Jervois Quarterly Activities Report to 30 June 2022

Jervois Finland


Jervois Global Limited
Jervois Global Limited

ACN: 007 626 575





Corporate Information:

1,519.7M Ordinary Shares

93.6M Options

3.8M Performance Rights

Non-Executive Chairman

Peter Johnston

CEO and Executive Director

Bryce Crocker

Non-Executive Directors

Brian Kennedy

Michael Callahan

David Issroff

Company Secretary

Alwyn Davey

Contact Details

Suite 2.03,

1-11 Gordon Street


Victoria 3121


P: +61 (3) 9583 0498

E: [email protected]



Jervois Finland:

  • Q2 2022 revenue US$91.2 million (1H 2022: US$196.3
  • Q2 2022 EBITDA US$11.9 million (1H 2022: US$26.8
  • BFS commenced for expansion of Kokkola refinery

Idaho Cobalt Operations (“ICO”):

  • On track for commissioning late Q3 2022; sustainable
    production at nameplate capacity expected in February 2023
  • Additional US$3.6 million committed (total US$4.8
    million in 2022) to infill and expansion drilling, with a total of
    46,000 feet to be drilled in 2022

São Miguel Paulista (“SMP”) Nickel and Cobalt
Refinery, Brazil:

  • Acquisition of SMP closed on 15 July with a cash
    payment of R$47.5 million; remaining R$62.5 million cash payment of
    R$125.0 million total purchase price due June 2023
  • Detailed execution planning for expected restart


  • Jervois ended June 2022 quarter with US$57.6 million in
    unrestricted and unescrowed cash; US$114.9 million including the
    remaining ICO Senior Bond escrow and debt service accounts (remaining
    proceeds released from escrow on 20 July 2022)
  • Mercuria standby working capital facility limit
    increased from US$75 million to US$150.0 million in June, providing
    additional financial flexibility
  • At end June total drawn debt was US$150 million; as of
    this release date and full drawdown of ICO Senior Bond in July,

    current net debt of US$90 million


Jervois Finland

Q2 results:

  • Quarterly revenue:         US$91.2 million
    (Q1 2022: US$105.1 million)
  • EBITDA margin:                13.0%
    (Q1 2022: 14.2%)
  • Sales volume:                1,139 metric
    tonnes        (Q1 2022: 1,446 metric tonnes)
  • Production volume:        1,145 metric tonnes
    (Q1 2022: 1,275 metric tonnes)

Sales and Marketing:

Jervois Finland achieved Q2 2022 revenue of US$91.2
million, generated via quarterly cobalt sales volumes of 1,139 metric
tonnes, down on the previous quarter. Volatility in both end-user
demand and cobalt feed supply impacted cobalt prices and revenue.
Cobalt prices (Metal Bulletin (“


”) Fastmarkets Standard Grade (“


”) Low) trended down from nearly
US$40.00/lb at the end of Q1 2022 to US$26.95/lb as at 20 July 2022.
The MB Fastmarkets SG Low cobalt hydroxide payable indicator also
trended downwards, sitting at 63.0% at the same date.

Quarterly production was 1,145 metric tonnes, a
decrease of ~11% on the previous quarter. This reduction was in part
due to the planned annual maintenance shutdown in June, with also
reduced reliability experienced in global supply chains that impacted
cobalt feed availability early in the quarter.

Due to a catch up of raw materials supply late in the
quarter, along with weakened global market demand for cobalt largely
associated with Covid-19 lockdowns in China, total inventory volumes
increased across the quarter. Jervois expects cobalt inventory levels
to remain temporarily above levels typically targeted, to ensure
profitability is optimised and risk is managed relative to ongoing
supply chain challenges. Working capital is expected to normalise
during the second half of 2022, with management focussed on balancing
supply chain risk, commercial objectives, and liquidity management.

Jervois’ outlook for key market segments is
summarised below.


