JRV - Jervois Global

There's a report JRV is raising $200 million in capital to restart the group’s Sao Miguel Paulista nickel and cobalt refinery in Brazil.

No details yet, no trading Halt, but it is a big amount, so expect a discount. JRV had $53million in cash at end of last Q

Revised up to $231 million equity raising, launched via Canaccord Genuity and UBS on Thursday morning.

Terms out for a $113 million institutional placement and $118 million rights issue offered to existing investors on a one-for-5.4 basis, and priced at 42c. The deal was underwritten.

AustralianSuper, Jervois’ biggest shareholder, will put in as much as $55.6 million in the deal, taking up to 24 per cent of the deal to emerge with a 18.5 per cent holding

$0.42 Currently available at $0.387

On 10 November 2022, Jervois Global Limited announced its intention to raise approximately A$231 million through a fully underwritten equity raising consisting of an Entitlement Offer (to raise approximately A$118 million) and an institutional placement (to raise approximately A$113 million) ("Placement", together with the Entitlement Offer, the "Offer"). The Entitlement Offer comprises an institutional component ("Institutional Entitlement Offer") and a retail component ("Retail Entitlement Offer").

The Offer provides each Eligible Shareholder the opportunity to subscribe for New Shares at an offer price of A$0.42 per new Share ("Offer Price").

The Retail Information Booklet ("Booklet") relates to the Retail Entitlement Offer and contains important information. You should read the Booklet in full and seek advice from your stockbroker, accountant or other professional adviser if you have any questions about your investment in the Company or about the impact of the transactions described in the Booklet.

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Sad to see some instos losing money. Retail holders don't have to pay 0.42 if they're interested in this new project in Brazil. Its impossible for me to tell if the current mgt team have the experience and ability to get the Brazil project up and going. Current price movement (down) indicates that they may not.

Selected for 2023 CY comp. Price continues to tumble as investors show their lack of confidence in the mgt team to get the Brazil project up and running. I'm keeping an eye on the chart for a reversal setup. Hoping that it'll happen in 2023.

Tipping JRV for the yearly comp. Has been smashed pretty hard but must be nearing the bottom. Cobalt prices should be due for a bounce next year

Market Not Done with Jervois Selloff Just Yet​

By Glenn Dyer

ASX investors gave the shares of fallen cobalt idol Jervois Global another pasting on Thursday as they assessed the fallout from the shock decision to halt construction work on its flagship Idaho Cobalt Operations (ICO) in the US.

After slumping more than 40% on Wednesday and a near matching 38% on the Toronto Exchange later that day, Jervois shares lost another heavily on the ASX for a second day.

So far as the ASX investment sector is concerned, the shock update has dethroned Jervois from its position as a potential world leader in cobalt to an also-ran.

Jervois had plans to expand deeper into cobalt mining and processing in the US and on the world stage (as global major Glencore battles a big Chinese rival in central Africa).

But the slide in renewable metal prices, led by lithium, nickel and especially cobalt in the past couple of months has seen Jervois’ ambitions come unstuck.

Jervois shares closed at 6.7 Australian cents on Wednesday on the ASX and 7 Canadian cents on Toronto Exchange. On Thursday the ASX listed shares ended at 5.9 cents, down nearly 12% after falling more than 19% early in the session

Jervois says it is still bullish for the metal – in the medium term as it expected prices for the battery metal would recover because of rising demand from electric vehicles (EVs) makers, energy transition initiatives and demand from Western countries transitioning to a carbon-less future.

Jervois said it intends finishing construction of the full concentrator at ICO once cobalt prices recover, which it also expects will align with refining capacity in the US brought into operation by the company and/or third parties.

Cobalt is a crucial component in EV batteries and is on the US government’s critical minerals list.

Last week, the US and Canada struck a deal that will see companies with critical minerals projects from both countries be eligible this spring for financial aid from a $US250 million fund.

This week, Japan and the US reached agreement on electric vehicle battery minerals that will strengthen battery supply chains and granting Japanese automakers wider access to the new $US7,500 US electric vehicle credit contained in the Inflation Reduction Act of 2022 and the $US369 billion in assistance to green and renewable businesses and products such as solar panels and EVs.

Jervois has applied for funding from the US Department of Defence to accelerate drilling to increase the mineral resource and reserves at ICO, and to assess the construction of a US cobalt refinery.

Jervois told investors that both will proceed despite the suspension of construction at ICO, said to be the largest cobalt resource in the US.

The project was partially built when Jervois bought it in July 2019, with more than $120 million invested by the previous owners.

The operation would entail a 1,200 tonne a day mill and concentrator to produce separated cobalt and copper concentrates, with a gold by-product.

Jervois owns a nickel and cobalt refinery in Brazil and is talking to third parties in countries such as Canada and Australia to convert the mined material.

