NioDevelopments .(NB) - 2025 Q2 - Quarterly Report

Financial Performance - Total operating expenses for the three months ended December 31, 2024, were $2.901 million, a slight decrease from $2.917 million in the same period of 2023 [94]. - Employee-related costs increased to $904,000 for the three months ended December 31, 2024, compared to $328,000 in 2023, primarily due to the timing of fully vested incentive options [95]. - Professional fees decreased to $772,000 for the three months ended December 31, 2024, from $952,000 in 2023, mainly due to increased audit fees and legal costs associated with warrant liabilities [96]. - Exploration expenditures decreased to $261,000 for the three months ended December 31, 2024, compared to $828,000 in 2023, as 2023 included costs related to the Demonstration Plant operations [97]. - Net loss attributable to the Company for the three months ended December 31, 2024, was $450,000, significantly improved from a loss of $3.291 million in the same period of 2023 [94]. - As of December 31, 2024, the Company had cash of $0.5 million and a working capital deficit of $3.1 million, improved from a cash position of $2.0 million and a working capital deficit of $9.0 million on June 30, 2024 [112]. - Financing inflows were $0.5 million during the three months ended December 31, 2024, down from $2.9 million in the same period in 2023 [125]. - Operating activities consumed $2.0 million of cash during the six months ended December 31, 2024, reflecting a decrease from $4.6 million in 2023 [124]. - The Company expects to operate at a loss for the foreseeable future, with planned cash needs of approximately $13.0 million until June 30, 2025 [113]. - Average monthly planned expenditures are expected to be approximately $2.275 million, including $1.925 million for the advancement of the Elk Creek Project [114][115]. - The Company anticipates needing additional funds totaling $12.0 million to $15.0 million to continue advancing the Elk Creek Project [116]. Project Development - The Company reported no revenues from mining operations, with operating expenses primarily related to advancing the Elk Creek Project [92]. - NioCorp is focused on securing project financing necessary for the construction and development of the Elk Creek Project, which includes niobium, scandium, and titanium reserves [87]. - The Elk Creek Project is expected to produce multiple critical metals, with ongoing technical and economic studies to assess the viability of extracting rare earth elements [86]. - The Company successfully completed bench-scale testwork demonstrating the ability to recycle rare earth elements from permanent magnets, potentially supplementing ore production from the Elk Creek mine [89][90]. - The Company is negotiating and completing offtake agreements for niobium, scandium, and titanium production from the Elk Creek Project [22]. - The Company submitted an application for EXIM debt financing to fund the Elk Creek Project, which is currently under review [118]. - The Company plans to utilize the Yorkville Equity Facility Financing Agreement for working capital and to advance the Elk Creek Project towards commercial operations [110]. Financing Activities - The gross proceeds from the January 2025 Offering were approximately $5.0 million, with a public offering price of $1.94 per Common Share [88]. - The gross proceeds from the November 2024 Registered Offering were approximately $2.5 million before deducting underwriting discounts and offering expenses [107]. - The Company issued 2,199,602 units in the November 2024 Private Offering, generating gross proceeds of approximately $3.5 million [109]. - The Company has no current funding commitments beyond potential advances under the Yorkville Equity Facility Financing Agreement [120]. Economic and Market Conditions - The Company is evaluating the impact of inflation, supply chain issues, and geopolitical unrest on the Elk Creek Project's economic model [82]. - The Company incurs expenditures in both U.S. dollars and Canadian dollars, impacting operating costs due to currency exchange fluctuations [135]. - The Company maintains sufficient cash balances in Canadian dollars to fund expected near-term expenditures, mitigating foreign currency exchange risk [135]. - The Company is exposed to commodity price risk related to the Elk Creek Project, which is not currently in production [136]. - A significant decrease in global demand for elements associated with the Elk Creek Project may adversely affect the Company's business [136]. Management and Operational Concerns - NioCorp's primary business strategy is to advance the Elk Creek Project to commercial production, requiring significant additional capital [87]. - The Company is actively seeking additional funds to support near-term work programs associated with the Elk Creek Project [87]. - Current lease commitments for the Elk Creek property are $136,000 through June 30, 2025, with additional financing likely required during the fiscal year [117]. - Management has expressed substantial doubt regarding the Company's ability to continue as a going concern due to financial uncertainties [122].