EMH produces battery grade lithium carbonates - DFS due Q4-2023
Our EU based lithium Investment European Metals Holdings (ASX: EMH) just produced battery grade lithium carbonates from its pilot program.
Our key takeaways from the announcement are as follows:
- Battery grade lithium carbonates produced using updated flowsheet.
EMH has been tweaking its flowsheet for the last ~12 months.
Producing battery grade lithium carbonates is important because it means EMH can move forward and plug the results into its Definitive Feasibility Study which is expected in Q4-2023.
We wrote about the latest updates to the flowsheet in a previous note here: The latest on EMH’s flowsheet & DFS due Q4-2023
- EMH working to produce battery grade lithium hydroxide.
EMH is now working toward producing a battery grade hydroxide product after which a decision will get made on which product to produce from its project.
IF EMH can manage to produce battery grade lithium hydroxide the company will have optionality to choose which type of product makes sense to produce the most.
The positive is that EMH can tweak its output based on what the market wants/needs.
What’s next for EMH?
Definitive Feasibility Study (DFS) 🔄
EMH is currently working on upgrading its project from Pre-Feasibility Study (PFS) to a Definitive Feasibility Study (DFS).
We hope to see the DFS improve on the following financial metrics from the PFS:
- A post-tax NPV of between US$1.1BN to US$1.94BN.
- CAPEX of US$644M.
- Internal rate of return (IRR) of up to 36.3%
- Pay-back period of 2.5 years.
Offtake agreement 🔄
Project financing 🔄
Progress EIAs and permitting for mining and processing 🔄
