JRV:CC - Jervois Global Limited Quarterly Activities Report to 30 June 2023
(TheNewswire)
Australia - TheNewswire - 27 July 2023 - JervoisGlobal Limited ( OTC:JRVMF ) (TSX-V:JRV) (ASX:JRV)
Delivering on business priorities
Against a backdrop of an improving cobalt marketoutlook, Jervois has made significant progress delivering on thenear-term priorities set out in the March 2023 Quarterly ActivitiesReport. Priorities and key milestones delivered in the quarter are asfollows:
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Maximise margin and cash flow at JervoisFinland:
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US$2.6 million Adjusted EBITDA and US$31.9 million cashflow from operations in the quarter
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Deliver a cost-effective suspension phase at ICO andmaximise restart optionality:
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ICO demobilisation and transition to suspensioncomplete
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Execute government (DoD) funded ICO drilling programmeand U.S. refinery studies:
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US$15.0 million agreement with DoD, Jervois commencingwork
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U.S. Export Credit Agency EXIM confirms ICO eligibilityfor domestic financing
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Advance debt and partner financing process atSMP:
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Multiple parties engaged in due diligence
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Review partnership opportunities at each asset tocrystalise and demonstrate value:
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Broader partnership process underway
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Jervois’ US$50.0 million capital raise announced inJune provides the financial strength to navigate the price cycle andcontinue to deliver the business plan. The capital raise andsubstantially completed in July with the 2 nd tranche of UCN expected in August.Management continues to focus on the priority activities that providea solid foundation for the medium- to long-term future of the Company,with a goal of establishing multiple operating assets and generatingsustainable cash flow through commodity cycles.
Jervois Finland
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Quarterly revenue US$ 56.6 million (Q1 2023:US$57.6 million)
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Cash flow from operations US$31.9 million (Q1 2023: US$1.3 million)
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Adjusted EBITDA 1 US$ 2.6 million (Q1 2023: -US$10.4 million)
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Sales volume 1,602metric tonnes (Q1 2023: 1,558 metric tonnes)
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Production volume: 1,367 metric tonnes (Q1 2023: 1,082 metric tonnes)
Jervois Finland returned to positive Adjusted EBITDAand unlocked significant cash flow in the period, including through arelease of working capital. The working capital release resulted frominventory reductions, optimisation initiatives, and the residualworking capital benefits of cobalt price declines since the beginningof the year.
Sales and marketing
Jervois Finland produced 1,367 metric tonnes and sold1,602 metric tonnes of cobalt in the quarter. Sales were broadly inline with the prior quarter and reflective of a stable outlook fordemand. The annual maintenance shutdown of the plant was successfullycompleted in May, with impacts on production levels in line withexpectations during the period.
Global alloy grade metal demand continues to be strong,on the back of rising aerospace and defence spending. Chinese metalprices are strong, at around US$18 per lb, supported by its governmentowned State Reserve Board decision to invite tenders of 5,000 metrictonnes for its stockpile, believed to support Chinese militaryinvestment. Chinese producers have also switched into metal productionas a result, with this trend expected to rise across the remainder of2023 due to tight physical metal markets.
Metal Bulletin (“MB”) Fastmarkets alloy gradepricing is US$18.35 to US$19.50 per lb, with standard grade (“SG”)currently US$16.50 to US$18.00 per lb, as of Wednesday, 26 July.Cobalt hydroxide payables are also rising in conjunction an improvingmarket backdrop, at 65% to 67% of the MB Fastmarkets SG lowprice.
Further background on Jervois Finland’s customerindustry groups is outlined below.
Batteries:
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Whilst destocking has occurred in battery supplychains, inventory levels for Jervois Finland’s existing customerstoday remains above normal levels; recovery still expected in Q4 2023or early 2024.
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Continued interest from electric vehicle (“EV”)OEMs (automakers) both European and U.S. based, for long-term cobaltsupply contracts starting in 2024 and expected to grow significantlyin future years.
