Savannah Resources Share Discussion Threads

[sambuca] 23/8/2019 21:32

Most of the focus here seems to be about lithium people forget about the copper side of SAV an EV uses 183 pounds of copper compared to a conventional car using around 35 pounds, all the extra charging points use copper wire. How many houses have a standard 2.5mm cable running to their garage? not big enough 4mm is adequate 6mm recommended especially for using 7kw charger.
China may have slowed down building and reduced their copper usage but worldwide with EVs the demand for copper I can only see going one way.

Sam

[ged5] 22/8/2019 11:30

Change the h to H in Http

[busraker1] 22/8/2019 11:22

Or, for something more exciting, the new all electric Porsche Taycan. Pre-orders are pushing 40,000 apparently when they only budgeted for 20,000:-



OR...the world's most powerful production car - the all electric Lotus Evija:-




GED - how do you insert the web links?? Ta.

[ged5] 22/8/2019 11:20

Thanks Busraker. To make it easier to access



They still need cheaper versions for the majority of the population.

[greatfull dead] 22/8/2019 11:16

Ged,

And for our eco minded children who are in well paid work.

ARB,
GD

[busraker1] 22/8/2019 11:11

The independent article isn't great when it comes to the range anxiety of a current e-Golf but it's the new electric vehicles from 2020 that are going to start solving some of the issues.

For a similar price to a VW Golf GTI from next year the VW ID-3 will be available and the running costs will be much less than for the petrol or diesel Golf (plus VW will give you free charging for the first year!). This is the first 'proper' attempt by VW to do electric cars and it will be a Tesla challenger.

With 3 battery sizes it can have a range of up to 340 miles.

It is this sort of future that will rev up the electric car sales and change the minds of any negative reviewers...and there's some fantastic electric cars all set to hit the market next year.

carwow.co.uk/volkswagen/news/3841/vw-id-price-specs-release-date

[ged5] 22/8/2019 10:59

Hopefully at the best time for SAV.

[greatfull dead] 22/8/2019 10:48

EV's have got to be more appealing price wise. That will come, when is the question.

GLA,
GD

[paleje] 22/8/2019 10:31

Yes Ged I spotted they're pumping extra funds into local authorities to add more charging points but how good are local authorities, I think they vary a lot. And it isn't just the number of points, it's also the tech required for much faster charging and longer journeys per charge. I get angry if I get a slow pump at Morrisons and more so if someone starts filling the other side of the pump:)

I'll say this though, when they do get it right (and they must!) I believe people will convert happily, I've driven a hybrid Rav a few times and when its on electric power it's another world.

[ged5] 22/8/2019 09:21

An interesting read, thanks. Still much to be done for EVs to become the norm. The Government needs to spend more on the infrastructure that is required, so good to read the link on the side of that article:-

[paleje] 22/8/2019 08:42

Article in yesterdays Independent great reason for NOT going electric. Yet. Their reporter's return trip London to Cornwall. Gotta be honest I wouldn't do it, I drive diesel and would easily have done the whole trip plus the running around on less than 1 tank with plenty of aircon and power when required. Massive amount of work to be done and HMG and other govs can't just leave it to industry.

[ged5] 21/8/2019 09:59

The above is from the article posted by busraker1. The link is the first Lithium article in the header.

If you interpret "Bust" as failure to implement plans then you have 83% failure.

Stop ramping FQR! ;)

[ged5] 21/8/2019 09:56

But to supply the growth of EVs within Europe, the region will require lithium mines and the ability to refine lithium concentrate into battery-grade lithium hydroxide. There are six significant lithium projects in Europe, five of which are planned to have an integrated mining and refining operation. However, the tiny market values of companies developing these projects compared to the cost of building mines and refineries has generated plenty of scepticism, most recently on the part of UK investment bank and AIM-market broker FinnCap, which highlighted the "credibility gap".

"Of the six lithium projects in Europe, five have said they will be integrated projects. However, three of them are based on low-grade resources, and I contend that those won't get built," Martin Potts, research director at FinnCap told Mining Journal earlier this month.

"The other two are based on small spodumene deposits, in Finland and Austria. An integrated mine plus hydroxide plant, you're talking US$400-500 million per plant. My contention is that the market simply isn't going to be building those plants based on sub-standard resources."

The exception that proves the rule may turn out to be Savannah Resources, which Potts has said does have the potential to supply Europe with lithium. Savannah estimates the initial capital cost of building out Mina de Barrosa will be £88.2 million (US$110 million). The cost of building a refinery it estimates at $300 million. But Savannah is taking a cautious approach - the company will send its lithium spodumene to China for refining for the first few years, and will only be building a refinery if it can secure a partnership.

