Shares in Australian battery metals company Jervois Global (ASX: JRV; TSXV JRV) were trending more than 5% higher on December 16 despite an overnight announcement that the expected capital expenditure (capex) for its Idaho Cobalt Operations (ICO) is 7% higher.
In July, Jervois approved $92.6 million capital for constructing the US mine and process facility with hot commissioning pencilled in for July 2022.
Despite the higher capex figure, the company is confident there will be no slippage to the construction timeline.
Jervois said the increased costs of high-density polyethylene for the waste storage facility, steel and cement supply and camp materials. Current market-based pricing for labour and materials meant inflationary pressure had pushed the updated capital estimate to $99.1 million.
The first ore through the mill is now planned to happen one month later than scheduled in August, but the December date for sustainable ore production remains unchanged.