Jervois Quarterly Activities Report to 30 September 2021

 

(TheNewswire)

  Jervois Global Limited 

29 October 2021 (Australia) TheNewswire - ASXTSX-V: JRV OTC: JRVMF

 
  
 

Jervois Global Limited

 

ACN: 007 626 575

 

ASX/TSXV: JRV

 

OTCQB: JRVMF

 

Corporate Information:

 

1,515.1M Ordinary Shares

 

93.1M Options

 

0.4M Performance Rights

 

Non-Executive Chairman

 

Peter Johnston

 

CEO and Executive Director

 

Bryce Crocker

 

Non-Executive Directors

 

Brian Kennedy
Michael Callahan

 

David Issroff

 

Company Secretary

 

Alwyn Davey

 

Contact Details

 

Suite 508,

 

737 Burwood Road

 

Hawthorn East

 

Victoria 3122

 

Australia

 

P: +61 (3) 9583 0498

 

E: admin@jervoisglobal.com

 

W: www.jervoisglobal.com

 
 

Highlights

 

  ·   US$192 million    [1]    acquisition of Freeport Cobalt, a leading cobalt business in Kokkola, Finland, completed on 1 September 2021; transaction underpinned by A$313 million equity raise.  

 

  ·   Freeport Cobalt (now Jervois Finland) proforma YTD and Q3 EBITDA at US$15.0 million and US$6.8 million respectively; US$1.6 million EBITDA in first month under Jervois ownership.  

 

  ·   Jervois Finland proforma EBITDA guidance for full year 2021 remains ≥ US$20.0 million.    [2]   

 

  ·   Jervois advances construction of its Idaho Cobalt Operations ("ICO"); underground development has commenced following first blast of west portal on 15 October.  

 

  ·   Jervois expanded São Miguel Paulista ("SMP") Bankable Feasibility Study ("BFS") scope to restart the refinery in an integrated single stage; BFS due end Q1 2022.  

 

  ·   First drawdown of 50% of the US$100 million Bond Offering proceeds for ICO development anticipated in Q4 2021.  

 

  ·   US$75 million standby working capital facility secured with Mercuria, providing Jervois with incremental flexibility.  

 

  ·   Jervois appointed Mr. David Issroff, formerly a founding partner at Glencore, a Non-Executive Director.  

 

  ·   Jervois ends September 2021 quarter with A$43.3 million in unrestricted and unescrowed cash (US$31.2 million).  

 
 

Jervois Finland

 

Acquisition and Business Integration

 

On 2 September 2021, Jervois confirmed it had closed its acquisition of 100% of Freeport Cobalt (renamed Jervois Finland) by purchasing all the shares of Freeport Cobalt Oy and four affiliated entities from Koboltti Chemicals Holdings Limited (" KCHL ") (the "Acquisition").

 

Jervois Global welcomed its new colleagues in the executive team and all operational employees at Kokkola.  Detailed integration planning and execution is underway across commercial (including purchasing, sales, working capital and risk management), information technology, finance, environment and sustainability, governance and technical services.  Utilisation of Jervois Finland technical expertise and input as it pertains to battery chemicals including sulphates is underway with a specific focus on the restart plans for the SMP nickel-cobalt refinery in Brazil.

 

Sales and Marketing

 

  The proforma third quarter revenue was US$76.9 million representing cobalt sales volume of 1,415 metric tonnes.  This was the strongest quarter for 2021 due to a combination of positive cobalt price momentum and strong sales volumes.  Of this, US$25.3 million was under the ownership of Jervois during September.  The proforma year to date ("   YTD " ) revenue was US$199.7 million based on cobalt sales volume of 3,983 metric tonnes.  Production for the year to date is broadly in line with sales volumes.  

 

The current outlook into Q4 and calendar 2022 is positive, with Jervois seeing strong demand across its industrial customers in each of Europe, the United States and Japan.  The contracting season is currently underway with a robust outlook in key market segments based on Jervois's customer feedback on their own sales projections, as global recovery from the Covid-19 pandemic gains momentum.  Jervois is witnessing increasing concern from traditional users of cobalt regarding the potential shift of units into rising battery demand.

 

Chemicals, Catalysts and Ceramics

 

  ·   Consumption strong in chemicals segments, 2022 forecast +5% growth versus 2021.  

 

  ·   Improving outlook in catalyst segment after delayed catalyst changeouts and softer consumption in refinery catalysts in 2021.  Catalyst recycling business stable.  

 

  ·   Pigment production recovering from Covid-19 slowdown in parallel with ceramic tile production growth; strong outlook for 2022 with key accounts signalling growth in cobalt oxide requirements.  

 

Powder Metallurgy

 

  ·   Aerospace recovery has commenced; pace of automotive recovery less certain due to lack of semiconductors which continues to impact the sector.  

 

  ·   Mining and associated service providers experienced strong growth associated with a robust commodity price environment particularly in base metals.  

 

  ·   Across Jervois's global sales book into powder metallurgy, modest growth expected in 2022 matched to pace of recovery in end-use markets.  

 

Batteries

 

  ·   Demand for electric vehicle batteries continues to expand; demand growth for cobalt chemicals resilient in context of evolving battery cathode chemistries.  

 

  ·   Lithium ion battery prices impacted by rising commodity and component costs .  

 

  ·   Cobalt sulphate producers pursuing premium increases to increased feed stock costs, and offset production and freight cost inflation.  

 

Financial Performance

 

Jervois Finland Proforma EBITDA was US$15.0 million and US$6.8 million YTD and 3Q 2021 respectively; this included US$1.6 million for September, which was adversely affected by the timing impact of higher current feedstock cost and lag in increased sales prices in a rising cobalt price environment.

 

Revenue performance continues to strengthen in line with higher cobalt prices (Figures 1 and 2).  The cobalt hydroxide payable indicator is stable but at historically elevated levels.

 

  Full year 2021 proforma EBITDA guidance of ≥ US$20 million is reconfirmed, underpinned by a forecast average US$25.00 per lb Fastmarkets Metal Bulletin ("   MB " ) Standard Grade ("   SG " ) cobalt price assumption for Q4 2021.    [3]    The current Fastmarkets MB SG cobalt price is US$27.10 to US$27.65 per lb.  

 

Figure 1: Jervois Finland Financial Metrics and Market Price Indicators

 

Jervois Finland net working capital closed the quarter at US$94 million.  Investment in working capital is a key enabler of the business and rose across 2021 due to rising cobalt prices.

 

  As announced on 29 October 2021, Jervois Finland has entered into a secured US$75 million standby working capital facility with Mercuria Energy Trading SA ("   Mercuria " ) (the "   Facility " ). The Facility will provide flexibility and headroom to fund working capital in higher cobalt price environments.  Initial draw down is anticipated to occur in November 2021.  

 

Idaho Cobalt Operations ("ICO"), United States

 

  Jervois has committed more than US$33.4 million of the total capital expenditure budget of US$92.6 million and more than 40 percent of all equipment and material for the project has been ordered.  As part of the current construction cycle at site (more than US$100 million historically has been invested during prior work seasons), preparatory works commenced in Q2 2021, with the installation of equipment required to commission the water treatment plant ("   WTP " ), civil and concreting works for the fine ore bin installation, mill and flotation buildings erection, relining of the dry stack tailings facility, installation of the water pump back system and preparation of the portal bench including bolting and meshing of the slope above the proposed portal.  

