NioCorp Launched as Buy at B. Riley, Stock Trades at $5.29
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
niocorpcritical-minerals
Fazen Markets Editorial Desk
Collective editorial team · methodology
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B. Riley Securities launched coverage of NioCorp Developments Ltd. with a Buy rating on 9 June 2026, stating the stock trades at a sizable discount to its target. The stock was quoted at $5.29, down 1.40% for the session, with a daily range between $5.20 and $5.54 as of 20:00 UTC today. The initiation centers on the company's Elk Creek critical minerals project in Nebraska, which aims to produce niobium, scandium, and titanium.
The B. Riley call arrives as U.S. policy continues to incentivize domestic production of critical minerals. The Inflation Reduction Act of 2022, with its electric vehicle tax credit sourcing requirements, laid the groundwork. Recent geopolitical tensions and trade restrictions on rare earth elements from China have accelerated capital allocation toward North American projects. Institutional interest has grown in strategic minerals deemed essential for defense, aerospace, and the energy transition.
This specific coverage initiation is a catalyst for visibility. NioCorp is not a mainstream large-cap name, and a formal rating from a recognized firm like B. Riley provides a structured valuation benchmark for fund managers. The last comparable initiation in this sub-sector was B. Riley's coverage of MP Materials in August 2025, which preceded a 15% rally over the following month. The current macro backdrop features elevated but stable long-term Treasury yields, providing a clearer discount rate environment for project finance than the volatile rate regime of 2023-2024.
NioCorp's stock price of $5.29 gives it an implied market capitalization of approximately $1.7 billion, based on its latest reported share count. The stock's 52-week range has spanned from a low of $3.85 to a high of $7.92, placing the current price near the midpoint. The day's trading volume was 35% above its 30-day average following the research note's release, indicating heightened institutional attention.
The following table compares NioCorp's key metrics against a peer in the rare earth space, MP Materials (MP), as of the market close.
| Metric | NioCorp (NIO) | MP Materials (MP) |
|---|---|---|
| Share Price | $5.29 | $42.15 |
| YTD Performance | +12.5% | -3.2% |
| Market Cap | ~$1.7B | ~$4.1B |
| Primary Product | Niobium/Scandium | Rare Earth Oxides |
NioCorp's year-to-date gain of 12.5% outperforms the broader S&P 500 Materials sector, which is up 4.8% for the year. The stock's beta relative to the S&P 500 is estimated at 1.8, indicating high volatility and sensitivity to market sentiment on growth and commodities.
The Buy rating directly benefits NioCorp by potentially attracting dedicated ESG and commodity-focused funds that previously lacked analyst coverage to support an entry. Second-order gains are likely for equipment suppliers and engineering firms tied to mine development, such as Fluor (FLR) and Honeywell (HON), which provide process technology. Junior mining explorers with U.S.-based critical mineral projects, like USA Rare Earth LLC (private) and Texas Mineral Resources Corp. (TMRC), may see increased speculative interest as investors search for the next developer.
A key risk is the company's pre-revenue status and dependency on successfully securing full project financing and permitting. The estimated capital expenditure for Elk Creek exceeds $1 billion, a significant hurdle. Counter-arguments suggest that even with policy support, project execution risks and potential cost overruns justify a wide discount to net present value calculations. Current positioning data shows a moderate increase in short interest over the past month, indicating a segment of the market remains skeptical about the timeline to production. Flow data indicates net buying from mid-cap growth funds following the report.
The immediate catalyst is the company's next operational update, expected before the end of July 2026, regarding progress on definitive feasibility study refinements and offtake agreements. The next major macro input is the Federal Reserve's policy decision on 24 June 2026, as interest rate guidance affects the cost of project debt. Investors will also monitor any new U.S. Department of Energy loan guarantees for critical mineral projects under Title 17, with the next application window closing in September 2026.
Key technical levels for NioCorp stock include immediate support at the 50-day moving average of $5.15 and resistance at the recent high of $5.85. A sustained break above $6.00 would likely confirm the bullish thesis for momentum traders. On the downside, a close below $4.80 would invalidate the recent uptrend and signal a return to a consolidation range. The relative strength index (RSI) reading of 55 suggests the stock is neither overbought nor oversold.
A Buy rating from an institutional firm like B. Riley provides a formal valuation model and investment thesis that many pension funds and mutual funds require before allocating capital. It increases NioCorp's visibility in screening tools and can reduce the stock's perceived illiquidity premium. The rating typically includes a 12-month price target, giving investors a concrete benchmark against which to measure performance, though such targets are estimates, not guarantees.
NioCorp's flagship Elk Creek project is primarily focused on niobium, used to strengthen steel, and scandium, used in solid oxide fuel cells and aerospace alloys. This differs from lithium brine or hard-rock miners that feed the battery supply chain. The project is polymetallic, also containing titanium. Its economics are tied to industrial and advanced manufacturing demand more than directly to electric vehicle battery output, though scandium has applications in the energy transition.
The main hurdles involve securing a series of federal and state permits, including a Record of Decision under the National Environmental Policy Act (NEPA), a Section 404 permit from the Army Corps of Engineers for wetlands, and state-level mining and reclamation permits. The process can take several years and is subject to public comment and potential legal challenges. Recent policy directives aim to streamline this for critical minerals, but legal frameworks remain complex.
B. Riley's endorsement provides a crucial valuation anchor for NioCorp, spotlighting its strategic project amid a favorable policy push for domestic critical minerals.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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