Cobalt, normally found in tiny quantities, is largely mined as a by-product and heavily concentrated in mines in the Democratic Republic of the Congo. It’ll now get you 6.6c.īehind that ignominious slide has been a dramatic collapse in LME Cobalt prices.Ī key ingredient in the NCM cathode lithium ion batteries used in long range electric vehicles, most cobalt miners are not as exposed to the price of the commodity since their main focus is copper or nickel. Jervois has been, by any measure, one of the worst performing stocks on the ASX in the past year, down 87.78% from a market cap around the $1 billion mark to just $135m today.Īt its 5 year peak just 14 months ago the company’s stock was selling at 93c a pop. JRV’s directors and management are chipping in US$700,000, with the company expecting to hold US$65m in cash after the raising and +US$20m in near term debt repayments. It will see AussieSuper, which currently holds 18.5% of the under-fire cobalt and nickel producer, up its stake while fellow insto Mercuria - Jervois’ second largest investor and lender with a 9.9% stake - also agrees to take up its full allotment. Jervois has tapped the market for US$25 million in unsecured convertible notes and a fully underwritten 1 for 3.34 non-renounceable entitlement offer which will raise another US$25 million. Jervois says EV demand will require 3x the cobalt we now mine by 2035ĪustralianSuper has thrown more funds into a bet that the cobalt market will recover from near 50-year real term lows, pumping US$11.7 million into an entitlement offer in Jervois Global (ASX:JRV) that could take its stake to 25%.Cobalt prices have more than halved over the past year to near 50 year lows in real terms.AustralianSuper could grow stake in cobalt play Jervois to 25%.

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