 

  Great Basin Industrial, a local contractor, has been working with Jervois and M3 Engineering ("   M3 " ) on the completion of the Veolia designed WTP.  Commissioning of the WTP started in September 2021, and is now water commissioned.  Final punch list items for operation will be completed during Q4 2021.  

 

Local Idaho company Scarrow Excavation has completed a portal bench extension and associated road network from the portal.  It has also commenced the installation of the water pump back system from the portal to the process plant water distribution manifold and WTP.

 

  Western United States construction company Capra Group ("   Capra " ) has been active on site since late July 2021, commencing concrete and civil work for the mill and flotation building and civils for the fine ore bin.  Capra has completed the concrete walls for the mill building and will finalise concrete walls for the flotation building in Q4 2021.  The erection of the mill building has commenced and both the mill and concentrator buildings will be erected in Q4 2021, which will then allow indoor construction to continue through winter.  

 

  Northwest Linings and Geotextile Products, Inc. has completed the laying of a high-density polyethylene ("   HDPE " ) liner on the dry stack tailings facility which will be used to temporarily store   mine waste rock during mine development and mill dry stack tailings during operation when paste fill is not required.  This liner installation has been certified to meet all standards required for a HDPE liner installation by geotechnical engineering company Newfields.  

 

  Small Mine Development ("   SMD " ) has opened the west portal and will commence development at the east portal in Q4 2021.  SMD anticipates reaching first ore in Q1 2022.  

 

Jervois has ordered all long lead items for the process plant, including SAG mill, flotation cells, thickener, camp, transformers, and an on-line analyser.  The SAG mill shell is currently in transit from Brazil and is expected to be delivered to site in December 2021.

 

Delivery of initial modules of the accommodation camp has been delayed into early Q1 2022, with full operations of the camp including kitchen and utilities now not expected until later in the quarter.

 

Certain key capital goods, specifically SAG mill parts to be shipped from Turkey, have also experienced logistical delays in anticipated delivery time to site.  Jervois is currently reviewing and integrating the impact of these events with EPCM M3 and expect to have an updated construction schedule shortly.  Given the absence of a camp at least across December and January, final commissioning date will increasingly be influenced by weather conditions over the coming winter construction season, with safety of the workforce being prioritized.

 

The opening of the west portal is a historic step toward security of supply of cobalt for the United States and its allies.  The Biden Administration recently discussed the perilous situation faced by the United States related to cobalt in its high-profile review of supply chain vulnerabilities.  When ICO goes into production in 2022, it will mark the first time in decades that America will have a primary cobalt mine within its borders.  Jervois looks forward to continuing its work with the political leadership of the United States, particularly with Governor Brad Little, the Idaho congressional delegation, and the Biden Administration. Jervois Global is committed to building an ethical, sustainable and secure Western alternative to the current Chinese-dominated cobalt supply chain, and to working with its diverse customer base across a wide range of key strategic industries in the United States, Europe and Japan.

 

São Miguel Paulista ("SMP") nickel and cobalt refinery, Brazil

 

  In September Jervois announced that the Bankable Feasibility Study ("   BFS " ) scope of work for the São Miguel Paulista ("   SMP " ) nickel cobalt refinery in São Paulo, Brazil was to be expanded to include a significant increase in the forecast pressure oxygen ("   POX " ) leach circuit capacity.  

 

The expanded BFS, led by Ausenco, will leverage the technical expertise the Company has gained through its acquisition of Jervois Finland, to include a dedicated crystalliser circuit for the production of nickel sulphate crystals, a premium product able to be delivered to both the plating and battery industries.

 

Nickel sulphate is trading at a significant premium to metal, a trend that Jervois' commercial team expects to continue due to the volume of nickel sulphate forecast to be derived from metal dissolution to satisfy global demand growth in battery markets.

 

Importantly a larger POX offers greater feed flexibility, as in addition to sulphide concentrates, the autoclave circuit will be able to process mixed sulphides, mattes, hydroxide products, material from lithium ion batteries known as "black mass" and other recycled materials.  The expanded POX circuit will unlock sunk capital at SMP and enhance the operating flexibility and commercial value of the refinery.

 

This switch will be linked to restarting SMP at or close to its prior capacity, of 25,000 metric tonnes of nickel and 2,500 metric tonnes of cobalt.  As a result the restart of SMP, and the associated Ausenco study release, will no longer be staged.  Due to the flowsheet change the completed Ausenco BFS is expected to be delivered by end Q1 2022.

 

Jervois remains confident in the attractiveness of restarting SMP, and that a larger, less staggered restart is the correct commercial approach given the Company's increased scale and market presence following its acquisition of Freeport Cobalt (now rebranded Jervois Finland).

 

  Jervois currently holds a lease over SMP providing it access to undertake the BFS on a potential restart of the facility.  Jervois has agreed with Companhia Brasileira de Alumínio ("   CBA " ) (an investee company of Votorantim) to extend the outside date of closing of Jervois' acquisition of SMP from 31 December 2021 to 31 March 2022, however the R$1.5 million    [4]    monthly lease charge will cease from the start of January 2022.  

 

Closing of the SMP refinery acquisition by Jervois is subject to several conditions precedent, including renewal of the São Paulo City Hall operating permit.  CBA is complying with necessary legal procedures for renewal, and an updated license is expected to be received during 2021.  Jervois' existing early termination option under the transaction sale and purchase agreement will also be extended to 31 December 2021.

 

  The cash purchase price of R$125.0 million    [5]    payable in tranches conditional upon permitting, restart BFS outcomes and future production thresholds – except for a R$15 million initial payment in December 2020 – remains payable in stages to June 2023. The next acquisition payment payable by Jervois will be R$47.5 million cash    [6]    on Closing.  

 

Nico Young Nickel-Cobalt Project, New South Wales, Australia

 

The Company is continuing discussions on a suitable ownership structure and marketing strategy to secure a partner to advance into BFS.

 

Corporate Activities

 

Liquidity

 

Jervois ended the September 2021 quarter with A$43.3 million (US$31.2 million) in cash (excluding restricted cash associated with the US$100 million ICO Senior Secured Bond).

 

  As announced concurrent with this quarterly, Jervois Finland Oy, along with its parent Jervois Suomi Holding Oy (together the "   Borrowers   ") has entered into a working capital facility with Mercuria (the "   Lender   ").  Jervois Finland's facility with Mercuria is for an initial commitment of US$75 million with a maturity date of 31 December 2024.  There is an Accordion mechanism to accommodate additional borrowing capacity of US$75 million, which would take the overall standby working capital facility to US$150 million.  

 

Terms for the Accordion have been negotiated and it remains uncommitted until notice is provided by Jervois, and certain conditions have been satisfied including Lender consent.  Until the Accordion is converted into a committed facility, Jervois Finland will pay no associated fees.  Under the facility, the Borrowers can draw to the lower of the maximum amount or 80 per cent of the collateral value, where collateral is defined as the value of Jervois Finland's inventory and receivables, calculated monthly.

 

The facility is secured against the shares in Jervois Finland and its assets and is guaranteed by Jervois Global.  A maximum of US$50 million is permitted to be transferred out of the Jervois Finland group of companies, for other general purposes in the Jervois Global group.

 

At the time of closing the acquisition of Jervois Finland on 1 September 2021, Jervois Finland had US$98 million net working capital on its balance sheet, approximately US$23 million more than US$75 million ‘target' working capital communicated in the ASX announcement, Jervois to acquire Freeport Cobalt for US$160 million (27 July 2021).  Working capital levels fluctuate according to the cobalt market price environment, and other factors.

