Niocorp Developments (NB) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Our ability to operate as a going concern is in doubt47% rewritten
2. 02We will be required to make substantial capital expenditures to advance the Elk Creek Project to construction and commercial operation. We will also require funds for our ongoing capital needs and will be required to raise additional capitalNew
3. 03We have a limited operating history on which to base an evaluation of our business and prospects
4. 04We have incurred losses since inception, have negative cash flow from operating activities, and expect to continue to incur losses in the future. We incurred a net loss attributable to the Company of $17.4 million for the year ended June 30, 2025, and $11.4 million for the year ended June 30, 2024New
5. 05Increased costs could affect our financial condition44% rewritten
6. 06A 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 performance75% rewritten
7. 07A shortage of equipment and supplies could adversely affect our ability to operate our business
8. 08Joint ventures and other partnerships, including offtake arrangements, may expose us to risks30% rewritten
9. 09We 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 condition72% rewritten
10. 10It may be difficult to enforce judgments or bring actions outside the U.S. against us and certain of our directors83% rewritten
11. 11We may not recognize the full value of the DoD AgreementNew
12. 12As 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, 2025
13. 13We 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. 14We 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. 15The nature of mineral exploration and production activities involves a high degree of risk and the possibility of uninsured losses
3. 16We 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. 17Results of metallurgical testing by us may not be favorable to, or as expected by, us
5. 18Price volatility could have dramatic effects on our results of operations and our ability to obtain financing for the Elk Creek Project and execute our business plan
6. 19We may not be able to establish a viable recovery process for REEs
7. 20Estimates of resources and reserves are subject to evaluation uncertainties that could result in project failure
8. 21Any 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. 22We face intense competition in the mining industry82% rewritten
10. 23Difficulties in water balance management at our Elk Creek Project could negatively affect our potential production and economics at the project
11. 24Title to our properties may be subject to other claims that could affect our property rights and claims
12. 25Our properties and operations may be subject to litigation or other claims
13. 26We do not currently insure against all the risks and hazards of mineral exploration, development, and mining operations

Risks Related to Government Regulation

1. 27We may not be able to obtain or renew all required permits and licenses to place any of our properties into production61% rewritten
2. 28We are subject to significant governmental regulations that affect our operations and costs of conducting our business
3. 29Our activities are subject to environmental laws and regulations that may change, thereby increasing our costs of doing business and restricting our operations
4. 30Regulations and pending legislation governing issues involving climate change could result in increased operating costs, which could have a material adverse effect on our business
5. 31Although 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. 32The level of our indebtedness from time to time could impair our ability to obtain additional financing

Risks Related to the Common Shares

1. 33The 2023 Transactions could result in NioCorp becoming subject to materially adverse U.S. federal income tax consequences
2. 34Our Common Share price may be volatile and as a result you could lose all or part of your investment
3. 35From July 1, 2024, to the date of this report, the trading price of our stock on the Nasdaq has ranged from a low of $1.27 to a high of $5.19
4. 36We have never paid dividends on the Common Shares
5. 37Future 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. 38We 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. 39has 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. 40If 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