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European Metals says Cinovec production modelled to increase to 22,500 tpa of lithium carbonate

The AIM-listed miner said all recent roast/leach tests have reliably achieved lithium extractions in the region of 94% recovery
lithium chemical symbol
European Metals said this modelled increased production would result in approximately a 10% increase in EBITDA margins for the project

European Metals Holdings (LON:EMH) has reported that it has completed roast optimisation testwork and that improved recoveries have resulted in modelled lithium carbonate production from the Cinovec Lithium-Tin Project increasing to 22,500 tpa.

The AIM-listed miner said all recent roast/leach tests have reliably achieved lithium extractions in the region of 94% recovery. 

READ: European Metals begins beneficiation of Cinovec bulk ore sample

The company added that the significance of these results is that a 7% increase in lithium recovery is predicted over that used in the Preliminary Feasibility Study (PFS) completed last year, which in turn would lead to an increase to 22,500tpa of lithium carbonate production from the project.

European Metals said this modelled increased production would result in approximately a 10% increase in EBITDA margins for the project.

Keith Coughlan, MD of European Metals, said: "Proven increased lithium production through increased recoveries will result in an increased cash margin for the project. Our PFS indicated the potential of Cinovec to be a bottom half cost producer and an improvement on that will indeed be significant.”

He added: ”The work that we have been undertaking during this period has been, and will continue to be, aimed at de-risking the flowsheet and elimination of flowsheet options prior to the commencement of what will then be an efficient Definitive Feasibility Study engineering phase.”

Kiran Morzaria, CEO of Cadence Minerals PLC (LON:KNDC) (OTC:KNDCY), which owns approximately 20% of the equity in European Metals Holding, commented: "The strategic importance of the Cinovec Lithium project as a future supply hub for the European EV industry cannot be overstated."

He added: "That the optimisation tests conducted by European Metals are already showing a significant improvement in Lithium recovery and increased cash margins is not only great news for the EV industry but could in future help to meet any lithium supply shortfall if, as we expect, there is a sustained increase in demand."

Shares in European Metal Holdings held steady at 22.75p; Cadence shares were unchanged at 0.22p.

 -- Adds Cadence comment; share prices --

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