REG - European Metals Hldg - Quarterly Activities/Appendix 5B Cash Flow Report
31/07/2024 08:45
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RNS Number : 5651Y European Metals Holdings Limited 31 July 2024
For immediate
release
31 July 2024
QUARTERLY ACTIVITIES REPORT
30 JUNE 2024
European Metals Holdings Limited (ASX & AIM: EMH, OTCQX: EMHXY and EMHLF)
("European Metals" or the "Company") is pleased to provide an update on its
activities during the three-month period ending 30 June 2024 highlighting the
continued progress in the development of the globally significant Cinovec
Lithium Project ("the Project" or "Cinovec") in the Czech Republic during the
quarter.
Cinovec Lithium Project and DFS Update
On 27th March 2024, the Company shared an update regarding the Cinovec
Project's Definitive Feasibility Study ("DFS"). Recent testwork, engineering
and environmental work as part of the DFS process has identified key areas for
potential improvements to the Project's lithium processing flowsheet. Geomet's
management team, working with DRA Global, is currently further reviewing these
developments. This review is crucial to the enhancement of economic and social
outcomes for the project.
The Company also confirmed that existing physical and hydrometallurgical
process flowsheet designs have been deemed suitable for engineering and
construction purposes. They are expected to deliver high levels of lithium
recovery from raw ore through to battery-grade final products.
Subsequent to the end of quarter, the Company announced that the timeline for
the completion of the Definitive Feasibility Study ("DFS") and therefore
construction of the Cinovec lithium processing plant continues to be worked
on.
Given the change to the location of the lithium processing plant from Dukla to
Prunéřov, additional geotechnical work is currently underway to confirm the
optimal construction method and layout at the new site. Results from this
geotechnical work are expected to be available at the end of September. DRA
Global is then expected to provide a detailed timeline and begin the DFS
finalisation program of work.
The Company will provide a further update to the market once it has received a
revised timeline for completion of the DFS.
The Project team continues to progress several DFS-related programs on the
Front-End Comminution and Beneficiation circuit ("FECAB") and Lithium Chemical
Plant circuit ("LCP") to improve the overall flowsheet which are expected to
positively impact Project economics.
Process Flowsheet Improvements - FECAB
The Company previously announced changes to the FECAB process flowsheet from
beneficiation based entirely on magnetic separation to a process incorporating
both magnetic separation and flotation, (see the Company's ASX/ AIM
announcement of 31 October 2022 "Simplified Extraction Process Delivers
Exceptionally Clean Battery-Grade Lithium Product with Improved Economics").
This improvement yielded a total FECAB lithium recovery of >87%, with 7-8%
lost to the fines fraction and the balance of 5-6% losses due to process
inefficiency. By mass, the proportion of the ore recovered to concentrate
achieved was 30% of the total feed and the grade of the concentrate entering
the LCP was 1.198% lithium (2.58% Li(2)O).
To improve FECAB performance, targeting a higher-grade concentrate, additional
flotation testwork has been carried out. Representative ore samples were
utilised, milled to P80<150μm and tested without removing the <20μm
slimes fraction before flotation.
Results, benefits and impacts of this testwork are:
· Potential for complete elimination of the magnetic separation
step from the FECAB flowsheet;
· Flotation process without desliming has been successfully
optimised, which improves the recovery of zinnwaldite from the <20μm
fraction whilst not impacting reagent consumption or other process
beneficiation performance factors;
· A capability to deliver overall FECAB lithium recovery
improvements from >87% to >94.7%, proven on a repeated basis;
· Uplift in concentrate grade from 1.198% Li (2.58% Li(2)O) to
produce almost pure zinnwaldite concentrate with average grade of 1.46% Li
(3.14% Li(2)O);
· The grades of concentrate produced in the flotation testwork are
the highest to date, based on the recoveries achieved and mass rejection (of
gangue) of 80% on average;
· The flotation testwork program was carried out at neutral pH and
there was no need for chemical addition to adjust pH;
· The above results are from repeated locked cycle testwork;
· The locked cycle testwork achieved optimisation of recirculation
in the flotation circuit, such that the final circuit contained only a single
recirculation stream;
· The improved lithium grade and purity of concentrate recovered
are expected to significantly impact both the operating costs per tonne
("Opex/t") of battery-grade end-product as well as the capital expenditure per
tonne ("Capex/t") for the LCP;
· The results of this recent testwork have translated into impacts
on the DFS which include re-sizing of kilns for roasting the concentrate and
reagent and energy consumption reductions for the same overall process
outputs, with the intensive magnetic separation plant Capex/t and Opex/t
eliminated;
· Expected economic improvements include a reduction in roasting
reagents (gypsum, limestone and sodium sulphate) required for the same output;
· The purity of the flotation concentrate achieved further supports
production of exceptionally clean battery-grade end products for Cinovec;
· A flotation-only process simplifies the FECAB operationally (in
addition to reducing Capex/t and Opex/t);
· The measured Particle Size Distribution ("PSD") of the flotation
concentrate is close to the ideal PSD for kiln feed. As a result, the need
for a concentrate regrind mill currently in the process flowsheet is being
re-assessed.
