Business
Quarterly Activities/Appendix 5B Cash Flow Report
European Metals Holdings Limited has reported significant progress on its Cinovec Lithium Project, highlighted by the completion of its Definitive Feasibility Study which forecasts 37,500 tonnes per annum of battery-grade lithium carbonate, and the approval of a substantial EUR 360 million grant from the Czech government. The company also submitted its Environmental Impact Assessment, a key step towards final permitting and funding. Financially, the company incurred EUR 1.22 million in Cinovec DFS costs during the quarter, ending with $0.43 million in cash, with a pro forma cash balance of $2.97 million after a subsequent A$3.46 million capital raise. Disclaimer*
About this update from European Metals Holdings Ltd
[{"type":"text","content":"\n\nQUARTERLY ACTIVITIES REPORT\n31 December 2025\nEuropean Metals Holdings Limited (ASX & AIM: EMH, OTCQX and OTCQB: EMHXY and EMHLF) (\"European Metals\" or the \"Company\") is pleased to provide an update on its activities during the three-month period ending 31 December 2025. This period was an extremely significant one for the Company in the continued development of the globally significant Cinovec Lithium Project (\"the Project\" or \"Cinovec\") in the Czech Republic.\nThe two most significant developments in the period were the successful completion of the Definitive Feasibility Study (\"DFS\" or \"Study\") for the Cinovec Project, and the announcement of the approval of a major grant for the Project in the order of EUR 360 million. Early in January 2026, post quarter end, the Company also announced the submission of the Environmental Impact Assessment, a key requirement in the final permitting and funding process. The combination of these three developments significantly advances the Cinovec Project towards Final Investment Decision and ultimately, production.\nSuccessful completion of Definitive Feasibility Study\nOn 23 December 2025, the Company announced the successful completion of the DFS for the Cinovec Project. The Study confirms Cinovec as a long-life producer of battery grade lithium carbonate with a forecast production of 37,500 tpa. This production rate equates to approximately 5.2% of forecast EU demand in 2030 and sufficient for the production of approximately 1.3 million 60kWh batteries per annum. These numbers underscore the importance of the Cinovec Project in the supply chain for Electric Vehicles in the EU.\nThe Study demonstrated robust economics with a pre-tax NPV8 of USD 1.455bn and a pre-tax IRR of 14.8% based upon the first 23 years of the full life of mine 27-year production schedule, and its completion enables advancement of key workstreams, such as EU stakeholder engagement for additional grant and debt support, formal project financing discussions, and finalisation of advanced off-take negotiations.\nApproval of up to €360 Million Czech Government Grant\nOn 28 November 2025, the Company made the very significant announcement of the approval of a grant of up to EUR 360 million for the Cinovec Project under the \"Strategic Investments for a Climate-neutral Economy\" programme (\"Programme\")....