NioCorp Developments Ltd.

What they do

NioCorp, through its 80.42%-owned subsidiary Elk Creek Resources Corp., is developing the Elk Creek Project near Elk Creek, Nebraska. The project is designed to produce niobium, scandium, and titanium, with the potential for rare earth products. The company is pre-revenue and has incurred losses since inception.

Revenue drivers

• Niobium — Intended to produce niobium for superalloys used in high-performance aircraft and jet turbines and for high-strength, low-alloy steel in automobiles, bridges, pipelines and structural systems; no revenue has been generated to date.
• Scandium — Intended to produce scandium for aluminum-scandium alloys and solid oxide fuel cells; NioCorp Technologies Limited also researches aluminum-scandium alloys, but no revenue has been generated to date.
• Titanium — Intended to produce titanium for aerospace superalloys, weapons systems, protective armor, medical implants and pigments; no revenue has been generated to date.
• Rare earth products — Potential future production of magnetic rare earths such as neodymium, praseodymium, terbium and dysprosium for defense and civilian magnets; not yet part of the planned product suite and no revenue has been generated.

Recent performance

The company has no mining revenue. For fiscal year 2025, it reported a net loss attributable to the Company of $17.4 million, or $0.36 per share, compared with a net loss of $11.4 million, or $0.31 per share, in fiscal year 2024. Operating expenses declined to $12.0 million in fiscal 2025 from $13.8 million in fiscal 2024. The larger net loss was primarily due to non-cash losses from the revaluation of Earnout Share and Warrant liabilities, partly offset by lower interest expense and operating expenses. For the six months ended December 31, 2025, the preliminary unaudited net loss was $43.4 million, or $0.44 per share, versus $2.5 million, or $0.06 per share, a year earlier.

Strategy

NioCorp's primary strategy is to advance the Elk Creek Project to commercial production. It is focused on securing project financing necessary to complete detailed design, development and construction, and on beginning early construction elements. The company reported a record cash balance of $307 million as of December 31, 2025, following a period of significant de-risking that included a $10 million U.S. Department of Defense award, an infill drilling campaign, acquisition of scandium alloy manufacturing assets from FEA Materials LLC, land purchases for the project, and agreements with the Department of Defense and Lockheed Martin related to scandium-based technologies for potential defense applications. Results of the 2025 drilling program are expected to be used to update the feasibility study.

Risks

• Going concern — The notes to the fiscal 2025 consolidated financial statements disclose substantial doubt about the company's ability to continue as a going concern.
• No revenue — As a development-stage issuer, NioCorp has not commenced mining operations and does not generate revenue, and it has incurred losses since inception.
• Financing need — The company does not have sufficient cash on hand to fund planned operations and mine construction for the next twelve months and depends on raising capital.
• Fair value volatility — Changes in the fair value of Earnout Share and Warrant liabilities have caused large swings in reported net income or loss, including a $26.1 million non-cash loss for the six months ended December 31, 2025.

Outlook

Management is focused on securing the project financing needed to complete detailed design, development and construction of the Elk Creek Project and to begin early construction. The company expects results from its 2025 drilling program to support an update to the feasibility study, and it continues work on the potential addition of rare earth oxides to its planned product suite. It also expects to receive the full $10.0 million reimbursement under its Department of Defense Project Sub-Agreement.