Cameroon signs bauxite deal with Canyon Resources
Canyon is developing the world-class Minim Martap bauxite project in Cameroon.
(via TheNewswire)
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Jervois Global Limited ACN: 007 626 575 ASX/TSXV: JRV OTCQB: JRVMF Corporate Information 2,703M Ordinary Shares 61M Options 209M Performance Rights Non-Executive Chairman Peter Johnston CEO and Executive Director Bryce Crocker Non-Executive Directors Brian Kennedy Michael Callahan David Issroff Daniela Chimisso dos Santos Company Secretary Alwyn Davey Contact Details Suite 2.03, 1-11 Gordon Street Cremorne Victoria 3121 Australia P: +61 (3) 9583 0498 W: www.jervoisglobal.com |
Highlights Jervois Finland:
Idaho Cobalt Operations (“ICO”), U.S.:
Corporate:
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Financing update
31 July 2024 (Australia) – TheNewswire – Jervois Global Limited (“Jervois” or the “Company” and, together with its subsidiaries, the “Group”) ended the June 2024 quarter with US$21.3 million in cash, US$31.9 million in physical cobalt inventories, and total drawn senior debt of US$144.1 million.
End of June 2024 cash of US$21.3 million was lower than the previous quarter-end balance of US$26.6 million, with continued focus on reducing cobalt working capital at Jervois Finland partially offsetting ongoing holding costs across Jervois’ 100%-owned ICO mine site in the U.S. and the São Miguel Paulista (“SMP”) nickel-cobalt refinery in São Paulo, Brazil.
The Group’s current cash balance is US$14.6 million2. Jervois has replenished cobalt feed inventory in July 2024 to better position the business to satisfy rising customer orders in Q3 2024, particularly new battery orders associated with electric vehicles for sale into the U.S.
The Jervois Finland Working Capital Facility loan balance at 31 July 2024 remains drawn at US$44.1 million (consistent with 30 June 2024). Compression in the value of receivables and inventories during the quarter means that Jervois Finland is utilising a proportion of its cash in its determination of the Collateral Value under the terms of the Working Capital Facility. This requirement to use cash as collateral may limit liquidity available to Jervois for general operational purposes. Pursuant to the transfer of the Jervois Finland Working Capital Facility from Mercuria to the Holder of the Bonds, as announced on 26 July 20243, Jervois is engaging with the Holder to agree a framework to ensure the Group has adequate liquidity until a holistic solution is agreed and implemented. The Bonds were issued by a Jervois U.S. subsidiary, secured by ICO, and guaranteed by Jervois in 2021.
Engagement with lenders and third parties continued throughout the quarter, including due diligence across multiple Company assets. Jervois remains focussed on delivering a solution that provides additional liquidity, achieves a sustainable capital structure, and diversifies the Group’s cash generation through transition from reliance on Jervois Finland as the sole operating asset, to a multi-operating asset portfolio over the medium term.
On 9 May 2024, Jervois agreed with the Holder a waiver of all financial covenants (the “Initial Waiver”) until 20 July 2024. After the quarter end, in agreement with the Holder and implemented on 23 July 2024, the Initial Waiver of all financial covenants was extended to 20 August 2024 along with a deferral of the interest payment with respect to the Bonds, due on 22 July 2024, to 20 August 2024 (the “Extended Waiver”).
Other than the Initial Waiver and the Extended Waiver, which included deferral of the interest payment, there are no changes to the terms of the Bonds, including coupon, security, or guarantee arrangements. The Bonds also continue in the ordinary course to be subject to no principal repayment until the end of their existing five-year term in July 2026.
As at 31 July 2024, neither the Bonds nor the Jervois Finland Working Capital Facility are in default.
Jervois Finland
Quarterly revenue: US$36.9 million (Q1 2024: US$39.9 million)
Cash flow from operations: US$4.3 million (Q1 2024: -US$3.6 million)
Sales volume: 1,163 mt (Q1 2024: 1,239 mt)
Production volume: 1,041 mt (Q1 2024: 1,300mt)
Sales and marketing
Jervois Finland produced 1,041 mt and sold 1,163 mt of cobalt in the quarter.
