Canaccord downgrades Jervois after Idaho project halt on weak cobalt prices

Jervois Global

29/03/2023 20:44

** Canaccord Genuity analysts say Jervois Global  JRV.AX 
needs to find way to fund restart of operations in Brazil and
better operating metrics from Jervois Finland after the Aussie
miner halted operations at its Idaho Cobalt mine
    ** Brokerage downgrades ASX-listed cobalt miner to
"speculative buy" from "buy" and cuts PT to A$0.35 from A$0.65,
reflecting risk of cobalt price recovery
    ** Jervois said on Wednesday it stopped operations at Idaho
due to continuing low cobalt prices
    ** Jervois, which now has $52 mln in cash, is expected to
spend $25 mln at Idaho operations over 2023 - Canaccord
    ** Based on its estimates, brokerage says the company's 
cash position likely raises the question of delaying the restart
of its Sao Miguel Paulista refinery in Brazil
    ** Brokerage pushes back date of first production from
Brazil to 2025, while company currently expects in first quarter
of 2024
    ** Canaccord finally expects cobalt prices to reach over
$20/lb ($15.31/lb on March 30) before JRV restarts ICO

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))