....- Glenn Dyer


haven't been following JRV for a while; bit of a sorry tale, it seems

Dona Ferentes said:

Market Not Done with Jervois Selloff Just Yet​

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Well the volume is there of late, if not the conviction

Dona Ferentes said:

Well the volume is there of late, if not the conviction

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The conviction is definitely there too. JRV back over 10c and looking like a turnaround might be on the cards. It looked terribly oversold late last month. News that the company was suspending final production at the Idaho Cobalt Operations was disappointing, but was a consequence of the low cobalt price. Perpetual dumping a lot of stock last month didn't help matters.

The Cobalt price looks to have found a bottom, for now at least. One thing is for certain, whichever way the cobalt price goes, JRV will be sure to follow.

Chart update.

Just noting that this one has a shorting chart, which appears to be still heading up, on a T+4 basis.
Eeek

Turning out to be a nice day -

Jervois to begin work funded by U.S. Department of Defense to advance U.S. cobalt supply chain security

Highlights:

• Jervois entered an agreement for US$15 million in funding from the United States (“U.S.”) Government for drilling at its Idaho Cobalt Operations mine (“ICO”) and to do a bankable feasibility study for construction of a cobalt refinery in the U.S.
• ICO’s mineral resource and reserve is the largest and highest grade confirmed cobalt orebody in the U.S.
• Cobalt is a critical mineral as declared by the U.S. Government due to cobalt’s defense, military and energy transition applications

Jervois Global Limited (“Jervois” or the “Company”) (ASX: JRV) (TSX-V: JRV) (OTC: JRVMF) announces its subsidiary, Jervois Mining USA, has entered into an agreement with the United States (“U.S.”) Department of Defense (“DoD”), allowing Jervois to begin the work funded by the previously announced DoD US$15 million funding (the “Agreement Funding”) to advance U.S. cobalt supply chain security. The Agreement Funding is under the Manufacturing Capability Expansion and Investment Prioritization (“MCIEP”) office of Industrial Base Policy (“IBP”) using the U.S. Defense Production Act (“DPA”) authorities and utilises funds from the Additional Ukraine Supplemental Appropriations Act.

Jervois’ mineral resource drilling program at its 100% owned Idaho Cobalt Operations mine (“ICO”) will be accelerated by the Agreement Funding. The drilling program will define and expand ICO’s RAM deposit existing cobalt resources and, also potentially, delineate the adjacent Sunrise historic resource to modern geological standards. The Agreement Funding will also fund a bankable feasibility study (a “BFS”) for a cobalt refinery in the U.S. to be completed by a Jervois subsidiary delegated by Jervois Mining USA. Preparation of Jervois’ U.S. refinery BFS will be expedited by benefitting from efficiencies provided by the Company’s decision to pivot to the US refinery BFS its efforts and work-inprogress on a cobalt refinery expansion BFS at Jervois Finland, as announced on 18 April 2023. Jervois Finland is Jervois’ 100% owned cobalt refining and advanced manufacturing operation in Kokkola, Finland; existing cobalt refinery design and work product including flowsheet will be utilized in preparing the U.S. refinery BFS. Jervois suspended final construction at ICO in late March 2023 due to continuing low cobalt prices and U.S. inflationary impacts on construction costs, to prudently preserve the value of

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I shoulda put this in the monthly comp I think... Turn around imminent?

Maybe, but not for me. The only activity they have is the Co production facility in Finland. Their Sao Paulo Ni/Co refinery may restart soon. They've suspended their Idaho Co project due to low Co prices and they're doing a bit of drilling to expand the resource while waiting for the Co price to rise.

Price of cobalt may have found the bottom as Jervois may have also.
September comp pick.
Not held.

Unusually large volume on Friday just gone.
It was a triple witching day though.

Cobalt prices seem to be monthly, so not a lot of movement there.
It's stayed flat for now I believe.

A director recently bought 1,146,651 shares @ $0.044 for a sum of $50,452 on market, on the 8/9/2023.

This guy;
Peter Johnston

Trying to convince myself to buy some and put it in the comp, but a reversal is not guaranteed...

frugal.rock said:

Trying to convince myself to buy some and put it in the comp, but a reversal is not guaranteed...

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My thoughts around this stock are; if it was good enough for P2 to enter in the yearly comp at around the half dollar mark, it might be a decent punt at less than 1/10th of the price?

I chose not to put it into the comp due to unsatisfactory reversal conditions not being displayed, however today, it has started getting a little interesting.
Will be watching to see if it follows through with the goods, or not.
Only looking at it chart wise ATM.

Even more interesting after today in my opinion.
Market seems to have reacted to recent US Gov "funded" (refunded) drilling starting.

Yes. very interesting @frugal.rock . Jervois is making use of the US Govt funded resource drilling fund to kickstart it's drilling program.

Price spiked up noticeably and has since settled back lower. Needs to drift a little lower before the EOM.