Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt:
E06) (the "
Company" or "
EMN") is
pleased to announce key developments during the third fiscal
quarter 2022 and to date. The Company has now filed its third
quarter Financial Statements and Management’s Discussion and
Analysis ("
MD&A").
Key Developments During and Subsequent
to the Quarter:
-
Positive Feasibility Study ("FS") announced for the
Chvaletice Manganese Project ("the
Project"). The FS outlines robust
base case project economics of after-tax NPV8% of US1.34 billion
and an ungeared IRR of 21.9% with a 4.1-year payback period.
Initial capital is estimated at US$757.3 million, including total
contingencies of $106.5 million. Forecast life of project net
revenues are US$13.3 billion with an EBITDA of US$8.1 billion.
Based on the price forecasts prepared by CPM Group LLC, a leading,
independent commodities market research firm with expertise in
high-purity manganese, the upside case shows an after-tax NPV8% of
US$1.79 billion and an ungeared IRR of 24.1%.
A conversion rate of 99% Resources to Reserves
supports a 25-year project life estimated to produce an annual
average of 98,600 tonnes of high-purity manganese sulphate
monohydrate ("HPMSM"), containing 32.34% Manganese
("Mn"), and 14,890 tonnes of high-purity
electrolytic manganese metal ("HPEMM"), containing
99.9% Mn. HPMSM and HPEMM are critical raw-materials used in the
production of most lithium-ion battery cathodes.
EMN is uniquely positioned to provide a secure,
traceable, and responsibly produced supply of high-purity manganese
products to capitalize on the growth in the European electric
vehicle ("EV") market.
The Company is currently in the process of
preparing an Engineering, Procurement, Construction Management
("EPCM") tender package for the next stage of
project development. Tender release is anticipated to be in
September 2022, with EPCM award anticipated by Q1 2023.
-
Completion of a Life Cycle Assessment ("LCA") for the
Chvaletice Manganese Project. Results of the LCA validate
the Project’s environmental value proposition. Multiple
environmental benefits from the recycling and remediation of the
historic tailings area were identified, particularly the
improvement of soil quality and freshwater quality. The Company is
committed to using 100% carbon-free, renewable electricity to power
the proposed processing plant, resulting in the Global Warming
Potential ("GWP") of the Project being reduced by
half when compared to the use of carbon-based, non-renewable
electricity.
Delivery of the LCA is timely as Euro Manganese
continues to engage with customers in the EV battery/automotive
space, each of whom are testing and qualifying both the chemistry
and environmental credentials of the Company’s high-purity
manganese products.
A benchmarking exercise is underway, where the
Project’s GWP will be compared against similar operations producing
high-purity manganese products. The results of the benchmarking
analysis will be released once complete.
- Arrival
of the demonstration plant modules in Europe. One of the
two shipments of the demonstration plant modules was unloaded in
early August and the second shipment is currently scheduled to be
unloaded later this month. Congestion and strikes at the Port of
Hamburg delayed the arrival and unloading of the demonstration
plant shipments, originally anticipated in July.
Buildings at site have been refurbished and
readied for delivery and installation of the demonstration plant
modules. Assembly of the plant modules will commence upon arrival
at the Chvaletice Project site, with commissioning of the
demonstration plant expected thereafter.
The demonstration plant will be used for
customer supply chain qualification of Euro Manganese’s high-purity
manganese products.
- View a video of
the before and after pictures of the refurbished buildings for the
demonstration plant.
-
Appointment of financial advisor to assist with project
finance. During the quarter, the Company appointed Stifel
Nicolaus Europe Limited, a wholly owned subsidiary of Stifel
Financial Corp. (NYSE:SF) as financial advisor to assist with the
structuring and securing of project financing for the development
of the Chvaletice Project.
- Support
from the National Research Council of Canada Industrial Research
Assistance Program (NRC IRAP). Following the quarter
end, the Company was approved to receive advisory services and up
to $165,000 in funding from NRC IRAP. The funding supports the
initiative the Company is undertaking with Nano One® Materials
Corp., Metal direct to Cathode Active Material, as well as the
evaluation of the manganese metal by-product from the battery black
mass recycling.
