Euro Manganese Posts $12.8M Loss, Raises $11M, Amends $20M Loan
Euro Manganese Inc. reported a $12.8 million loss for the nine months ended June 30, 2025, while securing $11.1 million in equity financing and amending its $20 million convertible loan facility. The company highlights ongoing funding risks as it advances its manganese projects.
- Net loss of $12.8 million for nine months ended June 30, 2025
- Raised $11.1 million through private placement and share purchase plan in May 2025
- Amended $20 million convertible loan facility with Orion, deferring interest payments and issuing warrants
- Working capital surplus of $9.3 million but material uncertainty about going concern status
- Continued development of Chvaletice Manganese Project and Canadian processing facility plans
Financial Performance and Losses
Euro Manganese Inc. has disclosed a net loss of $12.8 million for the nine months ending June 30, 2025, reflecting the challenges typical of an early-stage mining development company. The loss was accompanied by operating cash outflows of $6.9 million, underscoring the ongoing capital intensity of advancing the Chvaletice Manganese Project in the Czech Republic and related initiatives.
The company’s revenue remains modest at $3.4 million for the period, with cost of goods sold and operating expenses continuing to outpace income. Depreciation and project evaluation costs contributed significantly to the operating loss, while corporate and administrative expenses remained substantial.
Capital Raising and Financing Amendments
In May 2025, Euro Manganese successfully raised $11.1 million through a combination of a private placement and a share purchase plan, issuing over 47 million common shares and nearly 63 million warrants. This infusion provides a critical liquidity boost as the company progresses its project development milestones.
Simultaneously, the company amended its $20 million convertible loan facility with Orion Resource Partners. The amendment defers quarterly interest payments until maturity and includes the issuance of 22 million warrants to Orion, reflecting a strategic move to preserve cash flow. The loan bears a 14% interest rate post-amendment, up from the original 12%, and maintains options for conversion into royalties tied to project revenues.
Project Development and Asset Position
Euro Manganese continues to advance the Chvaletice Manganese Project, holding exclusive mining rights with no expiry date, and owns significant land parcels in both the Czech Republic and Canada. The acquisition of EP Chvaletice s.r.o. in late 2023 added valuable industrial land adjacent to the project site, intended for the development of a high-purity manganese processing facility.
The company is also progressing plans for a North American processing facility in Bécancour, Québec, with land option agreements in place. These strategic assets position Euro Manganese to supply high-purity manganese products primarily for lithium-ion battery markets, aligning with growing demand for battery materials.
Going Concern and Future Outlook
Despite the recent capital raise, Euro Manganese acknowledges material uncertainty regarding its ability to continue as a going concern without additional financing. Current working capital stands at $9.3 million, which is not expected to fully cover corporate and project development costs over the next twelve months. The company is actively exploring financing options but cautions that market conditions and project progress will heavily influence funding availability.
The amended convertible loan facility and equity financing provide some runway, but the company’s path to commercial production remains contingent on securing offtake agreements, permits, and further capital. Investors should watch closely how Euro Manganese navigates these critical milestones amid a competitive battery materials landscape.
Bottom Line?
Euro Manganese’s recent financing efforts provide short-term relief, but securing sustainable funding remains critical to advancing its manganese projects.
Questions in the middle?
- Will Euro Manganese secure the additional financing needed to reach commercial production?
- How will the deferred interest payments and warrants impact future dilution and shareholder value?
- What is the timeline for obtaining key permits and offtake agreements to unlock project funding?
