European Green Transition plc (AIM: EGT) recently released its audited results for the year ended 31 December 2024, marking a pivotal period of transformation for the green economy investment company.
The FY24 report outlines a foundational year in which the business secured its AIM listing, delivered technical milestones across its rare earth and copper projects, and formalised a decisive shift away from early-stage exploration toward a focused mergers and acquisitions (M&A) strategy targeting revenue-generating assets. At the heart of this transition is co-founder Cathal Friel, who is set to become Executive Chairman at the upcoming AGM, scheduled for 30th June, reinforcing EGT’s evolution under his direct operational leadership.
A Foundational Year Culminating in Strategic Clarity
EGT’s successful listing on London’s AIM in April 2024 raised gross proceeds of £6.46 million, providing the capital base to both advance key assets and enable a broader corporate pivot. Over the subsequent months, the company executed a tightly controlled 1,500 metre drill campaign at its Olserum Rare Earth Element (REE) project in Sweden. The results, announced in December 2024, confirmed REE mineralisation in every hole, with standout intercepts including 2.45 metres grading 2.71% Total Rare Earth Oxides and a narrow but high-grade 0.5 metre interval grading 8.83% TREO. Metallurgical test work on historic drill core confirmed that high-grade REE concentrates can be produced using relatively simple, conventional techniques.
In May 2025, EGT secured a four-year licence extension for Olserum to June 2029, positioning the asset for potential monetisation. The project’s designation as a “Project of National Interest” in Sweden and growing geopolitical tensions, most notably China’s restrictions on REE exports and the new Trump administration’s push for mineral deals in Ukraine, have elevated Olserum’s strategic appeal as Europe seeks to strengthen domestic supply chains for critical minerals.
Olserum and Pajala Positioned for Monetisation
While EGT has no plans to take Olserum into production itself, the 2024 drill programme significantly de-risked the project for potential partners or acquirers. With no operating REE mines in Europe and increasing urgency around raw material independence, EGT believes Olserum could play a pivotal role in the continent’s supply strategy. This belief is reflected in the company’s decision to focus on marketing the asset for sale or joint venture.
EGT’s second Swedish asset, the Pajala copper-graphite project, also saw material progress with a three-year licence extension granted to 2028. The project includes historical copper drill intercepts completed by Anglo American, including 10.75 metres at 0.5 percent copper. With copper prices supported by electrification demand and graphite attracting growing interest for its use in battery anodes, EGT believes Pajala will also attract commercial interest. As with Olserum, the company’s stated goal is to monetise rather than develop the project internally.
Carbon Credit Upside and Strategic Portfolio Refinement
Beyond its Nordic mining portfolio, EGT is exploring revenue-generating environmental assets such as the Altan Carbon Credit Project in Donegal, Ireland. The company has extended its exclusive option over the 1,370-acre site until November 2025, at no additional cost. Altan aims to generate carbon and biodiversity credits through peatland rehabilitation, leveraging the recently launched Irish Peatland Standard to support the monetisation of verified nature restoration efforts. EGT continues to engage with local landowners and government stakeholders to expand the scope and revenue potential of the project.
In contrast, EGT has chosen not to pursue the Cyprus Copper Tailings Recycling project, allowing the option to lapse in order to conserve capital and align with its sharpened focus on cash-generative acquisition targets.
Transition of Leadership and Strategic Focus
The most consequential change for the company in 2025 is the appointment of Cathal Friel as Executive Chairman, which will come into effect from the conclusion of the 2025 Annual General Meeting, held on 30 June 2025. Friel, who co-founded EGT and remains its largest shareholder, steps into a more active leadership role following his departure as Chairman of hVIVO plc in early June 2025. His track record on AIM, particularly with hVIVO (formerly Open Orphan) and Amryt Pharma, is well recognised for turning around distressed businesses and delivering strong shareholder returns through aggressive yet disciplined M&A execution.