Figure 1: Jervois Finland sales volume by quarter (mt)
Click Image To View Full Size
Sales volumes during the quarter to 30 June 2024 were 6% lower than previous quarter volumes of 1,239 mt. The decrease in sales volumes on the prior quarter reflected continued cyclical softness in demand in end-use segments. Production volumes and product mix remains subject to continuous review and adjustment based on an assessment of end-use demand and considering target inventory levels. Production levels in the quarter were lower than capacity due to the planned maintenance shutdown in May 2024 as well as to achieve alignment with current market demand.
Jervois Finland’s sales performance and outlook for key market segments under which Jervois Finland operates are summarised below.
Batteries:
Momentum among battery segment customers for Jervois to source non-FEOC cobalt sulphate is growing and has translated into further firm orders across the balance of 2024. This trend is expected to continue and accelerate into 2025.
Interest continues from both European and U.S. based electric vehicle OEMs (automakers) for long-term cobalt supply, but timelines remain uncertain, with volumes starting later than previously expected.
The U.S. Inflation Reduction Act continues to drive interest in U.S. and other Western supply of battery raw materials, providing a key advantage to Kokkola as the leading global cobalt refinery outside of China.
Chemicals, Catalysts, and Ceramics:
Chemicals: Demand continues to be steady in general across key chemical applications.
Catalysts: Demand has stabilised in the refinery catalyst segment, albeit at somewhat lower levels against 2023.
Ceramics: This segment continues to be impacted by reduced demand and increased competition. Cobalt producers in China are aggressively targeting export markets, resulting in continued low prices. These prices look to remain under pressure throughout the balance of the year as pigment producers are benefiting from increased competition by suppliers.
Powder Metallurgy:
Outlook for the remainder of 2024 looks to be stable, but competition in downstream markets (especially from China) continues to weaken demand in all powder metallurgy applications.
Automotive, oil and gas production (drilling), general engineering, and construction markets remain weak and are forecast to remain so through to the beginning of 2025.
Aerospace is the only market that continues to be strong, and which has a continued positive outlook supported by expansion in both civilian and military sectors.
Sales volume guidance for the 2024 calendar year has been revised lower to 5,100 mt to 5,400 mt (from 5,300 mt to 5,600 mt in prior guidance). Guidance takes account of current expectations on near-term market conditions. Production levels are expected to also be broadly consistent with sales volumes. Jervois maintains significant optionality for future increases in sales volumes when the cobalt market recovers.
Financial performance
Jervois Finland achieved revenue of US$36.9 million in the quarter, an 8% decrease compared to the prior quarter. The decrease was principally due to lower sales volumes, marginally lower realised pricing, and the effect of the annual maintenance shutdown in May 2024.
Cash flow performance
Jervois Finland Cash flow from operations (before interest payments) was US$4.3 million in the quarter. Positive cash flow resulted from effective management of working capital in response to continued cyclically weak cobalt markets. In addition, the business improvement programme at Jervois Finland, introduced in Q4 2023 and implemented in Q1 2024, continued to deliver a positive impact, with operating costs trending lower during the quarter and contributing to positive operating cash flow. Physical cobalt inventories reduced by US$7.4 million from US$39.3 million at 31 March 2024 to US$31.9 million at 30 June 2024. This represented a reduction from 1,281 mt and ~77 days at 31 March 2024 to 1,158 mt and ~69 days at 30 June 2024 (based on a normalised 6,000 mt annual production rate). Jervois is continuing to execute an inventory management strategy aligned to a near-term target range of 90 days or less, in a manner that balances commercial, liquidity, and risk management objectives.
Jervois intends to report financial results for the six months ending 30 June 2024, including Adjusted EBITDA for Jervois Finland, once the half-year financial statements review process has been completed.
Jervois USA
ICO, U.S.
Subsequent to quarter end, Jervois reported results from the first four drillholes as part of its U.S. DoD DPA Title III fully refundable extensional drilling program at ICO’s RAM deposit. These drilling results complement those obtained at its 100%-owned Sunshine deposit4,5 under Jervois’ US$15 million DoD DPA Title III funding agreement (“DoD Agreement Funding”). Extensional drilling was conducted from a single underground drilling platform positioned within existing underground mine workings at ICO.