  • Short–term battery demand has softened, driven by
    Covid shutdowns in China.
  • In the current falling price environment there is very
    little spot demand for battery chemicals as customers wait for prices
    to stabilise.
  • Despite short term volatility and supply chain
    destocking initiated by China, the medium- and longer-term trend of
    significant demand growth remains intact, with significant OEM
    (automaker) interest in expanding delivery commitments over

Chemicals, Catalysts and Ceramics:

  • Catalysts: consumption at lower rates than previous,
    but stabilising. Jervois continues to see new opportunities,
    specifically in North America later this year.
  • Chemicals: consumption in key applications such as
    copper electrowinning, rubber chemicals, animal feed, plating and
    specialty chemicals remains stable, although regional demand dynamics
    vary. Supply chain adjustments activity has resulted in delayed
    shipments. In Asian markets, specifically Japan and Korea, premiums
    are lower due to increased competition associated with the previously
    mentioned Covid lockdowns in China triggering mass destocking of
    Chinese industry and cobalt trade.
  • Ceramics: demand for pigments production is slowing as
    producers mull the impact of significant energy cost increases and the
    falling cobalt price; pigment applications using cobalt are typically
    more elastic in nature, particularly relative to price inelasticity of
    other cobalt consuming industries. Cobalt usage in the smaller glass
    application segment remains stable.

Powder Metallurgy

  • Outlook for 2022 remains stable, but more customers are
    expressing concern regarding the last four months of the year as
    inflation rates increase and the possibility of a recession
  • All markets remain stable except automotive which is
    variable dependent upon customer and geography; the automotive sector
    is largely expected to remain this way until semiconductor and parts
    availability improves.
  • Aerospace continues to incrementally improve, as
    outside of China the rest of the world and associated movement of
    persons and goods normalises post Covid.

Financial Performance


Jervois Finland achieved Q2 2022 revenue of US$91.2
million. The Q2 2022 adjusted EBITDA of US$11.9 million compared to
US$14.9 million in the prior quarter.

Figure 1: Jervois Finland Financial Metrics and Market
Price Indicators

bf0be83c11c742d4443d8cf1c7a24ea6 Jervois Quarterly Activities Report to 30 June 2022

Earnings Guidance

As a result of lower cobalt prices and sales volumes,
Jervois has revised EBITDA full year 2022 guidance to US$35.0 million
to US$40.0 million based on a US$27.50/lb forecast cobalt price
assumption for the remainder of the year, from US$50 million to US$55
million which was based on a US$39.75/lb forecast cobalt price
assumption at the end of Q1 2022.

Table 1: Updated 2022 EBITDA guidance for Jervois

CY 2022 guidance update Previous guidance
2H 2022 Cobalt price (Metal Bulletin Fastmarkets
Standard Grade) – US$/lb
27.50 39.75
CY2022 sales volumes guidance – tonnes 5,500 to 5,750 5,750 to 6,000
CY2022 EBITDA guidance – US$M 35 to 40 50 to 55

Key factors that underpin the guidance update are as

    • Guidance is based on actual cobalt price (MB
      Fastmarkets SG Low) of US$36.70/lb for 1H 2022, and a forecast price
      of US$27.50/lb price the second half of the year.  The spot MB
      Fastmarkets SG Low price on 20 July 2022 was US$26.95/lb.
    • Lower sales guidance (previously 5,750 to 6,000 tonnes)
      principally due to weaker end use demand in key end use segments due
      to the factors detailed previously within the Jervois Finland cobalt
      market update.
    • Expected inventory profile for 2022 drives higher than
      average feed cost realisation in the profit and loss account in second
      half (lower than average in first half).
    • Recent declines in market cobalt hydroxide expected to
      take time to translate into cost and EBITDA benefits (new purchases
      recorded in inventory).
    • Guidance assumes constant prices for 2H 2022 – price
      volatility in the period will impact actual EBITDA outcome.

Jervois Finland Expansion Plans

In May, Jervois announced the commencement of a
Bankable Feasibility Study (“


”) to assess the expansion of its production of refined
cobalt to at least 6,000 metric tonnes of additional annual cobalt
refining capacity at Kokkola Industrial Park, Finland. Current
finished product capacity is 11,000 metric tonnes per annum of
contained cobalt, significantly higher than the refining tolling
capacity available to Jervois at Umicore’s refinery.

An expansion of refining capacity is expected to be
available in conjunction with forecast increased cobalt demand in the
second half of this decade, largely associated with rising electric
vehicle penetration.

The expansion advances the Company’s strategy to
become a globally significant supplier of speciality chemicals and
advanced manufactured cobalt products into battery and other

Initial commercial discussions with both final product
customers and refinery feed suppliers (including recyclers) are

Expansion timing will be determined in conjunction with
key customers and will not require any near-term material financial
investment for Jervois. Technical partner selection processes in
Finland are underway, covering key workstreams such as flowsheet
piloting, process engineering and environmental and other

Idaho Cobalt Operations (“ICO”), United States

In June, Jervois announced it expected to commence
commissioning the plant at ICO in September 2022 with first ore
through the mill in October 2022 and sustainable, full rate ore
processing forecast by February 2023.

