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Investing.com - H.C. Wainwright has raised its price target on NioCorp Developments Ltd. (NASDAQ:NB) to $8.25 from $4.00 on Monday, while maintaining a Buy rating on the critical minerals company. The stock has shown remarkable momentum, delivering a 171% return over the past year and 129% in the last six months, according to InvestingPro data.
The significant price target increase follows NioCorp’s September 8 announcement that it completed an exploratory drill program at its Elk Creek Critical Minerals Project. The drilling program, funded by the Pentagon, aimed to convert Indicated resources into Measured Resources and enhance Probable Mineral Reserves into Proven Mineral Reserves. With a market capitalization of $1.59 billion and moderate debt levels, InvestingPro analysis indicates the company maintains a stable financial position despite not being profitable in the last twelve months.
Phase I of the program, completed in August, consisted of 11 diamond drill holes totaling approximately 7,336 meters of drilling. Phase 2 included four diamond drill holes totaling 2,235 meters of drilling.
Processing and analysis of the drill core holes is currently underway, with results expected to be released soon. The drilling program was designed to meet the Mineral Reserve requirements of the U.S. Export-Import Bank (EXIM).
H.C. Wainwright noted that the Pentagon’s funding, alongside a potential debt financing package of up to $800.0 million for the Elk Creek Project from EXIM, demonstrates the government’s interest in NioCorp’s operations. InvestingPro subscribers have access to 11 additional key insights about NioCorp, including detailed valuation metrics and technical indicators that suggest the stock is currently in overbought territory.
In other recent news, NioCorp Developments Ltd. announced the closing of a registered direct offering, successfully raising $50 million in gross proceeds. The company sold 10 million common shares at $5.00 per share, with Maxim Group LLC serving as the sole placement agent. The funds are intended to advance the construction of NioCorp’s Elk Creek Project in Southeast Nebraska, focusing on the production of niobium, scandium, and titanium. Additionally, NioCorp has completed its Phase I drilling campaign at the Elk Creek Project, which included nine HQ diamond drill holes totaling 6,817 meters. The company is currently processing core samples for analysis. In leadership changes, Ernest M. Cleave has joined NioCorp as Senior Vice President of Business Development, bringing 20 years of experience in the mining and energy sectors. Furthermore, Tony Fulton has rejoined NioCorp’s Board of Directors, filling a vacancy and contributing to the Nominating and Corporate Governance Committee as well as the Audit Committee. These developments mark significant steps in NioCorp’s ongoing efforts to advance its critical minerals project.
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