RAM drill results to date include:
Hole JU24-093: 1.10% cobalt (Co”), 1.18% copper (“Cu”), 0.69 grams per tonne (“g/t”) gold (“Au”) over a calculated true width (“CTW”) of 1.8 metres (“”) AND hangingwall (HW”) mineralisation of 0.48% Co, 1.74% Cu, 1.13 g/t Au over a CTW of 3.8m.
Hole JU24-095: 0.18% Co, 0.34% Cu, 0.10 g/t Au, over a CTW of 4.8m AND HW mineralization of 0.38% Co, 0.22% Cu, 0.27 g/t Au over a CTW of 2.7m AND footwall mineralisation of 0.43% Co, 0.99% Cu, 0.62 g/t Au over a CTW of 1.5m.
Hole JU24-096: 0.48% Co, 0.60% Cu, 0.86 g/t Au over a CTW of 2.1m AND HW mineralisation of 1.40% Co, 1.38% Cu, 2.23 g/t Au over a CTW of 5.2m, including 3.3m CTW at 2.26% Co, 2.06% Cu, 3.60 g/t Au
Hole JU24-097: 0.61% Co, 1.35% Cu, 1.51 g/t Au over a CTW of 5.5m including 3.9m CTW at 0.75% Co, 1.56% Cu, 1.85 g/t Au.
Recent drilling results have demonstrated down-dip grade continuity along an interpreted orientation favourable to continued exploration by the Company within its contiguous claim boundaries. This updated interpretation of the MMH in the southern extents of the RAM deposit provides additional pathways to resource growth, previously believed to be limited to deep exploratory drilling, with additional moderate-depth extensional drilling at ICO. Greater continuity of HW mineralisation is also observed along this mineralised orientation based upon the 2024 drilling programme, indicating further resource growth opportunity.
Jervois’ 2024 extensional drilling has successfully displayed continuity of prospective mineralisation across all completed holes with step-out intercepts ranging between 100m to 175m from the nearest neighbouring pre-2024 intercept laterally and consolidates mineralisation confidence across greater than 450m down-dip along and beyond existing 2023 MRE margins.
Full results and details are available in the ASX announcement titled “Extension drilling confirms resource growth potential at ICO”, dated 31 July 20246.Jervois continued to work with its primary regulator, the U.S. Forest Service, on recommencing underground activities. Other activities in the quarter focussed on continued care and maintenance at ICO, including water treatment and management of other environmental obligations.
Executive General Manager – Commercial, Mr. Wayde Yeoman, was invited to present to a U.S. House of Representatives roundtable in Washington D.C. on 11 July 2024. The session was organised by the seven-member Critical Minerals Policy Working Group of the U.S. House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party (the “Congressional Committee”).
Mr. Yeoman presented to the working group on critical minerals of the Congressional Committee, providing an overview of Jervois’ business, including ICO, the cobalt market and China’s participation therein, critical mineral stockpiling, and the Congressional Committee’s proposal for a Resilient Resource Reserve.
Group Manager – ESG, Dr. Jennifer Hinton, was also invited to present to the same working group on critical minerals of the Congressional Committee at a second U.S. House of Representatives roundtable in Washington D.C. on 23 July 2024. Dr. Hinton presented in a session focused on environmental stewardship, forced labour, sustainability, governance and corruption in the production of critical minerals, including cobalt.
The proposed Resilient Resource Reserve is designed to insulate U.S. critical mineral producers, including cobalt, from Chinese induced price volatility and manipulation. Jervois continues to engage with the Congressional Committee and U.S. lawmakers with regard to next legislative steps.
U.S. cobalt refinery study
The U.S. cobalt refinery bankable feasibility study (“BFS”) is being conducted with AFRY USA LLC, with a design capacity of 6,000 mt per annum of cobalt in sulphate form, suitable for electric vehicles. The facility is expected to supply sufficient cobalt for approximately 1.2 million electric vehicles per annum. The cobalt refinery BFS is fully refundable through the existing DoD DPA Title III funding agreement.
