An in-depth analysis rates NioCorp Developments Ltd. a speculative buy and sets a price target of $5.40 per share. It flags risks including projected revenue dependence on scandium, which has no binding buyer, and potential share dilution to raise capital. The analysis also notes that NioCorp’s market valuation is only slightly above its cash on hand.
After accounting for a 35% equity raise, the author values the company at approximately $5.44 per share. The investment thesis depends on successfully financing and developing the Elk Creek project. Positive developments cited include a binding agreement with Traxys and a letter of support from the EXIM chairman. The report weighs these risks against the potential returns if NioCorp executes its plans.