 

Jervois expects to utilize the facility to fund working capital levels more than the US$75 million ‘target'.  The committed facility amount provides headroom to fund working capital in a higher cobalt price environment.

 

  Due to current cobalt prices and buoyant market expectations, Jervois expects initial utilisation of US$32.5 million to occur in November 2021, subject to satisfaction of customary conditions precedent including those related to execution of security documentation over the assets of Jervois Finland.  Jervois will use proceeds to fund higher working capital levels at Jervois Finland should market prices increase, and where required for funding of the Group's development activities, including the R$47.5 million    [7]    cash acquisition payment for SMP nickel cobalt refinery that Jervois expects to fall due in the first quarter of 2022 in line with the anticipated closing.  

 

  Equity Financing  

 

During the quarter Jervois raised approximately A$313 million in equity via the issuance of new fully paid ordinary shares, associated with the acquisition of Freeport Cobalt (the " Offer ").

 

Jervois applied proceeds from the Offer to fund the acquisition of Freeport Cobalt, for ICO development expenditure and for general corporate purposes, including advancement of the BFS at the SMP nickel cobalt refinery in Brazil.

 

Jervois insiders and principals contributed A$3.57 million to the Offer, which included A$1.0 million from Mr. David Issroff, who Jervois appointed to its Board following completion of its acquisition of Freeport Cobalt.

 

Existing substantial shareholder AustralianSuper Pty Limited invested an additional A$73.9 million in the Offer to support the acquisition of Freeport Cobalt and advancement of both ICO and SMP.

 

As part of the Offer, Mercuria, one of the world's largest integrated energy and commodities companies with approximately US$100 billion annual turnover, acquired a significant equity position in the Company, via the investment of A$45.7 million.  Mercuria and Jervois agreed to work together to advance their commercial footprint in nickel and cobalt markets, with the US$75 million standby working capital facility with Jervois Finland announced concurrent with this release, the initial step in this relationship.

 

First Drawdown of Bond Offering

 

The first of two (2) drawdowns of 50% of the US$100 million Bond Offering proceeds from the escrow account continues to be anticipated in Q4 2021, following satisfaction of the conditions precedent to withdrawal, as outlined in the company announcement on 5 July 2021, which include inter alia Jervois spending US$35 million toward the ICO project.

 

RPM Global, the independent engineer engaged by the Bond Trustee, visited ICO in September 2021.  The purpose of the visit was to gather information for the Cost-to-Complete Test, one of conditions precedent to withdrawal from the escrow account, and in accordance with the Bond Terms.

 

Environmental, Social, Governance and Compliance

 

  In light of closing of the Freeport Cobalt acquisition (now Jervois Finland), an area of emphasis in Q3 2021 included review and integration of   ESG systems and   processes.   Jervois Finland was the first cobalt chemical producer in the world to achieve   Responsible Minerals Initiative ("   RMI   "   ) Conformant Downstream Facility status and support for ethical sourcing practices continues to be a high priority.  Actions were therefore prioritized to ensure continued conformance with OECD Due Diligence for Responsible Minerals Supply Chains.  This included transparent communications with upstream suppliers and customers, formal registration of changes with RMI and by providing required disclosures and links to the RMI grievance mechanism through the launching of the Jervois Finland website (    www.jervoisfinland.com    ).  In conjunction with this, selected policies and procedures, including Jervois' Supplier Standard, were rolled out across the expanded organisation.  

 

  Jervois Finland has a mature ESG framework and, in conjunction with the integration process, progress was made towards formalizing inter-operation communications and collaboration on ESG between Jervois's operating sites in Finland, the United States and Brazil.  This was reinforced by formation of an internal Climate Action Working Group. which aims to advance and formalize Jervois' climate strategies and commitments in 2022.  Building on Jervois' climate efforts reported in previous quarters, Jervois Finland brings substantial depth in climate responsiveness.  Efforts range from operational actions to improve energy efficiency and reduce waste and water consumption to tangible progress in cobalt recycling to considerable research and development aiming to increase contribution to the circular economy and   participation in the "Towards carbon neutral metals (TOCANEM)" program in co-operation with Business Finland, among others.  

 

  In conjunction with the Company's broader approach to ESG, Jervois has increased its engagement in various initiatives and associations, including the Cobalt Institute's Responsible Sourcing and Sustainability Committee   ("   RESSCOM   "), leadership roles in its Cobalt REACH Consortium and engagement in the   United States Zero Emission Transportation Association ("   ZETA   ")   , of which the Company is a founding member alongside industry leaders such as Tesla, Albemarle and Livent.  

 

Director and Management Updates

 

Jervois appointed Mr. David Issroff as a Non-Executive Director effective 3 September 2021 following the completion of the acquisition of Freeport Cobalt, as foreshadowed last quarter.

 

  Jervois Finland leadership carried across from the Freeport Cobalt acquisition, with the appointment following closing of Mr. Sami Kallioinen (President and Managing Director), Ms. Pia Lehtonen (Financial Controller), Dr. Thomas Slotte (Director – Plant Support and Administration), Mr. Juha Järvi (Director – Technical Services), Mr. Jeff Blazek (Global Business Manager – Powder Metallurgy) and Mr. Mike Lacis (Global Business Manager – Chemicals, Catalysts and Ceramic).  

 

During the quarter former Xstrata plc executive Mr. Ian Woolsey joined the Company as Group Manager – Information Technology (" IT ").  Mr. Woolsey joins after more than a decade with Glencore and Xstrata where he led the IT integration of major cross-border transactions including the Xstrata acquisition of MIM Holdings and Falconbridge, together with the Glencore-Xstrata merger.  Mr. Woolsey will lead the IT integration of Jervois Finland, ICO and SMP as the appropriate systems, governance and controls are rolled out across the expanded group to reflect its maturity as an operating business of scale.

 

Domestic border restrictions inconsistent with rules applying elsewhere in the world at this advanced stage in the Covid-19 pandemic, continue to affect the viability of Australian based companies to successfully operate and compete on a global scale.  During the quarter Jervois's Chief Executive Officer, Mr. Bryce Crocker, relocated from Australia in order to continue managing the businesses effectively.  Mr. Michael Rodriguez, Group Manager – Technical Services, will temporarily relocate from Western Australia to the Americas in early 2022 in order to continue his leadership of the SMP BFS and to work closely with each of Ausenco, the executive team in Jervois Brazil and the operating team at SMP whom will become Jervois employees upon envisaged closing of the acquisition by the end of Q1 2022.

 

Mr. David Selfe, Group Manager – Geology, has decided to leave the Company to pursue an alternate career opportunity within Western Australia.  Many of Jervois's Directors and Management have worked with Mr. Selfe for nearly 25 years, since the early days of Murrin Murrin, Glencore's nickel-cobalt facility in Western Australia, and we wish him well.

 

Exploration and Development Expenditure

 

No material cash expenditure on exploration and development was incurred during the quarter.  Activities at ICO are now classified as Assets Under Construction and incurred cash expenditure of US$7.7 million (A$10.7 million) in the quarter.

 

In Brazil, Jervois' lease payment for the SMP Refinery was R$4.5 million (A$1.2 million) for the quarter (R$1.5 million per month) and will continue for Q4 2021.  Brazilian development cash expenditure excluding the lease payment, namely the SMP BFS and associated metallurgical testwork, totalled R$5.3 million (A$1.4 million) during the quarter.

 

Company Name Change

 

Effective 3 September 2021, the company name changed from Jervois Mining Limited to Jervois Global Limited following shareholder approval on 29 July 2021.  There was no change to the ASX or TSX-V code for Jervois, which remained JRV, and there was no change to the International Securities Identification Number which remained s AU000000JRV4.