With detailed engineering, procurement, and commitments
all more than 90% complete, Jervois revised final forecast capital
expenditure to bring ICO into production to US$107.5 million (from
US$99.1 million), an increase of ~7.5%. Project construction
experienced cost pressures due to the significant United States
inflationary environment, compounded in recent months due to
contractor shortages and poor weather conditions across May and June.
Weather-related delays have affected site installation for the
accommodation camp, which is now expected to be operable in

In July, ICO completed the second and final draw down
of the US$100.0 million Senior Secured Bonds (“


”). The second draw down, of
US$51 million, follows the July 2022 visit to site by RPM Global,
engaged in its capacity as Independent Engineer on behalf of the
Bondholders. RPM Global submitted an affirmed Cost to Complete test to
the Bonds trustee, confirming ICO is fully funded to

ICO Construction and Mine Development Progress

As of June, mine development continued at ~27 feet per
day. Planned increases to underground working faces, improved water
management and road conditions, as well as additional personnel and
greater utilisation of existing and future mining equipment on site
are expected to continue

to improve mine
development productivity. Jervois and its mining contractor, Small
Mine Development, remain confident in the revised mining production
targets that underpin the capital cost update.

The SAG mill, ball mill and crusher are each in place,
and work continues with facilities construction and equipment

An official opening ceremony is scheduled at site for 7
October 2022 with expected participation of United States political
leadership and Australian government delegates.

At end June, Jervois had spent US$66.9 million of the
total capital expenditure budget. Capital expenditure in Q2 2022 was
US$25.6 million.

Drilling at ICO

The previously announced initial US$1.2 million infill
programme, commenced in Q1 2022, is set to be complete in August this
year. Infill drilling rates over 200 feet per day are being achieved
as part of a 19,000 feet underground campaign to decrease hole space
aiming to enhance ore body knowledge and de-risk early mining.

In June, Jervois approved an additional US$3.6 million
for drilling to complete additional infill and first expansion
drilling from both surface and underground platforms to further define
and expand its RAM deposit within ICO. This will take total planned
drilling footage in 2022 to 46,000 feet.

Both drilling campaigns will improve ICO’s resource
model and will be used to develop a production block model for both
short- and medium-term mining operations and will target expansion
down dip of the currently defined and known deposit. The RAM deposit
remains open at depth and along strike, and Jervois has confidence
that there exists a strong potential of both resource and reserve
expansion. Consistent with this expectation, planning is underway in
relation to Jervois’ neighbouring Sunshine deposit and historical
mineral resource, with preparations for a 2023 summer drill programme
well underway. The historical Sunshine cobalt resource is located a
short traverse to the ICO mill and concentrator currently under

ICO is a key asset in delivering Jervois’ strategy to
become a leading independent cobalt and nickel company providing
metals and minerals for the world’s energy transition through a
western supply chain. When commissioned in Q3 2022, ICO will be the
United States’ only domestic

mine supply of
cobalt, a critical mineral used in applications across industry,
defence, energy, and electric vehicles.

São Miguel Paulista (“SMP”) Nickel and Cobalt
Refinery, Brazil

In July, Jervois completed the acquisition from
Companhia Brasileira de Alumínio (“


”) of 100% of the São Miguel
Paulista nickel cobalt refinery (“


”) in São Paulo, Brazil. SMP is
Latin America’s only electrolytic class 1 nickel and cobalt
refinery, and operated successfully for over 30 years prior to being
placed on care and maintenance by CBA when its vertically integrated
mine was also closed due to low metal prices.

Total consideration to be paid for the acquisition is
R$125.0 million in cash. Jervois paid the initial R$15.0 million
payment in late 2020 when the acquisition was publicly announced and a
further R$47.5 million on closing in accordance with the previously
announced terms of the purchase agreement. The remaining R$62.5
million is to be paid on the earlier to occur of commencement of
commercial production at SMP and June 2023, per the purchase agreement
(which Jervois expects to be June 2023 based on SMP’s current
restart schedule).

