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B. Riley Initiates NioCorp Buy, Sees Discount on Elk Creek
B. Riley starts NioCorp at Buy, citing Elk Creek as a technically de-risked critical minerals project. The stock trades at a discount, with the financing timeline as the next catalyst.
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B. Riley started covering NioCorp Developments with a Buy rating on Monday. The firm said the Elk Creek critical minerals project is one of the most technically de-risked development plays in the US. The analysts see the stock trading at a sizable discount to the project's estimated value.
B. Riley's Thesis on Elk Creek
Elk Creek sits in southeast Nebraska. The project targets niobium, scandium, and titanium – three materials the US government has flagged as supply-chain vulnerabilities. Niobium strengthens steel alloys and powers superconducting magnets. Scandium goes into fuel cells and aerospace alloys. Titanium is central to defense and aerospace manufacturing.
B. Riley's thesis rests on technical progress. The feasibility study is done. The environmental impact statement is complete. The company has cleared most of the permitting and engineering hurdles that kill junior miners. What remains is financing and construction execution. The firm argues the current market cap does not reflect the probability-weighted value of those remaining steps.
The Discount and the Rating Timing
Critical minerals stocks have delivered mixed results in 2025. Some companies rode policy tailwinds to high valuations. Others got punished for dilution risk and timeline slippage. NioCorp has fallen into the latter camp. The stock drifted lower as investors priced in the uncertainty around a $1B+ capital raise.
B. Riley's initiation pushes back against that drift. The Buy rating implies the discount has overshot the actual risk. If the financing comes together, even on terms that dilute existing holders, the project's net present value should still support a higher share price, per the analysts.