This deal values us so much higher,
- AUZ reportedly set to sign an offtake and funding agreement with South Korean Chemical company SK Innovation (Subsidiary of SK Holdings) for its Sconi Nickel/Cobalt/Scandium project
- The agreement is set to involve 7 year offtake agreement for all the production of the Sconi project for their the nickel and cobalt, with a further 6 year option;
- 12ktpa cobalt and 60Ktpa nickel sulphate prices linked to LME;
- SK have an option to buy 19.9% of AUZ for A$65m;
- SK will provide inputs into the BFS and funding options and
- The product is targeted to be input into SK newly developed battery facilities in Hungary and Korea
- The option to acquire 19.9% for $65m, implies a valuation for AUZ of $325m.
- AUZ deal is yet another very positive data point highlighting the demand and willingness by industry to lock up cobalt supply in a tightening market.
- It also makes the relative valuation of JRV look very cheap $325 (AUZ) vs $100m for JRV for a comparable project, with upside of advanced business development opportunities and a very strong management team
- Quick snap shot below you can see that JRV has a very comparable resource to Sconi project. The bulk of the valuation is related to Sconi, Flemington project was acquired from JRV with $5m payment due later this year.
- Granted AUZ has a mining lease granted, environmental approvals in place and a mining study completed. BFS is targeted to be completed by mid-year.
- However JRV recent updated indicated a target date of Q3CY18 for BFS at Nico Young.
- Lets not also forget that JRV has the potential to differentiate itself from its peers if it can successfully demonstrate the project is economical using a heap leech processing approach rather than HPAL which is being proposed by Clean Teq and AUZ. This could result in a significant difference in capital, timing and complexity.
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1.3¢ |
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Mkt cap ! $35.13M |
Open | High | Low | Value | Volume |
1.5¢ | 1.5¢ | 1.2¢ | $83.80K | 6.387M |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 700321 | 1.3¢ |
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Price($) | Vol. | No. |
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1.4¢ | 701668 | 3 |
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No. | Vol. | Price($) |
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1 | 700321 | 0.013 |
21 | 5113704 | 0.012 |
5 | 1518636 | 0.011 |
8 | 2439900 | 0.010 |
3 | 1944444 | 0.009 |
Price($) | Vol. | No. |
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0.014 | 701668 | 3 |
0.015 | 5156719 | 8 |
0.016 | 2177556 | 6 |
0.017 | 2009766 | 5 |
0.018 | 2531568 | 8 |
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