JRVMF Interim MD&A
Posted on SEDAR August 28 at 5:30 PM... its "news" dated from 31 July 2024 (Australia)... current as of 30 June 2024... It's just a repost of the News Release from 30 July re-titled as the Interim MD&A...
Mercuria has sold their bond holding to the remaining... sole... un-named... "Bond Holder"... leaving JRVMF owing around $144 million... with clocks ticking.
On August 20 they announced waivers were continued... as they have been repeatedly...
Jervois Global Secures Key Financial Covenant Waivers
But, the news in the tipranks link forgot to mention the extension was from August 20... to August 30... which is Friday.
Here's the announcement in complete form from ASX... cross-posted on Sedar dated the 21st...
They note "looking" for other lenders, investors... considering diversification projects or transactions... with "ongoing commercial discussions with the Holder"... whatever that means. [In the "MD&A" its stated as bullet points first: "Negotiations on potential asset sales and / or partnerships to support deleveraging continue to advance. Continued to work in conjunction with lenders on potential transactions to strengthen the balance sheet." And then again as this statement: "Engagement with lenders and third parties continued throughout the quarter, including due diligence across multiple Company assets. Jervois remains focused on delivering a solution that provides additional liquidity, achieves a sustainable capital structure, and diversifies the Group’s cash generation through transition from reliance on Jervois Finland as the sole operating asset, to a multi-operating asset portfolio over the medium term."
There's no shortage of quality "higher grade" gold/silver/copper etc. prospects in Idaho... and lots of other strategic metals interests... as at PPTA... or IDR... each having solid project backing with gold values ?
But... LAC (lithium) and PPTA (antimony) are taking down billions in government loans to support their start up of mining those "critical" minerals domestically... while Jervois' cobalt mine has already been built... its ready to go... but, there's nothing being put on the table to provide startup support for initiating domestic cobalt mining operations ?
The government has funded them in doing some additional exploration... or will re-imburse them for doing it... which is nice... and by all accounts its been successful... as noted in the "MD&A".
But, then... "End of June 2024 cash of US$21.3 million was lower than the previous [End of March] quarter-end balance of US$26.6 million"... and they explain the decline... and... "The Group’s current cash balance is US$14.6 million2"... and the only explanation is the footnote 2: "Cash balance is as of 28 July 2024."
Burning through $7 million in July... how ? ...why ? Since they don't have a mine working... had to buy enough new metal inventory to keep production going ?
The news notes "Foreign Entity Of Concern" rules are being put in play... and will begin to drive demand for domestic product as government contractors (at least) will have to provide proofs of origin with traceability...
But, they say... that shift is happening a lot more slowly than expected... and it might leave them twisting in the wind for a year or more... unless Commerce and/or DOD... and the EU... suddenly become insistent ?
Shares are down by half since June... given the lack of forward visibility... and the recent punt from August 20 to August 30... not exactly providing investors with a clear view of a path forward or any warm fuzzies...
They "should" have cash to keep them going another Q or 2... but may not... The collection of parts... spread between Australia, Finland, Brazil, and Idaho....might make sense if all of it is making money... Perhaps they'll pull a rabbit out of a hat... given the "critical" nature of the interest ?
Or... at least... hope to see them prove, again, that the lenders really are "supportive"... beyond Friday ? |