The flotation testwork has yielded excellent results and the Project team is
now considering the full ramifications in bulk materials handling, tailings
storage and backfilling, should a positive decision be made to change the
FECAB process flowsheet to 100% flotation beneficiation. The Company will
provide an update when a decision has been made.
Process Flowsheet Improvements - Lithium Chemical Plant
The principal roasting reagents mixed with lithium-bearing ore (zinnwaldite)
concentrate, as stated above, are gypsum, limestone and sodium sulphate. The
LCP process produces a waste stream of mixed sulphate, including sodium
sulphate, potassium sulphate, rubidium sulphate, with a residual component of
lithium sulphate derived from lithium which is not converted into lithium
phosphate during its first pass through the lithium phosphate reactor tank.
The Company has recently managed locked cycle tests that demonstrate the
effects of replacing sodium sulphate roasting reagent entirely with the mixed
sulphate waste stream, targeting reduced overall reagent consumption.
Nine locked cycles were performed with fully-representative zinnwaldite
concentrate roasted in each test. This testwork was undertaken at Nagrom
Laboratories in Perth, WA.
These tests have been successful, with the overall lithium recovery in the LCP
circuit remaining in the previously announced range of 88-93% (see the
Company's ASX/ AIM announcement of 31 October 2022 "Simplified Extraction
Process Delivers Exceptionally Clean Battery-Grade Lithium Product with
Improved Economics").
The recycling of this mixed sulphate waste stream is a key component of the
patent pending for the Cinovec LCP process.
The benefits and impacts of this optimisation testwork of the LCP circuit are:
· Elimination of sodium sulphate as a roasting reagent, reducing
Opex/t for the project;
· Lithium not recovered in its first pass through the lithium
phosphate reactor tank circuit is reprocessed, enabling higher overall lithium
recovery. Modelling, based on the results of cycles 5 and 6 of the 2022 Locked
Cycle Test program (see the Company's ASX/ AIM announcement of 31 October 2022
"Simplified Extraction Process Delivers Exceptionally Clean Battery-Grade
Lithium Product with Improved Economics") assuming fresh, pure (>98%)
sodium sulphate addition upfront, estimates the amount of lithium lost to the
mixed sulphate waste stream as 1.2%. This is now available for recovery in the
revised LCP circuit design; and
· Reduction in the overall mixed sulphate waste stream required to
be onwards-treated has been achieved, further reducing Opex/t of the
end-product.
The updated LCP circuit design with recycling of mixed sulphate into the roast
mix results in recycling of approximately 50% of the total mixed sulphate
produced. The remaining mixed sulphate will be reprocessed as waste.
Just Transition Fund
Representatives of Geomet met with the Regional Standing Conference ("RSK") in
the Czech Republic which is one of the bodies that approves and recommends
Just Transition Fund ("JTF") support.
Geomet has submitted an initial application for funding of a part of the
project (called a "sub-project"), which initially included the preliminary
mine portal area works - a box-cut (mine entrance), an exploration adit, work
on a portal access road. These construction works are able to take place under
the existing exploration licenses and not requiring an Environmental Impact
Assessment ("EIA"). The total initial grant requested from the JTF has in
turn been reduced from CZK 1.12 billion to CZK 0.8 billion (approximately EUR
31 million).
The RSK meeting has recommended the sub-project for JTF support. The next step
will be the final funding approval by the Ministry of Environment.
The Cinovec Project remains crucial for EU's critical materials security, and
the formal adoption by the EU of CRMA will streamline permitting processes for
such projects (refer to the Company's ASX/AIM releases dated 27 March 2024 and
31 July 2024 "Cinovec Project Update").
Successful Production of Lithium Hydroxide
On 11 April 2024, the Company announced that the pilot program had confirmed
the feasibility of the Lithium Chemical Plant ("LCP") process for large-scale
production of lithium carbonate and lithium hydroxide, converting crude
lithium carbonate into exceptionally clean battery-grade lithium hydroxide
monohydrate (refer to the Company's ASX/AIM release dated 11 April 2024)
"Successful Production of Lithium Hydroxide").
Appointment of New Director
On 18 April 2024, the Company appointed Merrill Gray as a Non-Executive
Director. Merrill brings over 30 years of metallurgical and mining engineering
as well as geology experience to the Board, along with large-scale new
technology project development and production management skills. (refer to
the Company's ASX/AIM release dated 18 April 2024 "Appointment of Director").
New Plant Site to Improve Project Permitting and Economics
On 26 April 2024, the Company announced the selection of a new site for the
Cinovec Lithium Processing Plant at the Prunéřov industrial site. Located
approximately 59 km from Dukla and the mine. This move, following preliminary
agreement and support from municipal and regional governments, is expected to
enhance permitting and project economics. The larger site allows for a more
cost-effective plant layout and faster construction, with ore to be
transported from Cinovec to Prunéřov via existing rail facilities (refer to
the Company's ASX/AIM release dated 26 April 2024 "New Plant site to improve
Project Permitting and Economics").
Redomiciliation
The redomiciliation of the Company from the British Virgin Islands to
Australia was completed on 7 May 2024 following lodgement of a notice of
intention to discontinue out with the British Virgin Islands registry ("BVI
Registry").
Upon filing the Discontinuance Documents, the BVI Registrar of Corporate
Affairs issued a certificate of discontinuance. The certificate of
discontinuance provided prima facie evidence that all the requirements of the
BVI Business Companies Act in respect of the continuation of a company under
the laws of a foreign jurisdiction have been complied with, and that the
Company was discontinued on the date specified in the certificate of
discontinuance.
European Metals is now domiciled in Australia as a company governed under the
Corporations Act 2001 (Cth) ("Australian Continuance"). The new Constitution
replaced the existing Articles of Association of the Company and the Company's
registered office is now Level 3, 88 William Street, Perth WA 6000. The Board
believes that the Australian Continuance should lead to substantial cost
savings and improvements in the Company's administration and efficiency of
operations. Additionally, it will remove a potential impediment to obtaining
European development financial assistance for the Cinovec project.
Application was made to the London Stock Exchange for the readmission of
207,444,705 ordinary shares of no-par value ("Shares"), held as Shares in
Australia and via Depository Interests ("DIs") in the UK. The readmission
became effective and dealings in the Shares recommenced on AIM on 10 May
2024. On readmission, the Company confirms its ISIN as AU000000EMH5 and
SEDOL as BSC9SJ5.
All securityholders who previously held their securities in the form of CHESS
Depositary Interests ("CDIs") on ASX became shareholders directly in the
Company rather than through the CDI nominee and those Shares are tradeable on
ASX. The existing CDIs were converted on a 1:1 basis into Shares and new
holding statements were issued to the shareholders.
CORPORATE AND ADMINISTRATION
QUARTERLY CASHFLOW REPORT
In accordance with the ASX Listing Rules, the Company will also today lodge
its cashflow report for the quarter ended 30 June 2024. There was no cash
outflow for Cinovec associated costs in respect of the Company's investment in
the Cinovec Lithium Project in the Czech Republic during the quarter.
The Company's total cash is $4.7 million as at 30 June 2024. It is noted
that there is approximately a further $565k in receivables from the Company's
associate, Geomet s.r.o, in relation to the provision of services managing the
Cinovec Project development, as at 30 June 2024.
PAYMENTS TO RELATED PARTIES
As outlined in the attached Appendix 5B (section 6.1), during the quarter
approximately $211,000 in payments were made to related parties and their
associates for director salaries, consultancy fees, superannuation, and other
related costs. A portion of these expenses is to be reimbursed directly from
Geomet.
CORPORATE ACTIVITY
Following its registration as an Australian company, the Company adopted a new
Constitution which was previously approved by shareholders at the Annual
General Meeting held on 22 December 2023.
