Overview
As the worldwide push to halt local weather change positive aspects momentum, the European Fee is seeking to regionalize the battery provide chain to capitalize on the fast electrical automobile (EV) progress and restrict its dependency on different international locations by way of heavy funding and coverage modifications. Europe’s electrical automobile market worth reached US$29.49 million in 2021 and is projected to extend as much as US$143.08 million by 2027, indicating a compounded annual progress fee of 23.4 p.c in that interval.
Regardless that Europe is likely one of the largest world producers of motor autos, it at present doesn’t have an area provide of lithium hydroxide which is closely utilized in EV battery expertise. In accordance with specialists, the market is about to stay in a structural scarcity till 2025
One firm that goals to develop into the primary native lithium provider into an built-in European battery provide chain is European Lithium (ASX:EUR,FRA:PF8), a mining exploration and improvement firm targeted on exploring, figuring out and buying lithium in Europe. The corporate is led by a administration workforce with a long time of expertise and success within the mining and finance markets.
“Our goal is to be the primary provider of lithium from Europe, for Europe,” European Lithium chairman Tony Sage mentioned.
The corporate is concentrated on its wholly owned Wolfsberg Lithium mission situated in Carinthia, Austria. The pre-existing mine is situated in a mining-friendly area with a number of mineral discoveries within the surrounding space. The property contains a high-grade lithium useful resource at a median grade of 1 p.c lithium hydroxide, with a complete useful resource of 12.88 million tonnes based mostly on sources measured, indicated and inferred in zone 1 solely.
The Wolfsberg Lithium mission useful resource has the potential to double based mostly on optimistic drill ends in one other zone on the property.
Primarily based on the definitive feasibility research (DFS) launched in March 2023, Wolfsberg Lithium Undertaking is nicely positioned to develop into a number one producer of battery-grade lithium hydroxide in Europe. It’s set to ship excessive returns, leveraging low working prices, and benefiting from a lithium market that’s anticipated to be in structural undersupply throughout a lot of the lifetime of mine. The battery-grade lithium hydroxide monohydrate (LHM) costs modeled within the DFS are projected to be at a 39-percent low cost to present spot costs in 2025 after which escalate by 2 p.c each year. The estimated capex is US$866 million which helps a post-tax NPV of US$1.5 billion.
European Lithium has established a number of strategic relationships with an goal to ship worth to the Wolfsberg Lithium Undertaking by way of improvement and through manufacturing. This features a partnership with KMI for liaising with Austrian authorities.
The corporate commissioned Dorfner Anzaplan to assemble the pilot plant, which was efficiently accomplished on schedule. Anzaplan has additionally overseen the completion of metallurgical take a look at work on bulk ore extractions. Testing will enable considerably greater restoration charges at first of manufacturing versus solely assessing metallurgical knowledge from the core as different mining firms typically do, giving European Lithium the benefit of a streamline refinement course of.
The corporate has assist from the European Battery Alliance, GREENPEG and different authorities initiatives, believing it has the potential to develop into a significant, first-to-market producer of lithium in Europe. The corporate additionally stays dedicated to scrub manufacturing in an effort to assist sustainability.
Primarily based on the DFS, the corporate plans to start the allowing means of its Wolfsberg Lithium mission and put together the mining plan for the mining authority to authorize the mine and concentrator development. Afterward, the corporate will decide the approval necessities of the carbonate hydroxide conversion plant with the Power Data Administration (EIA) after which provoke the ultimate financing plan.
European Lithium, by way of its wholly owned Austrian subsidiary ECM Lithium Aľ GmbH (ECM), signed a binding long-term lithium offtake settlement with top-tier European auto producer BMW to safe the corporate’s first offtake of battery grade lithium hydroxide from its Wolfsberg Lithium Undertaking in Austria.
The corporate is aiming to start manufacturing of lithium hydroxide from the mission in 2027 — topic to funding and approvals by the Austrian authorities.
In a bid to broaden its mission portfolio, European Lithium executed a binding Heads of Settlement with 2743718 Ontario Inc., a subsidiary of Richmond Minerals (TSXVRMD), to amass one hundred pc of the rights, title and curiosity within the Bretstein-Lachtal Undertaking, Klementkogel Undertaking and the Wildbachgraben Undertaking, a bunch of exploration licenses protecting 114.6 sq. kilometers, concentrating on lithium with identified occurrences within the Styria mining district of Austria.
Firm Highlights
- European Lithium is a mining exploration and improvement firm targeted on exploring, figuring out and buying lithium in Europe.
- The corporate goals to develop into the primary native lithium provider into an built-in European battery provide chain.
- The corporate’s focus is on its wholly owned superior Wolfsberg Lithium Undertaking (Wolfsberg) situated in Carinthia, Austria.
- Wolfsberg is a high-grade lithium useful resource at a median grade of 1 p.c lithium oxide, with a complete useful resource of 12.88 million tonnes based mostly on measured, indicated and inferred sources in zone one solely.
- Wolfsberg’s definitive feasibility research outcomes display potential to ship excessive returns, leveraging low working prices, and benefiting from a lithium market that’s anticipated to be in structural undersupply throughout a lot of the lifetime of mine.
