose.