Euro Manganese Reports Third Quarter 2022 Financial Results and Project Developments
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NR 2022-16
Euro Manganese Reports Third Quarter 2022 Financial Results
and Project Developments
VANCOUVER, British Columbia ( August 15, 2022) – Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX:
EUMNF; Frankfurt: E06) (the "Company" or "EMN") is pleased to announce key developments during the
third fiscal quarter 2022 and to date. The Company has now filed its third quarter Financial Statements
and Management’s Discussion and Analysis ("MD&A").
Key Developments During and Subsequent to the Quarter:
• Positive Feasibility Study ( "FS") announced for the Chvaletice Manganese Project ("the Project").
The FS outlines robust base case project economics of after-tax NPV 8% of US1.34 billion and an
ungeared IRR of 21.9% with a 4.1-year payback period. Initial capital is estimated at US$757.3 million,
including total contingencies of $106 .5 million. Forecast life of project net revenues are US$13.3
billion with an EBITDA of US$8.1 billion. Based on the price forecasts prepared by CPM Group LLC, a
leading, independent commodities market research firm with expertise in high-purity manganese, the
upside case shows an after-tax NPV8% of US$1.79 billion and an ungeared IRR of 24.1%.
A conversion rate of 99% Resources to Reserves supports a 25-year project life estimated to produce
an annual average of 98,600 tonnes of high-purity manganese sulphate monohydrate ("HPMSM"),
containing 32.34% Manganese ("Mn"), and 14,890 tonnes of high-purity electrolytic manganese metal
("HPEMM"), containing 99.9% Mn . HPMSM and HPEMM are critical raw-materials used in the
production of most lithium-ion battery cathodes.
EMN is uniquely positioned to provide a secure, traceable, and responsibly produced supply of high -
purity manganese products to capitalize on the growth in the European electric vehicle ("EV") market.
The Company is currently in the process of preparing a n Engineering, Procurement, Construction
Management ("EPCM") tender package for the next stage of project development. Tender release is
anticipated to be in September 2022, with EPCM award anticipated by Q1 2023.
• Completion of a Life Cycle Assessment ("LCA") for the Chvaletice Manganese Project. Results of the
LCA validate the Project’s environmental value proposition. Multiple environmental benefits from the
recycling and remediation of the historic tailings area were identified, particularly the improvement
of soil quality and freshwater quality . The Company is committed to us ing 100% carbon-free,
renewable electricity to power the proposed processing plant , resulting in the Global Warming
Potential ("GWP") of the Project being reduced by half when compared to the use of carbon-based,
non-renewable electricity.
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Delivery of the LCA is timely as Euro Manganese continues to engage with customers in the EV
battery/automotive space, each of whom are testing and qualifying both the chemistry and
environmental credentials of the Company’s high-purity manganese products.
A benchmarking exercise is underway, where the Project’s GWP will be compared against similar
operations producing high-purity manganese products. The results of the benchmarking analysis will
be released once complete.
• Arrival of the demonstration plant modules in Europe . One of the two shipments of the
demonstration plant modules was unloaded in early August and the second shipment is currently
scheduled to be unloaded later this month. Congestion and strikes at the Port of Hamburg delayed
the arrival and unloading of the demonstration plant shipments, originally anticipated in July.
Buildings at site have been refurbished and readied for delivery and installation of the demonstration
plant modules. Assembly of the plant modules wil l commence upon arrival at the Chvaletice Project
site, with commissioning of the demonstration plant expected thereafter.
The demonstration plant will be used for customer supply chain qualification of Euro Manganese’s
high-purity manganese products.
- View a video of the before and after pictures of the refurbished buildings for the
demonstration plant.
• Appointment of financial advisor to assist with project finance. During the quarter, the Company
appointed Stifel Nicolaus Europe Limited, a wholly owned subsidiary of Stifel Financial Corp. (NYSE:SF)
as financial advisor to assist with the structuring and securing of project financing for the development
of the Chvaletice Project.
• Support from the National Research Council of Canada Industrial Research Assistance Program (NRC
IRAP). Following the quarter end, the Company was approved to receive advisory services and up to
$165,000 in funding from NRC IRAP. The fundin g supports the initiative the Company is undertaking
with Nano One® Materials Corp., Metal direct to Cathode Active Material, as well as the evaluation of
the manganese metal by-product from the battery black mass recycling.