- The Wolfsberg useful resource estimate has vital upside with the potential to double based mostly on optimistic drill outcomes.
- Via its wholly owned Austrian subsidiary ECM Lithium Aľ GmbH (ECM), European Lithium signed a binding long-term lithium offtake settlement with top-tier European auto producer BMW AG (BMW) to safe the corporate’s first offtake of battery-grade lithium hydroxide from Wolfsberg.
- The corporate has signed a binding settlement to construct a Saudi Arabia-based hydroxide processing plant in partnership with Obeikan and ship vital price financial savings.
- The corporate is led by a administration workforce with a long time of expertise and success within the mining and finance markets.
- European Lithium entered right into a enterprise mixture settlement with Sizzle Acquisition, a US particular goal acquisition firm, to which European Lithium will promote down its curiosity in its wholly owned Wolfsberg Lithium Undertaking (Wolfsberg and Wolfsberg Lithium Undertaking) and merge with Sizzle through a newly fashioned, lithium exploration and improvement firm named, Vital Metals Corp.
- European Lithium has acquired one hundred pc of the rights, title and curiosity within the Bretstein-Lachtal Undertaking, Klementkogel Undertaking and the Wildbachgraben Undertaking, a bunch of exploration licenses protecting 114.6 sq. kilometers, concentrating on lithium with identified occurrences within the Styria mining district of Austria and close by the Wolfsberg Lithium Undertaking
- The corporate acquired high-grade lithium assays from sampling undertaken at varied prospects inside the Jap Alps Lithium Satellite tv for pc Initiatives, situated in Austria, that are held 20 p.c by European Lithium and 80 p.c by EV Assets Restricted (ASX: EVR).
Key Undertaking
Wolfsberg Lithium Undertaking
The Wolfsberg Lithium Undertaking is a high-grade lithium mission situated in Carinthia in Austria. The mission is 20 kilometers east of the city of Wolfsberg which is an industrial city with established infrastructure and sources of vitality in place. European Lithium has a complete of 54 exploration licenses, protecting its two recognized zones and mining licenses that could be completely issued if circumstances are met. The corporate lately secured further mining licenses and extensions that develop the Wolfsberg mission space to a complete of 20 licenses over two mining fields, the unique Andreas and new Barbara mining fields.
The property is an current, developed exploration mine with substantial exploration and improvement work accomplished by earlier homeowners. These tasks have been backed by the Austrian authorities and included in depth metallurgical testing, geological mapping, mining, and pre-feasibility research within the Eighties.
The corporate accomplished its personal optimistic PFS in addition to an intensive evaluation. The property contains a high-grade lithium useful resource with a median of 1 p.c lithium hydroxide. Moreover, it contains a whole measured, indicated, inferred and JORC-compliant useful resource of 12.88 million tonnes of lithium hydroxide in zone one solely.
In 2023, European Lithium launched the outcomes of its definitive feasibility research (DFS) for the Wolfsberg Lithium Undertaking, demonstrating potential excessive returns, leveraging low working prices, and benefiting from a lithium market which is anticipated to be in structural undersupply throughout a lot of the lifetime of mine.
DFS highlights:
- Battery-grade lithium hydroxide monohydrate (LHM) manufacturing is ~8,800 tpa for 14.6 years;
- LHM opex (after byproducts) is US$17,016/t LHM on common in comparison with reported spot costs for LHM in February 2023 of US$79,500 DDP Antwerp;
- LHM costs modelled within the DFS are projected to be at a 39-percent low cost to present spot costs in 2025 after which escalate by 2 p.c each year;
- Estimated capex is US$866 million which helps a post-tax NPV of US$1.5 billion @ weighted common price of capital (WACC) 6 p.c (WACC is set by the cut up of debt and fairness associated to the BMW offtake settlement);
- Acceleration of decarbonization and vitality transition in Europe mixed with the fast adoption of electrical autos supplies additional upside.
Constructive drill outcomes from the 2018 drilling program verify that zone two on the property might mirror zone one, which might double the mission useful resource. Drilling on the property additionally revealed grades as excessive as 2.49 p.c of lithium hydroxide.
European Lithium entered right into a enterprise mixture settlement with Sizzle Acquisition Corp.(NASDAQ:SZZL), a US particular goal acquisition firm, to which European Lithium will sell-down its curiosity in its wholly owned Wolfsberg Lithium Undertaking (Wolfsberg and Wolfsberg Lithium Undertaking) and merge with Sizzle through a newly fashioned, lithium exploration and improvement firm named, Vital Metals Corp. European Lithium might be issued US$750 million value of odd shares in Vital Metals, equal to roughly 80 p.c of the odd shares in Vital Metals.
As soon as the enterprise mixture is accomplished, European Lithium will focus its actions on its current portfolio of tasks and investments, together with the newly acquired Austrian Lithium Initiatives, consisting of 245 exploration licenses protecting a complete space of 114.6 sq. kilometers situated roughly 70 kilometers north of the corporate’s Wolfsberg Lithium Undertaking. The licenses cowl floor that’s thought-about potential for lithium occurrences and preliminary floor sampling displaying 3.98 p.c lithium oxide.
