European Metals Holdings has made significant strides in developing its Cinovec Lithium Project, announcing a strategic relocation of its processing plant and ongoing enhancements to production capacity and cost efficiency. The Definitive Feasibility Study is on track for mid-2025 completion, promising a clearer outlook on the project's economic potential.
- Relocation of processing plant to former Prunerov 1 Power Station (EPRI) site with superior infrastructure
- Potential increase in run-of-mine ore production beyond previous 2.25mtpa forecast
- Ongoing engineering optimisations targeting capital and operational expenditure reductions
- Definitive Feasibility Study update expected mid-2025 incorporating new site and expanded capacity
- Strong cash position of $3.5 million with no Cinovec-related cash outflows during the quarter
Strategic Site Relocation Enhances Project Viability
European Metals Holdings Limited (ASX: EMH) has revealed a pivotal development in its flagship Cinovec Lithium Project in the Czech Republic, announcing the selection of the former Prunerov 1 Power Station (EPRI) site as the new location for its processing plant and related infrastructure. This 36-hectare site offers significant logistical and operational advantages over the previously proposed 24-hectare Dukla site, including established road and rail infrastructure, and existing power, gas, and water connections.
The move is expected to reduce construction complexity and ongoing operating costs, while also delivering environmental benefits by repurposing rehabilitated industrial land. The Dukla site will be repurposed as a transport hub, facilitating efficient movement of run-of-mine ore and tailings between sites.
Engineering Optimisations and Production Upside
Parallel to the site relocation, European Metals has intensified engineering efforts to optimise the project's capital and operational expenditure. Investigations into increasing mine production tonnages and processing throughput are underway, with preliminary Concept Study results suggesting the potential to exceed the previously announced 2.25 million tonnes per annum (mtpa) run-of-mine ore capacity without expanding the underground mine footprint.
Such an increase, if confirmed in the upcoming Definitive Feasibility Study (DFS), could translate into higher lithium chemical production volumes, leveraging economies of scale to improve project economics. The DFS update, incorporating the EPRI site and revised project configuration, is scheduled for release in mid-2025.
Process Improvements Bolster Economic Outlook
Complementing the site and production enhancements, European Metals is advancing several initiatives to refine the Front-End Comminution and Beneficiation (FECAB) circuit and the Lithium Chemical Plant (LCP) circuit. Recent test work has yielded improvements in lithium recovery rates, waste reduction, and operational cost efficiencies, including reductions in kiln size and energy consumption.
These technical advancements are expected to be reflected in the DFS, further strengthening the project's viability amid rising global demand for lithium, particularly within Europe’s strategic push for critical raw materials supply security.
Financial Position and Corporate Updates
European Metals reported no cash outflows related to Cinovec during the quarter, maintaining a solid cash balance of $3.5 million as of 31 December 2024. Payments to related parties, including director remuneration and consultancy fees, totaled approximately $237,000, with some costs reimbursed by the company’s associate, Geomet s.r.o.
In a move to streamline reporting and governance, the company has shifted its financial year-end from 30 June to 31 December to align with Geomet’s reporting period. Additionally, employee incentives were bolstered with the issuance of performance rights and unlisted options under the Employee Incentive Plan.
Contextualising Cinovec’s Strategic Importance
The Cinovec Lithium Project remains Europe’s largest hard rock lithium deposit and ranks eighth globally, with a combined measured, indicated, and inferred resource containing approximately 7.39 million tonnes of lithium carbonate equivalent. Its central European location, coupled with robust infrastructure and partnerships, most notably with CEZ a.s., a major Czech energy group, positions the project to play a critical role in the continent’s transition to clean energy and electric mobility.
CEZ’s commitment to decarbonisation and renewable energy integration, including plans for solar power installations adjacent to the project site, further enhances Cinovec’s long-term sustainability and potential for expansion.
Bottom Line?
As European Metals advances its DFS and operational optimisations, the Cinovec Project stands poised to redefine lithium supply dynamics in Europe—pending confirmation of production scale and economic viability.
Questions in the middle?
- Will the Definitive Feasibility Study confirm the conceptual production increase and its economic benefits?
- How will integration with CEZ’s renewable energy plans impact operational costs and sustainability metrics?
- What financing strategies will European Metals pursue to support potential project expansion beyond current cash reserves?