Niocorp Developments (NB) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our ability to operate as a going concern is in doubt
2. 02We will require significant additional capital to fund our business plan
3. 03As of June 30, 2024, the Company had cash of $2.0 million and working capital deficit of $9.0 million, compared to cash of $2.3 million and working capital of $0.2 million on June 30, 2023
4. 04We are actively pursuing additional sources of debt and equity financing, and while we have been successful in doing so in the past, there can be no assurance we will be able to do so in the future
5. 05We have a limited operating history on which to base an evaluation of our business and prospects
6. 06We have a history of losses and expect to continue to incur losses in the future
7. 07Increased costs could affect our financial condition
8. 08A disruption in, or failure of our third-party service providers’ IT systems, including those related to cybersecurity, could adversely affect our business operations and financial performance
9. 09A shortage of equipment and supplies could adversely affect our ability to operate our business
10. 10Joint ventures and other partnerships, including offtake arrangements, may expose us to risks
11. 11We may experience difficulty attracting and retaining qualified management to meet the needs of our anticipated growth, and the failure to manage our growth effectively could have a material adverse effect on our business and financial condition
12. 12Certain events have effected, and continue to effect, the global and United States economies, including increased inflation, volatility in commodity prices, supply chain uncertainty, and increases in raw material and labor costs. We cannot predict how this will affect our business, but the impact may be adverse
13. 13It may be difficult to enforce judgments or bring actions outside the U.S. against us and certain of our directors
14. 14The Company may not realize all or any of the anticipated benefits expected as a result of the 2023 Transactions
15. 15As discussed in Item 9A, “Controls and Procedures,” of this Annual Report on Form 10-K, the Company’s management has assessed the effectiveness of its internal control over financial reporting and its disclosure controls and procedures and concluded that they were not effective as of June 30, 2024
16. 16We may face litigation and other risks as a result of the material weaknesses in our internal control over financial reporting

Risks Related to Mining and Development

1. 17We face numerous uncertainties in estimating our mineral reserves and resources and inaccuracies in our estimates could result in lower than expected revenues, higher than expected costs and decreased profitability
2. 18The nature of mineral exploration and production activities involves a high degree of risk and the possibility of uninsured losses
3. 19We have no history of producing commercial products from our current mining properties and there can be no assurance that we will successfully establish mining operations or profitably produce minerals
4. 20Results of metallurgical testing by us may not be favorable to, or as expected by, us
5. 21Price volatility could have dramatic effects on our results of operations and our ability to execute our business plan
6. 22We may not be able to establish a viable recovery process for REEs
7. 23Estimates of resources and reserves are subject to evaluation uncertainties that could result in project failure
8. 24Any material changes in mineral resource/reserve estimates and grades of mineralization will affect the economic viability of placing a property into production and a property’s return on capital
9. 25We face intense competition in the mining industry
10. 26Difficulties in water balance management at our Elk Creek Project could negatively affect our potential production and economics at the project
11. 27Title to our properties may be subject to other claims that could affect our property rights and claims
12. 28Our properties and operations may be subject to litigation or other claims
13. 29We do not currently insure against all the risks and hazards of mineral exploration, development, and mining operations

Risks Related to Government Regulation

1. 30We may not be able to obtain or renew all required permits and licenses to place any of our properties into production
2. 31issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions
3. 32We are subject to significant governmental regulations that affect our operations and costs of conducting our business
4. 33Our activities are subject to environmental laws and regulations that may change, thereby increasing our costs of doing business and restricting our operations
5. 34Regulations and pending legislation governing issues involving climate change could result in increased operating costs, which could have a material adverse effect on our business
6. 35Although variable depending on location and the governing authority, land reclamation requirements are generally imposed on mineral exploration companies (as well as companies with mining operations) in order to minimize long-term effects of land disturbance

Risks Related to Our Debt

1. 36The level of our indebtedness from time to time could impair our ability to obtain additional financing
2. 37We may not have the ability to service our debt, including, without limitation, to pay the installments on the April 2024 Notes
3. 38In the event of certain breaches under our agreements with our secured creditors, our assets may be affected

Risks Related to the Common Shares

1. 39The 2023 Transactions could result in NioCorp becoming subject to materially adverse U.S. federal income tax consequences
2. 40Our Common Share price may be volatile and as a result you could lose all or part of your investment
3. 41In the past fiscal year, the trading price of our stock on the Nasdaq has ranged from a low of $1.65 to a high of $5.36
4. 42We have never paid dividends on the Common Shares
5. 43Future sales, or the perception of future sales, of Common Shares by existing shareholders or by us, or future dilutive issuances of Common Shares by us, could adversely affect prevailing market prices for the Common Shares and cause investors to suffer dilution in their net book value per Common Share
6. 44We are subject to the continued listing criteria of the Nasdaq and our failure to satisfy these criteria may result in delisting of the Common Shares
7. 45has rules for continued listing. In order to maintain the listings, we must maintain certain financial and share distribution targets, including maintaining a minimum number of public shareholders
8. 46If our Common Shares are considered a penny stock and are subject to the penny stock rules, broker-dealers may be discouraged from effecting transactions in Common Shares