(Alliance News) - European Metals Holdings Ltd on Monday said its loss narrowed slightly in its most recent financial year thanks to a sizeable and non-repeating impairment expense the year before.
The miner controls the exploration licences for the Cinovec lithium/tin project in the Czech Republic. It posted a USD3.3 million pretax loss for its financial year ended June 30, narrowed from USD4.7 million the year before.
This was primarily the result of a USD1.9 million impairment expenses the previous year, which did not repeat.
Revenue - derived entirely from interest income as the firm is still in its exploration stage - remained negligible - just USD1,461 in financial 2019 versus USD1,599 in financial 2018.
Chair David Reeves said: "The deposit is uniquely located, being in the centre of the Czech and European car industry and only 90 kilometres from the first VW EV factory located in Zwickau, Germany which is due to commence production in November of this year. VW have also recently announced the construction of a 16 [gigawatt hour] battery cell factory with Northvolt to service this rapidly growing aspect of their business which will require a steady state of battery materials to satisfy demand.
"Subsequent to the year end, we were delighted to announce the potential partnership with CEZ Group one of central and eastern Europe's largest power utilities that is 70% owned by the Czech government. Due diligence and partnership negotiations have continued since the announcement and we look forward to updating the market in the near term on the outcome of these discussions.
The company is now entering into detailed engineering, permitting and offtake discussions as it moves towards development on Europe's largest lithium resource for the benefit of all stakeholders."
Shares in European Metals were down 2.2% at 15.65 pence in London on Monday.
By Anna Farley; annafarley@alliancenews.com
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European Metals Holdings (EMH)