- Jervois Global (JRV) will experience higher costs to bring its Idaho cobalt operation (ICO) in the US to production
- The company revised the capital expenditure for its ICO to US$107.5 million (A$155.71 million), an increase of about 7.5 per cent
- It said the increased costs come from poor weather conditions, contractor shortages and the overall inflationary environment in the US
- However, activities at the project have progressed, with commissioning on track for September
- Shares are trading 7.29 per cent higher today at 51.5 cents each at market close
Jervois Global (JRV) will experience higher costs to bring its Idaho cobalt operation (ICO) in the US to production.
The company revised the capital expenditure for the project to US$107.5 million (A$155.71 million), an increase of about 7.5 per cent.
It said the increased costs came from poor weather conditions, contractor shortages and the overall inflationary environment in the US.
However, activities at the project have progressed, with commissioning on track for September.
The company is forecasting first ore through the mill in October and full-rate ore processing in February next year.
In addition, JRV has scheduled an official opening ceremony for its ICO on October 7, with US and Australian political representatives expected to attend.
Mine development is progressing at about 25 feet per day, with additional personnel and mining equipment secured to accelerate productivity.
To fund further activities, the company will draw down US$25 million from its Mercuria facility. This will bring its unrestricted cash position to US$57.1 million, with further funding available if needed.
Shares were trading 7.29 per cent higher today at 51.5 cents each at market close.