markets · · seekingalpha.com
NioCorp: The Market Is Paying About 50 Cents Above Cash For Elk Creek
NioCorp Developments trades at a steep discount to Elk Creek's $3.44B after-tax NPV, with the market valuing the project at just $72M. I rate NB a buy, targeting $8.29 per share based on DCF and P/NAV, but emphasize that financing remains the critical risk. Elk Creek's feasibility study projects $608M average annual EBITDA, 22.8% IRR, and a 40-year life, but capex has risen to $1.849B.
NioCorp Developments trades at a steep discount to Elk Creek's $3.44B after-tax NPV, with the market valuing the project at just $72M. I rate NB a buy, targeting $8.29 per share based on DCF and P/NAV, but emphasize that financing remains the critical risk. Elk Creek's feasibility study projects $608M average annual EBITDA, 22.8% IRR, and a 40-year life, but capex has risen to $1.849B.
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