Jervois GlobalASX:JRV Stock Report

Jervois Global Limited Advances Construction At Idaho Cobalt Operations

Less than half of directors are independent

Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Chairman Peter Johnston was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model.

Less than half of directors are independent

Following Non-Executive Director David Issroff's arrival on 01 September 2021, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Chairman Peter Johnston was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model.

Jervois Mining Limited (ASX:JRV) completed the acquisition of Freeport Cobalt Oy, Freeport Cobalt Americas LLC, Freeport Cobalt Europe GmbH, Freeport Cobalt Japan Inc. and Freeport Cobalt Trading (Shanghai) Co., Ltd. from Koboltti Chemicals Holdings Limited.

Jervois Mining Limited (ASX:JRV) entered in an agreement to acquire Freeport Cobalt Oy, Freeport Cobalt Americas LLC, Freeport Cobalt Europe GmbH, Freeport Cobalt Japan Inc. and Freeport Cobalt Trading (Shanghai) Co., Ltd. from Koboltti Chemicals Holdings Limited on July 27, 2021. The purchase price for Freeport Cobalt is as follows: base consideration of $160 million (including $75 million of net working capital), subject to customary adjustments, to be paid in cash at closing of the Acquisition; and an additional cash payment of the working capital in Freeport Cobalt above $75 million, at the closing of the Acquisition; and contingent consideration of up to $40 million, payable in cash up to $10 million per year based on Freeport Cobalt’s financial performance from 2022 through 2026, and through a “catch up” amount based on Freeport Cobalt’s aggregate financial performance during that period. The definitive agreement governing the Acquisition includes a termination fee of $4.8 million payable by Jervois to KCHL if the Acquisition does not complete under certain circumstances. To fund the Acquisition and ICO development, Jervois has entered an underwriting agreement providing a fully-underwritten $230.211 million equity raising by issuance of new Jervois ordinary shares consisting of a $63.98 million institutional placement (the "Placement") and a $166.22 million 1 for 1.56 accelerated pro-rata non renounceable entitlement offer. The Acquisition is subject to the closing completion of $230.21 million of Jervois financing and other customary closing conditions and is expected to close at the end of August 2021. As of July 27, 2021, Jervois Mining Limited announces the successful completion of both the institutional placement and the institutional component of its 1 for 1.56 accelerated non-renounceable entitlement offer. UBS and Magma Capital are acting as financial advisers to Jervois in relation to the Acquisition. Brian J. Fahrney and Joseph P. Michaels of Sidley Austin LLP acted as legal advisors to Jervois Global Limited. Marc O. Williams and Darren Schweiger acted as legal advisors to Davis Polk & Wardwell LLP. Jervois Mining Limited (ASX:JRV) completed the acquisition of Freeport Cobalt Oy, Freeport Cobalt Americas LLC, Freeport Cobalt Europe GmbH, Freeport Cobalt Japan Inc. and Freeport Cobalt Trading (Shanghai) Co., Ltd. from Koboltti Chemicals Holdings Limited on September 1, 2021. Jervois paid $208 million for cobalt business based in Kokkola, Finland only. Freeport-McMoRan share of net proceeds, excluding contingent consideration, approximates $100 million in cash plus approximately 60 million shares of Jervois common stock, which represents 3.93% of Jervois’ outstanding shares. FCX expects to record a gain on the transaction in its third-quarter 2021 financial results.

Second quarter 2021 earnings released: AU$0.009 loss per share (vs AU$0.004 loss in 2Q 2020)

Second quarter 2021 results: Net loss: AU$7.01m (loss widened 192% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings.