While everyone’s busy panic-posting about Iran and the Gay of Hormuz getting blockaded, the real beneficiaries of the war have been completely overlooked: rare earth companies. They’ve been getting dumped with everything else, even though the U.S will need to heavily restock after using all this firepower in Iran. And one company wins:
The stock is NioCorp Developments ($NB), an early-stage mining company valued at $700M with no revenue, no profit, and $300M in cash that is currently being burned like wood in a fireplace.🔥
So why is it trading at 2x book value? Because they’re pending a $780 million loan from the government to build their $1.2B mine in Nebraska. Specifically, the US Export-Import Bank (AKA Trump’s piggy bank) is in stage 2 technical review for the loan. To approve it, the government just needs 2 things:
- Signed offtake agreements (buyers) for NioCorp’s rare earths
- A positive updated feasibility study on the economics of their mine.
Well, on Friday NioCorp signed an offtake agreement with Traxys North America for ALL of their rare earths. Requirement #1 done (source).
And NioCorp’s updated feasibility study (requirement #2) is dropping any day now. The CEO has said multiple times that the study will be released mid-April, which could literally be tomorrow. **Once it comes out, this report either puts $NB in the grave or clears the path for loan approval and sends it to the moon.**🌙
And guess what? The big boys are boarding the rocket ship, not reaching for their shovels. Citadel has quietly scooped up 4.3% of the entire company as of 2 days ago (SEC Filing). BlackRock owns 5%.
"Ok but why is this different from $MP or $UUUU?"
The answer is everybody’s favorite defense company: Lockheed Martin.
Lockheed needs a rare earth called Scandium for their next-generation fighter jets so we can continue 🚀💥💥💣ing the middle east. And guess who owns the only scandium mine in the U.S? NioCorp Developments. They’re already collaborating with Lockheed’s Skunkworks division on a scandium-titanium alloy, and previously got a $10M grant from the pentagon. The US government has already paid NioCorp once. Now they just have to do it again.
Tldr; The name of the company? Aerotyne International [NioCorp Developments]. It is a cutting edge high-tech firm out of the Midwest awaiting imminent patent [loan] approval on the next generation of radar detectors [rare earths] that have both huge military and civilian applications. But for real this time. Unironically.
Positions: (on fidelity because I'm not regarded)
$NB – The IRL Aerotyne International (But This Time Not a Scam)
byu/GloveNo4997 inwallstreetbets
Posted by GloveNo4997
2 Comments
AI sloppy but the argument is good, puts it is
It shat itself big time since the “critical minerals” hype a month or two ago why would it pump