Savannah Resources Share Discussion Threads

[highly geared] 18/3/2018 19:01

Yorkie/GED ; thanks for your comments. GED, agreed on the lithium, I was being very conservative!

SAV is one of those good 'under the radar stocks' with a very impressive asset portfolio and a CEO with serious skin in the game. The success however is turning known resource into stuff out of the ground and sold or to market it successfully to be sold to a major.

I'd like to see them go full on to develop Oman (provided the authorities wake from their lethargy and get the bloody permits/licence granted!) as revenue from there can fund fast tracking Portugal and DFS/Financing by 2020 + continue to explore Oman to get up to 20 million tonnes JORC.

If DA plays it right, we should have a market cap north of £100 million this time next year but he needs to get news flow and promotion going and a bit of transparency on the plans across the 3 main assets.

All the best.

[yorkie14] 18/3/2018 18:22

HG, I agree that it could do with some news flow here and DA could learn a thing or two from Tony Manini on that front. Been here a good while now but still retain confidence in that SAV will deliver.
GL LTH

[ged5] 18/3/2018 17:08

"In time and with 3 rigs on site I can realistically see the resource being doubled."

I'm sorry but I can't agree!

Mina do Barroso is 5.42 square Km. Only 3 of 8 pegmatites have been drilled.

Reigoso, apparently the area with most potential, is 83 square Km.

In time I expect far more than double. Shortly (this year) I agree with you.

[ged5] 18/3/2018 16:56

We live in hope, IB. A later date was the spontaneous answer, only corrected under cross-examination. That steel-eyed stare would have changed my answer as well.

I was alluding to the accounts when I mentioned a comprehensive update. It is my understanding that AIM companies have 6 months to produce full year accounts, so plenty of time yet. I'm sure with so much consultation required they wouldn't leave them to be prepared and announced close to a deadline.

IF there is to be a fund raise (placing?), I agree, I too would think it would be announced first.

Thanks for your figures HG. Going through Oman announcements I came across an interesting comment, which I can't relocate at the moment. It was about a loan for Oman mine CAPEX which would be repaid before dividend payments were made. Unfortunately it didn't give any figures.

Good luck with ARS. I think yorkie also mentioned it.

[highly geared] 18/3/2018 15:53

On Portugal, based on 10 million tonnes grading around 1% and based on Lithium Carbonate production, I’d reckon on an NPV10 value around $300 million.
In time and with 3 rigs on site I can realistically see the resource being doubled.

You can see the SAV asset portfolio has the potential to 10 bag or more if everything lines up over the next 5 years...

[highly geared] 18/3/2018 15:36

Block 5 has c 31,500 tonnes of copper, Block 4 has historic mining activity and infrastructure with 190,000 tonnes previously mined.

Assuming a mid case exploration target of 20 million tonnes at 1.9%, that is another 380,000 tonnes, 411,500 tonnes prospective.

That may equate to a 25,000 tonne operation over 15-16 years , right into the copper cycle sweet spot.

Not sure of production and mine development costs but if they get a starter mine going and prove up/develop the mid case target then we should be looking at a market cap 6-7x current levels. That’s without Portugal/ Moz.

On a 5 year view and with everything lining up well, no reason why this cannot be a £500M+ market cap company.

But, Oman needs to start happening.....
I’m heavily invested in Asiamet and if DA can pull Oman off and the market wakes up, we could see a similar story unfold.

[inbrackets] 18/3/2018 15:16

Hi, Ged.March marches on and if H1 mining was to start, then end March was to be a key date. This would seem to have slipped to A more general non specific 2018 on the Oman front whilst we await last non objection, then PAM, which is probably n turn waiting for confirmation of approval of the recent report's recommendations.Meanwhile we have not had the accounts as yet and last year there was a fund raise just prior to the accounts being issued. Might it be a similar choreography this year? Think they need to be out prior to month end, in which case, one might expect rns on a daily basis virtually.It would be good to my mind if any raise was substantial as there would be positive reasons for doing it, and they would be needed, rather than a mundane refill of the funding pot.

[ged5] 18/3/2018 14:22

It's just over 2 weeks since some of the team jetted off to Oman. Meetings with joint venture patners and Board meetings presumably completed. Much to agree,digest and write down. Meetings with Al Fairuz Mining Company LLC, Al Thuraya LLC Slipstream Resources Investments Pty Ltd and Rio Tinto. If all those took place, then no wonder we've had such a quiet fortnight.

I've now pencilled in July for completion of the scoping study in Portugal and the commmencement of mining in Block 5, Oman.

So what might we expect before then?

This week will be 7 months since phase 1 of the PFS commenced. Reasonable to expect an announcement soon. And what of the processing plant? How well is it performing? Fortunately there hasn't been such a destructive cyclone as last year and the rainy season is cominng to an end.

Over in Oman the last 'No objection received' could be announced. What of our 51% joint venture of Block 4. Will we ever get to 65%? I suspect others like me have forgotten those high grades of gold!

