Savannah Resources Share Discussion Threads

[highly geared] 12/6/2018 08:40

Copper sector looking very strong with Chinese demand and take overs of resource companies hotting up.
With Oman and Portugal, SAV is in a sweet spot in having 2 of the most in demand metals at exactly the right time in the development cycle and in regard to the 3-5 year outlook for copper and lithium.
The scoping study/PEA should throw up some big numbers especially if an LCE option is considered. This could land anytime in the next 2-3 weeks.
The final ML in Onan could also land any time and it will be interesting to hear how mining will be progressed for first copper in H1 2019.
Huge upside here and it’s imminent after what feels like years of waiting.
I do believe 50-70p is entirely possible within 12-18 months.

[broncowarrior] 12/6/2018 08:38

Welcome shalimar, good to have you on board.

[shalimar] 11/6/2018 22:55

Discovered this share from an article in Mail on Sunday! Maybe helped the price move today.

[highly geared] 11/6/2018 18:39

The other point is that most retail investors have never heard of SAV and this B.B. must have less than half a dozen regular posters. Can you imagine the price moves if/ when the herd arrive...?

[highly geared] 11/6/2018 14:04

Oman:
Approx 37,000 tonnes Cu already defined and to form initial mine scope.
Mid case exploration target and grade provides for a further 380,000 tonnes.
So likely from early 2019 , an initial 15ktpa Cu mine likely to ramp up to 25ktpa as cash flow funds further exploration and development.
Peer group comparison at these levels ; £300-400 million
Add in Portugal from 2020,£500 million + this should see mid cap status within 2-3 years.
Mozambique will of course be huge re: the RT JV.

[highly geared] 11/6/2018 13:40

The other big plus is the amount of skin in the game that David Archer has. His and shareholder interests very much aligned.

[highly geared] 11/6/2018 13:24

Edgein
Agree.
Both Portugal and Oman are standalone company makers ,the 3rd is Mozambique.
The beauty here is timing,copper entering a 3 year projected supply deficit from later this year and the EV market ramping up exponentially and demanding lithium supply.
With Oman on stream producing 2019 and Portugal likely 2020, the time to buy in is now and the time to sell, if at all, will be in 3-4 years at 10-20x multiple.

[edgein] 11/6/2018 13:02

HG,

Yes imo mid cap and divis lie ahead. Just imagine the turnover and free cash generated from a 250k tn pa lith concentrate plant. As DA adimts high recoveries, low impurities and just grav and flotation. That's significant cash flow even at $600/tn for 6% concentrate (it'll likely be higher in the near term). Of course these numbers multiply if they were to build a lith carbonate plant. That's all based on Portugal and Oman, significant free cash flow and midcap/divis. But imo the best has yet to come, the DFS on Moz, that's into the $bns. PEA already suggested around $2bn, DFS likely to confirm and support those initital findings, we'll see later in the year.

Regards,
Ed.

[highly geared] 11/6/2018 11:20

Put another way, somewhere around 70-75p should be realistic within 12 months ; the journey has just started but I expect the Oman ML and Portugal PEA to act as a springboard for a rapid relate from 10p...

[highly geared] 11/6/2018 11:17

Looking forward, with huge expansion potential in Oman on the copper asset, a fully producing mine there from early 2019 should value that asset around £250 million based on potential positive cash flows.
An NPV of around £350 million on Portugal with a ML already in place means a quick finance decision based on feasibility study and every chance to be mining in 2020.
Add the mega Moz Heavy minerals asset and its not too difficult to see a route to a £500 million market cap within 12 months.
It’s screaming ‘value’ at these levels...

[highly geared] 11/6/2018 11:02

Just bought another 250k shares. With the Portugal PEA ( I reckon $500 million NPV on LCE option) and I’d say nailed on to go to mine commercialisation + Oman copper ML about to drop, this has £100 million market cap written all over it. Add in the mega Moz slow burn and it’s very positioned:
Assets
Timing
Markets
CEO and shareholder interests aligned.

[ukgeorge] 11/6/2018 10:53

A taste of things to come :)

World's Biggest Electric-Vehicle Battery Maker Soars on Trading Debut

• Contemporary Amperex Technology Co. Ltd. jumped by the maximum 44% allowed by the exchange, valuing the company at about $12.3bn during first day of trading in Shenzhen. The IPO made CATL the biggest company on China’s ChiNext list.

[ukgeorge] 11/6/2018 09:53

I love this company :)

[nick9013] 11/6/2018 09:45

Look at Kodal minerals and you realise SAV is the right type of company to invest in. KOD has started work on their lithium prospects in Mali more than a year ago and have close to nothing to show for it. No JORC, No study. However, they signed an offtake agreement early on, which i was jealous about relative to SAV. But this clealry didnt help speed up the explo/development process and today, they are raising money from those same guys at a valuation of 10mn GBP (0.13p price) despite trading at 0.40p a few months ago. That is why there is a premium to be paid for a Management team like David Archer and Dale Ferguson. For those new here...dont forget DA invested over 1million dollars of his personal money in the company and didnt receive a salary the first year. So far, he has invested more cash in the company than he has been paid net of tax over the past 5 years. So the only way Savannah is worth it for DA is if he makes a killing on the share price...like us ! We are 1 or 2 weeks away from the scoping study in Portugal... this is very very important and will open the door to very substantial interest from Asset managers and more importantly tier 1 industrial partners.

[ged5] 11/6/2018 09:39

Infinity have done a technical option study at the San Jose lithium project in response to expressions of interest from potential industry partners and end users.

Looks like there's interest out there and those same industry partners and end users may have been knocking on SAV's door!

[ged5] 11/6/2018 09:31

That's true, Bronco (post 819) but others denied all knowledge and got off scot free!

[broncowarrior] 11/6/2018 08:44

Edge, yep hopefully lots of options here.

[broncowarrior] 11/6/2018 08:43

As predicted. A share tip with loads of upside when already a good price was always going to be a winner.

[edgein] 11/6/2018 08:30

Ah so it was the tip that got this perky today, was wondering was it the mining licence for Oman or scoping study approaching. Good to attract some more punters in on the cheap though.

BW,

A direct investment from someone into the Porty assets would be one, but as the article suggests it could get debt funding. At one stage WRES was lining up with a US strategic fund for its project over the border in Spain (tungsten rather than lithium). So it may be mainly debt with a little equity funding. It would be good to get another institution onboard as well as these Omani investors. Especially if it were a car manufacturer for instance, that would do wonders for the share price, even if it didn't instantly come with an offtake. However offtake and funding may be closely linked. We'll just have to wait and see. Imminent scoping study should help the potential funders.

Regards,
Ed.

[ukgeorge] 11/6/2018 08:07

Nice start :)

[skiboy10] 10/6/2018 18:31

This upcoming IPO may be of related interest

Botswana-focused Kavango Resources set to list in London by month-end
by ValueTheMarkets £ June 8, 2018

[broncowarrior] 10/6/2018 17:55

Ged, those two blokes at the mirror also went to prison!Good article, big reader base, could test 10p tomorrow...If it tests 4 quid also happy with that :-)If the market cap is up to the 75-100mm mark by time Portugal funding needed will make it much easier to get funding. I'd like someone to take a stake in the Portugal subsidiary for a nice price.

[hugothesecond] 10/6/2018 12:53

Yes looks like the stock purchases on Friday were driven by news flow - you never know there could even be news this week.