TIDMEMH
European Metals Holdings Limited
10 May 2021
EMH BELIEVES CINOVEC TO HAVE A LOW CARBON FOOTPRINT COMPARED TO
PEERS AND WILL ADOPT GOLD STANDARD OF ESG REPORTING
European Metals Executive Chairman, Keith Coughlan, believes
that the Project's CO(2) footprint will be low when compared with
other hard rock lithium projects. "The proximity to end users
resulting in low transport CO(2) , the fully integrated nature of
the Project and anticipated lower CO(2) emissions from mining and
processing strongly suggest that lithium from Cinovec will have a
low carbon footprint compared to its peers". "We are quietly
confident and look forward to releasing the results of our Carbon
Footprint assessment".
European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ:
ERPNF) ("EMH", "European Metals" or the "Company") is pleased to
announce that the Company has adopted a set of Environmental,
Social and Governance ("ESG") metrics and disclosures following the
recommendations released by the World Economic Forum ("WEF") in
Geneva, Switzerland(1) which are acknowledged as the gold standard
for ESG reporting.
HIGHLIGHTS
-- Establishment of an ESG Committee at Board level, to be
chaired by Ambassador Lincoln Bloomfield who has considerable
private sector experience centred on sustainability, resilience and
renewable energy
-- Engagement of Socialsuite ESG technology platform - a global
leader in ESG impact management systems and sustainability
reporting
-- Initiation of ESG reporting, monitoring and improvement for
European Metals utilising Socialsuite
-- EMH's ESG transparency commitment is a precursor to an
independent lithium production Life Cycle Assessment(2) ("LCA")
which includes a full Carbon Footprint assessment
ADOPTING AN ESG FRAMEWORK
ESG and impact investing have become key criteria for both
investors and fund managers, leading a new path to how companies
are being assessed. In 2020, 33% of the US$51.4 trillion in total
US assets under professional management used ESG investment
criteria, with demand for ESG compliance continuing to rise
sharply(3) with total Global sustainable investment now topping $30
trillion-up 68% since 2014 and tenfold since 2004.(4)
The acceleration has been driven by heightened social,
governmental, and consumer attention on the broader impact of
corporations, as well as by the investors and executives who
acknowledge that a strong ESG proposition is a key indicator of a
company's long-term success.
ESG reporting offers a tool and roadmap for investors and
society to hold companies to account, to make sure that the issues
such as climate change, social justice, equality, diversity and
environmental protection are reflected and appropriately addressed
by the company in focus.
European Metals Executive Chairman, Keith Coughlan, commented:
"ESG principles are increasingly important in the overall
assessment of companies and their projects. I am proud to be part
of the introduction of ESG reporting at European Metals. We are
proud to utilise the acknowledged private sector experience centred
on sustainability, resilience and renewable energy of Ambassador
Bloomfield to spearhead our efforts in this regard.
"Although we are formally adopting these principles now, we have
been developing the Cinovec Project to the very highest level of
ESG standards since the beginning. I believe that this is evident
in our current assessment and will become more so as the Cinovec
Project develops further.
"In particular, I believe that the Project's CO(2) footprint
will be very low when compared with other hard rock lithium
projects. Our proximity to end users, the fully integrated nature
of the Project and anticipated lower CO(2) emissions from mining
and processing strongly suggest that lithium from Cinovec will have
a low carbon footprint compared to its peers.
"We will engage in a formal Life Cycle Assessment, including a
Carbon Assessment study, utilising globally recognised independent
consultants during 2021.
"I look forward to the progressive reporting of our ESG status
with regular updates in the future ."
EMH BASELINE ESG DASHBOARD
The Company has deployed Socialsuite's ESG technology platform
to set its initial ESG baseline in its first quarterly ESG
dashboard. With a tailored action plan, the Company will focus on
delivering and reporting ongoing progress toward disclosing and
improving ESG metrics and indicators (see below).
Socialsuite's ESG reporting technology provides an easy way for
investors and other stakeholders to assess the commitment and
progress of the Company on its journey to create "best in class"
ESG credentials and outcomes.
The Company's ESG baseline dashboard report available for public
viewing here:
https://esg.socialsuitehq.com/social-suite-dashboard/1615602452145x194492351498682370?report=1615602481493x225365516719143520
BACKGROUND TO WORLD ECONOMIC FORUM REPORTING GUIDELINES
Before choosing an investment or purchase, all stakeholders want
to be assured businesses are truly "walking the ESG walk" and not
just "ESG washing". However, the key challenge for many companies
is the lack of a universal and consistent framework to measure and
report the shared and sustainable value it creates.
During 2019, the World Economic Forum's International Business
Council ("IBC"), flagged the existence of multiple ESG reporting
frameworks and the lack of consistency and comparability of metrics
as major issues preventing companies from credibly demonstrating to
all stakeholders its progress on sustainability and its
contributions to the sustainable development goals.
In collaboration with Deloitte, EY, KPMG and PwC, the IBC worked
to identify a set of universal, material ESG metrics and
recommended disclosures that could be reflected in the mainstream
annual reports of companies on a consistent basis across industry
sectors and countries.
The metrics were designed to be capable of verification and
assurance, to enhance transparency and alignment among
corporations, investors, and all stakeholders.
The result of this process is a set of 21 core and 34 expanded
metrics and disclosures, which have been adopted by Socialsuite in
its ESG reporting platform to help companies such as European
Metals effortlessly and instantly commence ESG reporting.
ABOUT SOCIALSUITE
Socialsuite is a fast-growing global company based in Melbourne,
Australia. It has clients across Asia Pacific, the Americas and
Europe. Its clients include financial institutions, large
companies, government agencies, philanthropic foundations,
not-for-profits and NGOs that want to monitor and fully understand
how they impact people and the environment.
As a global leader in impact management systems, Socialsuite
delivers an efficient and rigorous measurement and monitoring
service that is simple to use, infinitely adjustable and tailored
to European Metals' requirements. Its automated data-collection,
analysis and reporting tools provide accurate and timely insights
to allow European Metals to monitor and understand the impact of
the Company's initiatives.
Socialsuite's impact monitoring technology provides structured
ESG data collection, ongoing ESG reports that can be directly
inserted into quarterly reports, benchmarking across other similar
companies' ESG journeys and expanding ESG reporting
depth/complexity as the company grows over time.
Socialsuite provides a clear and practical way businesses can
get started with ESG measurement based on the company's size and
resources, which can be scaled and extended as capacity increases.
It uses the World Economic Forum's 21 material ESG metrics and
records "ESG Progress velocity" from quarter to quarter, enabling
businesses to measure, track and report progress toward the ESG
indicators. The benefits of ESG compliance for small to medium
listed companies are significant, which is why the first cohort of
ESG reporters have been so quick to pioneer ESG compliance in
Australia by beginning to measure progress and demonstrate its
credentials.
A technology platform like Socialsuite combined with the new WEF
ESG metrics has made gold standard ESG reporting accessible and
easily understandable.
The information referred to in this announcement relates to the
following sources:
(1) World Economic Forum, White Paper: Measuring Stakeholder
Capitalism: Towards Common Metrics and Consistent Reporting of
Sustainable Value Creation [22 September 2020]
(2) Life Cycle Assessment is defined by and assessed under ISO
14040:2006 "Principles and frameworks of LCA"; and ISO 14044:2016
"Requirements and guidelines for LCA standards"
(3) Socialsuite Early Adopters Report January 2021
Global Sustainable Investment Review 2018, Global Sustainable
Investment Alliance, 2018, gsi-alliance.org
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium/Tin Project
Geomet s.r.o. controls the mineral exploration licenses awarded
by the Czech State over the Cinovec Lithium/Tin Project. Geomet
s.r.o. is owned 49% by European Metals and 51% by CEZ a.s. through
its wholly owned subsidiary, SDAS. Cinovec hosts a globally
significant hard rock lithium deposit with a total Indicated
Mineral Resource of 372.4Mt at 0.45% Li(2) O and 0.04% Sn and an
Inferred Mineral Resource of 323.5Mt at 0.39% Li(2) O and 0.04% Sn
containing a combined 7.22 million tonnes Lithium Carbonate
Equivalent and 263kt of tin reported 28 November 2017 (Further
Increase in Indicated Resource at Cinovec South). An initial
Probable Ore Reserve of 34.5Mt at 0.65% Li(2) O and 0.09% Sn
reported 4 July 2017 (Cinovec Maiden Ore Reserve - Further
Information) has been declared to cover the first 20 years mining
at an output of 22,500tpa of lithium carbonate reported 11 July
2018 (Cinovec Production Modelled to Increase to 22,500tpa of
Lithium Carbonate).
This makes Cinovec the largest hard rock lithium deposit in
Europe, the fourth largest non-brine deposit in the world and a
globally significant tin resource.
The deposit has previously had over 400,000 tonnes of ore mined
as a trial sub-level open stope underground mining operation.
In June 2019 EMH completed an updated Preliminary Feasibility
Study, conducted by specialist independent consultants, which
indicated a return post tax NPV of USD1.108B and an IRR of 28.8%
and confirmed that the Cinovec Project is a potential low operating
cost producer of battery grade lithium hydroxide or battery grade
lithium carbonate as markets demand. It confirmed the deposit is
amenable to bulk underground mining. Metallurgical test-work has
produced both battery grade lithium hydroxide and battery grade
lithium carbonate in addition to high-grade tin concentrate at
excellent recoveries. Cinovec is centrally located for European
end-users and is well serviced by infrastructure, with a sealed
road adjacent to the deposit, rail lines located 5 km north and 8
km south of the deposit and an active 22 kV transmission line
running to the historic mine. As the deposit lies in an active
mining region, it has strong community support.
The economic viability of Cinovec has been enhanced by the
recent strong increase in demand for lithium globally, and within
Europe specifically.
