Highlights

  • Euro Manganese shares rose 8.00% on 14 May 2026 following the release of a new Preliminary Economic Assessment for the Chvaletice Manganese Project.
  • The updated PEA outlined a pre-tax NPV of US$740 million and post-tax NPV of US$492 million at an 8% discount rate.
  • Post-tax Internal Rate of Return was estimated at 13.8%, with a projected Operating Margin of 48%.
  • The revised development strategy includes a phased construction model aimed at lowering upfront Capital requirements.
  • Annual production capacity is targeted at 150,000 tonnes of high-purity manganese sulphate monohydrate over a 26-year project life

Euro Manganese Inc CDI (ASX:EMN) shares climbed 8.00% to AUD 0.14 on 14 May 2026 after the company released a new Preliminary Economic Assessment (PEA) for its Chvaletice Manganese Project in the Czech Republic. Despite the latest gain, the stock remains down 41.30% over the past year. Investor attention appeared to shift toward the updated project Economics, revised production strategy and improved recovery assumptions outlined in the company’s latest assessment.

The updated PEA was developed following the company’s previously announced optimisation program and builds on the earlier 2022 feasibility study for the Chvaletice Manganese Project. According to Euro Manganese, the revised assessment incorporates operational learnings from its demonstration plant, additional metallurgical testing and customer feedback, while responding to current manganese market conditions.

Euro Manganese is developing the Chvaletice Manganese Project as a potential integrated source of high-purity manganese products for electric vehicle batteries, energy storage systems and defence-related applications. The project aims to reprocess historical mine tailings to produce high-purity manganese sulphate monohydrate (HPMSM) and high-purity electrolytic manganese metal (HPEMM). The company has positioned the project as Europe’s only near-term source of high-purity manganese and highlighted its strategic relevance amid efforts to diversify battery material Supply chains away from China.

Updated PEA Indicates Revised Economic Outlook

The company’s latest PEA outlined a pre-tax Net Present Value (NPV) of US$740 million and a post-tax NPV of US$492.1 million using an 8% discount rate. The assessment also estimated a pre-tax Internal Rate of Return (IRR) of 16.0% and a post-tax IRR of 13.8%.

Euro Manganese said the revised project framework demonstrates the potential economic viability of the Chvaletice development even under what it described as conservative pricing assumptions. The PEA assumes an average life-of-project HPMSM selling price of US$2,888 per tonne.

The project’s projected pre-tax operating margin was estimated at 48%, while undiscounted post-tax cash flows over the project life were estimated at approximately US$3.35 billion.

The PEA outlines a targeted project life of 26 years, during which the company expects to process around 26.96 million tonnes of tailings material. Total projected HPMSM production over the life of the project was estimated at 3.65 million tonnes.

Euro Manganese also highlighted updated recovery improvements compared with earlier studies. Overall manganese recovery rates were estimated at 60% for HPMSM and 61% for HPEMM, supported by additional metallurgical testing and process engineering refinements.

Phased Development Strategy Introduced

One of the key changes in the updated assessment is the introduction of a phased construction approach. Euro Manganese said the strategy is intended to lower upfront capital requirements, reduce funding risk and provide additional flexibility before full-scale expansion.

Under the revised development model, initial Phase I Capital Expenditure was estimated at US$627.5 million. A second-stage plant expansion designed to increase operations to full production capacity would require an additional US$197.8 million.

The company noted that Phase II expansion is expected to commence shortly after Phase I commissioning to maximise project value and align future Investment with Cash Flow generation.

Total estimated capital expenditure for the project, including sustaining capital, was estimated at US$964.4 million.

Management stated that the phased approach could provide opportunities for further optimisation in the future while improving overall project economics.

Production Capacity and By-Product Potential

The updated process flowsheet supports annual production of 150,000 tonnes of HPMSM. Euro Manganese said the revised design also preserves flexibility to supply both HPMSM and HPEMM products depending on customer Demand and battery market requirements.

The project processing plant has been designed to handle approximately 1.1 million tonnes of historical tailings annually.

The company additionally introduced magnesium carbonate as a new by-product stream within the latest PEA. Euro Manganese said the inclusion of magnesium carbonate production could provide incremental value with relatively limited additional capital expenditure.