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U.S. Inflation Reduction Act (“IRA”) continues todrive interest in U.S. and other Western supply of battery rawmaterials ; recent introduction of Japaneseeligibility under domestic U.S. EV credit viewed as positive byJervois Finland’s customers.
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South Korean customers continue to advancequalification of Jervois Finland products with a view to supportJervois’ 2 024 re-entry into this market;significant focus on non-Chinese supply for IRA compliance.
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Chemicals, Catalysts and Ceramics:
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Catalysts: cobalt consumption is good, up versus 2022.Initial customer forecasts for 2024 are strong.
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Chemicals: key application areas of copperelectrowinning, coatings, and rubber adhesion remain solid and aretracking higher than last year.
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Ceramics: robust business with glass producers, andsteady sales into liquid and powder pigments applications albeitactivity moderating over July and August due to the European summer.Discounts have reduced, but strong competition from the Chinese intoEurope continues given customer spot purchasing and flexible ESGstandards.
Powder Metallurgy:
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Automotive production is variable with continued issuesaround semi-conductor supply. Expectations for improvement in 2024.Non-EV parts into combustion engines remain an important driver for atleast the next decade. General engineering, including construction,remains soft.
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U.S. oil and gas production has fallen, due to lowernatural gas prices, which is projected to continue for the remainderof 2023 as rig counts fall.
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Aerospace remains strong, with continued optimism andfull order books going forward – customers looking to pivot theirexposure to the extent that their production capacity andcertification / qualification lead times permit. Aerospace outlook isunderpinned by increased defence spending.
Financial performance
Jervois Finland achieved revenue of US$56.6 million inthe quarter, broadly in line with the prior quarter, with both pricingand volumes remaining relatively stable.
Adjusted EBITDA
Adjusted EBITDA was US$2.6 million in the quarter.Margins stabilised in line with the relative stability in both cobaltprices and cobalt hydroxide raw materials during the period.Normalisation of feed pricing was a key factor that underpinnedJervois Finland’s return to positive Adjusted EBITDA. Operating costpressures also continued to ease in the quarter. Market pricing forkey inputs such as caustic soda and oxalic acid have continued todecline. Freight rates and utility costs have also begun to normalise,further contributing to stabilisation and improvement inmargins.
Jervois Finland continued to strengthen its managementteam as it continues to deliver its business turnaround, withoperating and finance leadership roles appointed in the quarter.
Operationally, the plant performed well in the quarterwith all key operational, environmental, and safety targets achievedin the period. The key near-term focus for Jervois Finland remains onoperational performance, cash generation, and risk management.
Figure 2: Jervois Finland Adjusted EBITDA (US,unaudited)
A reconciliation between adjusted EBITDA, EBITDA, andnet profit after tax (“NPAT”) for Jervois and Jervois Finland isincluded on page 11. A revaluation of the contingent considerationliability associated with the acquisition of the Jervois Finlandbusiness from Freeport McMoRan Inc. in 2021 resulted in a US$10.0million favourable adjustment to the statement of profit or loss at 30June. This was principally due to the application of updated economicassumptions in the valuation at the reporting date. This adjustmenthas been excluded from Adjusted EBITDA.
Cash flow performance
Cash flow from operations (before interest payments)was US$31.9 million in the quarter. Positive cash flow resulted fromthe continued stabilisation of the Jervois Finland business, andmaterial benefits from the release of working capital in the period.The planned unwind of inventory accelerated in the quarter with areduction of 522 metric tonnes. Physical cobalt inventories reduced byUS$17.4 million from US$66.0 million at 31 March to US$48.6 million at30 June. This represented an improvement in the quarter from ~134 daysat 31 March to ~100 days at 30 June. Jervois achieved its target ofreturning inventory to levels within the 90 to 110 days range andexpects inventories to remain within the target range during thesecond half of 2023. Receivables also decreased in the period fromUS$40.4 million at 31 March to US$27.0 million at 30 June.
