Latest news with #NioCorp
Business Insider
4 days ago
- Business
- Business Insider
Are Semiconductors a 'Sell' After Trump Tariffs?
Trump's 100% tariff on semis and what it means… what McDonald's earnings say about the U.S. consumer… checking in on Jonathan Rose's NioCorp trade… a laundry list of winners VIEW IN BROWSER In yesterday's Digest, we reported on President Trump's plan to unveil new tariffs on semiconductor companies 'within the next week or so.' Well, that 'week or so' turned into about an hour. Shortly after that Digest hit your inbox, Trump confirmed plans for a 100% tariff on imported semiconductors, with one big caveat – companies that manufacture chips in the U.S., or commit to doing so, will be exempt. Apple's CEO Tim Cook stood by Trump during the announcement after Apple pledged an additional $100 billion in U.S. investment (bringing its total domestic commitment to about $600 billion) and received that exemption. So, what does this mean? And what's the investment step? The headline '100% chip tariff' is dramatic. But the actual policy functions more like a policy lever than a full‑blown blockade. This isn't a death knell to the overall AI/semiconductor story or AI profits (which is why the tech sector isn't plummeting as I write Thursday). But neither is it a nothingburger. As to how to respond, here are three guidelines: Prioritize companies investing in U.S. manufacturing – firms such as TSMC, Samsung, Nvidia, and GlobalFoundries are expanding their U.S. operations and are in a good position to benefit from exemptions Maintain your core AI holdings – the new tariffs don't undermine long-term demand for semiconductors. Hold your top-tier AI plays Look past the headlines for long-term opportunity – if more drama and downward volatility is ahead of us, look for favorable entry points on AI/semi leaders selling off in sympathy Bottom line: Though the headlines sound frightening, this is ultimately bullish for well‑positioned AI players. Yesterday, McDonald's beat earnings expectations, but… While Wall Street applauded the numbers, the company's tone was cautious for one main reason… Weakness among low-income consumers. From CEO Chris Kempczinski: Reengaging the low-income consumer is critical, as they typically visit our restaurants more frequently than middle- and high-income consumers. This bifurcated consumer base is why we remain cautious about the overall near-term health of the U.S. consumer. Longtime Digest readers will recognize this 'bifurcated consumer base' and recall the term we've used within this broader conversation: the 'Technochasm.' There's a growing divide today between the 'haves' and 'have nots' – both in the market and in our society. One of the most influential factors driving this growing divide is wealth generated from investments in cutting-edge technology and artificial intelligence, something our experts have coined, 'The Technochasm.' This bifurcation – strength from higher earners, fragility among lower-income households – is becoming a recurring theme in earnings reports across industries. And it's a valuable clue into the true health of the U.S. consumer. This is especially important in the wake of last Friday's jobs report – the weakest in over a year – and Tuesday's ISM data, which caused legendary investor Louis Navellier to say: We are teetering on a recession here, folks, and I don't like to use that R word, but that's what's happening. Can high-income earners spend us out of a recession? I've been a part of some interesting conversations with InvestorPlace analysts that tackle whether higher-income consumers can spend enough to offset the tightening we're seeing from lower-income households. There's some evidence suggesting this has been happening. For example, earlier this year, credit card data showed that upper-income households were spending regularly, particularly on experiences like travel, fine dining, and entertainment. Here's CNBC from the spring: Lower-income earners are reining in their transactions to focus on essentials, while the wealthy continue to spend freely on perks including dining out and luxury travel, according to first-quarter results from U.S. credit card lenders… For instance, at Synchrony, which provides store cards for retail brands including Lowe's and T.J. Maxx, spending fell 4% in the first three months of the year… That compares to a 6% spending jump at American Express and a similar rise at JPMorgan Chase, both of which cater to wealthier users with higher credit scores than Synchrony. AmEx said its customers spent 7% more on dining and 11% more on first class and business class airfare than a year earlier. These consumers are benefiting from rising asset values, higher interest income, and – thanks to the AI boom – significant gains in tech-heavy investment portfolios. But we're starting to see signs of fatigue Let's jump to Fortune from last week: More than half (58%) of six-figure earners no longer feel financially successful, according to a recent