 

NON-CORE ASSETS

 

Jervois's non-core assets are summarized on the Company's website.

 

Insider Compensation Reporting

 

During the quarter, A$0.1 million was paid to Non-Executive Directors and A$0.1 million was paid to the CEO (Executive Director).

 

ASX WAIVER INFORMATION

 

On 6 June 2019, the ASX granted a waiver to Jervois in respect of extending the period to 8 November 2023 in which it may issue new Jervois shares to the eCobalt option holders as part of the eCobalt transaction.

 

As at 30 September 2021, the following Jervois shares were issued in the quarter on exercise of eCobalt options and the following eCobalt options remain outstanding:

 
  
 

Jervois shares issued in the quarter on exercise of eCobalt options:

 
 

891,000

 
 
     
 

eCobalt options remaining*

 
 

  1,344,750  

 

  1,179,750  

 

  1,980,000  

 
 

eCobalt options exercisable until 28 June 2022 at C$0.71 each

 

eCobalt options exercisable until 28 June 2023 at C$0.61 each

 

eCobalt options exercisable until 1 October 2023 at C$0.53 each

 
 

4,504,500

 
 
 

  *   The number of options represent the number of Jervois shares that will be issued on exercise.  The exercise price represents the price to be paid for the Jervois shares when issued.  

 

By Order of the Board

 

Bryce Crocker

 

Chief Executive Officer

 

For further information, please contact:

 
  
 

Investors and analysts:

 

James May

 

Chief Financial Officer

 

Jervois Mining Limited

 

   jmay@jervoismining.com.au   

 
 

Media:

 

Nathan Ryan

 

NWR Communications

 

   nathan.ryan@nwrcommunications.com.au   

 

Mob: +61 420 582 887

 
 

BASIS OF PREPARATION OF FINANCIAL INFORMATION

 

Historical financial information for Jervois Finland is based on unaudited financial statements that have been prepared in accordance with US GAAP and accounting principles applied under its ownership by Freeport McMoRan Inc, prior to the acquisition by Jervois Global on 1 September 2021.  A review of Jervois Finland's financial reporting practices is in progress.  The purpose of the review is to align Jervois Finland to the Jervois group accounting policies which conform with Australian Accounting Standards (" AASBs ") and International Financial Reporting Standards (" IFRS ").  Based on the current status, Jervois does not expect that this review will give rise to material adjustments, however changes to financial information could occur once the review is finalised in the fourth quarter of 2021.

 

EBITDA for historical periods is presented as net income after adding back tax, interest, depreciation, other income, and extraordinary items and is a non-IFRS/non-GAAP measure.

 

The Jervois Finland financial results for the period post-acquisition are consolidated into the Jervois Global consolidated financial statements.  Financial information presented for the period prior to acquisition by Jervois Global on 1 September 2021 is presented on a proforma basis for illustrative purposes only.

 

The Jervois Finland 2021 Forecast consists of unaudited results for January to September, plus forecast results for October to December.  The forecast period includes an assumption of a forecast quoted Fastmarkets MB SG cobalt price of US$25/lb.  Other forecast assumptions, including production, sales plans, costs and exchange rates are based on Jervois' internal estimates.

 

Forward-Looking Statements

 

This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future EBITDA for the group, operations at Jervois Finland, construction work to be undertaken at ICO, timing of production at ICO, preparation of studies on the SMP refinery, utilisation of  the working capital facility, drawdown of the ICO Bond, the reliability of third party information, and certain other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 
 
 

Tenements

 

  Australian Tenements  

 
                                
 

Description

 
  

Tenement number

 
 

Interest owned %

 
 

Ardnaree (NSW)

 
  

EL 5527

 
 

100.0

 
 

Thuddungra (NSW)

 
  

EL 5571

 
 

100.0

 
 

Nico Young (NSW)

 
  

EL 8698

 
 

100.0

 
 

Area 1 (NSW)

 
  

EL 8474

 
 

100.0

 
 

West Arunta (WA)

 
  

E80 4820

 
 

20.0

 
 

West Arunta (WA)

 
  

E80 4986

 
 

20.0

 
 

West Arunta (WA)

 
  

E80 4987

 
 

20.0

 
 

Uganda Exploration Licences

 
                                                
 

Description

 
  

Exploration Licence number

 
 

Interest owned %

 
 

Bujagali

 
  

EL1666

 
 

100.0

 
 

Bujagali

 
  

EL1682

 
 

100.0

 
 

Bujagali

 
  

EL1683

 
 

100.0

 
 

Bujagali

 
  

EL1665

 
 

100.0

 
 

Bujagali

 
  

EL1827

 
 

100.0

 
 

Kilembe Area

 
  

EL1673

 
 

100.0

 
 

Kilembe Area

 
  

EL1674

 
 

100.0

 
 

Kilembe Area

 
  

EL1735

 
 

100.0

 
 

Kilembe Area

 
  

EL1736

 
 

100.0

 
 

Kilembe Area

 
  

EL1737

 
 

100.0

 
 

Kilembe Area

 
  

EL0012

 
 

100.0

 
 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 

Idaho Cobalt Operations – 100% Interest owned

 
 

Claim Name

 
 

County #

 
 

IMC #

 
 

SUN 1

 
 

222991

 
 

174156

 
 

SUN 2

 
 

222992

 
 

174157

 
 

SUN 3 Amended

 
 

245690

 
 

174158

 
 

SUN 4

 
 

222994

 
 

174159

 
 

SUN 5

 
 

222995

 
 

174160

 
 

SUN 6

 
 

222996

 
 

174161

 
 

SUN 7

 
 

224162

 
 

174628

 
 

SUN 8

 
 

224163

 
 

174629

 
 

SUN 9

 
 

224164

 
 

174630

 
 

SUN 16 Amended

 
 

245691

 
 

177247

 
 

SUN 18 Amended

 
 

245692

 
 

177249

 
 

Sun 19

 
 

277457

 
 

196394

 
 

SUN FRAC 1

 
 

228059

 
 

176755

 
 

SUN FRAC 2

 
 

228060

 
 

176756

 
 

TOGO 1

 
 

228049

 
 

176769

 
 

TOGO 2

 
 

228050

 
 

176770

 
 

TOGO 3

 
 

228051

 
 

176771

 
 

DEWEY FRAC Amended

 
 

248739

 
 

177253

 
 

Powder 1

 
 

269506

 
 

190491

 
 

Powder 2

 
 

269505

 
 

190492

 
 

LDC-1

 
 

224140

 
 

174579

 
 

LDC-2

 
 

224141

 
 

174580

 
 

LDC-3

 
 

224142

 
 

174581

 
 

LDC-5

 
 

224144

 
 

174583

 
 

LDC-6

 
 

224145

 
 

174584

 
 

LDC-7

 
 

224146

 
 

174585

 
 

LDC-8

 
 

224147

 
 

174586

 
 

LDC-9

 
 

224148

 
 

174587

 
 

LDC-10

 
 

224149

 
 

174588

 
 

LDC-11

 
 

224150

 
 

174589

 
 

LDC-12

 
 

224151

 
 

174590

 
 

LDC-13 Amended

 
 

248718

 
 

174591

 
 

LDC-14 Amended

 
 

248719

 
 

174592

 
 

LDC-16

 
 

224155

 
 

174594

 
 

LDC-18

 
 

224157

 
 

174596

 
 

LDC-20

 
 

224159

 
 

174598

 
 

LDC-22

 
 