During the quarter, Jervois signed a non-binding explorative memorandum of understanding with Global Tungsten & Powders LLC (“GTP”) to jointly evaluate GTP making a minority equity investment in Jervois’ proposed U.S. cobalt refinery.
GTP is an existing cobalt customer of Jervois and is expected to provide recycling feedstock for the U.S. refinery as part of its potential equity investment. In addition, Jervois’ U.S. cobalt refinery could potentially be co-located at GTP’s existing facilities in Towanda, Pennsylvania. Jervois’ two short listed sites are in Pennsylvania and Louisiana.
SMP nickel and cobalt refinery, Brazil
The restart of SMP remains paused while the Company is continuing to evaluate funding options with existing capital providers and third parties.
Jervois notes that key Western markets for electrolytic nickel remain tight, particularly in relation to the demand for non-Chinese, non-Russian nickel products. The recent announcement by BHP of the planned closure of its Kwinana refinery in Western Australia is favourable for physical premia. SMP is expected to be well positioned to participate in these key markets should Jervois be successful in restarting the facility.
Environmental, social, governance (“ESG”)
Jervois released its 2023 Modern Slavery Statement (the “Statement”) via regulators in Canada and Australia and on its website in mid-June 2024. The Statement outlines the measures taken to identify, prevent, and mitigate modern slavery risks in its business and operations, inclusive of related policies, standards, and practices.
In conjunction with Jervois’ ongoing supply chain due diligence programme, Group Manager – ESG, Dr. Jennifer Hinton, visited selected operations in the Democratic Republic of the Congo in April 2024. The main aims were to deepen the Company’s due diligence on these sites, including in light of recent reports on the industry related to operational ESG practices, including those concerning supplier management.
Engagement with the Cobalt Institute (“CI”), including its Responsible Sourcing and Sustainability Committee (“RESSCOM”) and Government Affairs Committee continues. Dr. Hinton continues to chair the RESSCOM committee, and a number of key Company representatives continue to be in RESSCOM subcommittees and working groups related to ESG Standards, the Circular Economy, decarbonisation, ASM, and child labour. Among inputs, submissions to CI Position Papers on ASM and ESG Standards continue.
On 4 June 2024, the Company’s Chief Executive Officer, Mr. Bryce Crocker, presented at an Australian Government AusTrade Europe Business Mission in Paris, France.
On 5 June 2024, the Company’s Chief Financial Officer, Mr. James May, participated in a panel discussion on ‘Investing in a Sustainable Future’ as part of the AusIMM Thought Leadership Series in Melbourne, Australia.
Exploration and development expenditure
No material cash expenditure on exploration and development was spent during the quarter.
Insider compensation reporting
During the quarter, US$0.1 million was paid to Non-Executive Directors and US$0.1 million was paid to the CEO (Executive Director).