report from Clarify Capital… More than seven in 10 of these high earners are now being forced to shop at discount grocery chains to save cash. Around 74% also say they're cutting back on dining out, 54% are skimping out on entertainment, 51% are getting thrifty with buying clothes, 49% are scaling back their subscriptions, and 49% are spending less on travel… About 85% of six-figure workers say they feel stressed and anxious due to increased living costs. Fortune goes on to report that the delinquency rate among high-income borrowers has surged 130% over the last two years. As to the investment implications, there are many ways we can take this Let's briefly walk through four options. Invest in the companies at the forefront of the technologies that will continue to explode the Technochasm Clearly, that's AI. But as we've been profiling here in the Digest, the latest evolution is 'Physical AI' (think robots/humanoids). On Monday through Wednesday, we brought you interviews from Louis Navellier, Eric Fry, and Luke Lango detailing this opportunity. And they just released a new portfolio of Physical AI leaders in their AI Revolution Portfolio investment service. Regardless of how you do it, giving your portfolio at least some exposure to cutting-edge AI is imperative. Focus on fundamentally superior companies that are growing their earnings, despite a broader consumer slowdown This has been the cornerstone of Louis' market approach for decades. Earlier this week, in the same Flash Alert market update in which Louis warned of a potential recession, he also congratulated his Growth Investor subscribers on three earnings wins from earlier this week. Here's how those stocks have performed since Tuesday: AXON: +13% KGC: +11% PLTR: +9% As Louis loves to say: 'earnings are working.' Trade companies successfully catering to lower-income Americans Lower-income shoppers are still buying from certain retailers, causing Wall Street to push up prices. Our hypergrowth expert Luke Lango is in one such retailer in Breakout Trader – Dollar Tree (DLTR). After opening the trade in late-April, they're sitting on 31% gains. These lower-income trades aren't necessarily 'hold forever' stocks, but for however long cost-conscious shoppers help drive their prices higher, stick with bullish momentum. Refresh yourself on the valuations of every stock you own If even higher-income consumers are beginning to pull back, earnings are likely to be next. And when earnings fall, eventually, stock prices do too – especially those priced for perfection. So, refamiliarize yourself with the valuation of each stock you hold. Make sure you're comfortable. (If you missed Eric's recent free research report on which expensive AI stocks he's selling today – and which stocks he's recommending to replace them – you can check it out right here.) Coming full circle to McDonald's… Its earnings report is a snapshot of the Technochasm in action. Yes, certain consumers are still spending. But for many – especially at the lower end of the income spectrum – the strain is becoming undeniable. Bottom line: When McDonald's says it's having to 'reengage' its most loyal customers through cheaper meals, we should take notice. That's a macro warning. Checking in on Jonathan Rose's NioCorp trade Back in July, we put a new speculative trade on your radar – NioCorp Developments (NB) – thanks to a heads-up from veteran trader Jonathan Rose. Jonathan had just closed a 700% win on rare earth play MP Materials. And he had recently recommended a trade on NB as another early-stage name riding the same wave: U.S. demand for critical minerals tied to defense, energy, and the AI boom. At the time, we emphasized caution. As with any speculative trade, risk mitigation is key because volatility was likely. To that end, Jonathan had recommended a defined-risk trade. Well, the very next day, NB traded sharpy lower. Jonathan explained that the selloff was driven by a capital raise – standard behavior for small-cap names funding their growth. He wasn't concerned for the trade. If you took advantage of that selloff, congrats Fast-forward to today, and NB is soaring, rapidly approaching its pre-capital-raise high. It's up 54% from its late-July low, so if you bought on that weakness, congrats, you're likely sitting on double-digit gains. Better still, even higher prices appear on the way… A major new catalyst for growth On Tuesday, we learned that the U.S. Department of Defense has awarded up to $10 million to NioCorp's Elk Creek Resources unit to support its domestic production of scandium – a rare earth metal critical for advance defense and aerospace systems. This is a big deal. Virtually the entire global scandium supply comes from China, Russia, and Ukraine. The U.S. hasn't mined scandium since 1969 – until now. NioCorp's Elk Creek project is also sitting on high-value niobium and titanium, both essential for hypersonic missiles and other military applications. The company already has binding long-term deals in place