Jervois made partial repayment of the Mercuria workingcapital facility in the period in line with the reduction of theunderlying collateral value. Payments of US$12.5 million and US$8.6million were completed in June and July, respectively, in accordancewith the terms of the facility agreement, with the current loanbalance being US$48.9 million at the date of this report.
Kokkola refinery expansion awarded conditional €12.0million grant
Jervois Finland was awarded a conditional €12.0million in reimbursable cash funding from Business Finland, a FinnishState development body, for its potential future expansion of cobaltrefining capacity at the Kokkola Industrial Park (“KIP”), subjectto meeting certain conditions.
The Business Finland grant is expected to reimbursepart of Jervois bankable feasibility study (“BFS”) costs and costsof any future construction of a Finland cobalt refinery expansion. Theaward relates to Jervois’ environmental, social, and governance(“ESG”) strategies for the facility, namely for an intention toexceed the European Union’s environmental protection standards andto reinforce Jervois Finland’s existing position of ESG leadershipin the cobalt industry.
Jervois paused work on its BFS for a cobalt refineryexpansion at KIP in April 2023 in favour of working on a BFS for a newcobalt refinery located in the U.S. to be fully funded by the U.S.Department of Defense (“DoD”).
The grant will be released subject to the satisfactionof several conditions, including Jervois Board approval (or finalinvestment decision) to construct the facility, securing financing,and receipt of certain environmental permits. The grant expires at theend of October 2024.
Idaho Cobalt Operations (“ICO”), UnitedStates
The demobilisation of the ICO construction project andtransition to suspension mode was completed safely and costeffectively in the quarter. The US$15.0 million agreement with theU.S. DoD was finalised and announced in June, and Jervois iscommencing work on the resource drilling programme and the U.S.refinery studies.
Drilling is expected to define and expand ICO’s RAMdeposit existing cobalt resources and delineate the adjacent Sunrisehistoric resource to modern geological standards.
A portion of the US$15.0 million will also fund a BFSfor a cobalt refinery located in the U.S. to be completed by a Jervoissubsidiary delegated by Jervois Mining USA.
Preparation of Jervois’ U.S. refinery BFS will beexpedited as it will benefit from efficiencies provided by theCompany’s efforts and work-in progress on a cobalt refineryexpansion BFS at Jervois Finland. The Companypivotted to the U.S. refinery BFS from a cobalt refinery expansionBFS, as announced on 18 April 2023.
Jervois anticipates that the U.S. cobalt refinery wouldbe funded under the U.S. Department of Energy Advanced TechnologyVehicle Manufacturing Loan Program (the “ATVM Loan Program”),which provides loans to construct U.S. facilities to manufactureadvanced technology vehicles and qualifying components used in thosevehicles. Jervois has submitted an application under the ATVM LoanProgram to fund its proposed U.S. cobalt refinery to produce cobaltsulphate for the nascent, but rapidly emerging, U.S. EV industry.
The U.S. Export-Import Bank (“EXIM”) confirmedICO’s eligibility for domestic financing initiatives in April, andengagement continues to progress positively on ICO with the U.S.Government. Jervois believes this further highlights the strategicsignificance of ICO to the U.S. Government. EXIM notified Jervois thatICO qualifies under both its China and Transformational ExportsProgram and the Make More in America Initiative.
EXIM is the official export credit agency of the U.S.Government. It is an independent Executive Branch agency with amission of supporting U.S. jobs by facilitating the export of U.S.goods and services.
São Miguel Paulista (“SMP”) nickel and cobaltrefinery, Brazil
Partner financing opportunities at SMP continue toprogress, with several parties engaging with Jervois in due diligence,including through site visits to SMP. SMP’s economic potential isstrong based on prevailing market conditions, with market pricing forboth nickel metal and mixed hydroxide precipitate intermediate feedtrending favourably compared to the BFS assumptions published in 2022.
