Hi all, hope everyone's well
Exciting weeks and months ahead now entering June. Keith mentioned an updated timeline to the DFS will be given a few weeks to a month from the recording date of the most recent interview ( recorded circa 2 weeks ago). It's been stated the new site will help expidite the permitting process as it's shared with currently operating CEZ coal plant - the DFS has been being finalised for nearly 5 weeks and we know the largest majority is complete ( Both SAV and ZNWDs DFS not due until the end the year and both also set up for big 2024s and beyond as the CMRA takes effect ) The Just Transition fund Grant was mentioned for May/Q2 with steps in may june and the Final in July mentioned in the recent interview. I'd expect news on the above over this week or next. The new site is large enough to have a Gigafactory - while we await news on the 8bn gigafactory bid placed in March. News in relation would be huge and also feels impending.
“The gigafactory project is one of the strategic priorities of the government, and it is in our interest to have the entire chain from lithium mining through the gigafactory, i.e. battery production, to the final products in the Czech Republic,” said Fiala said at a press conference on Wednesday
https://centraleuropeantimes.com/2024/03/mystery-ev-firm-to-build-eur-8bn-plant-in-czechia/
Czechia will host a EUR 7.9bn electric vehicle (EV) battery in Karvina, east Czechia, funded by a foreign investor, the Czech government announced on Thursday, 7 March.
Czech Prime Minister Petr Fiala said Wednesday that the project should improve the country’s employment figures, energy security and competitiveness, adding that the deal precludes him from disclosing the name of the company.
Czech Industry and Trade Minister Jozef Sikela said the company is large and from a democratic country with which Czechia has long held good relations.
Sikela also revealed in November that Czechia is in discussion with five other potential EV plant investors “from other continents”. Fiala said, “the gigafactory project is a strategic government priority, and it is in our interest to have the entire chain from lithium mining through the gigafactory, i.e. battery production, to the final products in Czechia."
https://www.lse.co.uk/rns/czech-pm-visits-cinovec-signs-moc-with-saxony-pm-mwkqeepvayfkxu7.html
The Gigafactory Europe event is on the 4-5 of June - considering the the prime minsters comments / plans and the site being big enough for Gigafactory - we're well positioned - and update should can come anytime now on who the bidder is.
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The Just Transition Fund grant
The total amount allocated by the Just Transition fund for the Czech Republic is CZK 41B (€1.64B) of which the Usti region has been allocated CZK 15.8B (approx. €632M).
The first call for grant applications under the JTF opened on 14 November 2022 and closes on 31 December 2023.
Given the total amount which may be applied for by the eleven designated Strategic Projects in the Usti region in the first call is CZK 8.3B (approx €350M) and that the funds allocated in this first call from the Just Transition Fund to these Strategic Projects totals CZK7.3B (approx €300M), although there can be no certainty, the Company is confident that Cinovec will receive a significant portion of the funds applied for from the JTF for the Project.
Accordingly, Geomet s.r.o (the Cinovec project company) will apply for JTF Grant funding for the maximum amount of CZK 1.2B (approx €49M).
Theres €300million just for the 11 strategic projects - there's no reason not to believe Cinovec will recieve a large portion supporting the transion from coal job to clean jobs as the tailings rehabilitate the demomisionwd coals sites. Especially relitive to today's circa £50mil mcap.
As Europe's largest hard-rock lithium mining and processing project, the Cinovec Project is applying for and is expected to receive Strategic Project designation under the CRMA. The Project has already been granted Strategic Process status under the EU's Just Transition Fund.
To be a strategic under the Just Transition is a big deal - there may also be a update on application for Strategic Project status under the CRMA which started last week.
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DFS - The PFS was based on circa 13% of the total resource and no inclusion of the Tin - full DFS alluded would have a phase 2 production of 50,000 - 60,000 TPA which will have a huge impact on the projected NPV.
. Annual production of battery grade lithium hydroxide monohydrate modelled to increase from 25,267 tpa to 29,386 tpa, an increase of 16%.
· NPV8 (post tax) increases from US$1.108B to US$1.938B, an increase of 74.9%, based upon a lithiumhydroxide price of USD17,000 per tonne.
· Post tax IRR of 36.3% and a payback period of 2.5 years from the commencement of production.
· Up-front capital cost due to backfilling plant and additional capital costs to produce 29,386 tpa lithium hydroxide increased to US$644m.
· This 2022 PFS Update assumes the life of mine extraction of 13.1% of the Measured and Indicated JORC Resources at Cinovec.
· Use of tailings for backfill will result in a far smaller environmental impact, further enhancing the Project's already strong ESG credentials.
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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.
So much of the above sounds it happening and that we be updated over June and beyond but is not priced in - Opportunity while still under the European Bank of reconstruction and developments42.3 investment price - having the support of Major state power company 70% government owned in CEZ is invaluable - the EBRD being partner will be also be when it comes to FID after DFS - while the CMRA comes into effect.
Cinovec is front runner to be one the CMRAs strategic lithium mining projects being the biggest, projected phase 2 to would be to produce the most, also refining and already proven to be extremely clean, now locally accepted and alongside the Gigafactory at the current will replace close to 10,000 jobs and support the 200,000 from the Czech automobile industry - on a triboarder to support Germany and Poland - we know both are of strategic priory to the Czech Republic.
The CMRA means Europe is obligated by 2025 to secure a certain percentage of the lithium critical raw materials from the EU and that all automobile makers will need show the sourced at least a certain portion within the EU by 2030. There will need to be more the 1 for strategic mining project for Lithium.
Imho the current price is a great opportunity while still under the European banks investment price, approaching the grant and other near term key news
Have good rest of the weekend all
(20min delay)