By order of the Board
Bryce Crocker
Chief Executive Officer
For further information, please contact:
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Investors and analysts: Alicia Brown Group Manager External Affairs Jervois Global Limited |
Media: Nathan Ryan NWR Communications Mobile: +61 420 582 887 |
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 the cobalt markets, partnership for group operations, strengthening of the balance sheet, operations at Jervois Finland, U.S. refinery studies, reimbursement of funds to Jervois Mining USA Limited by the DoD, timing of restart of SMP refinery, and 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
|
Ardnaree (NSW) |
EL 5527 |
100.0 |
|
|
Thuddungra (NSW) |
EL 5571 |
100.0 |
|
|
Nico Young (NSW) |
EL 8698 |
100.0 |
|
|
West Arunta (WA) |
E80 4820 |
17.9 |
|
|
West Arunta (WA) |
E80 4986 |
17.9 |
|
|
West Arunta (WA) |
E80 4987 |
17.9 |
|
Kilembe Area |
EL0292 |
100.0 |
|
|
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 |
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
|
Jervois Global Limited |
||
|
52 007 626 575 |
30 June 2024 |
|
|
Current quarter $US’000 |
Year to date (6 months) $US’000 |
||
|
1. |
Cash flows from operating activities |
35,602 |
76,138 |
|
1.1 |
Receipts from customers |
||
|
1.2 |
Payments for |
- |
- |
|
|||
|
(31,685) |
(76,248) |
|
|
(2,545) |
(5,617) |
|
|
(2,270) |
(4,786) |
|
|
(525) |
(1,438) |
|
|
1.3 |
Dividends received (see note 3) |
- |
- |
|
1.4 |
Interest received |
22 |
321 |
|
1.5 |
Interest and other costs of finance paid |
(1,760) |
(9,397) |
|
1.6 |
Income taxes paid |
(21) |
(50) |
|
1.7 |
Other:
|
(1,441) 499 137 |
(2,042) 1,024 142 |
|
1.9 |
Net cash from / (used in) operating activities |
(3,987) |
(21,953) |
|
2. |
Cash flows from investing activities |
- |
- |
|
2.1 |
Payments to acquire or for: |
||
|
|||
|
- |
- |
|
|
(3,715) |
(5,384) |
|
|
(28) |
(131) |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
2.2 |
Proceeds from the disposal of: |
- |
- |
|
|||
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
2.3 |
Cash flows from loans to other entities |
- |
- |
|
2.4 |
Dividends received (see note 3) |
- |
- |
|
2.5 |
Other – government grants and tax incentives |
2,702 |
4,158 |
|
2.6 |
Net cash from / (used in) investing activities |
(1,041) |
(1,357) |
|
3. |
Cash flows from financing activities |
- |
- |
|
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 |
- |
- |
|
3.4 |
Transaction costs related to issues of equity securities or convertible debt securities |
- |
- |
|
3.5 |
Proceeds from borrowings |
- |
- |
|
3.6 |
Repayment of borrowings |
- |
(46) |
|
3.7 |
Transaction costs related to loans and borrowings |
- |
- |
|
3.8 |
Dividends paid |
- |
- |
|
3.9 |
Other – incl. lease liabilities |
(317) |
(696) |
|
Other |
- |
- |
|
|
3.10 |
Net cash from / (used in) financing activities |
(317) |
(742) |
|
4. |
Net increase / (decrease) in cash and cash equivalents for the period |
||
|
4.1 |
Cash and cash equivalents at beginning of period |
26,623 |
45,368 |
|
4.2 |
Net cash from / (used in) operating activities (item 1.9 above) |
(3,987) |
(21,953) |
|
4.3 |
Net cash from / (used in) investing activities (item 2.6 above) |
(1,041) |
(1,357) |
|
4.4 |
Net cash from / (used in) financing activities (item 3.10 above) |
(317) |
(742) |
|
4.5 |
Effect of movement in exchange rates on cash held |
71 |
33 |
|
4.6 |
Cash and cash equivalents at end of period |
21,349 |
21,349 |
|
5. |
Current quarter $US’000 |
Previous quarter $US’000 |
|
|
5.1 |
Bank balances |
21,349 |
26,623 |
|
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) |
21,349 |
26,623 |
|
6. |
Payments to related parties of the entity and their associates |
Current quarter $US’000 |
|
6.1 |
Aggregate amount of payments to related parties and their associates included in item 1 |
184 |
|
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. |
Add notes as necessary for an understanding of the sources of finance available to the entity. |
Total facility amount at quarter end $US’000 |
Amount drawn at quarter end $US’000 |
|
7.1 |
Bond Facility1 |
100,000 |
100,000 |
|
7.2 |
Secured Revolving Credit Facility2 |
150,000 |
44,105 |
|
7.3 |
Unsecured Convertible Notes3 |
25,000 |
25,000 |
|
7.4 |
Total financing facilities |
275,000 |
169,105 |
|
7.5 |
Unused financing facilities available at quarter end ($US’000)4 |
- |
|
|
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. |
||
