Sell Alert: it’s time to sell European Metals Holdings (AIM: EMH)
31st October 2024 |
We’ve decided to sell European Metals Holdings (AIM: EMH) from the model portfolio at a disappointing loss of -74.09%.
As you will recall, the company part owns the Cinovec lithium asset in the Czech Republic, one of very few advanced-stage, large-scale lithium projects in the European Union with a mineral resource of nearly 7.4 million tonnes of contained lithium carbonate equivalent.
The project is being developed by Geomet, a joint venture between EMH and Czech-state-owned CEZ.
Shareholders continue to wait for news of the publication of the definitive feasibility study (DFS) for the Cinovec project. This was originally slated for release in the first quarter, a deadline that came and went before being postponed indefinitely at the end of July amid a proposed move in the lithium processing plant’s location.
Frankly, I have now lost patience with waiting for the DFS, especially as the lack of news leaves the stock exposed to a weak lithium price that continues to pressure the project’s economics.
This is a shame as the project could end up being recognised as a strategic project under the EU’s Critical Raw Materials Act. Cinovec, a hard rock deposit in the Czech Republic, already has strategic project status under another EU initiative, the Just Transition Fund.
I will continue to keep a close eye on developments at the company but for now it’s time to sell, especially as we have a lower-cost lithium company in Volt Lithium – a company that, unlike EMH, is now actually producing battery-grade lithium – in the portfolio too.
Action to take: SELL European Metals Holdings
Ticker: AIM: EMH
Current price: 8.50p
Our buy price: 32.80p
% gain/loss: -74.09%
James Allen
Co-editor, Southbank Growth Advantage