A Jervois technical and commercial team is currently
working onsite at SMP undertaking detailed planning for the expected

In April, Jervois released a BFS for Stage 1 of the SMP
restart to process mixed nickel hydroxide (“


”) and cobalt hydroxide through to

Jervois forecasts to produce 10,000 metric tonnes per
annum (“


”) and
2,000 mtpa of refined nickel and cobalt metal cathode respectively in
Stage 1, with Net Present Value (“


”) of US$228 million and US$141
million at an 8% (real) discount rate on a pre-tax and post-tax basis
respectively; nominal Internal Rate of Return (“


”) of 47% (pre-tax) and 35%


The supplemental Stage 1 BFS, including POX for
sulphide concentrates, is due at the end Q3 2022. Engineering is
currently focused on debottlenecking, accelerating the restart and
enhancing nickel through-put capacity associated with Stage 1. Jervois
is targeting a return to the full 25,000mtpa refined nickel
production, but not at the expense of accelerated restart timing, risk
optimisation and a staged, capital efficient approach.

Nico Young Nickel-Cobalt Project, New South Wales,

Jervois’s 100%-owned Nico Young nickel and cobalt
project envisages heap leaching nickel and cobalt laterite ore to
produce either an intermediate MHP or refining through to battery
grade nickel sulphate and cobalt in refined sulphide.

Planning for Jervois’s drilling campaign at Nico
Young is well underway, with an initial focus on converting inferred
resources into the indicated category.

Corporate Activities


Jervois ended the June 2022 quarter with US$57.6
million in cash

(excluding restricted cash associated with the US$100 million ICO
Senior Secured Bond).

The US$51 million in the
Escrow Account (restricted cash) was subsequently released on 20 July
2022 once requisite conditions were met.

In June, Jervois announced its subsidiaries, Jervois
Suomi (Holding) Oy and Jervois Finland Oy, increased the secured loan
facility (the “


”) with Mercuria Energy Trading SA, a wholly-owned
subsidiary of Mercuria Energy Group Limited, by US$75 million to
US$150 million.

Key terms of the Facility remain consistent with
Jervois’ announcement to the market on 29

October 2021.

Jervois elected to draw US$25.0 million of this
additional facility in June, taking the total balance out to US$100.0
million. Up to US$50.0 million is permitted to be transferred out of
the Jervois Finland group of companies for other general purposes in
the Jervois group including, for example, funding of the Group’s
development activities in the United States and Brazil.

At June period end total debt was US$150 million; as of
this release date, it has increased to US$200 million associated with
full drawdown of the ICO Senior Secured Bond. Cash (all unrestricted)
on hand had also increased to US$110 million associated with the final
drawdown of the ICO Senior Secured Bond, leading to net debt of US$90

Jervois Annual General Meeting

At its Annual General Meeting held on 6 May 2022, all
resolutions passed via poll.

Investor Relations

Management hosted investor and equity analyst visits at
its ICO and Jervois Finland sites during the quarter as well as
participating in Canaccord Genuity’s virtual Cobalt Conference and
Morgan Stanley Australia’s Battery Materials & Clean Tech
Investor Day, both held in June.

In August, Jervois’ Chief Executive Officer, Mr.
Bryce Crocker, will present at the Diggers & Dealers Mining Forum
in Kalgoorlie, Australia.

Environmental, Social, Governance and Compliance

Jervois-Idaho Conservation League Partnership

In May, Jervois announced it had awarded US$0.15
million to three restoration projects as part of the Upper Salmon
Conservation Action Program (“


”), created in partnership with
the Idaho Conservation League (“


”). Recipients were:

  • The Idaho Department of Fish and Game in collaboration
    with Salmon-Challis National Forest, US$0.08 million, to remove two
    problematic culverts blocking fish access to an important tributary of
    the Salmon River, which will allow endangered fish species back into a
    10-mile section of prime river habitat.
  • White Clouds Preserve, US$0.06 million, to expand
    ongoing riparian restoration work along the East Fork of the Salmon
    River, an important habitat for ESA-listed Chinook salmon, steelhead
    and bull trout.
  • Western Rivers Conservancy, US$0.02 million, to assist
    with the acquisition of a key parcel of land along Panther Creek, a
    major tributary of the Salmon River.

The USCAP supports protection and restoration of fish
and wildlife habitats, including water quality and biodiversity within
the Upper Salmon River basin. Jervois will contribute US$0.15 million
annually to USCAP throughout the operational life of ICO.

