Hi all, hope everyone's well ++
Last week's News
Highlights
· The Prunéřov site has been selected for the lithium processing plant with the move expected to speed up the permitting process and expedite the Cinovec Project.
Speed up and Expidite
· The Prunéřov site is anticipated to also enable positive outcomes for project economics including reductions in capex and opex per tonne as a result of optimalization of the engineering identified as part of the Definitive Feasibility Study ("DFS") process, and reduced demolition and clearance requirements.
Positive outcomes for our Economics - Reduced Capex and Opex - last reported opex was $5567
· The new site has received preliminary agreement and support from the municipal and regional governments.
Confirmed support from municipal and regional governments which they didn't clearly have before until now. This is Big for Cinovec.
· Geomet will now proceed to finalise the DFS process taking into account the new site, including the revised capex from the new site.
Finalise...The largest majority of the DFS is complete. All of Cinovecs lock in cycles and flow sheets on both the carbonate and hydroxide were excellent.
Jan Losenický, Mayor of Kadaň, added: "We welcome the plan of ČEZ and Geomet to build a lithium plant in Prunéřov. People from our town who currently work in coal-fired power plants or mines, but which will be gradually downsized and closed, could find employment in the processing plant. The investor has promised to invest in the training and retraining of current employees so that they can be employed in the new sophisticated plant. We are glad that ČEZ will not leave the region with the end of coal but will remain one of the largest investors and employers in the region, also thanks to the lithium park project.
The news was great and further derisked EMH towards being a major producer for the EU and Czech Republic - it also gave further emphasis on the move away from coal, which supports the purpose of the JTF 49mil grant to help replace coal jobs with clean jobs.
Theres also been alot of confirmation across the 2024 interviews that CEZ, the government, and the bank are aligned and that the projects coming online. There's constant blaming the CEO when it's obviously not in his hands - it the EU that has been slow, until now. With the CMRA, net zero act, innovation fund have all come into effect over the last 6 months +the Just Transition fund starts giving companies the money in Q2- things have never been more on EMHs side from here moving forward.
Made in Europe - from mine to electric vehicle" - which shows where the EU is at with mining. Highlights are the EU plan to set the mining standards and rules for the clean and fair mining - and to create premium products that come with a carbon passport proving proof of carbon produced - to inforce tax laws at the boarder for imports EVs or metals that can't prove the same, to even the playing field to "fair trade metals". And to have "strategic mining projects" that get expedited and prioritised, that can ensure the EU Critical mineral self suffiency.
https://youtu.be/Qm5YiUgkJew?si=ZzuC1U84yHqPEd-V
Also a great interview worth listening from the head of CMRA and what it means for mining and EVs In Europe from May - he also speaks alot about the net zero act, the innovation fund and other recent EU funding mechanisms to support this.
https://youtu.be/Lre-QtKXIhc?si=uUIzarzPFF1p1GeN
What has been clear in this process is the importance placed on this project by the community and Czech Government at all levels. In the European Union's Critical Raw Materials Act ("CRMA") environment, the coming together of both the Cinovec project joint venture partners and the Czech Government in the decision-making process with regards of the selection of the Prunéřov site provide a very strong foundation for our upcoming application for Strategic Project status under the CRMA."
https://twitter.com/MarosSefcovic/status/1780687644663685580?t=pjiy1ezdLKvsw7neOnwHDA&s=19
The Green Lights
Strategic status under the CMRA
https://twitter.com/CzechLithium/status/1750112472483135495?t=FQ06IyNdDTszjSfRYaDSKw&s=19 spoken to above
Receival of the Grant
All of this is great timing for EMH while likely to receive a €49million grant from the Just Transition fund in May/Q2. It's more than there whole mcap currently.
https://youtu.be/UPTqsrmTfAE?si=T9uR6whbsx5S9v4O
It's a fund designed specially to help the EU reduce dependency on coal - focused on coal+ regions of which the Czech Republic is one still getting 35%+ energy from coal in 2023. CEZ owns the majority of in country coal power has a phasing down program - today's RNS further spoke to the lithium being welcomed as they plan to transion the coal jobs from the region into clean jobs. EMHs tailings planned to be used to rehabilitate the coal deposits once phased out. All good for the likelyhood of them recieving it which would be a major catalyst to the SP but more so huge green light for the Project.
Gigafactory involvement
https://centraleuropeantimes.com/2024/03/mystery-ev-firm-to-build-eur-8bn-plant-in-czechia/
To read that and think of last week's news - the Jobs amount of clean jobs created from Cinovec and the potential Gigafactory to replace the coal jobs further strengthens likely strategic status
DFS / Offtake
DFS being finalised - offtake expected to come to fruition alongside it. All the above are near term major Catalysts. Based in the above, EMH could see new ATHs before the end of Q3
Will personally continue to accumulate while half the banks price and equal value to the Grant before the rest of the Q2 Newsflow. - I recommend watching that made in Europe and the interview with the head of the CMRA over the weekend and consider him at Cinovec in January
All the best everyone
(20min delay)