Member Info for LLInv

Sorry; no EMH news per se, but our majority partner seems to have something brewing. See twitter thread:

https://twitter.com/TrambaDavid/status/1618635101407174656?t=PXmRcjoODjolSN0qBO58Qg&s=19

Paraphrasing here, but sounds like CEZ shares are trading well recently, possibly due to the rumours that the Czech Gov will be potentially increasing their majority stake in CEZ (I think it's 70% currently) and squeezing-out minority investors.

First thought jumped to mind was "What does this have to do with Cinovec and our minority holding in Geomet?" Thankfully, someone asked the same question:

https://twitter.com/von_Elbogen/status/1618636655996588032?t=oYgF4IIICFkhBMQysUfeLA&s=19

"Well, the 51% stake in the Cinovec project should be properly priced there. Otherwise, the state will supply minorities with additional "ammunition" in court cases".

I don't really know what this means, due to a combination of me being thick as a post and also maybe how well the translation comes across so would love someone else's (maybe a native speaker's?) interpretation of this exchange. I think this means that the buyout offer to minority CEZ shareholders includes their 51% stake in Geomet and suggests it won't increase? I definitely recommend everyone go through the article and full thread for more context.

I can't speak for the credibility of the journalist not article so pinch of salt, naturally.

Not having enough confidence to buy more and not enough doubt to sell makes this a very frustrating hold.

Getting close to missing another deadline:

"Tranche 1: on or before 31 December 2022, the Company receiving confirmation in writing in the form of a letter or other official correspondence from the federal government of Germany (or a department acting with delegated authority) or the Saxony regional government of Germany that it will formally support the Cinovec Project and the supply of lithium products from the Cinovec Project into Germany and use its best endeavours to assist the Cinovec Project in permitting and funding, apart from other factors."

I'm not personally expecting any announcement with regards to offtake until a final decision has been made on VW/Skoda gigafactory.

I suspect CEZ has locked in a minimum % of the resource to allocate to the the CEZ and potential Skoda Giga leaving us with whatever falls off the lorry.

DFS Update when? Don't tell me we've missed a deadline of giving an update on another deadline...

Best to ignore ANY timelines presented by this company to avoid disappointment.

Material, positive, news needed to maintain such an increase, not to mention further % increases.

We've seen this a few times before

Good news long term, but suggests no significant price sensitive news in short term otherwise allegations of insider trading, no?

And just a little salt in the wound, I read comment about reduced opex being strictly related to the opex of the processing only and not an overall decrease in the projects opex.

It'll still cost the same to get the stuff out the ground.

Such is the nature of being invested in a mineral exploration company during its feasibility stage, Skelly.

News as been slow and so has progress, but everything is based on potential until we reach DFS, then FID and hopefully production where potential is realised.

Still, share your frustrations.

Blonde - Agree with your point about the language used here. Why would he say "long-term" unless he's got something more or less locked in? Language there kind of eliminates any discussions surrounding short-term agreements. Time will tell.

People concerned about the fact that they're shipping samples Q1 next year to off-takers should consider that the samples being shipped may go to OEMs in market for our new products (sulphate & phosphate) as I imagine we would have not produced any previously. This development in processing has made us more agile by allowing us to deliver whatever lithium products OEMs need and at significant quantities given resource size. Not only that, but concerns around grade/quality are moot now, IMO.

What's this? Some material, operations-related, positive news? On the EMH board?! I must be dreaming...

Jokes aside, this is a solid RNS. Let's see if KC keeps to his word with regards to now being able to provide some more frequent updates on DFS completion...

"[...] formally support the Cinovec Project and the supply of lithium products from the Cinovec Project into Germany and use its best endeavours to assist the Cinovec Project in permitting and funding, apart from other factors."

Does this not strongly suggest that we would be selling at least some of our product to a Germany-based OEM? I'm worried too much Lith will go to Skoda at a heavily discounted price. Perhaps the reason there's no news on off-takes is because German support is a pre-requisite.

"next few weeks".

The video was published on 21st Sept - Can't speak for how quick the creator publishes his content once filmed, so I wouldn't say it'll be too farfetched to say that we might see some news next week.

Fingers crossed for EC funding/grant.

In other words, last opportunity to accumulate before a rerate...

Ghana Vs Central Europe... Bit apples Vs oranges, in my opinion.

Open pit will not float well anywhere in Europe, but far easier to get away with in the sparsely populated Ghana.

Yes, less profits, but that's the price a lot of shareholders are willing to pay for positive ESG and favourable nods from the EU, not to mention the locals.

Ultimately, I think the positive ESG from being brownfield and underground adds more value than improved opex/capex from being open pit.

In a roundabout way, it's good that he's not only acknowledged the suffering share price, but attributed it to the lack of newsflow directly.

Next 3 months could be the come-back quarter, and dare I say, maybe new heights.

Best of luck all

All very positive, but I'm not expecting any announcements or acknowledgements of Cinovec specifically anytime soon - As much as I don't mind the EU, there's no denying that they're bogged down by bureaucracy...

Watch this space I suppose

Positive newsflow from Ukraine giving the markets a much needed rally, I think.

Let's hope today is the last day we see 40p - Time will tell if this comment ages like wine, or worse, milk...

Also, on the subject of M&As, I've always thought the name "European Metals" implies endeavours to own more than one project in Europe while producing more than one metal (I know Cinovec has tin, but it's primarily a Lith project).

Really silly thing to get hung up on, just I thought I had a while ago.

Same mica/deposit, just the other side of the fence... Maybe that's not true so happy to be corrected.

M&A are probably one of the most NDA'd discussions across any sector, but still not an excuse for not providing an operational update.

Sincerely,
A frustrated EMH AND ZNWD holder (foolish me).

JFYI ZWND Investor presentation on 15th, if anyone is interested.