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European Metals doubles value of Czech Republic's Cinovec project

Christian Fernsby ▼ | June 17, 2019
European Metals Holdings reported a more than doubling in the value of its Cinovec lithium and tin project in the Czech Republic.
Czech Republic's Cinovec project
European businesses   The net present value of the project is now USD1.11 billion
The net present value of the project is now USD1.11 billion, double the 2017 estimate, while the internal rate of return post-tax is now 37%, from 29% before.

European Metals sees annual production of battery-grade lithium hydroxide of 25,267 tonnes, with a total capital cost for the project over a 21-year mine life of USD482.6 million.

Managing Director Keith Coughlan said: "I am very pleased to report to shareholders on the completion of this update to our 2017 preliminary feasibility study for the Cinovec project which adds significantly to the already robust forecast economics for the project."

"Since demonstrating battery grade lithium hydroxide can be produced from zinnwaldite mineralisation we have worked with Hatch to update the flowsheet and engineering required to adapt our lithium carbonate producing flowsheet to one that converts battery grade lithium carbonate into lithium hydroxide."

"We have now confirmed the ability with our resource, which is the largest lithium resource in Europe, to produce either or both products in line with market requirements once in production," Coughlan continued.

"Cinovec is strategically located in central Europe in close proximity to the continent's vehicle manufacturers. With increasing demand for electric vehicles and the expected demands of grid storage capacity, the project is very well placed to supply the European lithium market for many decades."