Quarterly Activities/Appendix 5B Cash Flow Report
European Metals Holdings Limited has reported significant progress on its Cinovec Lithium Project, highlighted by the completion of its Definitive Feasibility Study which forecasts 37,500 tonnes per annum of battery-grade lithium carbonate, and the approval of a substantial EUR 360 million grant from the Czech government. The company also submitted its Environmental Impact Assessment, a key step towards final permitting and funding. Financially, the company incurred EUR 1.22 million in Cinovec DFS costs during the quarter, ending with $0.43 million in cash, with a pro forma cash balance of $2.97 million after a subsequent A$3.46 million capital raise.
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QUARTERLY ACTIVITIES REPORT
European Metals Holdings Limited (ASX & AIM: EMH, OTCQX and OTCQB: EMHXY and EMHLF) ("European Metals" or the "Company") is pleased to provide an update on its activities during the three-month period ending 31 December 2025. This period was an extremely significant one for the Company in the continued development of the globally significant Cinovec Lithium Project ("the Project" or "Cinovec") in the Czech Republic.
The two most significant developments in the period were the successful completion of the Definitive Feasibility Study ("DFS" or "Study") for the Cinovec Project, and the announcement of the approval of a major grant for the Project in the order of EUR 360 million. Early in January 2026, post quarter end, the Company also announced the submission of the Environmental Impact Assessment, a key requirement in the final permitting and funding process. The combination of these three developments significantly advances the Cinovec Project towards Final Investment Decision and ultimately, production.
Successful completion of Definitive Feasibility Study
On 23 December 2025, the Company announced the successful completion of the DFS for the Cinovec Project. The Study confirms Cinovec as a long-life producer of battery grade lithium carbonate with a forecast production of 37,500 tpa. This production rate equates to approximately 5.2% of forecast EU demand in 2030 and sufficient for the production of approximately 1.3 million 60kWh batteries per annum. These numbers underscore the importance of the Cinovec Project in the supply chain for Electric Vehicles in the EU.
The Study demonstrated robust economics with a pre-tax NPV8 of USD 1.455bn and a pre-tax IRR of 14.8% based upon the first 23 years of the full life of mine 27-year production schedule, and its completion enables advancement of key workstreams, such as EU stakeholder engagement for additional grant and debt support, formal project financing discussions, and finalisation of advanced off-take negotiations.
Approval of up to €360 Million Czech Government Grant
On 28 November 2025, the Company made the very significant announcement of the approval of a grant of up to EUR 360 million for the Cinovec Project under the "Strategic Investments for a Climate-neutral Economy" programme ("Programme").
The Programme is designed to support significant investments in the production and expansion of equipment, key components, and critical raw materials essential for the transition to a climate-neutral economy. The Programme is aligned with the European Commission's Temporary Crisis and Transition Framework and aims to accelerate economic development and investment in strategic sectors. The approval of such a significant financial contribution further demonstrates the support for and importance of Cinovec in the future of European electromobility.
Full Environmental Impact Assessment submitted for Cinovec Lithium Project (Post reporting period)
Post the quarter end, the Company announced that the full Environmental Impact Assessment ("EIA") for the Cinovec Lithium Project had been submitted to the Czech Ministry of the Environment (see ASX/AIM Announcement dated 13 January 2026). The submission completes the two-stage EIA process following screening-stage assessment lodged in 2025. It also satisfies a key condition of the EU Just Transition Fund grant.
The Company announced the Just Transition Fund ("JTF") grant on 28 April 2025, detailing the conditions of this CZK 800 million (~EUR 33 million) grant and its importance. The grant was approved shortly after the Cinovec Project had been classified as a Strategic Project under the EU Critical Raw Materials Act, and as a Strategic Deposit by the Czech government for the purposes of the Czech Construction Code.
The submission of the EIA is a crucial step in the process of the JTF grant. The completion of the DFS coupled with the approval of the EUR 360 million grant and finally the submission of the EIA, now places the Project within sight of final permitting approvals and the commencement of the drawdown of funds under the JTF grant.
CORPORATE AND ADMINISTRATION
Capital Raising Subsequent to End of Quarter
Subsequent to the end of the quarter, the Company completed a placement to raise approximately A$3.46 million (before costs) to high net worth and institutional clients of Barclay Wells and Zeus Capital ("Placement"). Placement proceeds will be applied towards ongoing development of the Cinovec Lithium Project and general working capital (see ASX/AIM announcement dated 21 January 2026).
Change of Company Secretary
During the quarter, the Company announced the resignation of Ms Sujana Karthik as Company Secretary and the appointment of Ms Carly Terzanidis as Company Secretary, effective 5 November 2025 (see ASX/AIM announcement dated 5 November 2025).