Jervois-HALO Trust Partnership

Following Russia’s invasion of Ukraine, Jervois
commenced a dollar-for-dollar matching funds programme with its
employees to support United Kingdom charity The HALO Trust




is internationally respected and renowned as the
oldest and largest humanitarian landmine clearance organisation in the
world, and

has been

entrenched in Eastern Ukraine since 2016.  HALO’s 400+
personnel based in Ukraine are trained paramedics, many of whom have
been providing medical treatment, supporting evacuations, and
providing emergency assistance under dangerous conditions.

HALO has a central role in in enabling safe
delivery of humanitarian aid and passage of aid workers, evacuees and
returnees by assessing explosives risks and clearing munitions along
transport corridors and among affected communities.

Jervois and its matched employees’ donations are
ringfenced to Ukraine, with US$0.1 million made during the quarter.

Diversity and Inclusion

During the quarter, Jervois established a Diversity and
Inclusion Working Group which will develop a roadmap of strategies and
actions to support an inclusive culture and diverse workplace. This in
line with Jervois’ core values and principles and aims to bring out
the best within our workforce, create a pipeline for promotion from
within and conditions to attract talent from outside while more
broadly yielding enhanced productivity, innovation, decision-making
and motivation.

Industry Engagement

During the quarter, Jervois participated in the Cobalt
Institute Annual Cobalt Conference in Zurich, Switzerland. Key
outcomes included training to enhance the company’s capacity to meet
the requirements of EU legislation concerning human rights and
environmental justice expectations of companies working within or with
supply chain links to EU-based companies.

Also during the quarter, Jervois joined the United
States’ Critical Materials Initiative and the National Mining

In June, Jervois took part in a panel discussion at the
prestigious SelectUSA Investment Summit in Washington, DC., with over
3,600 participants from more than 70 countries. Dr. Jennifer Hinton,
Jervois’ Group Manager – ESG, shared insights into Jervois’
experience operating in Salmon, Idaho, in a panel moderated by Ms.
Alejandra Castillo, Assistant Secretary of Commerce for Economic

Management Updates

In June, Ms. Alicia Brown joined as Jervois’ Group
Manager – External Affairs at the Company’s corporate office in
Melbourne, Australia.

Ms. Brown has more than 25 years of experience,
including three years with the Australian Government Department of
Defence in Canberra, and 12 years in leadership roles at global mining
company MMG Ltd (“


”), where she was responsible for leading acquisition and
divestment transactions, including management of all key stakeholder
relationships and associated regulatory approvals. Prior to her role
leading mergers and acquisitions projects, Ms. Brown spearheaded
strategy and country and political analysis for MMG and its
predecessor companies in Australia.

In her role as Group Manager – External Affairs, Ms.
Brown will lead global co-ordination of government relations for
Jervois, maximising effectiveness and alignment of activities to group
strategy and management of key relationships. The role also provides
Jervois with additional leadership support for the evaluation of
future acquisition opportunities or other corporate transactions as
circumstances require.

Exploration and Development Expenditure

No material cash expenditure on exploration and
development was incurred during the quarter. Activities at ICO are now
classified as Assets Under Construction and incurred cash expenditure
of US$25.6 million in the quarter.

Insider Compensation Reporting

During the quarter, US$nil was paid to Non-Executive
Directors and US$0.1 million was paid to the CEO (Executive


Jervois’ non-core assets are summarised on the
Company’s website.


On 6 June 2019, the ASX granted a waiver to Jervois in
respect of extending the period to 8 November 2023 in which it may
issue new

Jervois shares to the eCobalt option
holders as part of the eCobalt transaction.

As at 30 June 2022, the following Jervois shares were
issued in the quarter on exercise of eCobalt options and the following
eCobalt options remain outstanding:

Jervois shares issued in the quarter on exercise of
eCobalt options:
eCobalt options expired in the quarter: 1,344,750
eCobalt options remaining*


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

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

  • 

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

By Order of the Board

Bryce Crocker

Chief Executive Officer

For further information, please contact:

Investors and analysts:

James May

Chief Financial Officer

Jervois G



[email protected]


Nathan Ryan

NWR Communications

[email protected]

Mob: +61 420 582 887


Historical financial information for Jervois Finland
prior to acquisition by Jervois Global Limited on 1 September 2022 is
based on unaudited financial statements that have been prepared in
accordance with US GAAP and accounting principles applied under its
ownership by Freeport McMoRan Inc. Financial information presented for
the period prior to acquisition by Jervois Global on 1 September 2021
is presented on a proforma basis for illustrative purposes

Financial information presented for periods after
acquisition on 1 September 2021 is prepared under Jervois group
accounting policies, which conform with Australian Accounting
Standards (“


and International Financial Reporting Standards (“


”). The Jervois Finland financial
results for the period post-acquisition are consolidated into the
Jervois Global consolidated financial statements.  Information
presented is unaudited.