- Joined
the Global Battery Alliance ("GBA"). During the quarter,
EMN announced its membership in the Global Battery Alliance, a
partnership of leading organizations from across the battery value
chain, governments, academics and NGOs who have mobilized to ensure
that battery production not only supports green energy, but also
safeguards human rights and promotes environmental sustainability.
EMN is the first high-purity manganese company to join the
GBA.
- Approval
of Land Access Agreement with the Municipality of
Chvaletice. The terms agreed to in the second quarter
with the Municipality of Chvaletice, regarding the rental of
certain land to the Company, were formalized in an agreement this
quarter. The Agreement grants the Company access to a portion of
the tailings surface area. The Company is progressing negotiations
on land access agreements for the remaining surface rights.
Dr. Matthew James, President & CEO of Euro
Manganese, said:
“The third fiscal quarter of 2022 was an
extremely productive one for Euro Manganese as highlighted by the
achievements of several major milestones. Delivery of the positive
feasibility study, combined with the results of the Life Cycle
Assessment affirming Chvaletice’s environmental credentials,
position the Project attractively for both project financiers and
potential customers. Other milestones achieved in the quarter were
the appointment of Stifel as financial adviser to structure and
secure financing for the Project; preparation of the EPCM tender
documentation for the Project; becoming a member of the GBA; and
the appointment of Hanna Schweitz to the Board of Directors in
April.
“Our Czech team are ready for the arrival of our
demonstration plant, which has now arrived in Hamburg. One shipment
has been unloaded and the second shipment is expected to be
unloaded shortly. Meanwhile, smaller samples produced from our
second pilot plant run are now available and will be shipped to new
potential customers to initiate their supply chain qualification
process.
“Our near-term focus remains the assembly and
commissioning of our demonstration plant, the submission of our
final Environmental and Social Impact Assessment later this
quarter, the securing of the remaining land access rights, and
entering into offtake agreements with our prospective
customers.”
Q3 2022 Operational Update Conference
Call Details
Euro Manganese will host its Third Quarter 2022
conference call on Monday, August 15, 2022 at 3:30pm PT (6:30pm ET)
(Tuesday, August 16, 2022 at 8.30 am AEST). CEO Matt James and CFO
Martina Blahova will provide an update on the Chvaletice Project
and its upcoming milestones. The call will also be webcast:
https://services.choruscall.ca/links/euromanganese2022q3.html
|
North America |
Europe |
Australia |
Date |
Monday, August 15, 2022 |
Monday, August 15, 2022 |
Tuesday, August 16, 2022 |
Time |
3:30pm PT | 6:30pm ET |
11:30pm BST |
6:30am AWST | 8:30am AEST |
Dial-In |
1-800-319-4610 |
0808-101-2791 |
1-800-423-528 |
About Euro Manganese Inc.
Euro Manganese Inc. is a battery materials
company focused on becoming a leading, competitive, and
environmentally superior producer of high-purity manganese for the
electric vehicle (EV) industry and other high-technology
applications. The Company is advancing development of the
Chvaletice Manganese Project in the Czech Republic, which is a
unique waste-to-value recycling and remediation opportunity
involving reprocessing old tailings from a decommissioned mine. The
Chvaletice Project is the only sizable resource of manganese in the
European Union, strategically positioning the Company to provide
battery supply chains with critical raw materials to support the
global shift to a circular, low-carbon economy.
The news release disclosing the results of the
Feasibility Study was filed on SEDAR on July 27, 2022. In addition,
technical information concerning the Chvaletice Manganese Project
is reviewed by Ms. Andrea Zaradic, P. Eng, VP Operations for Euro
Manganese, and a Qualified Person under NI 43-101 Standards of
Disclosure for Mineral Projects. Ms. Zaradic has reviewed and
approved the information in this news release.
Authorized for release by the CEO of Euro
Manganese Inc.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) or the ASX accepts responsibility for the
adequacy or accuracy of this release.
Inquiries
Dr. Matthew JamesPresident & CEO+44 (0)747
229 6688
Louise BurgessSenior Director, Investor
Relations & Communications+1 (604) 312-7546lburgess@mn25.ca
Company Address: #709 -700 West Pender St.,
Vancouver, British Columbia, Canada, V6C
1G8Website: www.mn25.ca
Forward-Looking Statements
Certain statements in this news release
constitute “forward-looking statements” or “forward-looking
information” within the meaning of applicable securities laws. Such
statements and information involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company, its Project, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements or information. Such statements can be
identified by the use of words such as “may”, “would”, “could”,
“will”, “intend”, “expect”, “believe”, “plan”, “anticipate”,
“estimate”, “scheduled”, “forecast”, “predict” and other similar
terminology, or state that certain actions, events or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved.
