European Metals Holdings Ltd (LON:EMH)(ASX:EMH) shares jumped higher on Monday after the firm said it has updated the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H2O) from the Cinovec project in the Czech Republic.
This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore.
WATCH: European Metals' Keith Coughlan details updated Cinovec PFS
The results significantly enhance the likely economics of the Cinovec project.
It’s now estimated that it will cost European Metals US$3,435 to produce each tonne of LiOH.H2O.
Factoring in the new adjustments, the post-tax net present value of Cinovec rises by 105% to US$1.1bn, using an 8% discount rate.
Correspondingly, the internal rate of return increases by 37% to 28.8%, as the its envisioned the project will produce 25,267 tonnes of battery grade lithium per year.
The total capital cost is set at US$482.6mln.
"I am very pleased to report to shareholders on the completion of this update to our 2017 preliminary feasibility study for the Cinovec project which adds significantly to the already robust forecast economics for the project,” said European Metals managing director Keith Coughlan.
In morning trading, shares in European Metals were 11.1% higher at 22.50p.
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