Ann: Quarterly Activities Report and Cashflow to 30 Sept 2023, page-3

Bit of a yawnfest.

Positives:

> US$54.9m in cash.
> Mercuria facility debt = US$44.1m - covered by US$44.5m in inventory.
> SMP funding conclusion Dec quarter (this will obviously involve a partial sell down of the SMP asset - but will at least fund the restart capex - assuming no capital overruns - form isn't on their side).

Challenges:

> Kokkola barely breakeven on an EBITDA basis. They just can't seem to make this asset work (unlike Umicore) - despite their attempts to gloss up the numbers. It's a margin business - not rocket science. Buy cheap hydroxide, sell a higher value-added product. Simple.
> ICO needs a solution involving the USG - the biggie. Recent news around China & graphite = positive for Jervois.
> High gearing + constrained liquidity still impacting shareholder value.

* I note that they have changed their tune on large OEM orders for cobalt. Bryce originally said from 2024 onwards in some of the investor interviews/presentations. They are now saying 2025 onwards. As such, I think 2024 will be another challenging year for the company. I will continue adding to my position to reduce my price risk over the year.