You have raised some very good points and articulated your position very well. Enjoyed reading - so firstly thank you for that. May I add my 2 cents to build upon what you guys have already so well covered.
a) Operating business:- Bryce (A well respected leader) laid emphasis on building an operating business with assets that are inter-related as opposed to collecting businesses that have nothing to do with each other. An example that all know so very well is ICO feeding ore into SMP for conversion into ""intermediates" which then gets processed into a suite of specialty cobalt products via Kokola. What we are missing here is the 20,000 tonnes of nickel processing capacity that SMP has which will be used as tolling facility in short run. SMP is a master stroke that (subject to Feasibility study) can help JRV unlock the massive potential that Nico Young deposit in NSW has. That is the next major chapter in this wonderful script that JRV is writing. That's the missing piece of the puzzle for a $2b valuation. (This is my opinion only DYOR)
b) Trading business:- I have worked alongside commodity traders in flesh and I can tell you 4 things they really like a) Optionality b) Market imbalance c) Market relevance and d) Control of supply chain. Cobalt market is predicted to have massive demand/supply gaps and more importantly other imbalances caused by Environmental/political concerns. JRV has tremendous optionality with all these assets and also uncommitted volumes and with JRV Finland they very well control the book of Customers (in EU/Japan/US) and also the feedstock supply contracts (which by the way are all seemingly in the money). These are goldilocks conditions that traders in JRV will thrive on. Again a master stroke.
c) Lastly, I want to just point out that there is so much chatter off late about Nickel. Ni is a great space to be in (I don't want to repeat what you all already know) and JRV has assembled some of the most experienced people in the field of cobalt and nickel who have tremendous perch. Remember what BC said - Good people can turn a bad asset into good and vice-versa. With that I rest my case.
JRV is a very special company in the making and has all the building blocks to be a very RELEVANT market player in growing NI and CO industry. There are risks associated with all investments (Technological, Execution, Financial and many more so DYOR before you make investment choices)
xxLiONxx
JRV Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