• Joined the Global Battery Alliance ("GBA"). During the quarter, EMN announced its membership in
the Global Battery Alliance, a partnership of leading organizations from across the battery value chain,
governments, academics and NGOs who have mobilized to ensure that battery production not only
supports green energy, but also safeguards human rights and promotes environmental sustainability.
EMN is the first high-purity manganese company to join the GBA.
• Approval of Land Access Agreement with the Municipality of Chvaletice. The terms agreed to in the
second quarter with the Municipality of Chvaletic e, regarding the rental of certain land to the
Company, were formalized in an agreement this quarter. The Agreement grants the Company access
to a portion of the tailings surface area . The Company is progressing negotiations on land access
agreements for the remaining surface rights.
Dr. Matthew James, President & CEO of Euro Manganese, said:
“The third fiscal quarter of 2022 was an extremely productive one for Euro Manganese as highlighted by
the achievements of several major milestones. Delivery of the positive feasibility study, combined with the
results of the Life Cycle Assessment affirming Chvaletice’s environmental credentials, position the Project
attractively for both project financiers and potential customers. Other milestones achieved in the quarter
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were the appoint ment of Stifel as financial advis er to structure and secur e financing for the Project ;
preparation of the EPCM tender documentation for the Project; becoming a member of the GBA; and the
appointment of Hanna Schweitz to the Board of Directors in April.
“Our Czech team are ready for the arrival of our demonstration plant, which has now arrived in Hamburg.
One shipment has been unloaded and the second shipment is expected to be unloaded shortly. Meanwhile,
smaller samples produced from our second pilot plant run are now available and will be shipped to new
potential customers to initiate their supply chain qualification process.
“Our near -term focus remains the assembly and commissioning of our de monstration plant , the
submission of our final Environmental and Social Impact Assessment later this quarter, the securing of the
remaining land access rights, and entering into offtake agreements with our prospective customers.”
Q3 2022 Operational Update Conference Call Details
Euro Manganese will host its Third Quarter 2022 conference call on Monday, August 15, 2022 at
3:30pm PT (6:30pm ET) (Tuesday, August 16, 2022 at 8.30 am AE ST). CEO Matt James and CFO Martina
Blahova will provide an update on the Chvaletice Project and its upcoming milestones. The call will also
be webcast: https://services.choruscall.ca/links/euromanganese2022q3.html
North America Europe Australia
Date Monday, August 15, 2022 Monday, August 15, 2022 Tuesday, August 16, 2022
Time 3:30pm PT | 6:30pm ET 11:30pm BST 6:30am AWST | 8:30am AEST
Dial-In 1-800-319-4610 0808-101-2791 1-800-423-528
About Euro Manganese Inc.
Euro Manganese Inc. is a battery materials company focused on becoming a leading, competitive , and
environmentally superior producer of high -purity manganese for the electric vehicle (EV) industry and
other high-technology applications. The Company is advancing development of the Chvaletice Manganese
Project in the Czech Republic, which is a unique waste-to-value recycling and remediation opportunity
involving reprocessing old tailings from a decommissioned mine. The Chvaletice Project is the only sizable
resource of manganese in the European Union, strategically positioning the Company to provide battery
supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.
The news release disclosing the results of the Feasibility Study was filed on SEDAR on July 27, 2022. In
addition, technical information concerning the Chvaletice Manganese Project is reviewed by Ms. Andrea
Zaradic, P. Eng, VP Operations for Euro Manganese, and a Qualified Person under NI 43-101 Standards of
Disclosure for Mineral Projects . Ms. Zaradic has reviewed and approved the information in this news
release.
Authorized for release by the CEO of Euro Manganese Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) or t he ASX accepts responsibility for the adequacy or accuracy of t his
release.
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Inquiries
Dr. Matthew James
President & CEO
+44 (0)747 229 6688
Louise Burgess
Senior Director, Investor Relations & Communications
+1 (604) 312-7546
Company Address: #709 -700 West Pender St., Vancouver, British Columbia, Canada, V6C 1G8
Website: www.mn25.ca
Forward-Looking Statements
Certain statements in this news release constitute “forward -looking statements” or “forward -looking
information” within the meaning of applicable securities laws. Such statements and information involve
known and unknown risks, uncertainties and other factors that may cause the actual results, performance
or achievements of the Company, its Project, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such forward -looking statements or
information. Such statements can be identified by the use of words such as “may”, “would”, “could”,
“will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”
and other similar terminology, or state that cer tain actions, events or results “may”, “could”, “would”,
“might” or “will” be taken, occur or be achieved.
