Highlights of the NioCorp-GX Business Combination
What We Do
NioCorp is a publicly traded company that is developing the Elk Creek Project, a very large underground deposit in southeast Nebraska that is rich in Niobium, Scandium and Titanium – superalloy metals that have all been designated as “Critical Minerals” by the U.S. Government.
Our Company: At A Glance
- Tickers: TSX: NB / OTCQX: NIOBF
- Market Cap (12/25/2020): CAD $181.4 million; US $140.9 million
- Insider Ownership: 8.66%
- Incorporated: 1987
- Employees: 10
- Corporate HQ: Centennial, CO
Our Planned Products
NioCorp plans to produce the following commercial products from Elk Creek:
- Ferroniobium (FeNb): Used in mega-steel infrastructure projects, oil and gas pipelines, vehicles, commercial aviation, aerospace, and defense systems.
- Scandium Trioxide (Sc2O3): Added to high-performance aluminum alloys used in the transportation, defense, commercial aviation and other industries.
- Titanium Dioxide (TiO2): Used in commercial and defense markets, including pigments, thin films, cosmetics, aircraft, armor, ships and other equipment.
- Highest-grade primary Niobium resource in North America, and the only such resource under development in the U.S. Additional market opportunities are available from a co-product (Scandium) and a byproduct (Titanium).
- The Company’s three products are valuable superalloy additives used in large, diverse end markets, including transportation, aerospace and defense, oil and gas, advanced manufacturing, and steel mega-structures. Niobium has a global market value of over $2 billion.1
- All three of NioCorp’s planned products have been determined to be “Critical Minerals” by the U.S. Government.2
- The Elk Creek Project has already secured all major federal permits required for construction.
- Strong Pre-Production Sales
- 75% of the Company’s Ferroniobium product (FeNb) for the first 10 years of production is under an enforceable sales contract.
- 50% of FeNb production to ThyssenKrupp enables in-principle eligibility for a German Government Loan Guarantee of > $146M-$179M.3
- 12% of average annual scandium production over first 10 years has been sold to Traxys North America, a global leader in specialty metals.
- Highly attractive mine economics:4
- 36-year mine life with 2.86-year after-tax payback period from production
- Pre-tax Net Present Value (“NPV”) of $2.56 billion and Internal Rate of Return (“IRR”) of 27.3%; after-tax NPV of $2.1 billion and IRR of 25.8%5
- Average annual EBITDA of $370 million over Life of Mine (“LoM”); average EBITDA margin over LOM of 67%6
- Seasoned management team led by veterans with decades of experience developing and operating mines and advanced materials facilities.
1 Source: Roskill 2017 report.
2 Federal Register notice of May 18, 2018.
3 Receipt of such a loan guarantee is subject to final approval and other conditions.
4 Source: 2019 Elk Creek Project Feasibility Study.
5 Assumes an 8% discount rate.
6 See these disclaimers on the use of non-GAAP references.
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