GEOMET TENEMENT SCHEDULE
Table 1: Geomet Tenements
Permit Code Deposit Interest at beginning of Quarter Acquired / Disposed Interest at end of Quarter
Cinovec N/A 100% N/A 100%
Exploration Area
Cinovec II 100% N/A 100%
Cinovec III 100% N/A 100%
Cinovec IV 100% N/A 100%
Preliminary Mining Permit Cinovec II Cinovec South 100% N/A 100%
Cinovec III Cinovec East 100% N/A 100%
Cinovec IV Cinovec Northwest 100% N/A 100%
This announcement has been approved for release by the Board.
CONTACT
For further information on this update or the Company generally, please visit
our website at www.europeanmet.com (http://www.europeanmet.com) or see full
contact details at the end of this release.
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium Project
Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech
State over the Cinovec Lithium Project. Geomet has been granted a preliminary
mining permit by the Ministry of Environment and the Ministry of Industry. The
company is owned 49% by EMH and 51% by CEZ a.s. through its wholly owned
subsidiary, SDAS. Cinovec hosts a globally significant hard rock lithium
deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li(2)O,
Indicated Mineral Resource of 360.2Mt at 0.44% Li(2)O and an Inferred Mineral
Resource of 294.7Mt at 0.39% Li(2)O containing a combined 7.39 million tonnes
Lithium Carbonate Equivalent (refer to the Company's ASX/AIM release dated 13
October 2021) (Resource Upgrade at Cinovec Lithium Project).
An initial Probable Ore Reserve of 34.5Mt at 0.65% Li(2)O reported 4 July 2017
(Cinovec Maiden Ore Reserve - Further Information) has been declared to cover
the first 20 years mining at an output of 22,500tpa of lithium carbonate
(refer to the Company's ASX/AIM release dated 11 July 2018) (Cinovec
Production Modelled to Increase to 22,500tpa of Lithium Carbonate).
This makes Cinovec the largest hard rock lithium deposit in Europe and the
fifth largest non-brine deposit in the world.
The deposit has previously had over 400,000 tonnes of ore mined as a trial
sub-level open stope underground mining operation.
On 19 January 2022, EMH provided an update to the 2019 PFS Update. It
confirmed the deposit is amenable to bulk underground mining (refer to the
Company's ASX/AIM release dated 19 January 2022) (PFS Update delivers
outstanding results). Metallurgical test-work has produced both battery-grade
lithium hydroxide and battery-grade lithium carbonate at excellent recoveries.
In February 2023 DRA Global Limited ("DRA") was appointed to complete the
Definitive Feasibility Study ("DFS").
Cinovec is centrally located for European end-users and is well serviced by
infrastructure, with a sealed road adjacent to the deposit, rail lines located
5 km north and 8 km south of the deposit, and an active 22 kV transmission
line running to the historic mine. The deposit lies in an active mining
region.
The economic viability of Cinovec has been enhanced by the recent push for
supply security of critical raw materials for battery production, including
the strong increase in demand for lithium globally, and derived from within
Europe specifically, as demonstrated by the European Union's Critical Raw
Materials Act (CRMA).
BACKGROUND INFORMATION ON CEZ
Headquartered in the Czech Republic, CEZ a.s. is one of the largest companies
in the Czech Republic and a leading energy group operating in Western and
Central Europe. CEZ's core business is the generation, distribution, trade in,
and sales of electricity and heat, trade in and sales of natural gas, and coal
extraction. The foundation of power generation at CEZ Group are emission-free
sources. The CEZ strategy named Clean Energy for Tomorrow is based on
ambitious decarbonisation, development of renewable sources and nuclear
energy. CEZ announced that it would move forward its climate neutrality
commitment by ten years to 2040.
The largest shareholder of its parent company, CEZ a.s., is the Czech
Republic with a stake of approximately 70%. The shares of CEZ a.s. are traded
on the Prague and Warsaw stock exchanges and included in the PX and WIG-CEE
exchange indices. CEZ's market capitalisation is approximately EUR 20.3
billion.
As one of the leading Central European power companies, CEZ intends to develop
several projects in areas of energy storage and battery manufacturing in the
Czech Republic and in Central Europe.
CEZ is also a market leader for E-mobility in the region and has installed and
operates a network of EV charging stations throughout Czech Republic. The
automotive industry in the Czech Republic is a significant contributor to GDP,
and the number of EV's in the country is expected to grow significantly in the
coming years.
