Jervois Global (JRV) - Capital Raise Timing & Amount Explained

Interview with CEO Bryce Crocker of Jervois Mining (ASX: JRV)

Recording date: 21st November 2022

Jervois Global Ltd. is an ASX-listed mining company which aims to play a part in the global battery metals market. The company’s asset portfolio includes its Jervois Finland refinery, which the company acquired from Freeport Cobalt in 2021. The asset is a part of the larger production facility located in Kokkola which is the largest cobalt refinery in the western world at 15,000 tons capacity, of which 6,250 tons is that of Jervois Global Ltd. Jervois Finland also produces various chemicals and powders. The company’s asset portfolio also includes the São Miguel Paulista nickel and cobalt refinery in São Paulo, Brazil and The Idaho Cobalt Operations near Salmon, Idaho which is the only primary cobalt mine in the United States.

Jervois Global Ltd. announced on the 11th of November 2022, that it had concluded with a USD$ 150 million capital raise. The institutional placement and entitlement offer of the raise was successful in raising USD$ 115 million, with the remaining USD$ 35 million resulting from a retail component of the placement.

The company plans to implement the raised funds towards restarting its São Miguel Paulista nickel and cobalt refinery and reaching the planned stage 1 production of 10,000 mtpa nickel and 2,000 mtpa cobalt metal cathode. Jervois Global Ltd. expects to commence production at the São Miguel Paulista nickel and cobalt refinery in Q1 2024.

The raised funds will further be implemented towards the planned production ramp-up at the Idaho Cobalt Operations which includes exploration and permitting initiatives. The funds will also serve as mine-sustaining capital at the operation. The company further plans to use the funds to complete a bankable feasibility study for the expansion of Jervois Finland.

0:00 - Company Overview
1:03 - Quick Overview of the Company’s Project
3:25 - End Goal of the Company
5:34 - Next Steps for the Company in terms of M&A
7:04 - Overview of the Recent Capital Raise
8:57 - Reason for Doing the Recent Capital Raise
15:07 - Ensuring the Profitability of the Company
22:10 - Optionality in Alternative Financings
25:35 - Strategy in Timing the Market
27:44 - Confidence in Acquiring Revenue and Supply Chains
29:40 - Message to Retail Investors
32:36 - Outro

—

Crux Investor is an investing app for busy people. For a small, monthly membership fee you’ll receive a single stock recommendation each month, curated by industry experts and presented in a clear and focused one-page memo. Head to Crux Investor to learn more and to sign up for your time-saving, stress-slaying membership today.

[marcgerges]

I like the strategy of this company the funding was not great though.

[jtiger]

A Very switched on guy …I back him 100%

[suckers]

An unpersuasive explanation for the rationale behind the substantial dilution of shareholders near 52w lows.