NioDevelopments .(NB) - 2025 Q4 - Annual Report

Business Strategy and Project Development - The primary business strategy is to advance the Elk Creek Project to commercial production, focusing on securing project financing for detailed design and construction[41] - The company has made significant progress in the Elk Creek Project, including obtaining funding for land and mineral rights and refining mineral resource estimates[46] - A drilling program initiated in fiscal year 2025 aims to convert indicated resources into measured resources and probable mineral reserves into proven reserves[50] - The company received a Letter of Interest from the Export-Import Bank of the United States for potential debt financing under the "Make More in America" initiative[51] - The estimated total upfront capital expenditure for the Elk Creek Project is a key focus for the company[81] - The company plans to produce niobium, scandium, and titanium, with potential for rare earth elements at the Elk Creek Project[81] - The company is evaluating the impact of inflation, supply chain issues, and geopolitical unrest on the Elk Creek Project's economic model[81] Financing and Revenue - The company closed a public offering in April 2025, issuing 6,628,846 Common Shares at $2.60 per share, raising approximately $18.7 million[54] - In July 2025, the company closed another public offering, selling 13,850,000 Common Shares at $3.25 per share, netting approximately $41.2 million[55] - The company has not yet generated revenue from the Elk Creek Project, making it dependent on financing availability for ongoing exploration[63] - ECRC is entitled to receive up to $10.0 million in reimbursement payments from the Department of Defense upon achieving certain project milestones[57] - The company expects to receive a full $10 million reimbursement under the DoD Agreement[81] Market Conditions and Competition - The company is subject to significant competition in the minerals industry, which may affect its ability to secure financing and resources for the Elk Creek Project[58] - Commodity prices for ferroniobium, scandium trioxide, and titanium dioxide have fluctuated, with 2024 prices projected at $46/kg, $1,200/kg, and $1.31/kg respectively[61] - The company is exposed to commodity price risk related to elements associated with the Elk Creek Project, which is not currently in production[360] Regulatory and Environmental Considerations - The Elk Creek Project is subject to various federal, state, and local laws, which may require additional capital expenditures and increase operating costs[68] - Compliance with environmental regulations may impose significant costs and affect project economics[68] - The company operates under various permits for mineral exploration, reclamation, and environmental considerations[67] Human Resources and Corporate Governance - As of June 30, 2025, the company had seven full-time employees and one contract employee, supplemented by consultants for specialized skills[76] - The company maintains a culture of ethical performance, reflected in its Code of Business Conduct and Ethics[78] - The company’s compensation programs are designed to align employee incentives with company performance[77] Financial Management - The Company maintains a balance between liquidity of cash assets and interest rate return, with maximum exposure to credit risk represented by the carrying amount of financial assets[358] - The Company incurs expenditures in both U.S. and Canadian dollars, with Canadian dollar expenses primarily related to engineering and metallurgical costs[359]