Key highlights

  • European Lithium Ltd (ASX:EUR) shares closed at $0.38, up 2.67%, on 19 October 2026.
  • The FY26 report shows a net profit of $930.6 million, including a $1,275.5 million gain on deconsolidation of Critical Metals Corp (NASDAQ: CRML).
  • European Lithium holds 45,536,338 CRML shares, and a scheme under which CRML would acquire European Lithium is proceeding.

European Lithium Ltd (ASX:EUR) shares closed at $0.38, up 2.67% (+$0.01), on 19 October 2026. The company’s Annual Report for the year ended 30 June 2026, which refers to events up to late September 2026, sets out its large Investment in Critical Metals Corp and a proposed merger.

The closing price and change shown are a one-day movement. The information discussed in this article is drawn from the annual report for the year ended 30 June 2026, which was released before the price quoted, so this article does not link the day’s share price movement to it.

Recent update

European Lithium’s annual report for the year ended 30 June 2026 shows a net profit of $930,591,857, compared with a net loss of $96,790,991 in 2025. The profit includes a gain on deconsolidation of Critical Metals Corp of $1,275,503,015, partly offset by an Impairment of investment in associates of $163,086,237 and a share of associates’ net losses of $129,319,420, mostly from Critical Metals after deconsolidation.

The company’s principal activity during the year was its investment in Critical Metals Corp (NASDAQ: CRML). It deconsolidated CRML on 11 October 2025 after disposing of some of its shares, and it held a 31% interest at 30 June 2026. It sold 9,880,303 CRML shares in October 2025 for net proceeds of about US$121.05 million (A$182.85 million), and 7,500,000 shares in January and February 2026 for about US$115.16 million (A$167.6 million). At the date of the report it held 45,536,338 CRML shares, valued at about US$351 million (A$503 million) at a CRML price of US$7.72 on 24 September 2026, a value that moves with CRML’s share price.

On the proposed merger, European Lithium entered a non-binding indicative agreement with CRML on 28 April 2026 and a binding scheme implementation deed on 19 May 2026. Under it, CRML would acquire 100% of European Lithium’s shares and listed options (ASX: EUROC) through two court-approved schemes of arrangement. The deed was amended on 3 July 2026 and a second deed on 19 August 2026 changed the exchange ratio. On 15 September 2026, the Supreme Court of Western Australia ordered meetings of shareholders and option holders, and a scheme booklet was released.

The report also records share issues during the period: 193,019 shares were issued on 13 August 2026 on the exercise of unlisted options at $0.08, and 3,000,200 shares were issued on 8 September 2026 on exercise of listed options at $0.10 and unlisted options at $0.08. These show activity in the company’s Capital Structure while the Merger scheme is pending.

Taken together, the CRML share sales in October 2025 and in January and February 2026 raised net proceeds of about US$236 million (about A$350 million), according to the figures reported, and the remaining stake of 45,536,338 shares is valued at about A$503 million at the CRML closing price on 24 September 2026. The company states the valuation is subject to fluctuation in the CRML share price.

What the company does

European Lithium is an ASX-listed company whose main asset is its investment in Critical Metals Corp. CRML’s flagship asset is its 92.5% investment in Tanbreez Mining Greenland A/S, which holds an exploitation permit for a rare earths project in southern Greenland about 7 km from Qaqortoq, while European Lithium holds the remaining 7.5% indirectly.

CRML also holds the Wolfsberg Lithium Project in Austria, and says it intends to seek further acquisitions of strategic and complementary assets. The directors expect European Lithium’s activities in the next period to focus on completing the proposed merger.

Risks

European Lithium’s value is closely tied to the CRML share price, as the report notes that the valuation of its holding fluctuates with it. The merger is a scheme of arrangement that needs court approval and the approval of European Lithium shareholders and option holders, and the exchange ratio has already been amended once.

The annual profit is driven largely by a non-cash accounting gain on deconsolidation, and the company also recorded an impairment of investments in associates and equity-accounted losses. CRML’s Tanbreez project is at a development stage and depends on permits and funding, while Greenland and Austria add jurisdictional considerations.

Next milestone

The next steps are the Share Scheme and Option Scheme meetings convened by the Supreme Court of Western Australia, followed by court approval and, if all conditions are met, implementation of the CRML acquisition.