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:
1. Signed offtake agreements (buyers) for NioCorp’s rare earths
2. 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](https://www.niocorp.com/niocorp-reaches-non-binding-agreement-with-traxys-north-america-for-potential-purchase-of-all-of-niocorps-remaining-planned-products/))**.**
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)](https://www.sec.gov/Archives/edgar/data/1512228/000110465926041071/xslSCHEDULE_13G_X02/primary_doc.xml). 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)
https://preview.redd.it/mwhdb3q9wwug1.png?width=689&format=png&auto=webp&s=6322d37531a521f9e811d5a0361b327ce7d17928