EMH upbeat on Cinovec as losses widen

Specialty lithium exploration and development company with assets in the Czech Republic, European Metals Holdings, released its interim unaudited financial report for the half year ended 31 December on Thursday, with its loss before tax widening to $3.16m from $1.31m.

The ASX and AIM-traded firm said that was primarily made up of share-based payment expenses of $2.67m, up from $0.56m, while revenue remained negligible at $8.5k, compared to $6.6k, with other income of $852, down from $23.3k.

“Project development for the period was centered around a significant drilling programme embarked on by the company,” said managing director Keith Coughlan.

“There were numerous updates to this programme released to the market during the period.

“Overall, results from the programme either confirmed or exceeded expectations with respect of both lithium content and width of mineralisation.”

Coughlan said the drilling programme provided important data to the company's preliminary feasibility study which was ongoing throughout the period, as it appointed Ausenco and Hatch as the lead engineers to the study.

“During the half year, the company announced a significant reduction of pre-production capital costs based on a review of scoping study and outstanding recoveries from test work completed.

“The company announced a new exploration license, Cinovec III was granted.

“The license not only covers a small area above the Cinovec deposit itself along the Czech-German border, but also gives the company exclusive rights to explore for potential deep seated lithium ore east of the Cinovec deposit.”

Coughlan also highlighted that on 22 November, the company announced a significant increase in the indicated resource at Cinovec.

“This upgrade was a result of the drilling programme to that point and increased the indicated resource by approximately 420%.

“The company [also] announced the successful manufacture of >99.5% pure lithium carbonate using an industry proven, sodium sulphate roast-based flow-sheet from mica-concentrate from the Cinovec Project.”