“We are progressing the permit processes for our battery mineral mine projects in Hautalampi in Finland and Corcel in Spain. The recent positive developments regarding the Critical Raw Materials Act is a very favourable development for Eurobattery Minerals as it sets a time frame for the permit process proceedings, thus making the investment case in European mines much more predictable”, Roberto García Martínez, CEO of Eurobattery Minerals comments the third quarter 2023.

Strategic and operational highlights Q3 2023

• The Board of Directors has resolved to issue 2,855,856 shares with the support of the authorization by the shareholders meeting on 13 June 2023. The share issue constitutes part of the Company’s acquisition of an additional 30% of the shares of FinnCobalt Oy. Following the closing, Eurobattery Minerals owns 70% of FinnCobalt Oy and the Hautalampi project.

• The first phase of the environmental permit process for the Hautalampi mine project has been completed successfully as the environmental impact assessment (EIA) has been fully approved by the Finnish Centre for Economic Development, Transport and the Environment (ELY).

Key financial figures for Q3 2023

• Net sales amounted to SEK 0 thousand (Q3 2022: SEK 0 thousand).
• Operating profit/loss after financial items totalled SEK -8,481 thousand (Q3 2022: SEK -3,857 thousand).
• Earnings per share after financial items before dilution amounted to SEK -0.25 (Q3 2022: SEK -0.25).
• Earnings per share after financial items after dilution amounted to SEK -0.23 (Q3 2022: SEK -0.23).
• Cash flow from operating activities was SEK 2,047 thousand (Q3 2022: SEK 2,580 thousand).

Key financial figures for the first nine months 2023

• Net sales amounted to SEK 0 thousand (9M 2022: SEK 0 thousand).
• Operating profit/loss after financial items totalled SEK -18,406 thousand (9M 2022: SEK -16,260 thousand).
• Earnings per share after financial items before dilution amounted to SEK -0.55 (9M 2022: SEK -1.06).
• Earnings per share after financial items after dilution amounted to SEK -0.50 (9M 2022: SEK -0.98).
• Cash flow from operating activities was SEK -6,337 thousand (9M 2022: SEK -9,945 thousand).

Significant events after the period

• In October, Eurobattery Minerals announced that it will not renew its exploration licenses for its seven Swedish assets when the permits expire. The decision will enable the company to currently focus on its more advanced projects to create better shareholder value. In Eurobattery Minerals’ half-year report 2023, the Swedish assets were valued at 2.7 MSEK; consequently, the decision has resulted in a non-cash flow affecting write down of the same amount.

• In October, the Company announced its partnership with the research centre Smart Exploration Research led by Uppsala University in Sweden.

Detailed financial information

The Q3 report for 2023 of Eurobattery Minerals AB is available for download at the Company’s website and can be viewed in the attachment of the release (see below).

“We are committed to providing the raw materials needed for batteries to power the green transition across Europe. To achieve this and create the best shareholder value, we have decided not to renew the licenses in Sweden and instead focus our attention on our battery mineral mine projects in Hautalampi in Finland and Corcel in Spain”, said Roberto García Martínez, CEO of Eurobattery Minerals.

The non-renewal decision is based on current challenges associated with mining in Sweden, where the uncertainty in the permit process adds vast ambiguity to the investment case. Furthermore, the decision follows from the Company’s increased attention to its Hautalampi mining project in Finland and Corcel project in Spain. Both projects are well-advanced, and analyses point to high nickel, copper and cobalt grades with a strong economic outlook. 

 “Following the completion of the additional stake acquisition of FinnCobalt and the approved environmental impact assessment for the Hautalampi project, we have made important progress towards an operational battery mineral mine in Finland”, Roberto García Martínez, CEO of Eurobattery Minerals comments the second quarter 2023.

Strategic and operational highlights Q2 2023

• Eurobattery Minerals will receive approximately SEK 17.4 million through warrant redemption. 

• The Hautalampi ore reserves and minerals resources reserves have been classified in the highest categories as viable mining projects in the United Nations Framework Classification for Resources (UNFC). 
• Eurobattery Minerals received an additional report from the scientists in the research partnership that further confirms the viability of the new method for large-scale extraction of rare earth elements in Eurobattery Minerals’ Fetsjön project in Sweden. 

• The Finnish Safety and Chemicals Agency (Tukes) has entered the Hautalampi mining right in the mining register pursuant to the Mining Act. The Hautalampi mining area has the full legal force behind it for its underground mine and its concession.

• Outokumpu town Urban Development Board has initiated the zoning and site plan change for the Hautalampi mine project.

Key financial figures for Q2 2023

• Net sales amounted to SEK 0 thousand (Q2 2022: SEK 0 thousand).
• Operating profit/loss after financial items totalled SEK -6,637 thousand (Q2 2022: SEK -10,046 thousand).
• Earnings per share after financial items before dilution amounted to SEK -0.26 (Q2 2022: SEK -0.64).
• Earnings per share after financial items after dilution amounted to SEK -0.20 (Q2 2022: SEK -0.59).
• Cash flow from operating activities was SEK -11,225 thousand (Q2 2022: SEK -12,325 thousand).

Key financial figures for the first half year 2023

• Net sales amounted to SEK 0 thousand (6M 2022: SEK 0 thousand).

• Operating profit/loss after financial items totalled SEK -9,925 thousand (6M 2022: SEK -12,403 thousand).

• Earnings per share after financial items before dilution amounted to SEK -0.60 (6M 2022: SEK -0.79).

• Earnings per share after financial items after dilution amounted to SEK -0.29 (6M 2022: SEK -0.73).

• Cash flow from operating activities was SEK -1,833 thousand (6M 2022: SEK -11,786 thousand).

Significant events after the period

• The Board of Directors has resolved to issue 2,855,856 shares with the support of the authorization by the shareholders meeting on 13 June 2023. The share issue constitutes part of the Company’s acquisition of an additional 30% of the shares of FinnCobalt Oy. Following the closing, Eurobattery Minerals owns 70% of FinnCobalt Oy and the Hautalampi project.

• The first phase of the environmental permit process for the Hautalampi mine project has been completed successfully as the environmental impact assessment (EIA) has been fully approved by the Finnish Centre for Economic Development, Transport and the Environment (ELY).

Detailed financial information
The Q2 report for 2023 of Eurobattery Minerals AB is available for download at the Company’s website and can be viewed in the attachment of the release (see below).

”With the approved environmental impact assessment, we are one major step closer to mining in Finland and to supplying responsibly mined battery minerals to the European industry. The approval also provides us good guidance towards the environmental permit application we are working on,” said Roberto García Martínez, CEO of Eurobattery Minerals.

According to the approved EIA, the project’s implementation, based on current information and assessment, is technically, socially, and environmentally feasible, taking mitigation measures into account. In connection with the ongoing work for the environmental permit application, several tasks will be carried out. These are ground surveys, characterizations, water management and detailed process planning.

“In 2020, we announced our intention to acquire 100 per cent of the Hautalampi battery mineral mine project. Following the closing of the directed issue announced today, we have acquired an additional 30 per cent stake, thus continuing to deliver on our target. Alongside the financial aspects of the project, we have made significant advancements in our work to open a battery mineral mine and supply responsible minerals to Europe, powering the green transition,” said Roberto García Martínez, CEO of Eurobattery Minerals AB.

The Board of Directors of Eurobattery has today resolved to carry out a directed share issue of a maximum of 2 855 856 new shares. In the event that the share issue is fully subscribed, the aggregate number of shares and votes in the Company increase from 33 738 202 to 36 594 058. The subscription price in the share issue has been determined pursuant to applicable terms for the acquisition of the shares of FinnCobalt and corresponds to the volume weighted average price for the Company’s shares on NGM Nordic SME during the 10 trading days immediately prior to the day of the issue resolution.

The issued shares constitute part of the consideration for the shares in FinnCobalt that the Company acquires through the exercise of the second option pursuant to the Investment and Shareholders Agreement, which included an option to successively acquire FinnCobalt and which was entered into on 11 May 2020 and became effective on 27 May 2020. Pursuant to the terms of the second option, Eurobattery shall no later than 27 July 2023 pay an aggregate cash consideration of EUR 250 002 and issue shares in Eurobattery with a value of an aggregate of EUR 1 000 002 to the three founders of FinnCobalt. The payment of cash consideration and the delivery of the issued shares will be made simultaneously.

The correction refers to the fact that the press release was incorrectly classified as MAR and therefore contained the paragraph that follows:
This information is information that Eurobattery Minerals is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-06-13 12:54 CEST.

