Updated feasibility study gives NioCorp’s Elk Creek critical minerals project a $4B valuation

NioCorp Developments (NASDAQ:NB) released on Tuesday the results of an updated feasibility study for its Elk Creek critical minerals project in southeastern Nebraska.

The study outlines the project’s evolution into a 40-year, integrated U.S. operation with a net present value (NPV) exceeding $4 billion that is expected to produce eight critical-mineral products from a single ore body, the company said.

The 2026 feasibility study estimates a pre-tax net present value at an 8% discount of $4.1 billion, an after-tax NPV8% of $3.4 billion, a pre-tax internal rate of return (IRR) of 24% and an after-tax IRR of 22.8%.

Over the projected mine life, the Elk Creek project is projected to generate approximately $37.4 billion in life-of-mine revenue, $608 million in average annual EBITDA2, and $519 million in average annual operating cash flow.

The Elk Creek project is expected to produce eight products, all designated by the US Government as critical minerals:

• ferroniobium
• scandium trioxide
• titanium tetrachloride
• neodymium-praseodymium oxide
• dysprosium oxide
• terbium oxide
• samarium-europium-gadolinium carbonate
• heavy rare earth carbonate

This expanded product suite positions the Elk Creek Project to serve multiple US critical-mineral and defense supply chains from an integrated mine and processing facility that has secured its major construction-related permits, NioCorp said.

NioCorp’s stock closed the day down 1.6% on the NASDAQ. The company has a $780.3 million market capitalization.

source:https://www.mining.com/updated-feasibility-study-gives-niocorps-elk-creek-critical-minerals-project-a-4b-valuation/