224161

 
 

174600

 
 

LDC FRAC 1 Amended

 
 

248720

 
 

175880

 
 

LDC FRAC 2 Amended

 
 

248721

 
 

175881

 
 

LDC FRAC 3 Amended

 
 

248722

 
 

175882

 
 

LDC FRAC 4 Amended

 
 

248723

 
 

175883

 
 

LDC FRAC 5 Amended

 
 

248724

 
 

175884

 
 

RAM 1

 
 

228501

 
 

176757

 
 

RAM 2

 
 

228502

 
 

176758

 
 

RAM 3

 
 

228503

 
 

176759

 
 

RAM 4

 
 

228504

 
 

176760

 
 

RAM 5

 
 

228505

 
 

176761

 
 

RAM 6

 
 

228506

 
 

176762

 
 

RAM 7

 
 

228507

 
 

176763

 
 

RAM 8

 
 

228508

 
 

176764

 
 

RAM 9

 
 

228509

 
 

176765

 
 

RAM 10

 
 

228510

 
 

176766

 
 

RAM 11

 
 

228511

 
 

176767

 
 

RAM 12

 
 

228512

 
 

176768

 
 

RAM 13 Amended

 
 

245700

 
 

181276

 
 

RAM 14 Amended

 
 

245699

 
 

181277

 
 

RAM 15 Amended

 
 

245698

 
 

181278

 
 

RAM 16 Amended

 
 

245697

 
 

181279

 
 

Ram Frac 1 Amended

 
 

245696

 
 

178081

 
 

Ram Frac 2 Amended

 
 

245695

 
 

178082

 
 

Ram Frac 3 Amended

 
 

245694

 
 

178083

 
 

Ram Frac 4 Amended

 
 

245693

 
 

178084

 
 

HZ 1

 
 

224173

 
 

174639

 
 

HZ 2

 
 

224174

 
 

174640

 
 

HZ 3

 
 

224175

 
 

174641

 
 

HZ 4

 
 

224176

 
 

174642

 
 

HZ 5

 
 

224413

 
 

174643

 
 

HZ 6

 
 

224414

 
 

174644

 
 

HZ 7

 
 

224415

 
 

174645

 
 

HZ 8

 
 

224416

 
 

174646

 
 

HZ 9

 
 

224417

 
 

174647

 
 

HZ 10

 
 

224418

 
 

174648

 
 

HZ 11

 
 

224419

 
 

174649

 
 

HZ 12

 
 

224420

 
 

174650

 
 

HZ 13

 
 

224421

 
 

174651

 
 

HZ 14

 
 

224422

 
 

174652

 
 

HZ 15

 
 

231338

 
 

178085

 
 

HZ 16

 
 

231339

 
 

178086

 
 

HZ 18

 
 

231340

 
 

178087

 
 

HZ 19

 
 

224427

 
 

174657

 
 

Z 20

 
 

224428

 
 

174658

 
 

HZ 21

 
 

224193

 
 

174659

 
 

HZ 22

 
 

224194

 
 

174660

 
 

HZ 23

 
 

224195

 
 

174661

 
 

HZ 24

 
 

224196

 
 

174662

 
 

HZ 25

 
 

224197

 
 

174663

 
 

HZ 26

 
 

224198

 
 

174664

 
 

HZ 27

 
 

224199

 
 

174665

 
 

HZ 28

 
 

224200

 
 

174666

 
 

HZ 29

 
 

224201

 
 

174667

 
 

HZ 30

 
 

224202

 
 

174668

 
 

HZ 31

 
 

224203

 
 

174669

 
 

HZ 32

 
 

224204

 
 

174670

 
 

HZ FRAC

 
 

228967

 
 

177254

 
 

JC 1

 
 

224165

 
 

174631

 
 

JC 2

 
 

224166

 
 

174632

 
 

JC 3

 
 

224167

 
 

174633

 
 

JC 4

 
 

224168

 
 

174634

 
 

JC 5 Amended

 
 

245689

 
 

174635

 
 

JC 6

 
 

224170

 
 

174636

 
 

JC FR 7

 
 

224171

 
 

174637

 
 

JC FR 8

 
 

224172

 
 

174638

 
 

JC 9

 
 

228054

 
 

176750

 
 

JC 10

 
 

228055

 
 

176751

 
 

JC 11

 
 

228056

 
 

176752

 
 

JC-12

 
 

228057

 
 

176753

 
 

JC-13

 
 

228058

 
 

176754

 
 

JC 14

 
 

228971

 
 

177250

 
 

JC 15

 
 

228970

 
 

177251

 
 

JC 16

 
 

228969

 
 

177252

 
 

JC 17

 
 

259006

 
 

187091

 
 

JC 18

 
 

259007

 
 

187092

 
 

JC 19

 
 

259008

 
 

187093

 
 

JC 20

 
 

259009

 
 

187094

 
 

JC 21

 
 

259010

 
 

187095

 
 

JC 22

 
 

259011

 
 

187096

 
 

CHELAN NO. 1 Amended

 
 

248345

 
 

175861

 
 

GOOSE 2 Amended

 
 

259554

 
 

175863

 
 

GOOSE 3

 
 

227285

 
 

175864

 
 

GOOSE 4 Amended

 
 

259553

 
 

175865

 
 

GOOSE 6

 
 

227282

 
 

175867

 
 

GOOSE 7 Amended

 
 

259552

 
 

175868

 
 

GOOSE 8 Amended

 
 

259551

 
 

175869

 
 

GOOSE 10 Amended

 
 

259550

 
 

175871

 
 

GOOSE 11 Amended

 
 

259549

 
 

175872

 
 

GOOSE 12 Amended

 
 

259548

 
 

175873

 
 

GOOSE 13

 
 

228028

 
 

176729

 
 

GOOSE 14 Amended

 
 

259547

 
 

176730

 
 

GOOSE 15

 
 

228030

 
 

176731

 
 

GOOSE 16

 
 

228031

 
 

176732

 
 

GOOSE 17

 
 

228032

 
 

176733

 
 

GOOSE 18 Amended

 
 

259546

 
 

176734

 
 

GOOSE 19 Amended

 
 

259545

 
 

176735

 
 

GOOSE 20

 
 

228035

 
 

176736

 
 

GOOSE 21

 
 

228036

 
 

176737

 
 

GOOSE 22

 
 

228037

 
 

176738

 
 

GOOSE 23

 
 

228038

 
 

176739

 
 

GOOSE 24

 
 

228039

 
 

176740

 
 

GOOSE 25

 
 

228040

 
 

176741

 
 

SOUTH ID 1 Amended

 
 

248725

 
 

175874

 
 

SOUTH ID 2 Amended

 
 

248726

 
 

175875

 
 

SOUTH ID 3 Amended

 
 

248727

 
 

175876

 
 

SOUTH ID 4 Amended

 
 

248717

 
 

175877

 
 

SOUTH ID 5 Amended

 
 

248715

 
 

176743

 
 

SOUTH ID 6 Amended

 
 

248716

 
 

176744

 
 

South ID 7

 
 

306433

 
 

218216

 
 

South ID 8

 
 

306434

 
 

218217

 
 

South ID 9

 
 

306435

 
 

218218

 
 

South ID 10

 
 

306436

 
 

218219

 
 

South ID 11

 
 

306437

 
 

218220

 
 

South ID 12

 
 

306438

 
 

218221

 
 

South ID 13

 
 

306439

 
 

218222

 
 

South ID 14

 
 

306440

 
 

218223

 
 

OMS-1

 
 

307477

 
 

