European Metals Holdings Ltd (LON:EMH) Managing Director Keith Coughlan caught up with DirectorsTalk for an exclusive interview to discuss the improved lithium recoveries
Q1: Keith, you’ve released some results of your metallurgical work today, are you happy with them and can you explain what it actually means?
A1: Yes, we have made that release today and yes, we’re very happy with those results. Basically, what the results mean is that we’re homing in on the optimal roasting conditions to treat the ore, anyone getting recoveries in the mid-90% range is outstanding, that’s outstanding for any global lithium project and the ability to get the same impact with less expensive reagents is also very positive.
So, in our case, for example, being able to use limestone as opposed to other more expensive lime products is very significant, it’ll have a significant impact on the operating expenses and therefore, overall financials of the project. So, we’re very happy with those results.
Q2: Is this then an extension of the previous work that you’ve done and is it based on the same process?
A2: Yes, it’s all based on the same process, the same low-cost, low-temperature sodium sulphate roast process that we’ve been using from the start, that we based the PFS on.
So, what we’ve been doing is some further optimisation work, effectively to try and enhance the process which we have done but what it’s also done is also serve to demonstrate that the process will be a simple, straightforward roast using standard applications, standard roasting and leeching techniques.
Q3: Do you plan further work of this nature?
A3: We’ll continue to optimise the process, try and tweak it to get the absolute best conditions and therefore the best costs. We already have a project there which looks like it’ll be in the bottom half of the cost curve, based on the Preliminary Feasibility Study of last year but it’s always important to keep those costs down.
We’re probably not going to see the lithium price keep going up forever so always important to have an eye on the costs and make sure we’re competitive and remain in the bottom half of the cost curve.
We’ll continue to optimise all aspects of the project now throughout the DFS stage with the view to enhancing the economics.
Q4: Now, I have noticed the negative press in the Czech Republic and the subsequent drop in your share price, can you give us some understanding of what’s going on there?
A4: There has been some negative press, and not just in the Czech Republic either and I think there’s some misunderstanding between our licenses and the MOU, the Memorandum of Understanding, that we entered into with the Czech government in October.
All the MOU focussed on were things like further processing, downstream industry, further collaboration etc. and that MOU has been caught up in the broader Czech political situation. There is still a hung parliament in the Czech Republic, there’s no government being formed some 5 months after the general election and really, until a new government is formed, that MOU is in dispute.
The important thing to understand is that it has no impact whatsoever on our licenses or on our ongoing rights to develop the Cinovec’s project. We’re confident that it’ll be business as usual in the Czech Republic when the political situation is resolved, which will hopefully be soon.
In the meantime, we’ll keep pushing ahead with the optimisation work into the DFS, things are improving dramatically within Europe, the macro for batteries, electric vehicles and therefore lithium is only improving. There’s an enormous amount of increased awareness in Europe, a number of groups making further plans to build EV’s, to build batteries and so the demand close to the project is only getting stronger and we’re in a very good position to take advantage of that.
