European Metals Holdings Ltd (AIM:EMH, ASX:EMH, OTC:EMHLF) said the first quarter of 2022 was marked by continued strong progress towards finalisation of the definitive feasibility study of its flagship asset.
The company also continued discussions with potential off-takers for the products of the Cinovec Lithium/Tin Project.
From a macro perspective, prices for the project's two key products, lithium hydroxide and tin, continued to increase significantly with lithium hydroxide prices exceeding US$70,000/tonne and tin exceeding US$45,000/tonne during the period, the company noted in its quarterly activities report.
“These prices compare very favourably to the prices that were used in the 2022 PFS (pre-feasibility study) update being US$17,000 for lithium hydroxide and US$24,000 for tin,” it added.
The timeline for the completion of the definitive feasibility study (DFS) is currently under review. While the work on the DFS is proceeding very well, there have been delays in the DFS 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 an increase in demand in the lithium space, and logistical issues in the industry caused by the Ukrainian situation.
European Metals is currently reviewing the project timelines and will advise the market when it has completed this review. 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.
In accordance with the ASX Listing Rules, the company will today lodge its cash flow report for the quarter ended 31 March 2022. Included in those cash flows are cash receipts from Geomet of A$275,000 and cash outflow for Cinovec associated costs of A$34,000 in respect of the company's investment in the Cinovec Lithium Exploration Project in the Czech Republic.