The SMP restart project tempo will resume following theoutcome of the partnering process. Monthly costs are currently ~US$0.5million. SMP continued to focus on establishing internal processes andproject controls in preparation for a full reactivation expected tooccur later in 2023 once financing is committed which is also expectedlater this year, and continued review of opportunities to optimise andde-risk the restart capital project.
Nico Young nickel-cobalt project, Australia
Jervois has commenced adivestment process to sell all or part of itsinterest in the Company’s 100%-owned Nico Young nickel and cobaltproject. Nico Young has had >A$20 million invested by Jervois sincediscovery and is a strategic future source of Western nickel andcobalt.
Corporate activities
Liquidity
In June, Jervois announced a US$50.0 million totalcapital raising, comprising:
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US$25.0 million unsecured convertible notes (“UCN”)in 2 tranches maturing in July 2028 which are convertible into Jervoisordinary shares (“Convertible Notes Offer”). The initialconversion price for the UCN represents a 40% premium to theEntitlement Offer Theoretical Ex Rights Price (“TERP”) 2 and the UCN carry a6.5% p.a. coupon; and
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US$25.0 million fully underwritten 1 for 3.34accelerated non-renounceable entitlement offer (the “EntitlementOffer”), undertaken in parallel with the Convertible NotesOffer.
Net proceeds from the capital raising will strengthenJervois’ balance sheet, improve liquidity and working capitalflexibility, with cash also being applied to debt reduction.
Tranche 1 of UCN of US$19.9 million was completed on 20July 2023 and Tranche 2 of UCN of US$5.1 million is expected to becompleted in August following a meeting of the Company’sshareholders to consider it. Shareholders of the Company representing21% of the Company’s shares have committed to vote in favour of theissue of Tranche 2 of the UCN.
The institutional component of the Entitlement Offerwas successfully completed, as announced on 3 July 2023, and theretail component of the Entitlement Offer was successfully completed,as announced on 21 July 2023.
Jervois ended the June quarter with US$32.2 million incash (which excludes any proceeds from the capital raising), US$48.6million physical cobalt inventories in Jervois Finland, and totaldrawn debt of US$157.5 million 3 .
Environmental, social, governance, and compliance
Jervois delivered its 2022 SustainabilityReport during the quarter,highlighting our progress on material ESGpriorities and outlines our targets for continuous improvement as westrive to meet the current and future needs of our our business, our stakeholders , society, andthe planet.
ESG activities in the quarter focussed on strengtheninginternal coordination and competence, as well as engagement withindustry associations. Jervois continues to chair the CobaltInstitute’s Responsible Sourcing and Sustainability Committee andactively engage in related working groups on ESG standards, thecircular economy, and a range of other topics including its CobaltLearning Group, focused on expanding due diligence programs to addressbroader environmental and human rights risks beyond OECD Due Diligencerequirements for Responsible Mineral Supply Chains.
Presentations and events
Jervois’ CEO, Bryce Crocker, participated in acritical minerals roundtable discussion titled ‘Fostering Resiliencein the Electric Vehicle Supply Chain Through Foreign DirectInvestment’ as part of the 2023 SelectUSA Investment Summit inMaryland, U.S. held in May 2023, after an invitation from the U.S.Department of Commerce. He also participated in the JefferiesRenewables & Clean Energy Virtual Conference and conducted 1:1investor meetings at the conference.
Jervois’ CFO, James May, participated in CanaccordGenuity’s Global Metals and Mining Conference and conducted 1:1investor meetings during the event in California in May.
Exploration and development expenditure
No material cash expenditure on exploration anddevelopment was incurred during the quarter.
Insider compensation reporting
During the quarter, US$0.1 million was paid toNon-Executive Directors and US$0.1 million was paid to the CEO(Executive Director).
Non-core assets
The non-core assets are summarised on the Company’swebsite.
ASX waiver information
On 6 June 2019, the ASX granted a waiver to Jervois inrespect of extending the period to 8 November 2023 in which it mayissue new Jervois shares to the eCobalt option holders as part of theeCobalt transaction.
