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European Metals Holdings Ltd on Friday said it has refinanced a loan to its subsidiary Geomet, whilst noting a wider loss in the first half. The Perth, Australia-based mining company focuses on battery metals through its Cinovec project in the Czech Republic, where Geomet is trying to establish a European lithium supply chain. Back in 2023, EMH loaned Geomet Kč121 million, roughly £4.3 million, to purchase land at Dukla, where the company has considered setting up its lithium chemical plant. The parent company in August said it would satisfy a portion of the project cash call by refinancing the loan. This meant offsetting EMH the loan against the cash call, which the firm described as ‘more prudent’ than possible further share dilution. EMH shares rose 1.7% to 9.15 pence on Friday morning in London, having lost 1.1% in the past 12 months. The firm’s joint venture partner CEZ has agreed to acquire the loan, though the deal allows EMH to retain its buy-back right. CEZ is a Prague-based energy company majority-owned by the Czech government, whose stake is around 70%, EMH said. CEZ has a 51% stake in the Cinovec project through its subsidiary SDAS, while EMH holds the remaining 49%. Also on Friday, the Australian firm reported a pretax loss of A$1.8 million for the six months that ended June 30, widened from A$1.3 million the previous year. EMH reported financing income of A$406,643 compared to A$377,490 and had a cash balance of A$996,340 at the end of June, down from A$3.5 million on-year. In the second half of 2025, Geomet secured a preliminary mining permit for Cinovec South, which joins an existing set of permits to give the company ‘complete coverage of the Cinovec orebody’, EMH said. The firm described Cinovec as ‘the largest hard rock lithium deposit in Europe’, and reported an initial ore reserve of 34.5 million tons at a 0.65% lithium grade. This estimate covers the first 20 years of production, at a lithium carbonate output of 22,500 tons annually. EMH expects rising demand for the battery metal, as the Czech Republic’s electric vehicle industry grows. On its flagship venture, the company commented: ‘Cinovec continues to advance at a time when macro tailwinds, policy support, and market demand for lithium are intensifying. With strategic project and strategic deposit designations, EU and Czech funding support, and a clear permitting and financing pathway, the project is ideally positioned to transition into Europe‘s first major domestic producer of battery-grade lithium chemicals.’ Chair Keith Coughlan added: ‘We remain focused on delivering the definitive feasibility study and continued further optimisation of the project at this time of renewed optimism in the lithium market.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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