On 20 July 2021 the Company completed settlement of a US$100.0 million Senior Secured Bonds 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. In February 2022, Jervois Mining USA Limited completed the first US$50.0 million drawdown on the bonds, and in July 2022 the second, and final, US$50.0 million drawdown was completed. Key terms:
On 28 October 2021 the Company’s wholly owned subsidiaries, Jervois Suomi Holding Oy and Jervois Finland Oy (together, “the Borrowers”), entered into a secured loan facility with Mercuria Energy Trading SA (“Mercuria”), a wholly owned subsidiary of Mercuria Energy Group Limited, to borrow up to US$75 million. The Borrowers increased the facility to US$150 million through the execution of the Accordion Increase (as contemplated in the facility agreement entered into on 28 October 2021 and as amended and restated on 4 August 2022). In July 2024, the facility was transferred by Mercuria to the majority bondholder of the Idaho Cobalt Operations US$100.0 million Senior Secured Bonds (refer to ASX announcement entitled “Transfer of Jervois Finland Working Capital Facility”, released on 26 July 2024, for further information). |
|||
|
Key terms:
On 28 June 2023, the Company entered into a Subscription Agreement for the issuance of US$25.0 million of Unsecured Convertible Notes (the “Notes”) maturing in July 2028 (Tranche 1) and August 2028 (Tranche 2), respectively, and which are convertible into Jervois ordinary shares. The initial conversion price for the Notes is US$0.0605 and the Notes carry a 6.5% per annum coupon, payable in arrears through either settlement in cash or payment in kind. The gross proceeds were received under two tranches of US$19.9 million and US$5.1 million on 20 July 2023 and 31 August 2023, respectively.
The Borrowers may draw to the lower of the maximum amount or 80% of the collateral value (referred to as the “Maximum Available Amount”), where collateral is defined as the value of the Borrower’s inventory and receivables, calculated monthly (reduced to 70% for eligible inventory in Finland exceeding US$75.0 million) and subject to eligibility requirements and associated terms of the agreement. Where the amounts drawn exceed 110% of the Maximum Available Amount (the “Shortfall”), the Borrowers are required to prepay or repay any amount of the facility to ensure that, following such payment, the Shortfall no longer exists. Subject to the Maximum Available Amount, the total unused financing facility may increase in the future to the maximum facility amount of US$150.0 million. |
|||
|
8. |
$US’000 |
|
|
8.1 |
Net cash from / (used in) operating activities (item 1.9) |
(3,987) |
|
8.2 |
(Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) |
(28) |
|
8.3 |
Total relevant outgoings (item 8.1 + item 8.2) |
(4,015) |
|
8.4 |
Cash and cash equivalents at quarter end (item 4.6) |
21,349 |
|
8.5 |
Unused finance facilities available at quarter end (item 7.5) |
- |
|
8.6 |
Total available funding (item 8.4 + item 8.5) |
21,349 |
|
8.7 |
Estimated quarters of funding available (item 8.6 divided by item 8.3) |
5.3 |
|
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. |
||
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: 31 July 2024
Authorised by: Disclosure Committee
(Name of body or officer authorising release – see note 4)
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 Drawn senior debt represents the aggregate of amounts drawn under the Company’s senior debt facilities (excludes Unsecured Convertible Notes that mature in July/August 2028). Amounts represent the nominal loan amounts; balances recorded in Jervois’ financial statements under International Financial Reporting Standards will differ.
2 Cash balance is as of 28 July 2024.
3 See ASX announcement “Transfer of Jervois Finland Working Capital Facility” dated 26 July 2024.
4 See ASX announcement “Jervois completes U.S. Department of Defense reimbursed drilling at ICO’s Sunshine deposit” dated 30 January 2024.
5 See ASX announcement “Jervois completes maiden JORC Resource for Sunshine at ICO, USA” dated 2 April 2024.
6 In accordance with ASX listing rule 5.23.2, Jervois confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcements referred to above and that the assumptions contained therein continue to apply and have not materially changed.
7 Excludes Jervois Finland staff costs which are included in 1.2(b) production.
8 Relates to the cobalt refinery study currently being undertaken in the United States (100% reimbursable by the United States Department of Defense under a Defence Production Act Title III award), as well as Group business development costs.
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