Overview of Jervois' agreement with bondholder

Jervois Global Limited (ASX: $JRV) has reached an agreement with the majority bondholder of the US$100 million 12.5% Idaho Cobalt Operations (ICO) senior secured bonds, allowing for a waiver of all financial covenants until July 20, 2024. The waiver, subject to approval by at least 2/3 of the principal amount of the ICO Bonds, also includes forbearance of remedies associated with financial covenant compliance.

Executive commentary on the agreement

Jervois is actively working with its major lenders on potential transactions to strengthen its balance sheet and is concurrently focusing on cost reductions across its portfolio. This includes a significant 30% reduction in senior corporate management roles and a unanimous decision by Non-Executive Directors to reduce their cash compensation by 30%. Other than the waiver, there are no proposed changes to the terms of the ICO Bonds, including coupon, security, or guarantee arrangements. The ICO Bonds will continue to be subject to no principal repayment until the end of their existing 5-year term in July 2026. - Bryce Crocker, CEO

Summary of Jervois' current position and outlook

Jervois Global Limited has secured an agreement with the majority bondholder of the ICO senior secured bonds, allowing for a waiver of financial covenants until July 20, 2024. The company is actively engaged in discussions with major lenders to fortify its balance sheet and is implementing cost reduction measures across its portfolio. Despite the waiver, there are no proposed changes to the terms of the ICO Bonds, and the company remains committed to its existing bond arrangements. Jervois continues to focus on its long-term corporate strategy and financial stability, aiming to navigate through the current financial landscape with prudence and resilience.