Euro Manganese Posts $3.6M Q3 Loss, Extends Convertible Loan Milestones to June 2026

Euro Manganese’s Financial Snapshot

Euro Manganese Inc. has released its unaudited interim financial statements for the three months ended December 31, 2025, revealing a net loss of $3.633 million. The company’s cash outflow from operating activities stood at $2.471 million, underscoring the ongoing cash burn as it advances its flagship Chvaletice Manganese Project in the Czech Republic.

Despite generating modest revenue of $1.147 million from its subsidiary operations, the cost of goods sold and operating expenses outpaced income, resulting in a gross loss and a comprehensive loss of $3.648 million for the quarter. The working capital deficit widened to $25.7 million, reflecting the company’s liquidity challenges as it continues to invest heavily in project development and corporate administration.

Financing and Convertible Loan Amendments

Euro Manganese’s development efforts are supported by a $100 million funding package from Orion Resource Partners, split between a convertible loan facility and a royalty financing arrangement. Notably, the company announced amendments to the convertible loan facility in December 2025, extending milestone deadlines to June 30, 2026. This extension provides additional runway for Euro Manganese to meet key commercial and technical milestones required to unlock further funding tranches.

The convertible loan bears a 12% annual interest rate, with Orion holding the option to convert the loan into a royalty on project revenues. The amended terms also allow Orion to convert the outstanding loan amount and accrued interest into royalties at any time, subject to agreed conditions. As at December 31, 2025, Euro Manganese remained compliant with all loan covenants.

Operational Progress and Capital Management

The company continues to develop its manganese processing operations through its wholly owned subsidiaries, including EP Chvaletice s.r.o., which operates specialty steel fabrication and holds industrial land adjacent to the project site. Euro Manganese is also advancing plans for a North American facility in Québec, Canada, targeting the lithium-ion battery market.

Capital management remains a critical focus, with no new shares issued during the quarter but subsequent cancellation of some stock options and exercise of warrants, indicating ongoing efforts to optimise the capital structure. The company’s share-based compensation expenses reflect continued investment in talent and incentives aligned with project development goals.

Going Concern and Future Outlook

Euro Manganese’s financial statements highlight material uncertainty regarding its ability to continue as a going concern. The company acknowledges that current capital resources are insufficient to fund operations and project development over the next twelve months without additional financing. Management is actively exploring funding alternatives, but the availability and terms of such financing remain uncertain.

This uncertainty underscores the importance of upcoming milestones and commercial agreements, which will be pivotal in securing further investment and advancing the Chvaletice Project towards production. Investors will be watching closely for progress on these fronts and any updates on financing arrangements.