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

The Jervois Finland 2022 guidance consists of actual
results for January to June and forecast results for July to December.
The forecast period includes an assumption of a forecast quoted cobalt
price of US$27.50/lb. Other forecast assumptions, including
production, sales plans, costs and exchange rates are based on
Jervois’ internal estimates.

Adjusted EBITDA represents EBITDA attributable to
Jervois, adjusted to exclude items which do not reflect the underlying
performance of the company’s operations. Exclusions from adjusted
EBITDA are items that require exclusion in order to maximise insight
and consistency on the financial performance of the company’s
operations.  Exclusions include gains/losses on disposals, impairment
charges (or reversals), certain derivative items, and one-off costs
related post-acquisition integration. A reconciliation of EBITDA to
Adjusted EBITDA for Jervois Finland is included in the Investor
Presentation dated 22 July 2022.

Forward-Looking Statements

This news release may contain certain
“Forward-Looking Statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities laws. When used in this news release, the words
“anticipate”, “believe”, “estimate”, “expect”,
“target, “plan”, “forecast”, “may”, “schedule” and
other similar words or expressions identify forward-looking statements
or information. These forward-looking statements or information may
relate to future EBITDA for the group, operations at Jervois Finland,
construction work to be undertaken at ICO, timing of production at
ICO, preparation of studies on the SMP refinery, timing of restart of
SMP refinery, utilisation of the working capital facility 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.




Tenement number

Interest owned %

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

Uganda Exploration


Exploration Licence

Interest owned %

Bujagali EL1666 100.0
Bujagali EL1682 100.0
Bujagali EL1683 100.0
Bujagali EL1665 100.0
Bujagali EL1827 100.0
Kilembe Area EL1673 100.0
Kilembe Area EL1674 100.0
Kilembe Area EL1735 100.0
Kilembe Area EL1736 100.0
Kilembe Area EL1737 100.0
Kilembe Area EL0012 100.0

Idaho Cobalt Operations
– 100% Interest owned

Claim Name

County #


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

ASX – Appendix 5B

Mining exploration
entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

Jervois Global Limited


52 007 626 575

Quarter ended
(“current quarter”)

30 June 2022

Consolidated statement
of cash flows

Current quarter


Year to date

(6 months)


1. Cash flows from operating activities 98,274 194,107
1.1 Receipts from customers
1.2 Payments for
  1. (a)

    exploration evaluation

  1. (b)


  1. (c)


(120,628) (213,999)
  1. (d)

    staff costs

(1,295) (3,319)
  1. (e)

    administration and corporate

(1,310) (2,809)
1.3 Dividends received (see note 3)
1.4 Interest received 6 7
1.5 Interest and other costs of finance paid (1,547) (8,847)
1.6 Income taxes paid (539) (4,125)
1.7 Government grants and tax incentives
1.8 Other – incl. business development costs and SMP BFS
(1,312) (2,568)
1.9 Net cash from / (used in) operating activities (28,351) (41,553)
2. Cash flows from investing activities
2.1 Payments to acquire or for:
  1. (a)


  1. (b)


  1. (c)

    property, plant and equipment
    – incl. assets under construction

(28,111) (49,056)
  1. (d)

    exploration evaluation

(42) (50)
  1. (e)

    acquisition of

  1. (f)

    transfer tax on

  1. (g)

    other non-current

2.2 Proceeds from the disposal of:
  1. (a)


  1. (b)


  1. (c)

    property, plant and

1,230 1,230
  1. (d)