COMPETENT PERSONS
Information in this release that relates to the FECAB metallurgical testwork
is based on, and fairly reflects, technical data and supporting documentation
compiled or supervised by Mr Walter Mädel, a full-time employee of Geomet
s.r.o an associate of the Company. Mr Mädel is a member of the Australasian
Institute of Mining and Metallurgy (AUSIMM) and a mineral processing
professional with over 27 years of experience in metallurgical process and
project development, process design, project implementation and operations. Of
his experience, at least 5 years have been specifically focused on hard rock
pegmatite Lithium processing development. Mr Mädel consents to the inclusion
in the announcement of the matters based on this information in the form and
context in which it appears. Mr Mädel is a participant in the long-term
incentive plan of the Company.
Information in this release that relates to exploration results is based on,
and fairly reflects, information and supporting documentation compiled by
Dr Vojtech Sesulka. Dr Sesulka is a Certified Professional Geologist
(certified by the European Federation of Geologists), a member of the Czech
Association of Economic Geologist, and a Competent Person as defined in the
JORC Code 2012 edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Dr Sesulka has provided his prior
written consent to the inclusion in this report of the matters based on his
information in the form and context in which it appears. Dr Sesulka is an
independent consultant with more than 10 years working for the EMH or Geomet
companies. Dr Sesulka does not own any shares in the Company and is not a
participant in any short- or long-term incentive plans of the Company.
Information in this release that relates to metallurgical test work and the
process design criteria and flow sheets in relation to the LCP is based on,
and fairly reflects, information and supporting documentation compiled by Mr
Grant Harman (B.Sc Chem Eng, B.Com). Mr Harman is an independent consultant
and the principal of Lithium Consultants Australasia Pty Ltd with in excess of
14 years of lithium chemicals experience. Mr Harman has provided his prior
written consent to the inclusion in this report of the matters based on his
information in the form and context that the information appears. Mr Harman is
a participant in the long-term incentive plan of the Company.
The information in this release that relates to Mineral Resources and
Exploration Targets is based on, and fairly reflects, information and
supporting documentation prepared by Mr Lynn Widenbar. Mr Widenbar, who is a
Member of the Australasian Institute of Mining and Metallurgy and a Member of
the Australasian Institute of Geoscientists, is a full-time employee of
Widenbar and Associates and produced the estimate based on data and geological
information supplied by European Metals. Mr Widenbar has sufficient experience
that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he is undertaking to qualify as a
Competent Person as defined in the JORC Code 2012 Edition of the Australasian
Code for Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Mr Widenbar has provided his prior written consent to the inclusion
in this report of the matters based on his information in the form and context
that the information appears. Mr Widenbar does not own any shares in the
Company and is not a participant in any short- or long-term incentive plans of
the Company.
The Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources or Ore
Reserves, that all material assumptions and technical parameters underpinning
the estimates in the relevant market announcement continue to apply and have
not materially changed. The Company confirms that the form and context in
which the Competent Person's findings are presented have not been materially
modified from the original market announcement.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking statements.
Often, but not always, forward looking statements can generally be identified
by the use of forward looking words such as "may", "will", "expect", "intend",
"plan", "estimate", "anticipate", "continue", and "guidance", or other similar
words and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks,
uncertainties and other factors that may cause the company's actual results,
performance, and achievements to differ materially from any future results,
performance, or achievements. Relevant factors may include, but are not
limited to, changes in commodity prices, foreign exchange fluctuations and
general economic conditions, increased costs and demand for production inputs,
the speculative nature of exploration and project development, including the
risks of obtaining necessary licences and permits and diminishing quantities
or grades of reserves, political and social risks, changes to the regulatory
framework within which the company operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and
retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its management's good
faith assumptions relating to the financial, market, regulatory and other
relevant environments that will exist and affect the company's business and
operations in the future. The company does not give any assurance that the
assumptions on which forward looking statements are based will prove to be
correct, or that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or foreseeable by
the company or management or beyond the company's control.
Although the company attempts and has attempted to identify factors that would
cause actual actions, events or results to differ materially from those
disclosed in forward looking statements, there may be other factors that could
cause actual results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the reasonable
control of the company. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward looking statements in these
materials speak only at the date of issue. Subject to any continuing
obligations under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any obligation to
publicly update or revise any of the forward looking statements or to advise
of any change in events, conditions or circumstances on which any such
statement is based.
