STRONG BUY, page-650

Stock is CHEAP and CHEAPER by the day.
Now back at levels pre- VW power day, when VW announced the use of high Manganese as its battery of choice. This was a game changer for the company, and yet the market is valuing the stock as though this never happened.
From a valuation perspective, I reiterate what I said previously.
One needs to adjust the PEA NPV figure since they use a 10% cost of capital which is v high for a good jurisdiction - to say 8%, which is comparable to other resource cos in such jurisdiction. In doing so, NPV rises to probably cUSD700m all else equal. We’re therefore priced at ONLY 20% of NPV and that‘s assuming PEA Manganese flake prices, which are below where spot trades.today!
As an idea, Piedmont lithium is valued at something like 70% of NPV; serious uranium projects are valued 60-70% of NPV and that’s assuming a uranium price way above spot... European Metals Holdings trades at something like 31% - and yet, we are the ONLY Manganese project in the EU unlike with lithium.
I therefore do NOT see why this stock should not end up
trading at LEAST 3x higher over next 6months - as we head to FS, pilot plant being operational. Moreover, short term a Nasdaq listing could finally put this company on the radar of ESG funds.
This project has the DISTINCT advantage of not being a mining project but a effectively a RECYCLING project, and one could argue this deserves a PREMIUM valuation to other natural resource projects. This project is perfectly aligned with what the EU is looking for in its green deal aspiration; and in my view could also attract the interest of recycling companies (how about Veolia/Suez takeover?). Finally, I believe just like EMH, EMN could get access to funding for the project from the EU Transition Fund - as Czech R moves away from legacy polluting industries.
NO BRAINER. BUY!!!