Quarterly activities report, March 2020 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: No. The Company has signed final agreement with CEZ Group regarding its investment in Cinovec Project on 27 March 2020. CEZ has paid ~AUD 50 million into the Czech subsidiary, Geomet to fund the Project. This will reduce the Company’s holding in Geomet to 49%. On completion of the final agreement, the Company will cease to consolidate Geomet’s results within the Company’s consolidated accounts. It also means that European Metals will no longer fund Geomet expenses, thereby significantly reducing costs. In addition, the Company has been appointed to provide management services to Geomet and will be remunerated for doing so. 2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: No. Not required at this juncture. Let me repeat that: the Company has been appointed to provide management services to Geomet and will be remunerated for doing so.
Emh is not managing the asset, Geomet is? Do you read the announcements in depth or only the title?
EMH Price at posting:
77.0¢ Sentiment: Hold Disclosure: Held
(20min delay)