  1. (e)

    other non-current

2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other – SMP Refinery Purchase: lease payment
2.6 Net cash from / (used in) investing activities (26,923) (47,876)
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
3.3 Proceeds from exercise of options 221
3.4 Transaction costs related to issues of equity
securities or convertible debt securities
3.5 Proceeds from borrowings 25,000 98,750
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and
3.8 Dividends paid
3.9 Other
3.10 Net cash from / (used in) financing activities 25,000 98,124
4. Net increase / (decrease) in cash and cash equivalents
for the period
4.1 Cash and cash equivalents at beginning of period 88,225 49,181
4.2 Net cash from / (used in) operating activities
(item 1.9 above)
(28,351) (41,553)
4.3 Net cash from / (used in) investing activities
(item 2.6 above)
(26,923) (47,876)
4.4 Net cash from / (used in) financing activities
(item 3.10 above)
25,000 98,124
4.5 Effect of movement in exchange rates on cash
(391) (316)
4.6 Cash and cash equivalents at end of period 57,560 57,560

Reconciliation of cash
and cash equivalents

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

Current quarter


Previous quarter


5.1 Bank balances 57,560 88,225
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)
57,560 88,225

Payments to related
parties of the entity and their associates

Current quarter


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


Note: the term “facility’ includes all forms
of financing arrangements available to the entity.

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

Total facility amount at quarter end


Amount drawn at quarter end


7.1 Bond Facility


100,000 50,000
7.2 Secured Revolving Credit Facility


150,000 100,000
7.3 Other
7.4 Total financing facilities 250,000 150,000
7.5 Unused financing facilities available at quarter end
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
  1. Bond Facility – US$100.0 million:

On 20 July 2021 the Company completed settlement of a
US$100.0 million senior secured bond facility. The bonds were issued
by the Company’s wholly owned subsidiary, Jervois Mining USA
Limited, and are administered by the bond trustee, Nordic Trustee AS.
During the previous quarter, Jervois Mining USA Limited completed the
first US$50.0 million drawdown on the bonds.

Key terms:

  • Issuer: Jervois Mining USA Limited (wholly owned
    subsidiary of the Company).
  • Maturity: 5-year tenor with a maturity date of 20 July
  • Original issue discount of 2%.
  • Coupon rate: 12.5% per annum with interest payable
  • No amortisation – bullet payment on
  • Non-callable for 3 years, after which callable at par
    plus 62.5% of coupon, declining rateably to par in year 5.
  • Transaction security: First priority security over all
    material assets of the Issuer, pledge of all the shares of the Issuer,
    intercompany loans.
  1. Secured Revolving Credit Facility – US$150.0

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, a wholly owned subsidiary of Mercuria
Energy Group Limited, to borrow up to US$75 million. The facility was
fully drawn as of 31 March 2022. On 3 June 2022, 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).

Key terms:

  • Borrowers: Jervois Suomi Holding Oy and Jervois Finland
    Oy (wholly owned subsidiaries of the Company).
  • Maturity: rolling facility to 31 December
  • Interest rate: LIBOR + 5.0% per annum.
  • Transaction security: First priority security over all
    material assets of Jervois Finland, including inventory, receivables,
    collection account, and shares in Jervois Finland.

Estimated cash available
for future operating activities

8.1 Net cash from / (used in) operating activities
(item 1.9)
(28,351)OTCQX: JRVMF
8.2 (Payments for

exploration &
evaluation classified as investing activities)

(item 2.1(d))

8.3 Total relevant outgoings (item 8.1 + item 8.2) (28,393)
8.4 Cash and cash equivalents at quarter end
(item 4.6)
8.5 Unused finance facilities available at quarter end
(item 7.5)
8.6 Total available funding (item 8.4 + item 8.5) 157,560
8.7 Estimated quarters of funding available (item 8.6
divided by item 8.3)
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:        2


July 2022

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

2.        If this quarterly cash flow report has
been prepared in accordance with Australian Accounting Standards, the
definitions in, and provisions of,

Exploration for and Evaluation of Mineral Resources


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

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

]”. 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

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


Debt drawn down

represents aggregate
of amounts drawn under US$150M working capital facility and amounts
drawn down from Escrow Account under terms of US$100M Senior Secured
Bonds. Net debt is debt drawn down less unrestricted cash. For current
net debt cash balance is based on the Company’s most recent internal
cash report prior to the date of release.  Amounts represent the
nominal loan amounts; balances recorded in the Company’s financial
statements under International Financial Reporting Standards will


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


See ASX Announcement
“BFS for Sao Miguel Paulista refinery restart” dated 29 April

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