Friel’s appointment coincides with the planned departure of CEO Aiden Lavelle, who will step down at the end of June following the successful delivery of Olserum’s 2024 drilling campaign. The leadership transition signals a decisive move away from asset development and toward strategic acquisitions, with Friel personally leading deal flow and execution.
In a recent statement, Friel noted, “I am confident that we can deliver on our M&A strategy in the near future as EGT’s focus moves away from mining towards acquiring distressed revenue generating businesses in the green economy.”
Financial Foundation to Support Growth
EGT ended the 2024 financial year with a strong cash position of £3.7 million and no debt, providing the company with flexibility to pursue its M&A-led strategy. The majority of this cash came from its successful AIM IPO, which raised gross proceeds of £6.46 million. These funds supported project work at Olserum, project option agreements like Altan, ongoing diligence work on M&A opportunities. EGT reported a net increase in cash of £3.56 million for FY24, reflecting strong financing inflows following its IPO and a disciplined approach to exploration and investment.
EGT reported an operating loss of £2.14 million for FY24, driven primarily by £386,094 in exceptional IPO expenses and £415,375 in capitalised exploration work. Administrative costs of £1.8 million reflect the build-out of the company’s public company structure and technical operations, while the £24,483 share-based payment charge relates to its newly adopted Employee Performance Incentive Plan.
Management has indicated that this transitional cost base will not persist, with lower near-term expenditure expected as the company focuses on acquiring distressed, revenue-generating businesses. The company is currently debt free and has minimal capital commitments, EGT believes it is sufficiently funded to execute at least one material acquisition without the need for further dilution
With a clean balance sheet, a £3.7 million cash reserve, and no debt, EGT enters the second half of 2025 in a strong financial position to pursue its M&A strategy. The Board has confirmed that multiple discussions are ongoing with distressed, revenue-generating businesses, which it believes could offer the optimal path to unlocking near-term shareholder value.
Risks and Considerations
While EGT’s repositioning offers significant potential, investors should remain mindful of typical risks associated with early-stage, acquisition-driven strategies. Execution risk remains high, particularly as the company seeks to complete its first transaction in a competitive M&A environment. The monetisation of exploration assets like Olserum and Pajala also depends on favourable market interest and timing, which may not align with near-term plans. Additionally, while the company currently holds a strong cash balance, future acquisitions or operational scaling may require additional funding, which could result in dilution. As with many AIM-listed companies, liquidity, regulatory developments, and broader market sentiment may also impact share performance in the near term.
Outlook: From Critical Minerals to Cash Flow
European Green Transition plc enters the second half of 2025 with renewed clarity and momentum. With a £3.7 million cash reserve, no debt, and a clean corporate structure, the company is now focused on executing its M&A strategy. Legacy assets such as Olserum and Pajala, now de-risked and positioned for monetisation, offer additional upside as EGT concentrates capital on acquiring distressed, revenue-generating businesses aligned with Europe’s green economy transition. The Board has confirmed that multiple deal discussions are already underway.
With Cathal Friel assuming the role of Executive Chairman, the company gains hands-on leadership from an executive with a track record of transforming undervalued AIM-listed companies into profitable ventures. His past success at hVIVO and Amryt Pharma sets a precedent for disciplined execution and shareholder value creation. EGT’s pivot away from early-stage mining toward scalable M&A presents a clear opportunity, but one that will ultimately depend on the company’s ability to close and integrate high-potential acquisitions.
For retail investors, EGT represents a rare combination of latent asset value and forward-facing deal momentum. While execution risks remain, the company’s current positioning offers meaningful optionality in a sector increasingly driven by energy transition demand and strategic supply chain shifts.
Disclaimer: The information presented in this article represents the views and analysis of the author and is provided for informational purposes only. It should not be interpreted as financial, investment, or legal advice. Investors should conduct their own due diligence and consult a qualified adviser before making investment decisions. Investing in AIM-listed companies involves risk, and past performance is not indicative of future results.