The press release should not have included this paragraph as it is not classified as MAR.

Adoption of the income statement and balance sheet
The annual general meeting resolved to adopt the income statement and balance sheet as well as the consolidated income statement and consolidated balance sheet.

Allocation of result
The annual general meeting resolved that all funds available to the annual general meeting shall be carried forward.

Discharge from liability
The members of the board of directors and the CEO were discharged from liability for the financial year 2022.

Election of the board of directors and auditor and remuneration
The annual general meeting resolved, in accordance with the proposal from the shareholder DH Invest AB, that the board of directors shall consist of three board members without deputy board members. It was further resolved that the Company shall have a registered accounting firm as auditor.

Furthermore, it was resolved, in accordance with the proposal from the shareholder DH Invest AB, that an aggregate annual fee of SEK 410,000 shall be paid to the board members, of which SEK 250,000 to the chairman of the board of directors and SEK 80,000 to each of the other board members elected by the annual general meeting. It was resolved, in accordance with the proposal from the shareholder DH Invest AB, that the auditor’s fee shall be paid in accordance with approved invoice.

The annual general meeting resolved, in accordance with the proposal from the shareholder DH Invest AB, to re-elect Henrik Johannesson, Jan Olof Arnbom and Roberto Garcia Martinez as members of the board of directors. Henrik Johannesson was re-elected chairman of the board of directors.

Baker Tilly MLT Kommanditbolag was re-elected as auditor. Baker Tilly MLT Kommanditbolag has informed the Company that the authorised public accountant Stein Karlsen will be the auditor in charge.

Resolution to issue performance shares to the Company’s CEO
The annual general meeting resolved, in accordance with the board of directors’ proposal, to issue performance shares to the Company’s CEO, Roberto Garcia Martinez. The complete proposal is included in the notice to the annual general meeting which was published on 12 May 2023.

Resolution on incentive program for the Company’s CEO
The annual general meeting resolved, in accordance with the board of directors’ proposal, on an incentive program for the Company’s CEO. The complete proposal is included in the notice to the annual general meeting which was published on 12 May 2023.

Issue authorisation
The annual general meeting resolved, in accordance with the board of directors’ proposal, to authorise the board of directors to, on one or several occasions until the next annual general meeting, with or without deviation from the shareholders’ pre-emptive rights, against payment in cash, non-cash consideration or through set-off, resolve on new issues of shares, convertibles or warrants corresponding to 40 percent of the total number of shares in the Company as of the date of the annual general meeting 2023.

 “With an additional 30% acquisition of the Hautalampi project and the positive results of the pre-feasibility study, we are closer to mining in Finland. In combination with a successful capital raise and positive first results from our research partnership on rare earth elements, we are off to a good start in 2023”, said Roberto García Martínez, CEO of Eurobattery Minerals.

Strategic and operational highlights for the first quarter of 2023

• Eurobattery Minerals announced the completion of the pre-feasibility study for its Finnish Hautalampi mining project. The study concludes that with a conservative metal price, and a total capital expenditure of EUR 65.1 million (excluding contingency), the payback period is 4.6 years, with an anticipated 12 years of mining operations. 
• The company announced an additional 30% stake acquisition of FinnCobalt and the Hautalampi project. Altogether, Eurobattery Minerals’ stake in FinnCobalt Oy will amount to 70% following the impending acquisition.
• Hautalampi project’s environmental impact assessment update report was submitted to the North Karelia Centre for Economic Development, Transport, and the Environment for official review as part of the assessment. 
• The company announced first results from the new research partnership outlining new methods for large-scale extraction of rare earth elements (REEs), allowing nearly 100% REEs recovery in its Fetsjön project in Sweden.
• Eckhard Cordes, Chairman of the Board of Bilfinger and former member of the Board of Management of Daimler, as well as former Board member of Volvo, exercised warrants and will become a shareholder in Eurobattery Minerals.

Key financial figures for Q1 2023

• Net sales amounted to SEK 0 thousand (Q1 2022: SEK 0 thousand).
• Operating profit/loss after financial items totalled SEK -3,288 thousand (Q1 2022: SEK -2,357 thousand).
• Earnings per share after financial items before dilution amounted to SEK -0.20 (Q1 2022: SEK -0.15).
• Earnings per share after financial items after dilution amounted to SEK -0.12 (Q1 2022: SEK -0.15).
• Cash flow from operating activities was SEK 1,388 thousand (Q1 2022: SEK 540 thousand).

