Savannah Resources Share Discussion Threads

[ged5] 02/5/2018 14:13

Grandao, Grandao Extended now Grandao Deeps.

Interview now on the website.

[cesaro100] 02/5/2018 14:07

One of the most solid Lithium Plays out there, top class mngmt too.

[broncowarrior] 02/5/2018 13:52

On the other site, this is been all over the press today, FT, Telegraph etc.Reckon the whoosh could be tomorrow.

[ukgeorge] 02/5/2018 12:22

It will be interesting to see if these get through 7p in the coming weeks. Seem to have been consolidating since the end of 2016.

Hopefully have a breakout potentially to 10p area.

They have had and have plenty of good news that could justify the move and have lagged other lithium plays.

I personally would like to see a pull back so I can add a few more.

[ged5] 02/5/2018 12:05

Updated Development Plan on the website

"It is Savannah's intention to be in a position to make a decision for a mine development by early 2019. To be able to advance a project from acquisition to making a development decision within two years will undoubtedly be a significant achievement. Hard rock lithium production has been identified as the key for future lithium supply to meet burgeoning international demand especially for batteries for Electric Vehicles. Savannah believes Mina do Barroso's location and near-term production potential will make its product highly sought after and it can be a strategic up-stream feature for the build-out of the European lithium value chain.

In support of this, Savannah's current focus is to complete a Scoping Study around a potential mine development, which should then feed into feasibility studies in Q2 2018. Alongside this, work has begun to modify the licencing conditions under the Mining Lease Savannah currently has for the project; the Company has the right to mine approximately 7Mt of lithium, quartz and feldspar ore from seven mining nucleos and will be modifying the conditions for the extraction of additional tonnages and to build a plant specific to lithium processing.

The Company is also looking to secure offtakes with existing spodumene lithium converters."

[ged5] 02/5/2018 11:16

Thanks HG! :))

[ged5] 02/5/2018 11:14

Ed, great post, very much aligned with my own thoughts. There's a little typo in your funding sentence by the way. :)

My strategy is to add as and when I have funds over the next 2 years. I would like to do that at these prices but I hope I've learnt my lesson not to buy on promises just what's delivered.

I think these next 3 months are going to be very interesting news wise and with the sp!

[highly geared] 02/5/2018 11:00

Even if the market ascribes 15% of NPV due to financing risk , that could be $75 million or around £50 million at scoping stage. Add Oman/Moz and we should see £75 milllion market cap in short order.

[edgein] 02/5/2018 10:58

Ged,

At the pace these fellas operate 4-5 years looks really reasonable. I could see Portugal being in production by end of '19 if they keep up this pace, development decision this year. Funding shouldn't be a problem with the grades and volumes they're getting and lots of upside on expo to extend mine life. We could be looking at a 250-500k tn pa of concentrate here, mid cap on that alone. But it'll be interesting to see what the scoping study suggests, perhaps a little smaller to start off on and a phased approach. We'll know in a matter of weeks now, 8 max if they publish this Q as suggested.

Oman is potentially this year but that depends on the housing ministry and how long it takes to process ML application after that. But certainly 4-5 years we should have a well expanded operation over there to take in some of the expo upside as well as production. Moz might even be in production on this timescale too. I've a 3-5 year outlook here personally, not adding not selling, happy with my lot here. Potential sale of Portugal or divis whichever happens first here. If we do become the first producer of spodumene in Europe with lith prices expected to rise we'll have a large target on us for the big operators that would think nothing of spending $100-150m on a lith carbonate plant in Portugal. Will be interesting to see how this one pans out over the time you mention.

Regards,
Ed.

[ged5] 02/5/2018 10:26

The new website design confirms what you're saying about Portugal becoming the lead. Don't forget the lease is only for 7Mt at the moment. I think work has already started on the amendment.

[ged5] 02/5/2018 10:17

Welcome wisteria2. Being in ARS and SML you should see some familiar names here.

Thanks paleje!

[broncowarrior] 02/5/2018 10:17

Yep, still a chance Oman will pay for Portugal development, therefore massively reducing any dilution and how much of the project we would need to give away.

[paleje] 02/5/2018 09:52

Realistic I'd say, at least on the 70p not sure about the 100p

Right place and right time and boy, isn't DA making sure he doesn't miss the opportunity through tardiness, absolutely on the ball. And, very welcome though revenue would be and indeed will be at some point from Oman, Portugal is becoming the lead here. And mining lease already in place.

[wisteria2] 02/5/2018 09:50

Grabbed a clip this am! should have been yesterday when I was looking into the company, anyways am in now and will see what the next 12 months brings.

[ged5] 02/5/2018 09:43

Hope so BW.

It looks like a few short term traders have taken their profits.

I prefer to think of HG's 500M. With the present number of shares that would be about 73p.

Now 800M would be 1.17. I'll stop dreaming now. Plenty to be done before then. But it could happen! Is 4-5 years optimistic?

[edgein] 02/5/2018 09:38

HG,

From memory that PREM PEA was based on 16Mt of the 20Mt JORC, that was for LC production as you say, but for spodumene concentrate it'll be north of $100m. SAV could also go down the route of LC production too and get $14k per tn rather than concentrate prices of over $600/tn. Either way Portugal is going to be a cash cow in the future imo. This one is gonna be mid cap, its just a matter of time and patience. Next should hopefully be the housing ministry in Oman to give us the green light to apply for the full mining licence. They've certainly been taking their time over it.

Regards,
Ed.

[broncowarrior] 02/5/2018 09:24

This could test 7p today I think, moving the resource into the indicated category makes it much easier to get finance as the stuff is actually confirmed to be there.Oman final approval and this goes to 10p plus easily.

[ged5] 02/5/2018 09:20

Financing process due to be started in Q4. Metallurgy work etc due to be completed by then and the resource upgrade to measured is also due about that time.

Strategic partnership could be announced anytime soon.

Income from Oman? I wont hold my breath on that one, besides I think that's for Mutamba development.

[highly geared] 02/5/2018 09:00

Yes, if you look at PREM’s Scoping study of Zulu , based on 20M tonnes , their NPV on the LCE option was around $800 million IIRC.
The acid test will be obtaining development finance, if they can get this then an easy 10 bagger.... or they flog it.

[ged5] 02/5/2018 08:56

Looking at the timeline the upgrade to Indicated (due 2nd quarter) has been delivered on time.

Scoping study next to confirm HG's figures.

Forgive me for restating:-

This is going to be massive!

[edgein] 02/5/2018 08:37

Ged,

Exactly, and they've only drilled three holes into the deeper pegmatite, so the term only scratching the surface comes to mind. Its all pretty shallow too from multiple surface outcrops. Good time to be getting a high quality lith asset through towards development with the EV boom looming large.

Regards,
Ed.

[ged5] 02/5/2018 08:19

Increase in JORC resource
Increase in category
Increase in grade
Increase in sp

What's not to like?

[edgein] 02/5/2018 07:45

HG,

True, 3 great projects and two moving swiftly towards production. The mammoth project with Rio T may take a little longer but is likely to top them all.

Regards,
Ed.

[edgein] 02/5/2018 07:43

Wow, superb news fellas. Significant increase in JORC with much more to come as they continue along strike and at depth. The acceleration towards development that DA refers to seems to be working a treat. We're well on our way to our 21Mt target from these results, scoping study will get more interesting by the month, no doubt they'll have to upgrade that later in the year too by the sounds of it. :)

Regards,
Ed.

[highly geared] 02/5/2018 07:39

If they can sort out Oman, SAV will be one of the best near term in demand resource producers on the market and should re rate accordingly.