Euro Manganese Files Reports Confirming Chvaletice Project NPV of US$492M with Upside to US$798M

Robust Economic Assessment Filed for Chvaletice

Euro Manganese Inc. (ASX:EMN) has formally lodged its NI 43-101 Technical Report and JORC Code Report for the Preliminary Economic Assessment (PEA) of the Chvaletice Manganese Project in the Czech Republic. The detailed filings reaffirm the project’s solid economic foundation with a base case post-tax net present value (NPV) of US$492 million and an internal rate of return (IRR) of 13.8%, using an 8% discount rate. Notably, a new upside case, reflecting a higher manganese sulphate monohydrate (HPMSM) price assumption, boosts the post-tax NPV to US$798 million and IRR to 16.9%.

The reports, prepared by Tetra Tech Canada Inc. and effective as of May 14, 2026, underpin the company’s earlier May 14 announcement and provide updated sensitivity analyses responding to evolving market conditions. The filings are a critical step in the company’s pathway to feasibility, permitting, and financing.

Resource and Production Profile

The Chvaletice deposit consists of three historic tailings cells containing an estimated 26.96 million tonnes of material, averaging a manganese grade of 7.33% total Mn and 5.86% soluble Mn, with magnesium as a valuable by-product at 1.15%. Euro Manganese plans to reprocess these tailings over a 26-year mine life to produce high-purity manganese sulphate monohydrate (HPMSM), a critical battery material, alongside magnesium carbonate.

Production is staged, beginning at roughly 75,000 tonnes per annum (t/a) of HPMSM ramping up to 150,000 t/a by year four. The process involves magnetic separation, acid leaching, purification, electrowinning to produce high-purity electrolytic manganese metal (HPEMM), and conversion to HPMSM. The project’s design incorporates returning non-magnetic tailings and leach residue to the mined-out cells, facilitating environmental remediation.

Capital and Operating Costs

The total initial capital expenditure is estimated at US$825.2 million, split between US$627.4 million for the initial phase and US$197.8 million for the expansion to full production. Sustaining capital over the project life is forecast at US$139 million. Operating costs average US$181.99 per tonne of tailings processed, or approximately US$4.14 per kilogram of manganese metal produced, with processing costs accounting for over 70% of operating expenses.

Market Outlook and Price Sensitivity

Marketeye.org’s independent study, commissioned by Euro Manganese, forecasts a rising demand for HPMSM driven by the battery sector, particularly electric vehicles and energy storage. The base case assumes an HPMSM price of US$2,888 per tonne, while the upside scenario uses US$3,275 per tonne, reflecting potential long-term price increases.

Sensitivity analysis highlights the project’s strong dependence on manganese product prices, with a 15% price variation significantly impacting NPV and IRR. Operating costs and recovery rates also influence project economics but to a lesser extent.

Environmental and Permitting Progress

The project benefits from a favourable environmental and social impact assessment (ESIA) approved in March 2024, with extensive baseline studies indicating manageable environmental risks and positive community engagement. Key permits, including mining lease authorization and construction permits for infrastructure relocation and the technological bridge, have been secured. Remaining permits, including mining activities and storage of mining waste, are in progress.

Euro Manganese’s approach emphasizes remediation of legacy tailings contamination by reprocessing and returning residues within a lined, dry-stacked facility, aligning with circular economy principles and European Union strategic raw materials policies.

Next Steps and Project Execution

The company plans to advance to a feasibility study update, targeting completion in 2027, followed by engineering, procurement, and construction phases aimed at commissioning commercial production by early 2032. The PEA’s positive results and detailed technical disclosures provide a foundation to secure financing and strategic partnerships, critical for project execution.

Euro Manganese continues to engage with battery manufacturers and potential offtake partners, positioning Chvaletice as a key non-Chinese source of high-purity manganese for Europe and allied markets, supporting supply chain diversification and clean energy transition goals.