(TheNewswire)
Highlights:
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Idaho Cobalt Operations (“ICO”)capital project schedule and costing review has led to Jervois Boardapproving a revised construction budget of US$107.5 million, up fromUS$99.1 million. This includes a rise in remaining (unused)contingency to US$3.8 million
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United States inflationaryenvironment remains heightened; budget prudently raised as ICO entersfinal phase of construction
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Jervois to commence commissioning ICOmill in September 2022; full production now expected to be achieved inFebruary 2023
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Once in production, ICO will be theonly primary cobalt mine in the United States and will supply acritical metal necessary for electric vehicles, energy generation anddistribution, defense and other industries and plays a key role in thetransition to the low carbon economy.
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Mercuria US$150.0 million workingcapital facility drawn down by additional US$25.0 million, to US$100.0million, underpinned by higher inventory and receivables at JervoisFinland, providing financial flexibility across the Jervois groupincluding for potential funding of development activities in theUnited States and Brazil
Jervois Global Limited (“ Jervois ”) (ASX:JRV)(TSXV:JRV) (OTC:JRVMF) is pleased to provide an update on progress atits Idaho Cobalt Operations (“ ICO ”) in Idaho, United States.
Jervois expects to commence commissioning the plant atICO in September 2022 with first ore through the mill in October 2022and sustainable, full rate ore processing now forecast by February2023.
With detailed engineering, procurement and commitmentsall over 90% complete, final forecast capital expenditure to bring ICOinto production has been revised to US$107.5 million (from US$99.1million), an increase of ~7.5%. Project construction has experiencedcost pressures due to the significant United States inflationaryenvironment, which has been compounded in recent months due tocontractor shortages, continued delays in theoperability of an accommodation camp at site, and poor weatherconditions across May and June. Due primarily to weather relateddelays affecting site installation, the accommodation camp will nowonly be operable in August.
ICO’s adjusted final forecast capital expenditure andschedule will form the basis of the Cost to Complete test byindependent engineer RPM Global, engaged by the trustee acting forbondholders under the terms of Jervois’ US$100.0 million SeniorSecured Bonds (“ NordicBonds ”) (refer to press release dated 5 July2021). Jervois completed the first US$50.0 million drawdown (50%) ofthe Nordic Bonds on 7 February 2022. RPM Global is scheduled tovisit site early July to undertake the final Cost to Complete testahead of the planned second tranche bond drawdown of US$50.0 millionlater that month.
ICO Construction Progress
Mine development continues at ~25 feet per day. Planned increases to underground working faces, improved watermanagement and road conditions, as well as additional personnel andmining equipment on site are expected to increase mine developmentproductivity. Jervois and its mining contractor Small MineDevelopment (“ SMD ”) remain confident in the revised miningproduction targets that underpin the capital cost update.
Jervois is achieving infill drilling rates over 200feet per day as part of a 19,000 feet underground campaign to decreasehole space aiming to enhance ore body knowledge. The drilling isimproving the robustness of the resource model to generate aproduction block model for mining.
The SAG mill, ball mill and crusher are each in place,and work continues with facilities construction and equipmentplacement.
An official opening ceremony is scheduled at site for 7October 2022 with expected participation of United States politicalleadership and Australian government delegates.
SAG Mill Shell Installation
ICO Surface FacilitiesProgress
ICO TWSF Operations andConstruction
Mercuria Facility Drawdown
As announced on 6 June 2022, Mercuria Energy Trading SA(“ Mercuria ”) has committed an additional US$75.0 million under asecured loan facility (the “ Facility ”), taking the total facility limitto US$150.0 million. Jervois has elected to draw US$25.0 million ofthis additional facility, taking the total balance out to US$100.0million. The balance remains less than the Maximum Available Amountcurrently available under the terms of the facility, which is based onJervois Finland’s eligible inventories and receivables. A maximumof US$50.0 million is permitted to be transferred out of the JervoisFinland group of companies, for other general purposes in the JervoisGlobal group including, for example, for funding of the group’sdevelopment activities in the United States and Brazil.
As of May 31, 2022, Jervois’s balance sheetflexibility remains strong, with an unrestricted cash position ofUS$57.1 million, and a total cash position (including the Nordic Bondrestricted account, escrowed pending second drawdown) of US$114.4million.
On behalf of Jervois Global Limited
Bryce Crocker, Chief Executive Officer
For further information, please contact:
Investors and analysts: James May Chief Financial Officer Jervois Global james.may@jervoisglobal.com | Media: Nathan Ryan NWR Communications nathan.ryan@nwrcommunications.com.au Mob: +61 420 582 887 |
Forward-LookingStatements
This news release may containcertain “Forward-Looking Statements” within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andapplicable Canadian securities laws. When used in this news release,the words “anticipate”, “believe”, “estimate”,“expect”, “target, “plan”, “forecast”, “may”,“schedule”, “expected” and other similar words or expressionsidentify forward-looking statements or information. Theseforward-looking statements or information may relate to the capitalcosts for ICO, the timing of plant commissioning, ore throughput andsustainable ore production at ICO, the timing of drawdown of thesecond tranche of the senior secured bond, the use of funds from theFacility, the timing of the official opening and certain other factorsor information. Such statements represent Jervois’ current viewswith respect to future events and are necessarily based upon a numberof assumptions and estimates that, while considered reasonable byJervois, 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. Jervois does notintend, and does not assume any obligation, to update theseforward-looking statements or information to reflect changes inassumptions or changes in circumstances or any other events affectionssuch statements and information other than as required by applicablelaws, rules and regulations.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.
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