NioCorp Developments Ltd. (NB) Earnings Call Transcript & Summary

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[Audio Gap] We are working just laser-focused on getting that EXIM loan in place. EXIM has been very clear. They need certain technical work programs to be done. They need additional offtake by NioCorp, and they need to have a higher level of confidence in our ability to raise the equity needed for the project financing. And we have some very good news on all of those fronts. The two technical work programs that EXIM has asked us to do are actually on board. They are being finished up as we speak. We started those in late April of this year. So we are in very good shape there. And the technical work programs that we're undertaking actually will meet the highest standards available in the industry. So the U.S. Securities and Exchange Commission has a standard. It's called S-K 1300. We will meet those S-K 1300 standards at the feasibility study level. So this is not guessing. This isn't preliminary economic assessments. This isn't pre-feasibility. This is feasibility study level standards, and we're exceptionally proud to meet those standards and give the U.S. Export-Import Bank and our shareholders the confidence they need in this project. The second item, offtake, we hope to have some good news on that very soon. As you can imagine, when you're producing critical strategic minerals today where there are very few options where to get those minerals, the #1 option, obviously being China, that creates a problem. And so there is multiple sources of demand for these minerals, and it's just a matter of finalizing contracts and putting them into place and putting them in front of EXIM. And then finally, we've been able to raise $212.5 million just in 2025 and EXIM has signaled to us that their confidence level in our ability to raise the equity is very strong right now. So we are really -- we're moving very quickly, very fast through this process, although it's been a 2-year process, but we really feel like we're coming to the end of the tunnel. We could see the light right now.

Yes. And we pointed this out as well in the setup going to you, Mark, that China practically monopolizes this market. And one of the problems that could come out of that is China's ability, because of its monopoly, ability to perhaps really violate the supplies as well as crash prices or push up the prices. So what would be some of the considerations that your long-term investors, private investors need to make going into projects with you and into your company?

Well, again, I'll focus on the extremely high standards that our company meets on all of the technical work. That reduces the risk in a project in an unbelievable way. But I should also point out that things are changing in the world right now. The current White House, President Trump and his staff really understand the age-old issue coming out of China right now, where they get total control of a market and then they can either increase prices or decrease prices and all of us that are outside of China have troubles financing our projects as a result. The Trump administration has demonstrated unbelievable courage in this industry. They are providing price floor support. That takes care of that price manipulation issue and control over financing. And so that issue is going to be behind us very quickly as the Trump administration continues to work on each and every one of the critical strategic minerals in the world today. I think it's really good news for the world overall.

Right. But for these critical mineral projects, my understanding is that it's incredibly long lead times, upfront costs are very high as well. So what kind of -- realistically speaking, what kind of time line are you running against right now? Are you -- will you be able to get all these critical minerals unearthed and mined and refined in 5 years from now, 10 years from now?

Yes. It's a great, great question. And of course, that has been the issue. China has put billions and billions of dollars into their critical and strategic minerals program for decades now. And you don't just flip a switch and have a new mine or a new processing facility. And in the United States, we tend to have one of the longest permitting time frames available. I'm very, very pleased, happy to report that the NioCorp project in Nebraska, its critical strategic minerals project is fully permitted. It's ready to go for construction. Once project financing is in place, we start construction, and it's 3 years to finish that project and have product flowing into the United States. And we won't just have rare earths at our facility. We'll have the heavy rare earths, and we'll have some light rare earths, the magnetic rare earths, which is very important. Those heavies are particularly important because that is an issue that still faces the Pentagon today, and we can help provide that source of those heavy rare earths. But we will also be producing niobium, scandium and titanium. Those three elements are also critical and strategic to the United States. So I think if we're smart about how we go about supporting this project or supporting that project, here's one that is a great example where we are really almost done with all of the technical work at the highest standards possible. We're moving fast now into final financing stages of the company. We can build a mine and we can take care of niobium, scandium, rare earths and titanium in one project. That's a very efficient way to get things done.

What have you learned in recent months about perhaps the sense of urgency that U.S. government has regarding this rare earth-related policies? And do you also think about and even talk about with the government about the potential direct, I don't know, stake buying by the U.S. government? And would you go for that kind of option as well?

I think that we have to be very flexible to help the country and to help the world with the need for these critical and strategic rare earth minerals. And if that means equity positions by the United States government, if that means loans from the U.S. government, if that means price floor supports, we need to do what it takes because we are in a very, very difficult position right now. And if we don't start the building of these mines and these processing facilities, we are not going to be in a position to negotiate anything with China going forward. So I think all the right things are being done right now. And as I mentioned earlier, I think it's really taken a lot of courage for the United States government to step up the way that it has. And we're here to help in any way [Audio Gap].