As at 30 June 2023, the following Jervois shares wereissued in the quarter on exercise of eCobalt options and the followingeCobalt options remain outstanding:
| Jervois shares issued in the quarter on exercise ofeCobalt options: |
| Nil |
| eCobalt options remaining 4 |
| 1,980,000 |
| eCobalt options exercisable until 1 October 2023 atC$0.53 each |
By Order of the Board
Bryce Crocker
Chief Executive Officer
For further information, please contact:
| Investors and analysts: Alicia Brown Group Manager External Affairs Jervois G lobal Limited |
| Media: Nathan Ryan NWR Communications nathan.ryan@nwrcommunications.com.au Mob: +61 420 582 887 |
Forward-Looking Statements
This news release may contain certain“Forward-Looking Statements” within the meaning of the UnitedStates Private Securities Litigation Reform Act of 1995 and applicableCanadian securities laws. When used in this news release, the words“anticipate”, “believe”, “estimate”, “expect”,“target, “plan”, “forecast”, “may”, “schedule” andother similar words or expressions identify forward-looking statementsor information. These forward-looking statements or information mayrelate to partnership for group operations, operations at JervoisFinland, drilling to be undertaken at ICO, future funding from theU.S. Government, timing of restart of SMP, sale of Nico Young and thereliability of third-party information, and certain other factors orinformation. Such statements represent the Company’s current viewswith respect to future events and are necessarily based upon a numberof assumptions and estimates that, while considered reasonable by theCompany, are inherently subject to significant business, economic,competitive, political and social risks, contingencies anduncertainties. Many factors, both known and unknown, could causeresults, performance, or achievements to be materially different fromthe results, performance or achievements that are or may be expressedor implied by such forward-looking statements. The Company does notintend, and does not assume any obligation, to update theseforward-looking statements or information to reflect changes inassumptions or changes in circumstances or anyother events affections such statements and information other than asrequired by applicable laws, rules, and regulations.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Basis of preparation of financial information
Historical financial information
Financial information is prepared under Jervois GlobalGroup accounting policies, which conform with Australian AccountingStandards (“AASBs”) and International Financial ReportingStandards (“IFRS”). The Jervois Finland financial results for theperiod post-acquisition are consolidated into the Jervois Global Groupconsolidated financial statements. All information presented isunaudited.
Reconciliation of NPAT to EBITDA and AdjustedEBITDA
EBITDA is a non-IFRS financial measure. EBITDA ispresented as net income after adding back interest, tax, depreciationand amortisation, and extraordinary items. Adjusted EBITDA representsEBITDA adjusted to exclude items which do not reflect the underlyingperformance of the Company’s operations. Exclusions from AdjustedEBITDA are items that require exclusion in order to maximise insightand consistency on the financial performance of the Company’soperations.
Exclusions include gains/losses on disposals,impairment charges (or reversals), certain derivative items, NRVadjustments to inventories, and one-off costs related topost-acquisition integration.
Refer to the table below for a reconciliation of NPATto EBITDA and Adjusted EBITDA.
ICO and SMP non-cash accounting adjustments at 30 June2023
While cash costs at ICO trended in line withexpectations during the quarter, financial results at 30 June wereimpacted by one-off non-cash adjustments recorded in the statement ofprofit or loss related to the provision for rehabilitation andmodifications to leases following suspension of the ICO project. Totalnon-cash costs recorded at 30 June for these adjustments were US$2.3Million and are included in Adjusted EBITDA.
As noted in the Quarterly Activities Report for thefirst quarter, Jervois recorded a non-cash impairment charge at ICO ofUS$40.3 million at 31 March. An updated review was completed for the30 June reporting period, with no further charge or adjustmentrecorded as a result of this review. The impairment is based onJervois’ best estimate at this time. As outlined in the 31 December2022 accounts, the recoverable amount is sensitive to a number offuture assumptions. Future changes to assumptions could lead tofurther impairment or reversal of the impairment chargerecorded.
SMP also incurred one-off non-cash costs in the period,related to remeasurement of the lease liability and updates to theenvironmental liability. Total non-cash costs recorded at 30 June forthese adjustments were US$1.9 million and are included in AdjustedEBITDA.
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 |
| Kilembe Area |
| EL0012 |
| 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 explorationentity or oil and gas exploration entity
quarterly cash flow report
| Jervois Global Limited |
| 52 007 626 575 |
| 30 June 2023 |
| Current quarter |
| Year to date (6 months)
|
| 1. |
| Cash flows from operating activities |
| 82,572 |
| 140,522 |
| 1.1 |
| Receipts from customers |
| 1.2 |
| Payments for |
| - |
| - |
|
|
| - |
| - |
|
| (50,778) |
| (106,731) |
|
| (5,661) |
| (8,777) |
|
| (1,439) |
| (3,658) |
| 1.3 |
| Dividends received (see note 3) |
| - |
| - |
| 1.4 |
| Interest received |
| 183 |
| 811 |
| 1.5 |
| Interest and other costs of finance paid |
| (1,827) |
| (11,183) |
| 1.6 |
| Income taxes refunded / (paid) |
| 99 |
| (628) |
| 1.7 |
| Other |
| - |
| - |
| 1.9 |
| Net cash from operating activities |
| 23,149 |
| 10,356 |
| 2. |
| Cash flows from investing activities |
| - |
| - |
| 2.1 |
| Payments to acquire or for: |
|
|
| - |
| - |
|
| (28,102) |
| (72,322) |
|
| (50) |
| (365) |
|
| - |
| - |
|
| - |
| - |
|
| - |
| - |
| 2.2 |
| Proceeds from the disposal of: |
| - |
| - |
|
|
| - |
| - |
|
| 377 |
| 394 |
|
| - |
| - |
|
| - |
| - |
| 2.3 |
| Cash flows from loans to other entities |
| - |
| - |
| 2.4 |
| Dividends received (see note 3) |
| - |
| - |
| 2.5 |
| Other |
| - |
| - |
| 2.6 |
| Net cash used in investing activities |
| (27,775) |
| (72,293) |
| 3. |
| Cash flows from financing activities |
| - |
| - |
| 3.1 |
| Proceeds from issues of equity securities (excludingconvertible debt securities) |
| 3.2 |
| Proceeds from issue of convertible debtsecurities |
| - |
| - |
| 3.3 |
| Proceeds from exercise of options |
| - |
| - |
| 3.4 |
| Transaction costs related to issues of equitysecurities or convertible debt securities |
| - |
| (55) |
| 3.5 |
| Proceeds from borrowings |
| - |
| - |
| 3.6 |
| Repayment of borrowings |
| (12,500) |
| (57,500) |
| 3.7 |
| Transaction costs related to loans andborrowings |
| - |
| - |
| 3.8 |
| Dividends paid |
| - |
| - |
| 3.9 |
| Other – incl. lease liabilities |
| (385) |
| (880) |
| Other - Government grants and tax incentives |
| - |
| 167 |
| Other |
| - |
| - |
| 3.10 |
| Net cash used in financing activities |
| (12,885) |
| (58,268) |
| 4. |
| Net increase / (decrease) in cash and cash equivalentsfor the period |
| 4.1 |
| Cash and cash equivalents at beginning of period |
| 49,837 |
| 152,647 |
| 4.2 |
| Net cash from / (used in) operating activities(item 1.9 above) |
| 23,149 |
| 10,356 |
| 4.3 |
| Net cash from / (used in) investing activities(item 2.6 above) |
| (27,775) |
| (72,293) |
| 4.4 |
| Net cash from / (used in) financing activities(item 3.10 above) |
| (12,885) |
| (58,268) |
| 4.5 |
| Effect of movement in exchange rates on cashheld |
| (145) |
| (261) |
| 4.6 |
| Cash and cash equivalents at end of period |
| 32,181 |
| 32,181 |
| 8. |
|
|
| 8.1 |
| Net cash from / (used in) operating activities(item 1.9) |
| 23,149 |
| 8.2 |
| (Payments for exploration &evaluation classified as investing activities) (item 2.1(d)) |
| (50) |
| 8.3 |
| Total relevant outgoings (item 8.1 + item 8.2) |
| 23,099 |
| 8.4 |
| Cash and cash equivalents at quarter end(item 4.6) |
| 32,181 |
| 8.5 |
| Unused finance facilities available at quarter end(item 7.5 and see item 7.6 – footnote 3) |
| - |
| 8.6 |
