Reading the presser, and catching this as it is plunging...
From the press release:
t"he current U.S. inflationary construction and cost environment, particularly at ICO’s remote location, has proven challenging for Jervois to manage effectively. Jervois has spent ~US$130 million on construction at ICO,
has a cash balance of ~US$52 million, and since the December 2022 year end, has paid down US$45 million of its US$150 million Mercuria loan facility resulting in a decrease from the end December 2022 drawn balance of US$115 million down to US$70 million
1. The Company’s US$100 million senior secured bonds remain due in July 2026, with no prior amortisation. Jervois remains in compliance with its bond covenants and there is no expected adverse impact on the bonds to Jervois from ICO’s suspension. Jervois has also commenced a review of ICO’s asset carrying value on the group's balance sheet, in accordance with applicable accounting standards."
thenewswire/jervois-suspends-final-construction-at-idaho-cobalt
But from the annual report on sedar Dec, 2022 “As at 31 December 2022, the Group had total current assets of US$318.398 million (31 December 2021: US$315.014 million) and total current liabilities of US$104.904 million (31 December 2021: US$149.246 million), r
esulting in net current assets of US$213.494 million (31 December 2021: US$165.768 million).”
On the financials actual cash was 152,647, so I take it they would have had to convert some of non cash items to cash and didn’t or burnt through it if they are now down to 50 million? Even so, since they are losing money on operations with
net cash flow negative at 73,035, 000- I guess they will need to do financing soon, or go to the bank
Yet with cash flows negative, and closing down the mine, and bond covenants-think I will stay clear and watch from the sidelines
Good luck to the longs.
Crazy times