Eurobattery Minerals ("Eurobattery") is an exploration and mining development company. The company has two main projects: the San Juan tungsten project in Spain and the Hautalampi copper-cobalt-nickel project in Finland. The company will prioritize the San Juan project, which is expected to be operational in the first quarter of 2027. Preparatory work for mining start-up is started with a letter of intent for an off-take agreement, started design work of an enrichment plant with an ongoing metallurgical control program. We expect San Juan to generate revenue of approximately SEK 2.3 billion from the beginning of 2027 through 2034. The Hautalampi project requires major investments in order to start production. The environmental permit application was submitted in April 2024 and additional information was requested by the Finnish authorities in April 2026.
Since production starts in San Juan are expected in early 2027, Mangold sees a positive cash flow benefiting from high raw material prices in the project from the start. The price of tungsten has increased by 740 percent since 2024 and benefits from export restrictions from China that dominate the market, lower concentrations in producing mines, higher demand in most critical uses and few new projects close to mining start-up. Eurobattery took up a convertible loan facility of SEK 60 million in May 2026, which is expected to be sufficient to start mining in San Juan.
Mangold values Eurobattery using a sum-of-the-parts model based on risk-adjusted cash flow from the projects. The valuation range is between SEK 0.112 and SEK 1.105 per share in a Bear and Bull case respectively, largely dependent on future tungsten price. Mangold recommends Buy with a price target of SEK 0.45 per share for 12 months.