| Total available funding (item 8.4 + item 8.5) |
| 32,181 |
| 8.7 |
| Estimated quarters of funding available (item 8.6divided by item 8.3) |
| N/A |
| Note: if the entity has reported positive relevantoutgoings (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 fundingavailable must be included in item 8.7. |
| 8.8 |
| If item 8.7 is less than 2 quarters, please provideanswers to the following questions: |
| 8.8.1 Does the entity expect that it willcontinue to have the current level of net operating cash flows for thetime being and, if not, why not? |
| Answer: N/A |
| 8.8.2 Has the entity taken any steps, ordoes it propose to take any steps, to raise further cash to fund itsoperations and, if so, what are those steps and how likely does itbelieve that they will be successful? |
| Answer: Yes, in June 2023, the Company announced afully underwritten US$50.0 million total capital raising,comprising: - US$25.0 million Unsecured ConvertibleNotes (“Notes”) maturing in July 2028 which are convertible intoJervois ordinary shares (“Convertible Notes Offer”). The initialconversion price for the Notes represents a 40% premium to theEntitlement Offer Theoretical Ex Rights Price (“TERP”) 1 and the Notes carry a 6.5% p.a.coupon; and - US$25.0 million fully underwritten 1 for3.34 accelerated non-renounceable entitlement offer (the“Entitlement Offer”), undertaken in parallel with the ConvertibleNotes Offer. The institutional component of the Entitlement Offerwas successfully completed, as announced by the Company on 3 July2023, and the retail component of the Entitlement Offer wassuccessfully completed, as announced by the Company on 21 July2023. The first tranche of the Notes was completed on 18 July2023 with the receipt of US$19.9 million (gross). The second trancheof the Notes (US$5.1 million) is anticipated to be issued followingJervois shareholder approval on or about 22 August 2023. TERP (theoretical ex rights price) is the theoreticalprice at which Jervois’ ordinary shares should trade at immediatelyafter the ex-date for the Entitlement Offer based only on the lasttraded price and issuance of Jervois’ ordinary shares at the offerprice under the Entitlement Offer. |
| 8.8.3 Does the entity expect to be able tocontinue its operations and to meet its business objectives and, ifso, on what basis? |
| Answer: N/A |
| Note: where item 8.7 is less than 2 quarters, all ofquestions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
1 This statement has been prepared inaccordance with accounting standards and policies which comply withListing Rule 19.11A.
2 This statement gives a true and fair viewof the matters disclosed.
Date: 27 July 2023
Authorised by: Disclosure Committee
(Name of body or officer authorising release)
1 Information on the basis of preparation for the financialinformation included in this Quarterly Activities Report is set out onpage 11
2 TERP (theoretical ex rights price) is the theoretical priceat which Jervois’ ordinary shares should trade at immediately afterthe ex-date for the Entitlement Offer based only on the last tradedprice and issuance of Jervois’ ordinary shares at the offer priceunder the Entitlement Offer.
3 Debt drawn down represents theaggregate of amounts drawn under the company’s debt facilities.Amounts represent the nominal loan amounts; balances recorded in thecompany’s financial statements under International FinancialReporting Standards will differ.
4 The number of options represent the number of Jervoisshares that will be issued on exercise. The exercise price representsthe price to be paid for the Jervois shares when issued.
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