European Metals reports progress at Cinovec, flags possible delays

European Metals Holdings reported “continued progress” in developing the Cinovec lithium and tin project in the Czech Republic on Friday, though it did flat some potential delays in the process caused by laboratory backlogs.

The AIM-traded firm said the quarter ended 31 March was marked by “continued strong progress” towards finalising the definitive feasibility study, together with ongoing discussions with potential offtakers for the project’s products.

From a macro perspective, it said prices for the project's two key products - lithium hydroxide and tin - increased significantly in the period, with lithium hydroxide prices exceeding $70,000 per tonne, and tin topping $45,000 per tonne.

The board said the prices compared “very favourably” to the prices that were used in the 2022 preliminary feasibility study update, being $17,000 for lithium hydroxide and $24,000 for tin.

“The timeline for the completion of the definitive feasibility study is currently under review,” the directors said in their statement.

“Whilst the work on the study is proceeding very well, there have been delays in the process caused in part by Covid-19 issues in laboratories, the dramatic upturn in the workload of laboratories and therefore reduction in laboratory availability due to increase in demand in the lithium space, and logistical issues in the industry caused by the Ukrainian situation.”

EMH said it was currently reviewing the project’s timelines, and would advise the market when that was complete.

“It is not expected that this will delay the critical path of the project, as during this time the company will be in the process of finalising permitting matters.”

EMH also noted that after the end of the quarter, it appointed David Koch as its new chief financial officer and company secretary.

At 1143 BST, shares in European Metals Holdings were down 0.76% at 65.5p.