Daily Brief Energy/Materials: NioCorp Developments , Treatt PLC and more

NioCorp is developing the Elk Creek mine in Nebraska, which currently hosts the second largest ‘indicated’ or better rare earth resource in the US and, once in production (potentially in FY27), will be North America’s only mine producing niobium, scandium, titanium and rare earths (all of which the US define as ‘critical’). A definitive feasibility study (DFS) on the project in June 2022 calculated a pre-tax internal rate of return (IRR) of 29.2% and a post-tax net present value (NPV8) of US$2,350m, or US$70.51 per existing share in issue, to which NioCorp’s shares are currently trading at a 95.6% discount. However, the project now appears poised for a material change in product mix to improve its economics and reduce its previous, heavy reliance on scandium revenue.

Edison Investment Research is terminating coverage on Kinarus Therapeutics (KNRS), Numis Corporation (NUM), EMIS Group (EMIS), Pixium Vision (PIX) and Treatt (TET). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via website