Results of the Feasibility Study constitutes forward-looking information or statements, including but not
limited to estimates of internal rates of return (including any pre-tax and after-tax internal rates of return),
payback periods, net present values, future production, assumed prices for HPMSM and HPEMM, ability
of the Company to achieve a pricing premium for its products, proposed extraction pl ans and methods,
operating life estimates, cash flow forecasts, metal recoveries and estimates of capital and operating
costs. Such forward -looking information or statements also include, but are not limited to, statements
regarding the Company’s intentions regarding the Project in the Czech Republic, the development of the
Project, the ability to source green power and other requirements for the Project, the completion and
submission of an environmental and social impact assessment, statements regarding th e ability of the
Company to obtain remaining surface rights, the benefits of remediating the historic tailings areas, the
growth and development of the high purity manganese products market, the desirability of the Company’s
products, the growth of the EV industry, the use of manganese in batteries, the manganese project supply
line, support from European financial institutions, and the Company’s ability to obtain financing for the
Project.
Readers are cautioned not to place undue reliance on forward -looking information or statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual
results of the Company to differ materially from those discussed in the forward -looking statements and,
even if such actual results are realized or substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, the Company .
Factors that could cause actual results or events to differ materially from current expectations in clude,
among other things: the ability to develop adequate processing capacity; the availability of equipment,
facilities, and suppliers necessary to complete development; the cost of consumables and extraction and
processing equipment; risks and uncertain ties related to the ability to obtain, amend, or maintain
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necessary licenses, or permits, risks related to acquisition of surface rights; risks and uncertainties related
to expected production rates; timing and amount of production and total costs of produ ction; the
potential for unknown or unexpected events to cause contractual conditions to not be satisfied; the failure
of parties to contracts with the Company to perform as agreed; risks and uncertainties related to the
accuracy of mineral resource and re serve estimates, the price of HPEMM and HPMSM, power supply
sources and price, reagent supply resources and prices, future cash flow, total costs of production, and
diminishing quantities or grades of mineral resources and reserves; changes in Project parameters as plans
continue to be refined; risks related to global epidemics or pandemics and other health crises, including
the impact of the novel coronavirus (COVID -19); availability and productivity of skilled labour; risks and
uncertainties related to interruptions in production; unforeseen technological and engineering problems;
the adequacy of infrastructure; risks related to Project working conditions, accidents or labour disputes;
social unrest or war; the possibility that future results will not be c onsistent with the Company's
expectations; risks relating to variations in the mineral content and grade within resources from that
predicted; variations in rates of recovery and extraction; developments in EV battery markets and
chemistries; and risks related to fluctuations in currency exchange rates, changes in laws or regulations;
and regulation by various governmental agencies. For a further discussion of risks relevant to The
Company, see "Risk Factors" in the Company's annual information form for the year ended September 30,
2021, available on the Company's SEDAR profile at www.sedar.com.
All forward -looking statements are made based on the Company's current beliefs as well as various
assumptions made by the Company and information currently available to the Company. Generally, these
assumptions include, among others: the presence of and continuity of manganese at the Project at
estimated grades; the ability of the Company to obtain all necessary land access rights; the availability of
personnel, machinery, and equipment at estimated prices and within estimated delivery times; currency
exchange rates; manganese sales prices and exchange rates assumed; growth in the manganese market;
appropriate discount rates applied to the cash flows in economic analy ses; tax rates and royalty rates
applicable to the proposed operations; the availability of acceptable Project financing; anticipated
extraction losses and dilution; success in realizing proposed operations; and anticipated timelines for
community consultations and the impact of those consultations on the regulatory approval process.
Although the forward -looking statements contained in this news release are based upon what
management of the Company believes are reasonable assumptions, the Company cannot assure investors
that actual results will be consistent with these forward -looking statements. These forward-looking
statements are made as of the date of this news release and are expressly qualified in their entirety by
this cautionary statement. Subject t o applicable securities laws, the Company does not assume any
obligation to update or revise the forward -looking statements contained herein to reflect events or
circumstances occurring after the date of this news release.