for 75% of its planned niobium output, and it just inked its largest scandium deal ever. From CEO Mark Smith: This is a grant, not an investment. It shows strong U.S. government backing and how critical niobium and scandium are for defense. In short, this is no longer just a speculative story; it's becoming big business, with real government backing. We'll repeat ourselves from our July 16 Digest: If you're looking for what could be the market's next major overnight winner, consider yourself in the loop. Before we sign off, a quick 'congratulations' to Jonathan's Advanced Notice subscribers They're on a roll right now. Since March, here are their closed trade results: 18 trades: 14 winners, 4 losers 113.73% average return across all closed positions 169.91% average return across the winning positions 77.8%-win rate Average trade hold period: 36 days As we've said many times, Jonathan is one of the best traders in the biz. To get a better sense for how and why, join him for his free Masters in Trading Live broadcasts at 11:00 a.m. Eastern time every day the market is open. They're a great way to deepen your understanding of trading – and to see firsthand the strategies Jonathan uses to capture triple-digit gains, sometimes in just days.
Yahoo
6 days ago
- Business
- Yahoo
NioCorp Can Make America the "Saudi Arabia of Scandium," CEO Mark Smith Tells Fox Business' Maria Bartiromo
Mr. Smith Says President Trump's Critical Minerals Policies are "Smart and Brave," Especially in Terms of Proposing Critical Minerals Price Supports CENTENNIAL, CO / / August 6, 2025 / In a live appearance today ( on the Fox Business News program "Mornings with Maria," host Maria Bartiromo asked Mark Smith, Chairman and CEO of NioCorp Developments Ltd. ("NioCorp" or the "Company") (NASDAQ:NB), about the possibility of America emerging as a global "scandium superpower" as a result of NioCorp's proposed Elk Creek Critical Minerals Project (the "Project") in southeast Nebraska. "Maria, the potential here is that America can become the Saudi Arabia of Scandium," Mr. Smith said. "That is how much we can produce. A single mine in the State of Nebraska can produce more scandium than is produced in the entire world today. That is our capability." "Much like niobium increases the strength of steel, scandium increases the strength of aluminum when you alloy them together. You end up with a lighter material, a much stronger alloy with much higher yield strength, very corrosion resistant, and weldable. Those are very important aspects for fighter jets, submarines, and for satellites." It lowers the weight which allows for large payloads for these devices. This is very important from a defense standpoint." "The way we win the race against China is exactly how President Trump is doing it now," Mr. Smith said. "They are providing price floor guarantees for these minerals. That takes away the normal Chinese routine of taking 100% of the market share, allowing prices to rise, and then as soon as anyone else wants to come into the space, they drop prices so that no one can get project financing. Price floor supports take that issue away and the normal M.O. for the Chinese industrial system is no longer going to be effective." "That is brilliant and I can't thank the White House enough for being smart enough and brave enough to do this," Mr. Smith added. The interview followed yesterday's announcement by the U.S. Department of Defense of a $10 million agreement via Title III of the Defense Production Act ("DPA") with NioCorp's operating subsidiary Elk Creek Resources Corp. to support the establishment of a domestic scandium mine-to-manufacture supply chain via the Elk Creek Critical Minerals Project (the "Project") in southeast Nebraska. # # # FOR MORE INFORMATION: Jim Sims, Corporate Communications Officer, NioCorp Developments Ltd., (720) 334-7066, @NioCorp $NB #Niobium #Scandium #Titanium $rareearth #neodymium #dysprosium #terbium #ElkCreek ABOUT NIOCORP NioCorp is developing a critical minerals project in Southeast Nebraska (the "Elk Creek Project") that is expected to produce niobium, scandium, and titanium. The Company also is evaluating the potential to produce several rare earths from the Elk Creek Project. Niobium is used to produce specialty alloys as well as High Strength, Low Alloy steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a specialty metal that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium, and dysprosium are critical to the making of Neodymium-Iron-Boron magnets, which are used across a wide variety of defense and civilian applications. