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.
- Forums
- ASX - By Stock
- JRV
- FOSTERS WRITE UP ON AUZ DEAL
FOSTERS WRITE UP ON AUZ DEAL
- There are more pages in this discussion • 9 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add JRV (ASX) to my watchlist
(20min delay)
|
|||||
Last
1.6¢ |
Change
0.001(3.33%) |
Mkt cap ! $41.89M |
Open | High | Low | Value | Volume |
1.6¢ | 1.6¢ | 1.6¢ | $11.04K | 690.8K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
19 | 5159420 | 1.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.6¢ | 1913211 | 11 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
19 | 5159420 | 0.015 |
23 | 18366010 | 0.014 |
13 | 2305923 | 0.013 |
17 | 13529989 | 0.012 |
9 | 2301000 | 0.011 |
Price($) | Vol. | No. |
---|---|---|
0.016 | 1913211 | 11 |
0.017 | 3601930 | 9 |
0.018 | 8241162 | 13 |
0.019 | 6705608 | 7 |
0.020 | 1623000 | 6 |
Last trade - 10.55am 04/06/2024 (20 minute delay) ? |
|
|||||
Last
1.6¢ |
  |
Change
0.001 ( 6.67 %) |
|||
Open | High | Low | Volume | ||
1.6¢ | 1.6¢ | 1.5¢ | 450710 | ||
Last updated 11.19am 04/06/2024 ? |
Featured News
JRV (ASX) Chart |