218904

 
 

Chip 1

 
 

248956

 
 

184883

 
 

Chip 2

 
 

248957

 
 

184884

 
 

Chip 3 Amended

 
 

277465

 
 

196402

 
 

Chip 4 Amended

 
 

277466

 
 

196403

 
 

Chip 5 Amended

 
 

277467

 
 

196404

 
 

Chip 6 Amended

 
 

277468

 
 

196405

 
 

Chip 7 Amended

 
 

277469

 
 

196406

 
 

Chip 8 Amended

 
 

277470

 
 

196407

 
 

Chip 9 Amended

 
 

277471

 
 

196408

 
 

Chip 10 Amended

 
 

277472

 
 

196409

 
 

Chip 11 Amended

 
 

277473

 
 

196410

 
 

Chip 12 Amended

 
 

277474

 
 

196411

 
 

Chip 13 Amended

 
 

277475

 
 

196412

 
 

Chip 14 Amended

 
 

277476

 
 

196413

 
 

Chip 15 Amended

 
 

277477

 
 

196414

 
 

Chip 16 Amended

 
 

277478

 
 

196415

 
 

Chip 17 Amended

 
 

277479

 
 

196416

 
 

Chip 18 Amended

 
 

277480

 
 

196417

 
 

Sun 20

 
 

306042

 
 

218133

 
 

Sun 21

 
 

306043

 
 

218134

 
 

Sun 22

 
 

306044

 
 

218135

 
 

Sun 23

 
 

306045

 
 

218136

 
 

Sun 24

 
 

306046

 
 

218137

 
 

Sun 25

 
 

306047

 
 

218138

 
 

Sun 26

 
 

306048

 
 

218139

 
 

Sun 27

 
 

306049

 
 

218140

 
 

Sun 28

 
 

306050

 
 

218141

 
 

Sun 29

 
 

306051

 
 

218142

 
 

Sun 30

 
 

306052

 
 

218143

 
 

Sun 31

 
 

306053

 
 

218144

 
 

Sun 32

 
 

306054

 
 

218145

 
 

Sun 33

 
 

306055

 
 

218146

 
 

Sun 34

 
 

306056

 
 

218147

 
 

Sun 35

 
 

306057

 
 

218148

 
 

Sun 36

 
 

306058

 
 

218149

 
 

Chip 21 Fraction

 
 

306059

 
 

218113

 
 

Chip 22 Fraction

 
 

306060

 
 

218114

 
 

Chip 23

 
 

306025

 
 

218115

 
 

Chip 24

 
 

306026

 
 

218116

 
 

Chip 25

 
 

306027

 
 

218117

 
 

Chip 26

 
 

306028

 
 

218118

 
 

Chip 27

 
 

306029

 
 

218119

 
 

Chip 28

 
 

306030

 
 

218120

 
 

Chip 29

 
 

306031

 
 

218121

 
 

Chip 30

 
 

306032

 
 

218122

 
 

Chip 31

 
 

306033

 
 

218123

 
 

Chip 32

 
 

306034

 
 

218124

 
 

Chip 33

 
 

306035

 
 

218125

 
 

Chip 34

 
 

306036

 
 

218126

 
 

Chip 35

 
 

306037

 
 

218127

 
 

Chip 36

 
 

306038

 
 

218128

 
 

Chip 37

 
 

306039

 
 

218129

 
 

Chip 38

 
 

306040

 
 

218130

 
 

Chip 39

 
 

306041

 
 

218131

 
 

Chip 40

 
 

307491

 
 

218895

 
 

DRC NW 1

 
 

307492

 
 

218847

 
 

DRC NW 2

 
 

307493

 
 

218848

 
 

DRC NW 3

 
 

307494

 
 

218849

 
 

DRC NW 4

 
 

307495

 
 

218850

 
 

DRC NW 5

 
 

307496

 
 

218851

 
 

DRC NW 6

 
 

307497

 
 

218852

 
 

DRC NW 7

 
 

307498

 
 

218853

 
 

DRC NW 8

 
 

307499

 
 

218854

 
 

DRC NW 9

 
 

307500

 
 

218855

 
 

DRC NW 10

 
 

307501

 
 

218856

 
 

DRC NW 11

 
 

307502

 
 

218857

 
 

DRC NW 12

 
 

307503

 
 

218858

 
 

DRC NW 13

 
 

307504

 
 

218859

 
 

DRC NW 14

 
 

307505

 
 

218860

 
 

DRC NW 15

 
 

307506

 
 

218861

 
 

DRC NW 16

 
 

307507

 
 

218862

 
 

DRC NW 17

 
 

307508

 
 

218863

 
 

DRC NW 18

 
 

307509

 
 

218864

 
 

DRC NW 19

 
 

307510

 
 

218865

 
 

DRC NW 20

 
 

307511

 
 

218866

 
 

DRC NW 21

 
 

307512

 
 

218867

 
 

DRC NW 22

 
 

307513

 
 

218868

 
 

DRC NW 23

 
 

307514

 
 

218869

 
 

DRC NW 24

 
 

307515

 
 

218870

 
 

DRC NW 25

 
 

307516

 
 

218871

 
 

DRC NW 26

 
 

307517

 
 

218872

 
 

DRC NW 27

 
 

307518

 
 

218873

 
 

DRC NW 28

 
 

307519

 
 

218874

 
 

DRC NW 29

 
 

307520

 
 

218875

 
 

DRC NW 30

 
 

307521

 
 

218876

 
 

DRC NW 31

 
 

307522

 
 

218877

 
 

DRC NW 32

 
 

307523

 
 

218878

 
 

DRC NW 33

 
 

307524

 
 

218879

 
 

DRC NW 34

 
 

307525

 
 

218880

 
 

DRC NW 35

 
 

307526

 
 

218881

 
 

DRC NW 36

 
 

307527

 
 

218882

 
 

DRC NW 37

 
 

307528

 
 

218883

 
 

DRC NW 38

 
 

307529

 
 

218884

 
 

DRC NW 39

 
 

307530

 
 

218885

 
 

DRC NW 40

 
 

307531

 
 

218886

 
 

DRC NW 41

 
 

307532

 
 

218887

 
 

DRC NW 42

 
 

307533

 
 

218888

 
 

DRC NW 43

 
 

307534

 
 

218889

 
 

DRC NW 44

 
 

307535

 
 

218890

 
 

DRC NW 45

 
 

307536

 
 

218891

 
 

DRC NW 46

 
 

307537

 
 

218892

 
 

DRC NW 47

 
 

307538

 
 

218893

 
 

DRC NW 48

 
 

307539

 
 

218894

 
 

EBatt 1

 
 

307483

 
 

218896

 
 

EBatt 2

 
 

307484

 
 

218897

 
 

EBatt 3

 
 

307485

 
 

218898

 
 

EBatt 4

 
 

307486

 
 

218899

 
 

EBatt 5

 
 

307487

 
 

218900

 
 

EBatt 6

 
 

307488

 
 

218901

 
 

EBatt 7

 
 

307489

 
 

218902

 
 

EBatt 8

 
 

307490

 
 

218903

 
 

OMM-1

 
 

307478

 
 

218905

 
 

OMM-2

 
 

307479

 
 

218906

 
 

OMN-2

 
 

307481

 
 

218908

 
 

OMN-3

 
 

307482

 
 

218909

 
 

BTG-1

 
 

307471

 
 

218910

 
 

BTG-2

 
 

307472

 
 

218911

 
 

BTG-3

 
 

307473

 
 

218912

 
 