LITHIUM CLASSIFICATION AND CONVERSION FACTORS
Lithium grades are normally presented in percentages or parts per million
(ppm). Grades of deposits are also expressed as lithium compounds in
percentages, for example as a percent lithium oxide (Li(2)O) content or
percent lithium carbonate (Li(2)CO(3)) content.
Lithium carbonate equivalent ("LCE") is the industry standard terminology for,
and is equivalent to, Li(2)CO(3). Use of LCE is to provide data comparable
with industry reports and is the total equivalent amount of lithium carbonate,
assuming the lithium content in the deposit is converted to lithium carbonate,
using the conversion rates in the table included below to get an equivalent
Li(2)CO(3) value in percent. Use of LCE assumes 100% recovery and no process
losses in the extraction of Li(2)CO(3) from the deposit.
Lithium resources and reserves are usually presented in tonnes of LCE or Li.
The standard conversion factors are set out in the table below:
Conversion Factors for Lithium Compounds and Minerals
Convert from Convert to Li Convert to Li(2)O Convert to Li(2)CO(3) Convert to LiOH.H(2)O
Lithium Li 1.000 2.153 5.325 6.048
Lithium Oxide Li(2)O 0.464 1.000 2.473 2.809
Lithium Carbonate Li(2)CO(3) 0.188 0.404 1.000 1.136
Lithium Hydroxide LiOH.H(2)O 0.165 0.356 0.880 1.000
Lithium Fluoride LiF 0.268 0.576 1.424 1.618
WEBSITE
A copy of this announcement is available from the Company's website at
www.europeanmet.com/announcements/ (http://www.europeanmet.com/announcements/)
.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman
Kiran Morzaria, Non-Executive Director Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Henko Vos, Company Secretary
Tel: +44 (0) 20 7440 0647
Tel: +61 (0) 400 550 042
Email: cosec@europeanmet.com
WH Ireland Ltd (Nomad & Broker)
James Joyce / Darshan Patel / Isaac Hooper Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell (Broking)
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3222
Tim Blythe
Megan Ray
Chapter 1 Advisors (Financial PR - Aus)
David Tasker Tel: +61 (0) 433 112 936
The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014 ("MAR") as it forms part of UK domestic law by virtue of the European
Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's
obligations under Article 17 of MAR.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
European Metals Holdings Limited (ASX: EMH)
ABN Quarter ended ("current quarter")
55 154 618 989 30 June 2024
Consolidated statement of cash flows Current quarter Year to date
$A'000
(12 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from associate
1.2 Payments for - -
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (320) (1,784)
(e) administration and corporate costs (164) (2,454)
1.3 Dividends received (see note 3) - -
1.4 Interest received 366 827
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (Cinovec associated costs) - (10)
1.9 Net cash from / (used in) operating activities (118) (3,421)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment - (4)
(d) exploration & evaluation - -
(e) investments - (11,392)
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other - -
2.6 Net cash from / (used in) investing activities - (11,396)
3. Cash flows from financing activities - 9,889
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - 1,120
3.4 Transaction costs related to issues of equity securities or convertible debt - (3)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (Lease Payments) (10) (64)
3.10 Net cash from / (used in) financing activities (10) 10,942
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 5,012 8,893
4.2 Net cash from / (used in) operating activities (item 1.9 above) (118) (3,421)
4.3 Net cash from / (used in) investing activities (item 2.6 above) - (11,396)
4.4 Net cash from / (used in) financing activities (item 3.10 above) (10) 10,942
4.5 Effect of movement in exchange rates on cash held (157) (291)
4.6 Cash and cash equivalents at end of period 4,727 4,727
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 2,990 3,012
5.2 Call deposits 1,737 2,000
5.3 Bank overdrafts - -
5.4 Term deposit less than 3 months - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 4,727
5,012
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 211
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
Amounts paid to directors as director remuneration. A portion of these
expenses are reimbursed directly from Geomet. Included in 6.1 are also
payments to Nexia Perth Pty Ltd (a company in which a spouse of a director is
a key management personnel), for company secretarial support, accounting and
bookkeeping fees of $37.8k.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (118)
8.2 (Payments for exploration & evaluation classified as investing activities) -
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (118)
8.4 Cash and cash equivalents at quarter end (item 4.6) 4,727
8.5 Unused finance facilities available at quarter end (item 7.6) -
8.6 Total available funding (item 8.4 + item 8.5) 4,727
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 40.1
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7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: N/A
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: N/A
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: N/A
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 31 July 2024
Authorised by: The Board
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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