The next summarizes the corporate’s curiosity in tasks and investments:
- CRML – As outlined above, the corporate might be issued US$750 million value of odd shares in CRML upon closing of the transaction.
- Listed investments – The corporate holds:
- 1,180,256,849 shares (representing 11.5 p.c curiosity) in Cyclone Metals (ASX: CLE). CLE has lately acquired one hundred pc of the Block 103 magnetite iron ore mission situated within the Labrador trough area of Canada.
- 15 million shares in Cufe Ltd (ASX: CUF).
- Unlisted investments – European Lithium holds a 7.5-percent fairness curiosity in Tanbreez Mining Greenland A/S, which holds an exploitation allow for uncommon earths in Greenland.
- Exploration property – European Lithium has an curiosity in:
- Austrian Lithium Undertaking –one hundred pc of the rights, title and curiosity within the Bretstein-Lachtal, Klementkogel and Wildbachgraben tasks protecting an space of 114.6 sq. kilometers in whole, that are potential for lithium in Austria.
- Ukraine Initiatives – On 28 February 2023, the corporate introduced that it had renegotiated the phrases beneath which EUR will purchase European Lithium Ukraine LLC (European Lithium Ukraine), a Ukraine-incorporated firm making use of (by way of both courtroom proceedings, public public sale and/or manufacturing sharing settlement with the Ukraine Authorities) for 20-year particular permits for the extraction and manufacturing of lithium on the Shevchenkivske Undertaking and Dobra Undertaking in Ukraine. On 28 February 2023, the corporate introduced the top date to finish the acquisition has been prolonged to 2 November 2025.
Along with the above, the corporate continues to overview mission alternatives within the mineral exploration space as a part of its progress technique.
Administration Group
Dietrich Wanke – Chief Government Officer
Dietrich Wanke has greater than 30 years of expertise in administration on the operational stage for underground and open-cut mines. Wanke has held statutory positions as registered supervisor beneath the relevant mining acts in a number of international locations and commodities, most notably gold, silver, nickel, diamonds, coal, and iron. He has lived and served professionally for mining operations in Germany, Australia, Indonesia, Papua New Guinea, and Sierra Leone. Wanke has managed mining operations by way of all phases, ranging from greenfield exploration to full-scale manufacturing, in addition to the extension of current mines. Wanke at present holds a place as normal supervisor for Marampa Iron Ore in Sierra Leone. He’s labored prior to now as normal supervisor for Tolukuma Gold Mines in Papua New Guinea, mine supervisor for Atlas Iron in Western Australia, technical companies supervisor for Thiess in Indonesia. Wanke served as mine supervisor for Kimberley Diamonds in Western Australia, technical companies supervisor for Lightning Nickel in Western Australia, technical director for LMV, an engineering and surveying service supplier for coal mines in Germany, technical companies supervisor, and licensed surveyor for Laubag in Germany. Wanke holds a mine engineering/mine surveying diploma from Technical College Bergakademie Freiberg, a licensed mine surveyor’s certificates in Germany and top notch mine supervisor’s certificates in Western Australia and Papua New Guinea.
Melissa Chapman – CFO and Firm Secretary
Melissa Chapman is a licensed practising accountant with over 14 years of expertise within the mining trade. She has labored extensively in Australia and the UK, together with 5 years as group monetary controller for the Beny Steinmetz Group. Chapman has a bachelor of accounting from Murdoch College and has been a member of CPA Australia since 2000. Chapman has accomplished a graduate diploma in company governance with Chartered Secretaries of Australia.
Tony Sage – Chairman
Tony Sage has greater than 35 years of expertise in company advisory companies, funds administration, and capital elevating, predominantly inside the useful resource sector. Sage is predicated in Western Australia and has been concerned within the administration and financing of listed mining firms for the final 22 years. Sage has operated in Argentina, Brazil, Peru, Romania, Russia, Sierra Leone, Guinea, Côte d’Ivoire, Congo, South Africa, Indonesia, China, and Australia. He at present holds the positions of govt chairman of ASX-listed Fe and govt director of ASX-listed Cyclone Metals.
Malcolm Day – Director
Malcolm Day holds a Bachelor’s of utilized science diploma in surveying and mapping. Day commenced his profession working within the civil development trade for 10 years, six of which have been spent in senior administration as a licensed surveyor after which later as a civil engineer. While working as a surveyor, Day spent three years conducting mining and exploration surveys in distant Western Australia. He’s a member of the Australian Institute of Firm Administrators. Day is the managing director of Delecta (ASX:DLC).
Michael Carter – Non-executive Director
Michael Carter graduated from the College of Western Australia in 1998 with a bachelor of commerce diploma, majoring in accounting and finance. Carter additionally accomplished a graduate diploma in utilized finance and funding at Finsia in 2002. He’s skilled in structuring company transactions, specializing in junior useful resource firms, and has additionally labored in ongoing company advisory roles with quite a few ASX-listed entities during the last 18 years. Carter has been employed as a stockbroker since 1999, beforehand served as a director of Indian Ocean Capita’ and is at present an affiliate director of CPS Capital.
