European Metals Holdings Ltd (AIM:EMH, ASX:EMH, OTCQX:EMHLF) said it remains confident that lithium prices will recover in the medium term.
“Lithium prices have fallen by some 80% over the year, and at the time of writing, there have been numerous closures and production cutbacks at established lithium production projects around the globe,” said Keigh Coughlan, executive chairman.
“Falling prices along with increasing costs have combined to make new lithium project development more challenging.
“However, the company remains confident in the lithium market medium to long term and the future of our project.
“We have already seen improvements in the macro indicators and remain enthusiastically committed to developing the Cinovec Project."
Coughlan added that EMH had lodged its formal submission under the EU's Critical Raw Materials Act post-period to see it recognised as a strategic project under this legislation.
Cinovec, a hard rock deposit in the Czech Republic, already has strategic project status under another EU initiative, the Just Transition Fund.
“Other key milestones achieved during the year included the successful production of lithium carbonate and lithium hydroxide from the pilot programme - both meeting battery grade specifications, the granting of extensions to our exploration licenses which cover granted Preliminary Mining Permits, and the selection of a significantly superior site for the lithium processing plant,” said Coughlan.
He added the delay to the Definitive Feasibility Study was unfortunate, though necessary and has allowed it to work on processing enhancements that will further improve the project economics.
Losses in the year to end June 2024 were A$3.36 million (2023: A$5.92 million).