There are no other material changes to the original information
and all the material assumptions continue to apply to the
forecasts.
BACKGROUND INFORMATION ON CEZ
Headquartered in the Czech Republic, CEZ a.s. is an established,
integrated energy group with operations in a numb er of Central and
Southeastern European countries and Turkey. CEZ's core business is
the generation, distribution, trade in, and sales of electricity
and heat, trade in and sales of natural gas, and coal extraction.
CEZ Group has 33,000 employees and annual revenue of approximately
EUR 7.24 billion.
The largest shareholder of its parent company, CEZ a.s., is the
Czech Republic with a stake of approximately 70%. The shares of CEZ
a.s. are traded on the Prague and Warsaw stock exchanges and
included in the PX and WIG-CEE exchange indices. CEZ's market
capitalization is approximately EUR 10.08 billion.
As one of the leading Central European power companies, CEZ
intends to develop several projects in areas of energy storage and
battery manufacturing in the Czech Republic and in Central
Europe.
CEZ is also a market leader for E-mobility in the region and has
installed and operates a network of EV charging stations throughout
Czech Republic. The automotive industry in Czech is a significant
contributor to GDP and the number of EV's in the country is
expected to grow significantly in coming years.
CONTACT
For further information on this update or the Company generally,
please visit our website at www.europeanmet.com or see full contact
details at the end of this release.
COMPETENT PERSON
Information in this release that relates to exploration results
is based on information compiled by Dr Pavel Reichl. Dr Reichl is a
Certified Professional Geologist (certified by the American
Institute of Professional Geologists), a member of the American
Institute of Professional Geologists, a Fellow of the Society of
Economic Geologists and is a Competent Person as defined in the
2012 edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves and a Qualified Person
for the purposes of the AIM Guidance Note on Mining and Oil &
Gas Companies dated June 2009. Dr Reichl consents to the inclusion
in the release of the matters based on his information in the form
and context in which it appears. Dr Reichl holds CDIs in European
Metals.
The information in this release that relates to Mineral
Resources and Exploration Targets has been compiled by Mr Lynn
Widenbar. Mr Widenbar, who is a Member of the Australasian
Institute of Mining and Metallurgy, is a full time employee of
Widenbar and Associates and produced the estimate based on data and
geological information supplied by European Metals. Mr Widenbar has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that he is undertaking to qualify as a Competent Person as
defined in the JORC Code 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Mr Widenbar consents to the inclusion in this report of
the matters based on his information in the form and context that
the information appears.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as
"may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the company's business and operations in the future. The
company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the company or management or beyond the company's
control.
Although the company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
LITHIUM CLASSIFICATION AND CONVERSION FACTORS
Lithium grades are normally presented in percentages or parts
per million (ppm). Grades of deposits are also expressed as lithium
compounds in percentages, for example as a percent lithium oxide
(Li(2) O) content or percent lithium carbonate (Li(2) CO(3) )
content.
Lithium carbonate equivalent ("LCE") is the industry standard
terminology for, and is equivalent to, Li(2) CO(3) . Use of LCE is
to provide data comparable with industry reports and is the total
equivalent amount of lithium carbonate, assuming the lithium
content in the deposit is converted to lithium carbonate, using the
conversion rates in the table included below to get an equivalent
Li(2) CO(3) value in percent. Use of LCE assumes 100% recovery and
no process losses in the extraction of Li(2) CO(3) from the
deposit.
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 Convert Convert
from Convert to to
Convert to Li(2) LiOH.H(
to Li Li(2) O CO(3) 2) O
Lithium Li 1.000 2.153 5.325 6.048
----------------- ------------------ ------------------ ------------------ ------------------
Lithium Li(2)
Oxide O 0.464 1.000 2.473 2.809
----------------- ------------------ ------------------ ------------------ ------------------
Lithium Li(2)
Carbonate CO(3) 0.188 0.404 1.000 1.136
----------------- ------------------ ------------------ ------------------ ------------------
LiOH.
Lithium H(2)
Hydroxide O 0.165 0.356 0.880 1.000
----------------- ------------------ ------------------ ------------------ ------------------
Lithium
Fluoride LiF 0.268 0.576 1.424 1.618
----------------- ------------------ ------------------ ------------------ ------------------
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Director Tel: +44 (0) 20 7440 0647
Dennis Wilkins, Company Secretary Tel: +61 (0) 417 945 049
Email: dennis@europeanmet.com
WH Ireland Ltd (Nomad & Joint Broker)
James Joyce/James Sinclair-Ford Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell/Jasper Berry (Broking
Shard Capital (Joint Broker) Tel: +44 (0) 20 7186 9950
Damon Heath
Erik Woolgar
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3222
Tim Blythe
Megan Ray
Chapter 1 Advisors (Financial PR
- Aus) Tel: +61 (0) 433 112 936
David Tasker
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release. The person who
authorised for the release of this announcement on behalf of the
Company was Keith Coughlan, Executive Chairman .
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