JRV Cobalt, page-256

For those that are interested I just listened to a great recording of a Twitter 'spaces' discussion hosted by 'Koala' @YellowLabLife and @twebs on Glencore. You can find it by searching either of those usernames on Twitter. The key speaker uses a voice filter for the first 15 mins which is hard to follow, but he turns it off and it's all good after than.

It runs for ~90 mins so you'll probably need to go walk the dog/child, but I learned a lot. It dives into the commodity macro (everything Glencore is across, notably coal, copper, cobalt, nickel) but also goes very company-specific. There was also a great point raised around the 1:01:00 mark where it was noted that Glencore's marketing arm (the trading business) provides real-time insight straight into their production operations (the mining side). As a result they're generally very strong capital allocators, i.e. they can see from live customer order books what the supply/demand situation is looking like, and can thus elect to keep 5% of resource XYZ in the ground, save the costs and still make it up on price, or elect to mothball something if necessary.

That obviously holds strong relevance for JRV bulls, given we're building a similar operating model: the ICO mine, the SMP refinery, whilst dealing directly with the customer base in Finland. The most recent BW Equities note pointed out that JRV have established a presence in Switzerland, hired another ex Glencore exec, and Bryce has just relocated there, so there's a clear focus on the trading side.

A good listen all round, if you can make the time. Enjoy!