Significant events after the period 

• Eurobattery Minerals will receive approximately SEK 17.4 million through warrant redemption. 
• The Hautalampi ore reserves and minerals resources reserves have been classified in the highest categories as viable mining projects in the United Nations Framework Classification for Resources (UNFC). 

Detailed financial information
The Q1 report for 2023 of Eurobattery Minerals AB is available for download at the Company’s website and can be viewed in the attachment of the release (see below).

Please note that this press release is a correction since the previous press release sent out did not include information regarding the specific information in the auditor’s report as included below as well as a comment from the company.

Significant uncertainty regarding the going concern assumption 
Without prejudice to my opinion above, I would like to draw attention to the statement in the Directors’ Report that the company is dependent on further capital injections in 2023 to ensure its continued operation. 

The Board is negotiating with external stakeholders for a long-term solution to strengthen the company’s liquidity and equity. It is the Board’s assessment that there are good opportunities for continued financing. 

The above indicates that there is a material uncertainty, which may cast significant doubt on the company’s ability to continue as a going concern.

Eurobattery Minerals comment to the auditors report
The auditors’ comment is based on the fact that Eurobattery Minerals is a growth company and is financed through external capital. In April 2023, the company announced that it will receive approximately SEK 17.4 million through warrant redemption. Further, in the first quarter of 2023, the company announced the completion of the pre-feasibility study for its Finnish Hautalampi mining project. The study concludes that with a conservative metal price, and a total capital expenditure of EUR 65.1 million (excluding contingency), the payback period is 4.6 years, with an anticipated 12 years of mining operations. Considering the recent development of the company and completed issues, negotiations with potential off-takers and partners in light of and positive results from its project in Finland, the Board of Directors believes that the prospects are very good to continue to develop the business.

“In 2022, we took crucial steps to realise our strategy to mine European and responsible battery minerals to power the electric vehicle and clean energy industry. During 2023 the management and the Board of Directors are negotiating with various external parties and potential off-take partners in order to secure the company’s financial capacity to develop and accelerate the company’s project pipeline and to become a European mining and mineral raw materials supplier”, said Roberto García Martínez, CEO of Eurobattery Minerals. 

Strategic and operational highlights 2022

Finnish Hautalampi mine: Significant advances in preparations for the start of the mine with 40% stake acquisition, the final verdict for mining concession proceeding and an independent report concluding that the mineral resources in the mine project have almost doubled. 

Spanish Corcel mine project: Economic upside as independent report and metallurgical study (covering only 10 % of the whole mine lease) concludes that the nickel in Corcel is sufficient to manufacture half a million 60 kWh car batteries and worth EUR 113.9 million. With the necessary information provided to authorities for environmental and operational permits, the open pit mine project is significantly closer to operations. 

Swedish exploration permits: Research collaboration on rare earth elements and extension of all exploration permits during 2022. 

Detailed financial information
The 2022 Annual Report of Eurobattery Minerals AB is available for download at the company’s website and can be viewed in the attachment of the release (see below).

 “In 2022, we took crucial steps to realise our strategy to mine European and responsible battery minerals to power the electric vehicle and clean energy industry. During 2023 the management and the Board of Directors are negotiating with various external parties and potential off-take partners in order to secure the company’s financial capacity to develop and accelerate the company’s project pipeline and to become a European mining and mineral raw materials supplier”, said Roberto García Martínez, CEO of Eurobattery Minerals. 

Strategic and operational highlights 2022

Finnish Hautalampi mine: Significant advances in preparations for the start of the mine with 40% stake acquisition, the final verdict for mining concession proceeding and an independent report concluding that the mineral resources in the mine project have almost doubled. 

Spanish Corcel mine project: Economic upside as independent report and metallurgical study (covering only 10 % of the whole mine lease) concludes that the nickel in Corcel is sufficient to manufacture half a million 60 kWh car batteries and worth EUR 113.9 million. With the necessary information provided to authorities for environmental and operational permits, the open pit mine project is significantly closer to operations. 

Swedish exploration permits: Research collaboration on rare earth elements and extension of all exploration permits during 2022. 

Detailed financial information
The 2022 Annual Report of Eurobattery Minerals AB is available for download at the company’s website and can be viewed in the attachment of the release (see below).