Euro Manganese Inc.

Enhancing the Future Outlook: Euro Manganese Inc. (ASX: EMN) is a small-cap player in the mineral sector. The company was formed in 2014 and got listed in 2018. The company mainly owns a 100% interests in Chvaletice manganese project. The project is in the east of Prague, the Czech Republic.

Market outlook for manganese product is looking decent. There is a stable, growing manganese demand in the high-performance steel and aluminium superalloy production. The demand for manganese products for lithium-ion battery production is expected to ramp-up very significantly around the world. This may give some upside to the stock.

The group lately flagged that Chvaletice Manganese Project Mineral Resource project has witnessed positive 2018 Drilling Program results as the resource estimate with 98.3% of Resource confirmed under Measured Category has been noted. There has been consistency of manganese grade and mineralogy and it has been further identified through Pilot Plant Test runs that the Chvaletice tailings can be used for extracting manganese through commercial technologies. In fact, UltraHigh-Purity Manganese Products can be obtained as per customer requirements. Post the ongoing processes, the group intends to set up a Demonstration Plant in 2019 for producing UltraHigh-Purity Manganese Product samples. EMN also targets to have Preliminary Economic Assessment (PEA) to be through in initial phase of 2019. Given the developments in hand, the group aims to produce electrolytic manganese metal (EMM) and manganese sulphate monohydrate (MSM). This is projected to help the group focus on European, North American, and Asian auto industry space given the utility found in electric vehicles. The group also plans to have required permits in said area.

Financial Performance (Canadian dollars): Net loss for the financial year 2018 stood at C$6.534 million, a decrease of 91.5% over the C$3.413 million recorded in the corresponding period in 2017. Exploration and evaluation expenses on Chvaletice Project for the year stood at C$4.6 million, an increase of 91.4% over the C$2.4 million recorded in the corresponding period in 2017.

On Balance Sheet front, Total Assets increased by 184% to C$12.3 million in FY18 over C$4.32 million in the corresponding period in 2017. The company ended the year with C$10.37 million in cash over the C$2.86 million in the corresponding period in 2017. While the group has been considering itself as an early exploration stage company, and the confidence to have profitable commercial operation is yet to develop, as per the latest annual report; EMN is still trying to gain momentum with better reserves update and other developments.

FY19 Plans: The Chvaletice Manganese Project PEA to produce HPEMM (high purity EMM) and HPMSM (high purity MSM), is expected to be completed in early 2019. This work program includes: completing the study of mining, waste management plans and investigations to narrow down options for the plant site and related facilities and to advance the company’s land acquisition program.

Within FY19, the company intends to complete the ongoing environmental scoping and baseline studies, with hydrogeological studies. Completion of the related planning for and initiation of an Environmental impact Assessment for the Chvaletice Management Project is also scheduled.

Discussions with leading Asian, European and North American importers of high-purity manganese products are ongoing. It will provide a competitive and reliable long-term supply of HPEMM and HPMSM.

Meanwhile, the share price of the company has shown a negative return of 45.3% since listing, as on 18 December 2018, and it is trading towards a lower level. Hence, considering fundamentals of the company that are yet to take some shape and reviewing management future goals and current stock performance, we have a wait and watch view on the stock at current market price $0.175 and with a market capitalization of $17.3 Million as on 19 December 2018.
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.