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements may include, but are not limited to, statements regarding NioCorp's expectation that the DoD other transaction agreement will help the company establish the first domestic scandium mine-to-master-alloy supply chain, assist in the development qualification, and deployment of aluminum-scandium alloy components into defense aerospace systems, and will accelerate consideration of up to $800 million in debt financing to niocorp by the U.S. Export-Import bank in a "whole of government" approach to critical minerals development; NioCorp's expectation of producing niobium, scandium, and titanium, and the potential of producing rare earths, at the Elk Creek Project; the possibility that Niocorp could be fastest to market with heavy rare earth products; and NioCorp's ability to secure sufficient project financing to complete construction of the Elk Creek Project and move it to commercial operation. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of NioCorp and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations and assumptions relating to: NioCorp's ability to receive sufficient project financing for the construction and development of the Elk Creek Project on acceptable terms or at all; the future price of metals; the stability of the financial and capital markets; NioCorp's ability to service future debt, if any,and meet the payment obligations thereunder; and current estimates and assumptions regarding the benefits of NioCorp's business combination with GX Acquisition Corp. II (the "Business Combination") and the standby equity purchase agreement (the "Yorkville Equity Facility Financing Agreement" and, together with the Business Combination, the "Transactions") with YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP, and their benefits. Such expectations and assumptions are inherently subject to uncertainties and contingencies regarding future events and, as such, are subject to change. Forward-looking statements involve a number of risks, uncertainties or other factors that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made by NioCorp with the Securities and Exchange Commission and with the applicable Canadian securities regulatory authorities and the following: NioCorp's ability to operate as a going concern; NioCorp's requirement of significant additional capital; NioCorp's ability to receive sufficient project financing for the construction of the Elk Creek Project on acceptable terms or at all; NioCorp's ability to receive a final commitment of financing from the Export-Import Bank of the United States, an other transaction agreement from the U.S. Department of Defense or a debt guarantee from UK Export Finance on acceptable timelines, on acceptable terms, or at all; NioCorp's ability to recognize the anticipated benefits of the Transactions, including NioCorp's ability to access the full amount of the expected net proceeds under the Yorkville Equity Facility Financing Agreement; NioCorp's ability to continue to meet Nasdaq listing standards; risks relating to NioCorp's common shares, including price volatility, lack of dividend payments and dilution or the perception of the likelihood of any of the foregoing; the extent to which NioCorp's level of indebtedness and/or the terms contained in agreements governing NioCorp's indebtedness, if any, or the Yorkville Equity Facility Financing Agreement may impair NioCorp's ability to obtain additional financing, on acceptable terms or at all; covenants contained in agreements with NioCorp's secured creditors that may affect its assets; NioCorp's limited operating history; NioCorp's history of losses; the material weaknesses in NioCorp's internal control over financial reporting, NioCorp's efforts to remediate such material weaknesses and the timing of remediation; the possibility that NioCorp may qualify as a passive foreign investment company under the U.S. Internal Revenue Code of 1986, as amended (the "Code"); the potential that the Transactions could result in NioCorp becoming subject to materially adverse U.S. federal income tax consequences as a result of the application of Section 7874 and related sections of the Code; cost increases for NioCorp's exploration and, if warranted, development projects; a disruption in, or failure of, NioCorp's information technology systems, including those related to cybersecurity; equipment and supply shortages; variations in the market demand for, and prices of, niobium, scandium, titanium and rare earth products; current and future offtake agreements, joint ventures, and partnerships; NioCorp's ability to attract qualified management; estimates of mineral resources and reserves; mineral exploration and production activities; feasibility study results; the results of metallurgical testing; the results of technological research; changes in demand for and price of commodities (such as fuel and electricity) and currencies; competition in the mining industry; changes or disruptions in the securities markets; legislative, political or economic developments, including changes in federal and/or state laws that may significantly affect the mining industry; trade policies and tensions, including tariffs; inflationary pressures; the impacts of climate change, as well as actions taken or required by governments related to strengthening resilience in the face of potential impacts from climate change; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the timing and reliability of sampling and assay data; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp's projects; risks of accidents, equipment breakdowns, and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining, or development activities; management of the water balance at the Elk Creek Project site; land reclamation requirements related to the Elk Creek Project; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; claims on the title to NioCorp's properties; potential future litigation; and NioCorp's lack of insurance covering all of NioCorp's operations. Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of NioCorp prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. All subsequent written and oral forward-looking statements concerning the matters addressed herein and attributable to NioCorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Except to the extent required by applicable law or regulation, NioCorp undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. SOURCE: NioCorp Developments Ltd. View the original press release on ACCESS Newswire
Yahoo
7 days ago
- Business
- Yahoo
US awards NioCorp unit $10 million to build scandium supply chain in Nebraska
(Reuters) -The U.S. Department of Defense has awarded $10 million to Elk Creek Resources to help develop a scandium supply chain, it said on Tuesday, as Washington looks to reduce reliance on China for critical minerals. The funding for the NioCorp Developments unit, under the Defense Production Act, will support engineering, drilling and feasibility studies at the Elk Creek project in Nebraska. Shares of NioCorp were up 4.8% in premarket trade. The U.S. has not mined scandium since 1969. Most of the global supply comes from China, Russia and Ukraine. The project is part of broader efforts to reduce U.S. reliance on China and other foreign suppliers of critical minerals, in line with a 2025 executive order by President Donald Trump to boost domestic production. In early July, MP Materials unveiled a multibillion-dollar deal with the U.S. government to boost output of rare earth magnets and help loosen China's grip on the materials used to build weapons, electric vehicles and many electronics. Scandium is prized for making lightweight, high-strength alloys used in aircraft, hypersonic weapons and energy platforms. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
7 days ago
- Business
- Reuters
US awards NioCorp unit $10 million to build scandium supply chain in Nebraska
Aug 5 (Reuters) - The U.S. Department of Defense has awarded $10 million to Elk Creek Resources to help develop a scandium supply chain, it said on Tuesday, as Washington looks to reduce reliance on China for critical minerals. The funding for the NioCorp Developments (NB.O), opens new tab unit, under the Defense Production Act, will support engineering, drilling and feasibility studies at the Elk Creek project in Nebraska. Shares of NioCorp were up 4.8% in premarket trade. The U.S. has not mined scandium since 1969. Most of the global supply comes from China, Russia and Ukraine. The project is part of broader efforts to reduce U.S. reliance on China and other foreign suppliers of critical minerals, in line with a 2025 executive order by President Donald Trump to boost domestic production. In early July, MP Materials (MP.N), opens new tab unveiled a multibillion-dollar deal with the U.S. government to boost output of rare earth magnets and help loosen China's grip on the materials used to build weapons, electric vehicles and many electronics. Scandium is prized for making lightweight, high-strength alloys used in aircraft, hypersonic weapons and energy platforms.
Yahoo
7 days ago
- Business
- Yahoo
US awards NioCorp unit $10 million to build scandium supply chain in Nebraska
(Reuters) -The U.S. Department of Defense has awarded $10 million to Elk Creek Resources to help develop a scandium supply chain, it said on Tuesday, as Washington looks to reduce reliance on China for critical minerals. The funding for the NioCorp Developments unit, under the Defense Production Act, will support engineering, drilling and feasibility studies at the Elk Creek project in Nebraska. Shares of NioCorp were up 4.8% in premarket trade. The U.S. has not mined scandium since 1969. Most of the global supply comes from China, Russia and Ukraine. The project is part of broader efforts to reduce U.S. reliance on China and other foreign suppliers of critical minerals, in line with a 2025 executive order by President Donald Trump to boost domestic production. In early July, MP Materials unveiled a multibillion-dollar deal with the U.S. government to boost output of rare earth magnets and help loosen China's grip on the materials used to build weapons, electric vehicles and many electronics. Scandium is prized for making lightweight, high-strength alloys used in aircraft, hypersonic weapons and energy platforms. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