Could there be more drill results in Portugal or amendments to the mining licence?

I think we'll know more in the next 9 working days with a comprehensive update from the company.

Will we have an Easter rising or will we have to wait for the Ascension?

[broncowarrior] 16/3/2018 15:47

All pausing for breath Nick!

[nick9013] 16/3/2018 14:00

Ghost town boys. No placing tho as i was informed!

[edgein] 16/3/2018 12:07

Bronco,

Interesting, can't wait to see the numbers from the scoping study when it arrives.

Regards,
Ed.

[broncowarrior] 14/3/2018 22:42

Another tweet today outlining progress.

[broncowarrior] 08/3/2018 13:15

Can't get any under 6p.

[broncowarrior] 08/3/2018 12:52

Edgin, agree we probably still have a good couple of million left but a company should always raise when in a position of financial strength, the price that the raise happens then being higher.

[broncowarrior] 08/3/2018 11:21

Hopefully DA met the housing minister in Oman when he was there....is V odd that is the last one outstanding.

[edgein] 08/3/2018 09:51

Pale,

Definitely agreed chap, investors need to focus on the companies with the best assets and not what's popular. Those with the assets that are being driven towards production are the places to be. Noone wanted SOLG at 3p per share, I remember sitting there for months with the company reporting 600m intersects thinking is this ever gonna move. Same with THR at 0.6-0.8p. Its about buying in cheap and waiting on those with good management/good assets and the rest will come. Those buying momentum are likely to get stung unless a strong bull market returns, unless the momentum is backed by assets of course.

DA here just needs to keep doing what he's doing driving foward to a large proven lith resource, feasibility, sale or JV. I've not seen a miner drive forward as fast we've only started to drill Port in H2 last year, already working towards scoping study in Q2 followed by feasibility. First JORC was in less than 6 months, second JORC on next target was in about 7-8 months, both to be upgraded when they factor in 2018 drilling (9.1Mt based only on 2017 drilling or about 5-6 months of results). Metallurgy preparation for scoping study. We're going hammer and tongs here to get Port at the head of the queue for the large companies that will want secure supplies of lith for the EV boom that's about to hit us.

Yes there's lots of subdued miners around at the moment, lots of choice for investors picking up quality cheap. But as the saying goes buy when noone else is interested and sell when everyone wants a slice.

Regards,
Ed.

[paleje] 08/3/2018 09:38

All valid stuff Ed but still this a very jittery market, lots of good value (we think) stocks are subdued sp-wise, human nature to hang on if there might be a better deal round the corner.

[edgein] 08/3/2018 09:07

While you can never say never on AIM I think you fellas are being a bit hasty. In October last year they had almost £5m in cash to be used for scoping study for Oman and PFS for Moz as well as continuing this shallow programme of drilling in Port. Second rig arrived late last year, third rig arrive in about the last week or so. Imo the bulk of the £5m is still in place. We're awaiting the final permission from the housing ministry in Oman before it can be passed forward for consideration of full mining licence. Scoping study for Oman could complete before or after the full mining licence. The likely need for new funds will come after the grant of ML for Oman as they'll need debt/equity for development, SAV only need to get that for their share of the project. I think we'll get more news yet before they raise more money, in October the £3.9m raised wasn't discounted either, probably because the cap is already heavily discounted given the quality and grade of all three assets. Oman 2.2% copper, Port 1-1.7% lith and Moz 3-6% Titanium oxide (billions of tns)

Regards,
Ed.

[paleje] 07/3/2018 18:37

Good. Happen to know the terms? Pm me by all means:)

[nick9013] 07/3/2018 17:36

Placing Monday morning. You heard it here first

[broncowarrior] 07/3/2018 17:11

Also completely agree that is why people are sitting on their hands. So much going on that people realise that is expensive and it is likely to happen fairly soon.

[broncowarrior] 07/3/2018 17:10

Last placing price was v good in my view. I'd rather they just raised as much as they can so that they are sorted for most of the rest of the year. If they can get 10mm, do it.

[paleje] 07/3/2018 16:35

I assumed Beaufort were involved but happy to be corrected. Either way the price wasn't so bad but the warrants could have been higher I thought. The picture has improved since then so we'll see.

[inbrackets] 07/3/2018 16:27

I understood that Beauforts were not involved with the last placing at all. All internal existing sticky holders. They had just been re-appointed but no reason why SAV should pay any fees to them and there weren't.Whenever it happens, it may offer a chance for another solid cornerstone to be laid and to my mind at least, have tended to be fairly priced.

[paleje] 07/3/2018 16:12

Think that's what's keeping people sitting on their hands for now. Plus a bit of suspicion over Oman or so it seemed on LSE earlier.

Would be nice if there is, and realistically there has to be at some point, it was on better terms than the last one which Beaufort were involve in but obviously aren't now.