According to the assessment, the project could produce up to 20,000 tonnes per annum of magnesium carbonate.

The updated processing design also includes new recovery circuits aimed at improving operational efficiency and enhancing product quality. Euro Manganese stated that the HPMSM product is designed to contain no less than 99.9% purity with a minimum manganese content of 32.34%.

Strategic Positioning Within Battery Supply Chains

Euro Manganese continued to emphasise the strategic importance of the Chvaletice Manganese Project within emerging European and North American battery supply chains.

The company noted that the Czech Republic qualifies as a compliant sourcing Jurisdiction under United States National Defense Authorization Act (NDAA) procurement frameworks. Management stated that this positioning could support future supply opportunities as governments and manufacturers seek alternative critical mineral supply chains.

The project has also received designation as both a Strategic Deposit under Czech legislation and a Strategic Project under the European Union’s Critical Raw Materials Act.

Euro Manganese said these classifications may support access to grants, incentives and financing opportunities available through Czech and European Union programs.

Permitting and Regulatory Progress Continues

The company highlighted that several key permits and regulatory approvals for the project have already been secured.

A favourable Environmental and Social Impact Assessment (ESIA) opinion was issued by the Czech Ministry of Environment in March 2024. Euro Manganese stated that the assessment concluded the project would not worsen existing environmental conditions and may contribute to reducing contamination in the surrounding area through remediation and reclamation activities.

The company also received a Mining Lease determination permit in January 2025, authorising mining-related activities at the site.

According to Euro Manganese, future permitting work during 2026 will focus on advancing approvals under the Czech Building Act and progressing toward the final operating permit pathway.

The company noted that the project site already benefits from access to rail infrastructure, highways, water, gas pipelines and nearby power infrastructure.

Sensitivity Analysis and Operating Costs

The PEA included sensitivity analysis based on changes in pricing, operating costs, recoveries and capital expenditure.

Under the base case scenario, post-tax NPV was estimated at US$492 million. A 10% increase in HPMSM prices would increase post-tax NPV to US$721 million, while a 10% reduction in prices would lower it to US$263 million.

Similarly, a 10% increase in operating costs would reduce post-tax NPV to US$372 million, while a 10% decrease in operating costs would increase NPV to US$611 million.

Average onsite operating costs were estimated at US$181.99 per tonne of plant feed, while total all-in operating costs were estimated at US$213.71 per tonne.

Euro Manganese stated that per-unit HPMSM operating costs have declined compared with the 2022 feasibility study due to increased production volumes and updated energy and reagent assumptions.

Resource Base and Processing Plans

The project’s combined measured and indicated mineral resources were estimated at approximately 26.96 million tonnes grading 7.33% total manganese and 5.86% soluble manganese.

Contained manganese resources were estimated at approximately 1.97 million tonnes.

The company plans to extract material from three historical tailings cells in a counterclockwise sequence beginning with Cell 3, followed by Cells 1 and 2.

Recovered tailings material would undergo magnetic separation, leaching, purification and electrowinning processes before conversion into battery-grade HPMSM products.

Euro Manganese stated that the project has been designed without the use of selenium or chromium during HPEMM production.

Next Development Priorities

Following completion of the PEA, Euro Manganese said it intends to advance the Chvaletice project toward a full feasibility study targeted for completion in the first half of 2027.

The company also plans to continue discussions with potential customers regarding offtake agreements and product testing.

Management identified several priorities for 2026, including progressing financing discussions, securing remaining land access rights, advancing permitting activities and pursuing non-dilutive funding opportunities through European Union and Czech government programs.

What This Means for Investors?

Euro Manganese’s latest update appears to have improved market sentiment around the Chvaletice Manganese Project, particularly given the revised project economics, higher recovery assumptions and phased development strategy.

The updated PEA outlined long-term production potential, favourable operating margins and revised capital planning aimed at reducing upfront funding pressure. Investors also appeared to respond positively to the project’s strategic positioning within European battery material supply chains and its progress on permitting and regulatory approvals.

While the assessment remains preliminary in nature and funding requirements remain substantial, the latest update provides a revised framework for how Euro Manganese intends to advance the project toward feasibility and eventual commercial development.