BTG-4

 
 

307474

 
 

218913

 
 

BTG-5

 
 

307475

 
 

218914

 
 

BTG-6

 
 

307476

 
 

218915

 
 

NFX 17

 
 

307230

 
 

218685

 
 

NFX 18

 
 

307231

 
 

218686

 
 

NFX 19

 
 

307232

 
 

218687

 
 

NFX 20

 
 

307233

 
 

218688

 
 

NFX 21

 
 

307234

 
 

218689

 
 

NFX 22

 
 

307235

 
 

218690

 
 

NFX 23

 
 

307236

 
 

218691

 
 

NFX 24

 
 

307237

 
 

218692

 
 

NFX 25

 
 

307238

 
 

218693

 
 

NFX 30

 
 

307243

 
 

218698

 
 

NFX 31

 
 

307244

 
 

218699

 
 

NFX 32

 
 

307245

 
 

218700

 
 

NFX 33

 
 

307246

 
 

218701

 
 

NFX 34

 
 

307247

 
 

218702

 
 

NFX 35

 
 

307248

 
 

218703

 
 

NFX 36

 
 

307249

 
 

218704

 
 

NFX 37

 
 

307250

 
 

218705

 
 

NFX 38

 
 

307251

 
 

218706

 
 

NFX 42

 
 

307255

 
 

218710

 
 

NFX 43

 
 

307256

 
 

218711

 
 

NFX 44

 
 

307257

 
 

218712

 
 

NFX 45

 
 

307258

 
 

218713

 
 

NFX 46

 
 

307259

 
 

218714

 
 

NFX 47

 
 

307260

 
 

218715

 
 

NFX 48

 
 

307261

 
 

218716

 
 

NFX 49

 
 

307262

 
 

218717

 
 

NFX 50

 
 

307263

 
 

218718

 
 

NFX 56

 
 

307269

 
 

218724

 
 

NFX 57

 
 

307270

 
 

218725

 
 

NFX 58

 
 

307271

 
 

218726

 
 

NFX 59

 
 

307272

 
 

218727

 
 

NFX 60 Amended

 
 

307558

 
 

218728

 
 

NFX 61

 
 

307274

 
 

218729

 
 

NFX 62

 
 

307275

 
 

218730

 
 

NFX 63

 
 

307276

 
 

218731

 
 

NFX 64

 
 

307277

 
 

218732

 
   
 

OMN-1 revised

 
 

315879

 
 

228322

 
    
 
                                                                         
 

Black Pine – 100% Interest Owned

 
 

Claim Name

 
 

Book & Page

 

County #

 
 

IMC #

 
 

NOAH #1

 
 

304761

 
 

217757

 
 

NOAH #2

 
 

304762

 
 

217758

 
 

NOAH #3

 
 

304763

 
 

217759

 
 

NOAH #4

 
 

304764

 
 

217760

 
 

NOAH #5

 
 

304765

 
 

217761

 
 

NOAH #6

 
 

304766

 
 

217762

 
 

NOAH #7

 
 

304767

 
 

217763

 
 

NOAH #8

 
 

304768

 
 

217764

 
 

NOAH #9

 
 

304769

 
 

217765

 
 

NOAH #10

 
 

304770

 
 

217766

 
 

NOAH #11 Amended

 
 

305804

 
 

218081

 
 

NOAH #12

 
 

305803

 
 

218082

 
 

NOAH #13 FRAC

 
 

305802

 
 

218083

 
 

NOAH #14

 
 

305805

 
 

218084

 
 

NOAH #15

 
 

305806

 
 

218085

 
 

NOAH #16

 
 

305807

 
 

218086

 
 

NOAH #17

 
 

305808

 
 

218087

 
 

NOAH #18

 
 

305809

 
 

218088

 
 

NOAH #19

 
 

305810

 
 

218089

 
 

NOAH #20

 
 

305811

 
 

218090

 
 

NOAH #21

 
 

305812

 
 

218091

 
 

NOAH #22

 
 

305813

 
 

218092

 
 

NOAH #23

 
 

305814

 
 

218093

 
 

Appendix 5B

 

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

 
        
 

Name of entity

 
 

Jervois Global Limited

 
 

ABN

 
 

 

 
 

Quarter ended ("current quarter")

 
 

52 007 626 575

 
  

30 September 2021

 
 
                                                           
 

Consolidated statement of cash flows

 
 

Current quarter
$A'000

 
 

Year to date

 

(9 months)

 

$A'000

 
 

1.

 
 

Cash flows from operating activities

 
 

31,042

 
 

31,042

 
 

1.1

 
 

Receipts from customers 1  

 
 

1.2

 
 

Payments for

 
 

-

 
 

-

 
  

  (a)   exploration & evaluation  

 
  

  (b)   development  

 
 

-

 
 

-

 
  

  (c)   production   1  

 
 

(24,777)

 
 

(24,777)

 
  

  (d)   staff costs  

 
 

(2,238)

 
 

(4,494)

 
  

  (e)   administration and corporate costs  

 
 

(1,283)

 
 

(2,522)

 
 

1.3

 
 

Dividends received (see note 3)

 
 

-

 
 

-

 
 

1.4

 
 

Interest received

 
 

-

 
 

-

 
 

1.5

 
 

Interest and other costs of finance paid

 
 

-

 
 

-

 
 

1.6

 
 

Income taxes paid

 
 

(86)

 
 

(86)

 
 

1.7

 
 

Government grants and tax incentives

 
 

-

 
 

62

 
 

1.8

 
 

Other – incl. business development costs and SMP BFS costs

 
 

(3,395)

 
 

(5,499)

 
 

1.9

 
 

Net cash from / (used in) operating activities

 
 

(737)

 
 

(6,274)

 
 
                                                                                                                                           
 
 

2.

 
 

Cash flows from investing activities

 
 

-

 
 

-

 
 

2.1

 
 

Payments to acquire or for:

 
  

  (a)   entities  

 
  

  (b)   tenements  

 
 

-

 
 

-

 
  

  (c)   property, plant and equipment – incl. assets under construction  

 
 

(11,142)

 
 

(15,942)

 
  

  (d)   exploration & evaluation  

 
 

(22)

 
 

(75)

 
  

  (e)   acquisition of subsidiaries  

 
 

(208,506)

 
 

(208,506)

 
  

  (f)   other non-current assets  

 
 

-

 
 

-

 
 

2.2

 
 

Proceeds from the disposal of:

 
 

-

 
 

-

 
  

  (a)   entities  

 
  

  (b)   tenements  

 
 

-

 
 

-

 
  

  (c)   property, plant and equipment  

 
 

28

 
 

58

 
  

  (d)   investments  

 
 

-

 
 

-

 
  

  (e)   other non-current assets  

 
 

-

 
 

-

 
 

2.3

 
 

Cash flows from loans to other entities

 
 

-

 
 

-

 
 

2.4

 
 

Dividends received (see note 3)

 
 

-

 
 

-

 
 

2.5

 
 

Other – SMP Refinery Purchase: lease payment

 
 

(1,160)

 
 

(2,649)

 
 

2.6

 
 

Net cash from / (used in) investing activities

 
 

(220,802)

 
 

(227,114)

 
 
 

3.