Quarterly Cash Flow Report
In accordance with the ASX Listing Rules, the Company will also today lodge its cashflow report for the quarter ended 31 December 2025. Cash outflows of $1.22 million were incurred during the quarter in relation to the Cinovec DFS costs, as part of the Company's investment in the Cinovec Lithium Project in the Czech Republic.
The Company also executed a short-term loan facility for $750,000 during the quarter, which will be repaid from the funds raised via the recent capital raising subsequent to the end of the quarter.
The Company's total cash was $0.43 million as at 31 December 2025, which on a proforma basis after adjusting for receipt of the net proceeds of the Placement in January 2026 amounting to $3.29 million and repayment of the loan of $750,000, would amount to $2.97 million cash.
Payments to related parties
As outlined in the attached Appendix 5B (section 6.1), during the quarter approximately $154,000 in payments were made to related parties and their associates for director salaries, consultancy fees, superannuation and other related costs. A portion of these expenses is to be reimbursed directly from Geomet.
GEOMET TENEMENT SCHEDULE
Table 1: Geomet Tenements
| Exploration Area | Cinovec | N/A | 100% | N/A | 100% |
| Cinovec II | 100% | N/A | 100% | ||
| Cinovec III | 100% | N/A | 100% | ||
| Cinovec IV | 100% | N/A | 100% | ||
| Preliminary Mining Permit | Cinovec II | Cinovec South | 100% | N/A | 100% |
| Cinovec III | Cinovec East | 100% | N/A | 100% | |
| Cinovec IV | Cinovec Northwest | 100% | N/A | 100% |
This announcement has been approved for release by the Board.
Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium Project. Geomet has been granted a preliminary mining permit by the Ministry of Environment and the Ministry of Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its wholly owned subsidiary, SDAS. Cinovec hosts a globally significant hard rock lithium deposit with a total Measured Mineral Resource of 54.4Mt at 0.58% Li2O , Indicated Mineral Resource of 378.23Mt at 0.41% Li2O and an Inferred Mineral Resource of 309.49Mt at 0.39% Li2O containing a combined 7.45 million tonnes Lithium Carbonate Equivalent (refer to the Company's ASX/ AIM release dated 23 December 2025) (Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate Producer Strategically Positioned to supply European EV and Energy-storage Sectors).
A Proven and Probable Ore Reserve of 54.4Mt at 0.58% Li2O has been declared to cover the first 26 years mining at an output of 37,500tpa of lithium carbonate (refer to the Company's ASX/ AIM release dated 23 December 2025) (Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate Producer Strategically Positioned to supply European EV and Energy-storage Sectors).
The Definitive Feasibility Study (DFS) confirmed the economic viability of the Cinovec Project with steady-state production of 37,500 tpa of battery-grade lithium carbonate (Li₂CO₃), representing ~5.2% of EU demand in 2030 and sufficient for >900,000 50kWh EV batteries annually. Cinovec will have a 28+ year operating life, underpinned by a 748Mt Resource @ 0.19% Li₂O and a 55.4Mt Ore Reserve, with expansion optionality (refer to the Company's ASX/ AIM release dated 23 December 2025) (Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate Producer Strategically Positioned to supply European EV and Energy-storage Sectors).
Cinovec has received recent impetus from the EU and the Czech Government in the form of grants of USD36 million from the EU Just Transition fund (refer to the Company's ASX/ AIM release dated 28 April 2025) (USD 36 million Just Transition Fund Grant Approved for Cinovec Project) and up to EUR360 million by the Czech Government (refer to the Company's ASX/ AIM release dated 7 March 2025) (Approval of up to €360 Million Czech Government Grant).
The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.
BACKGROUND INFORMATION ON CEZ
CAUTION REGARDING FORWARD LOOKING STATEMENTS
LITHIUM CLASSIFICATION AND CONVERSION FACTORS
Lithium resources and reserves are usually presented in tonnes of LCE or Li.
