NioCorp reveals cybersecurity breach, $0.5 million lost

Published 19/02/2025, 23:32
NioCorp reveals cybersecurity breach, $0.5 million lost

Centennial-based NioCorp Developments Ltd. reported a cybersecurity incident that led to unauthorized access to its systems and resulted in approximately $500,000 in misdirected vendor payments. The metal mining company, listed under (NASDAQ:NB) and NASDAQ:NIOBW, disclosed the breach in a regulatory filing with the Securities and Exchange Commission on Wednesday. According to InvestingPro data, the company already faces liquidity challenges with a current ratio of 0.19, making this security breach particularly concerning for its financial position.

The incident, identified on February 14, 2025, involved third-party access to parts of NioCorp’s email systems. The company discovered the breach internally and has since contacted financial institutions and federal law enforcement to attempt recovery of the funds. The stock has shown resilience despite the incident, with InvestingPro data showing a 28% price return over the past six months, though year-to-date volatility remains high with the stock trading between $1.27 and $4.00.

NioCorp is actively investigating the breach to understand its full scope and impact. The company has initiated containment and remediation efforts but has yet to determine the potential material impact on its financial condition or operational results. The ongoing investigation means the extent of the breach, including whether any additional areas were compromised, remains unclear. With an overall Financial Health Score rated as ’WEAK’ by InvestingPro, and negative EBITDA of $11.69M in the last twelve months, the company’s resilience to such security incidents warrants close monitoring.

The company has not confirmed if it will be able to recover the misdirected funds. The SEC filing also contained forward-looking statements cautioning that actual results could vary based on the outcomes of the investigation and the company’s ability to mitigate the breach’s effects. Analysts tracked by InvestingPro do not anticipate profitability this year, with EPS forecast at -$0.14 for FY2025.

The cybersecurity incident comes as a reminder of the persistent risks that companies face in safeguarding their digital assets. NioCorp, which underwent a name change from Quantum (NASDAQ:QMCO) Rare Earth Developments Corp. on February 4, 2011, is known for its involvement in the metal mining sector under the SIC code 1000. The company operates with a moderate debt level, with a debt-to-equity ratio of 0.19, according to InvestingPro data.

This report is based on information provided in a press release statement.

In other recent news, NioCorp Developments Ltd. has announced a rescheduling of its annual general meeting to March 20, 2025, with the record date for shareholders set for January 27, 2025. This change has also adjusted deadlines for shareholder proposals and director nominations. Additionally, NioCorp has secured an extension on the maturity date for its outstanding unsecured note with YA II PN, Ltd., deferring the payment due date from January 1, 2025, to February 17, 2025. This financial maneuver provides the company with additional time to manage its obligations and avoid potential defaults. The extension was formalized on January 3, 2025, and was disclosed in a Form 8-K filing with the SEC. The company has also clarified deadlines for shareholder proposals, setting January 17, 2025, as the cut-off for inclusion in the proxy circular. For director nominations not intended for the proxy circular, submissions are accepted between January 14 and February 18, 2025. These developments reflect NioCorp’s ongoing efforts to maintain financial stability and ensure shareholder engagement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.