 
 

Cash flows from financing activities

 
 

266,449

 
 

266,449

 
 

3.1

 
 

Proceeds from issues of equity securities (excluding convertible debt securities)

 
 

3.2

 
 

Proceeds from issue of convertible debt securities

 
 

-

 
 

-

 
 

3.3

 
 

Proceeds from exercise of options

 
 

254

 
 

2,963

 
 

3.4

 
 

Transaction costs related to issues of equity securities or convertible debt securities

 
 

(9,704)

 
 

(9,704)

 
 

3.5

 
 

Proceeds from borrowings

 
 

-

 
 

-

 
 

3.6

 
 

Repayment of borrowings

 
 

-

 
 

-

 
 

3.7

 
 

Transaction costs related to loans and borrowings

 
 

(3,756)

 
 

(3,756)

 
 

3.8

 
 

Dividends paid

 
 

-

 
 

-

 
 

3.9

 
 

Other – restricted cash 2  

 
 

(21,465)

 
 

(21,465)

 
 

3.10

 
 

Net cash from / (used in) financing activities

 
 

231,778

 
 

234,487

 
 
 

4.

 
 

Net increase / (decrease) in cash and cash equivalents for the period

 
  
 

4.1

 
 

Cash and cash equivalents at beginning of period

 
 

33,266

 
 

42,331

 
 

4.2

 
 

Net cash from / (used in) operating activities (item 1.9 above)

 
 

(737)

 
 

(6,274)

 
 

4.3

 
 

Net cash from / (used in) investing activities (item 2.6 above)

 
 

(220,802)

 
 

(227,114)

 
 

4.4

 
 

Net cash from / (used in) financing activities (item 3.10 above)

 
 

231,778

 
 

234,487

 
 

4.5

 
 

Effect of movement in exchange rates on cash held

 
 

(256)

 
 

(181)

 
 

4.6

 
 

Cash and cash equivalents at end of period

 
 

43,249

 
 

43,249

 
 

  1.   On 1 September 2021, the Company closed its acquisition of 100% of Freeport Cobalt by purchasing all the shares of Freeport Cobalt Oy and four affiliated entities from Koboltti Chemicals Holdings Limited.   As such, Item 1.1 and Item 1.2(c) above represent receipts and payments for the one-month period ending 30 September 2021, being the period under which the acquired business was under the Company's control.  

 

  2.   During July 2021, the Company completed settlement of a US$100.0 million senior secured bond facility. Upon settlement, US$15.5 million (which includes prepaid interest of US$12.5 million) was deposited into an escrow account pursuant to the terms and conditions of the bond and classified as "restricted cash" whilst these funds remain in this escrow account.  

 
                        
 

5.

 
 

  Reconciliation of cash and cash equivalents
  at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts  

 
 

  Current quarter   
  $A'000  

 
 

  Previous quarter   
  $A'000  

 
 

5.1

 
 

Bank balances

 
 

43,249

 
 

33,266

 
 

5.2

 
 

Call deposits

 
 

-

 
 

-

 
 

5.3

 
 

Bank overdrafts

 
 

-

 
 

-

 
 

5.4

 
 

Other (provide details)

 
 

-

 
 

-

 
 

5.5

 
 

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

 
 

43,249

 
 

33,266

 
 

 

 
          
 

6.

 
 

Payments to related parties of the entity and their associates

 
 

  Current quarter   
  $A  

 
 

6.1

 
 

Aggregate amount of payments to related parties and their associates included in item 1

 
 

217

 
 

6.2

 
 

Aggregate amount of payments to related parties and their associates included in item 2

 
 

-

 
 

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

 
 
                             
 

7.

 
 

  Financing facilities
  Note: the term "facility' includes all forms of financing arrangements available to the entity.  

 

Add notes as necessary for an understanding of the sources of finance available to the entity.

 
 

  Total facility amount at quarter end   
  $A'000  

 
 

  Amount drawn at quarter end   
  $A'000  

 
 

7.1

 
 

Loan facilities 1  

 
 

138,651

 
 

-

 
 

7.2

 
 

Credit standby arrangements

 
 

-

 
 

-

 
 

7.3

 
 

Other

 
 

-

 
 

-

 
 

7.4

 
 

Total financing facilities

 
 

138,651

 
 

-

 
   
 

7.5

 
 

Unused financing facilities available at quarter end

 
 

138,651

 
 

7.6

 
 

Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

 
 

  1.   Bond Facility – US$100.0 million:  

 

On 20 July 2021 the Company completed settlement of a US$100.0 million senior secured bond facility. The bonds were issued by the Company's wholly owned subsidiary, Jervois Mining USA Limited, and are administered by the bond trustee, Nordic Trustee AS.

 

Key terms:

 

  ·   Issuer: Jervois Mining USA Limited (wholly owned subsidiary of the Company).  

 

  ·   5-year tenor with a maturity date of 20 July 2026.  

 

  ·   Original issue discount of 2%.  

 

  ·   Coupon rate of 12.5% per annum with interest payable bi-annually.  

 

  ·   No amortisation – bullet payment on maturity.  

 

  ·   Non-callable for 3 years, after which callable at par plus 62.5% of coupon, declining rateably to par in year 5.  

 

  ·   Transaction security: First priority security over all material assets of the Issuer, pledge of all the shares of the Issuer, intercompany loans.  

 
 
                                            
 

8.

 
 

Estimated cash available for future operating activities

 
 

$A'000

 
 

8.1

 
 

Net cash from / (used in) operating activities (item 1.9)

 
 

(737)

 
 

8.2

 
 

  (Payments for exploration & evaluation classified as investing activities) (item 2.1(d))  

 
 

(22)

 
 

8.3

 
 

Total relevant outgoings (item 8.1 + item 8.2)

 
 

(759)

 
 

8.4

 
 

Cash and cash equivalents at quarter end (item 4.6)

 
 

43,249

 
 

8.5

 
 

Unused finance facilities available at quarter end (item 7.5)

 
 

138,651

 
 

8.6

 
 

Total available funding (item 8.4 + item 8.5)

 
 

181,900

 
   
 

8.7

 
 

Estimated quarters of funding available (item 8.6 divided by item 8.3)

 
 

239.66

 
 

Note: if the entity has reported positive relevant outgoings (i.e., a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.

 
 

8.8

 
 

If item 8.7 is less than 2 quarters, please provide answers to the following questions:

 
  

8.8.1    Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

 
  

Answer: N/A

 
  

8.8.2    Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

 
  

Answer: N/A

 
  

8.8.3    Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

 
  

Answer: N/A

 
  

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

 
 

Compliance statement

 

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

 

2        This statement gives a true and fair view of the matters disclosed.

 

Date:                29 October 2021

 

Authorised by:  Disclosure Committee

 

(Name of body or officer authorising release – see note 4)

 

Notes

 

1.           This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

 

2.           If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

 

3.           Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

 

4.           If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [ name of board committee e.g., Audit and Risk Committee ]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

 

5.           If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

 

 

 

   [1]    US$192 million is subject to post closing adjustments and excludes cash  

 

 

 

   [2]    Based proforma result for nine months to September 2021, and projection for Q4 2021 (forecast assumes US$25/lb Metal Bulletin SG cobalt price in Q4 2021)  

 

 

 

   [3]    Information on the basis of preparation for the financial information included in this Quarterly Activities report is set out on page 13 below.  

 

 

 

   [4]    Equivalent to US$0.28 million at current USD/BRL exchange rate of 5.35  

 

 

 

   [5]    Equivalent to US$23.4 million at current USD/BRL exchange rate of 5.35.  

 

 

 

   [6]    Equivalent to US$8.9 million at current USD/BRL exchange rate of 5.35  

 

 

 

   [7]    Equivalent to US$8.9 million at USD/BRL exchange rate of 5.35  

 

Copyright (c) 2021 TheNewswire - All rights reserved.

 

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