The standard conversion factors are set out in the table below:
Table: Conversion Factors for Lithium Compounds and Minerals
| Convert from | Convert to Li | Convert to Li 2 O | Convert to Li 2 CO 3 | Convert to LiOH.H 2 O | |
|---|---|---|---|---|---|
| Lithium | Li | 1.000 | 2.153 | 5.325 | 6.048 |
| Lithium Oxide | Li 2 O | 0.464 | 1.000 | 2.473 | 2.809 |
| Lithium Carbonate | Li 2 CO 3 | 0.188 | 0.404 | 1.000 | 1.136 |
| Lithium Hydroxide | LiOH.H 2 O | 0.165 | 0.356 | 0.880 | 1.000 |
| Lithium Fluoride | LiF | 0.268 | 0.576 | 1.424 | 1.618 |
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
European Metals Holdings Limited (ASX: EMH)
| ABN | Quarter ended ("current quarter") | ||
|---|---|---|---|
| 55 154 618 989 | 31 December 2025 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
| 1. | Cash flows from operating activities | - | - |
| 1.1 | Receipts from customers | ||
| 1.2 | Payments for | - | - |
| (a) exploration & evaluation | |||
| (b) development | - | - | |
| (c) production | - | - | |
| (d) staff costs | (75) | (1,054) | |
| (e) administration and corporate costs | (78) | (2,226) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | - | 553 |
| 1.5 | Interest and other costs of finance paid | (2) | (11) |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Government grants and tax incentives | - | - |
| 1.8 | Other (Cinovec associated income/(costs)) | - | 1,487 |
| 1.9 | Net cash used in operating activities | (155) | (1,251) |
| 2. | Cash flows from investing activities | - | - |
| 2.1 | Payments to acquire or for: | ||
| (a) entities | |||
| (b) tenements | - | - | |
| (c) property, plant and equipment | - | (3) | |
| (d) exploration & evaluation | - | - | |
| (e) investments | (1,218) | (5,039) | |
| (f) other non-current assets | - | - | |
| 2.2 | Proceeds from the disposal of: | - | - |
| (a) entities | |||
| (b) tenements | - | - | |
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) other non-current assets | - | - | |
| 2.3 | Cash flows from loans to other entities | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other | - | - |
| 2.6 | Net cash from / (used in) investing activities | (1,218) | (5,042) |
| 3. | Cash flows from financing activities | - | 2,840 |
| 3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
| 3.2 | Proceeds from issue of convertible debt securities | - | - |
| 3.3 | Proceeds from exercise of options | - | - |
| 3.4 | Transaction costs related to issues of equity securities or convertible debt securities | (3) | (203) |
| 3.5 | Proceeds from borrowings | 750 | 750 |
| 3.6 | Repayment of borrowings | - | - |
| 3.7 | Transaction costs related to loans and borrowings | - | - |
| 3.8 | Dividends paid | - | - |
| 3.9 | Other (Lease Payments) | (37) | (145) |
| 3.10 | Net cash used in financing activities | 710 | 3,242 |
| 4. | Net increase / (decrease) in cash and cash equivalents for the period | ||
| 4.1 | Cash and cash equivalents at beginning of period | 1,092 | 3,559 |
| 4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (155) | (1,251) |
| 4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (1,218) | (5,042) |
| 4.4 | Net cash from / (used in) financing activities (item 3.10 above) | 710 | 3,242 |
| 4.5 | Effect of movement in exchange rates on cash held | (1) | (80) |
| 4.6 | Cash and cash equivalents at end of period | 428 | 428 |
| 5.1 | Bank balances | 397 | 1,061 |
| 5.2 | Call deposits | 31 | 31 |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Term deposit less than 3 months | - | - |
| 5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 428 | 1,092 |
| 6. | Payments to related parties of the entity and their associates | Current quarter $A'000 | |
| 6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 154 | |
| 6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - | |
The amount at 6.1 includes payments of director fees and salaries, and accounting and Company Secretary fees (inclusive of GST) paid to a company controlled by the spouse of a director.
| ABN | Quarter ended ("current quarter") | ||
|---|---|---|---|
| 55 154 618 989 | 31 December 2025 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
| 7.1 | Loan facilities | 750 | 750 |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (please specify) | - | - |
| 7.4 | Total financing facilities | - | - |
| 7.5 | Unused financing facilities available at quarter end | - |
The Company executed a short-term loan facility for $750k during the quarter. The Company will repay the loan in February 2026 from a portion of the funds raised from the $3.46m January 2026 capital raise.
| ABN | Quarter ended ("current quarter") | |
|---|---|---|
| 55 154 618 989 | 31 December 2025 | |
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 |
| 8. | Estimated cash available for future operating activities | $A'000 |
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (155) |
| 8.2 | (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) | - |
| 8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (155) |
| 8.4 | Cash and cash equivalents at quarter end (item 4.6) | 428 |
| 8.5 | Unused finance facilities available at quarter end (item 7.6) | - |
| 8.6 | Total available funding (item 8.4 + item 8.5) | 428 |
| 8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) | 2.76 |
| 8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: |
Answer: N/A
Answer: N/A
Answer: N/A
Compliance statement
2 This statement gives a true and fair view of the matters disclosed.
Date: 29 January 2026
Authorised by: The Board
(Name of body or officer authorising release - see note 4)
Notes
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.