[paleje] 21/8/2019 09:31

I'm not sure about 60%, FQ, but I agree there will be casualties. For lots of reasons, not least being in the lowest cost quartile, we shouldn't be among them:)

[ukgeorge] 20/8/2019 11:30

Thank you the oracle of lithium.

[fqr714bhp] 20/8/2019 11:20

Like i said in a previous post here: 60% of lithium mining co's will go bust within the next 3 years. Lets hope SAV is not one of them??????

[paleje] 20/8/2019 09:32

I think DA knows well enough we need a solid partner. But BCN's path hasn't been lined with roses and the Chinese are buying at a price which looks lowball to some LTIs. Many are well underwater.

[fqr714bhp] 20/8/2019 09:11

More good news over on BCN today.

It is a great shame SAV does not have the same great partner for its assets in Potugal?

LOL.

[busraker1] 19/8/2019 17:52

During this lithium price downtrend some of the biggest Aussie mines have scaled back their operations or are stockpiling lithium so as not to further deteriorate the pricing environment. That will help stabilise the lithium price more quickly, but when demand strengthens they'll also bring some capacity back on line, softening any increase in the lithium price. In other words, they smooth the pricing environment in both directions at the bottom. The market demand will have to exceed all of that before the pricing can kick on beyond current and near term mining capacity.

Another effect in this pricing downturn is that some weaker, higher cost established mines should start to struggle. Alita Resources Bald Hill mine was the first to suspend its operations in its announcement last week saying its operations were not profitable due to high mining costs, lower grade lithium and a recent spodumene price around $608/t.

Roskills view was as follows:-

"Since commencing production in Q2 2018, Bald Hill has produced at an average quarterly cost of US$646/t (net of tantalum credits), versus the planned feasibility LOM average of US$426/t. Factors contributing to such costs have been the mines relatively high upfront strip ratio (above 13:1 to date) coupled with a low initial head grade (below 0.85% Li2O since start-up). This, in conjunction with lower spodumene prices in the first two quarters of 2019 (US$780/t and US$749/t respectively), has squeezed margins and the company’s ability to meet its debt covenants. Moreover, idle stocks may also be playing a role as, in July 2019, Alita expressed its focus on monetising such inventory via open market sales in the short-term.

Whether Alita remains operational or enters care and maintenance is also of commercial importance to Galaxy, Alita’s largest stakeholder at around 10%. Through Alita, Galaxy could gain access to the additional resources it’s actively seeking. Synergies between Bald Hill and Mt Cattlin are clear as both are exported via Esperance, whilst on the production front the deposits could provide greater operational efficiencies and economies of scale. Galaxy has shown an improvement in operational efficiency over 2019 and could share such experience with Alita.

For new spodumene miners, it is now delivering on the transition to operational efficiency that will determine the robustness of each mine’s ability to remain profitable through the current hostile price environment. For the sake of industry sentiment, no casualties would be a win. But incentive price analysis indicates that higher prices are required to support future supply growth, and as such, curtailment of near-term market oversupply may be an unwanted necessity to achieve a supportive price environment."

[busraker1] 19/8/2019 16:56

Roskills Summary paragraph in their Lithium Outlook to 2028 Report matches the thinking that a lithium price turnaround is coming sooner rather than later:-

"Although new capacity has been brought online at several operations, there have also been a number of set-backs. Recently there have been capital expenditure blowouts, delays in mine ramp ups and the bear market in the lithium equities has undoubtedly curtailed investment in greenfield projects. These developmental challenges, along with the changing cost profile of the industry, highlight the technical and financial hurdles involved with bringing such sizable volumes of new capacity online. We maintain the view that concerns about future refined lithium over-supply are poorly founded and expect the lithium market to enter a period of sustained supply deficit in the early 2020s."

[themightyali] 19/8/2019 15:58

When is the feasibility study out?

[ukgeorge] 19/8/2019 15:01

It would be nice to get a few less buying opportunities though..... Roll on the full fs study.

[broncowarrior] 19/8/2019 14:18

FQR, can never tell if you are for or against this company....Share price is rubbish yes but if you believe the story it presents a buying opportunity.

[fqr714bhp] 19/8/2019 13:04

That is 240000 and 150000 and 150000 today already.

LOL!

[fqr714bhp] 19/8/2019 08:05

Lets see how big the dumping is today? got to be at least 1 million?

LOL.