Results of the Feasibility Study constitutes
forward-looking information or statements, including but not
limited to estimates of internal rates of return (including any
pre-tax and after-tax internal rates of return), payback periods,
net present values, future production, assumed prices for HPMSM and
HPEMM, ability of the Company to achieve a pricing premium for its
products, proposed extraction plans and methods, operating life
estimates, cash flow forecasts, metal recoveries and estimates of
capital and operating costs. Such forward-looking information or
statements also include, but are not limited to, statements
regarding the Company’s intentions regarding the Project in the
Czech Republic, the development of the Project, the ability to
source green power and other requirements for the Project, the
completion and submission of an environmental and social impact
assessment, statements regarding the ability of the Company to
obtain remaining surface rights, the benefits of remediating the
historic tailings areas, the growth and development of the high
purity manganese products market, the desirability of the Company’s
products, the growth of the EV industry, the use of manganese in
batteries, the manganese project supply line, support from European
financial institutions, and the Company’s ability to obtain
financing for the Project.
Readers are cautioned not to place undue
reliance on forward-looking information or statements.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
statements and, even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or
events to differ materially from current expectations include,
among other things: the ability to develop adequate processing
capacity; the availability of equipment, facilities, and suppliers
necessary to complete development; the cost of consumables and
extraction and processing equipment; risks and uncertainties
related to the ability to obtain, amend, or maintain necessary
licenses, or permits, risks related to acquisition of surface
rights; risks and uncertainties related to expected production
rates; timing and amount of production and total costs of
production; the potential for unknown or unexpected events to cause
contractual conditions to not be satisfied; the failure of parties
to contracts with the Company to perform as agreed; risks and
uncertainties related to the accuracy of mineral resource and
reserve estimates, the price of HPEMM and HPMSM, power supply
sources and price, reagent supply resources and prices, future cash
flow, total costs of production, and diminishing quantities or
grades of mineral resources and reserves; changes in Project
parameters as plans continue to be refined; risks related to global
epidemics or pandemics and other health crises, including the
impact of the novel coronavirus (COVID-19); availability and
productivity of skilled labour; risks and uncertainties related to
interruptions in production; unforeseen technological and
engineering problems; the adequacy of infrastructure; risks related
to Project working conditions, accidents or labour disputes; social
unrest or war; the possibility that future results will not be
consistent with the Company's expectations; risks relating to
variations in the mineral content and grade within resources from
that predicted; variations in rates of recovery and extraction;
developments in EV battery markets and chemistries; and risks
related to fluctuations in currency exchange rates, changes in laws
or regulations; and regulation by various governmental agencies.
For a further discussion of risks relevant to The Company, see
"Risk Factors" in the Company's annual information form for the
year ended September 30, 2021, available on the Company's SEDAR
profile at www.sedar.com.
All forward-looking statements are made based on
the Company's current beliefs as well as various assumptions made
by the Company and information currently available to the Company.
Generally, these assumptions include, among others: the presence of
and continuity of manganese at the Project at estimated grades; the
ability of the Company to obtain all necessary land access rights;
the availability of personnel, machinery, and equipment at
estimated prices and within estimated delivery times; currency
exchange rates; manganese sales prices and exchange rates assumed;
growth in the manganese market; appropriate discount rates applied
to the cash flows in economic analyses; tax rates and royalty rates
applicable to the proposed operations; the availability of
acceptable Project financing; anticipated extraction losses and
dilution; success in realizing proposed operations; and anticipated
timelines for community consultations and the impact of those
consultations on the regulatory approval process.
Although the forward-looking statements
contained in this news release are based upon what management of
the Company believes are reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are
made as of the date of this news release and are expressly
qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any
obligation to update or revise the forward-looking statements
contained herein to reflect events or circumstances occurring after
the date of this news release.
Euro Manganese (TSXV:EMN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Euro Manganese (TSXV:EMN)
Historical Stock Chart
From Apr 2023 to Apr 2024