Savannah Resources Share Discussion Threads

[ged5] 03/9/2019 18:50

Yes, but which one?

[seagullsslimjim] 03/9/2019 16:39

Maybe he's on a crockery course?

[ged5] 03/9/2019 15:05

I'm sure you will, Mattjos. There is sometimes a delay when he's travelling.

Thanks for letting us know though. I was beginning to wonder if you'd had a reply but somehow missed your post this morning.

[ged5] 03/9/2019 11:05

Thanks for your thoughts, busraker.

Early indications would suggest you will be happy with the Metallurgical Tests.

The January results were 6.15% Li2O and .57% Fe, lithium recovery 82.4%. Let's hope the pilot scale testing gives similar good results.

[mattjos] 03/9/2019 10:56

sadly no response from David Archer to my last week email, Ged5.
Will just continue to watch for now

[busraker1] 03/9/2019 10:40

Thanks Ged, the new VW ID-3, the first proper all electric Golf, has 3 battery sizes with a max range of 340 miles and a 160000 mile / 8 year warranty that the battery will still be operating at a min. 75% capacity by then. So, I've no doubt the range issue and the amount of charging points will all become history inside the next couple of years.

It seems, partly due to this push to erase range anxiety, that battery manufacturers (driven by VW et al demands) are pushing for higher quality lithium to go in to the batteries and that this may also be a factor in some Lithium mines, including a couple of higher cost big Aussie ones, struggling to provide the requisite quality of lithium. Greenbushes mine in Australia has the highest grade in the ground and is relatively low in impurities, and is fairly low cost, so you wont hear a peep out of them struggling in this low price environment because they can get a higher price for the spodumene / hydroxide and they aren't battling high mine costs.

This is one reason I have a close eye on the met. tests that SAV are doing at the moment via Nagrom in AUS because it matters quite a lot what quality of spodumene you can produce and how many impurities it has in it etc. Not many lithium mining companies are very open about the results it seems, so it will be interesting to see how much detail we get on that in the next few months. Low iron (Fe2O3), for example, would be a key one i.e. below 0.8% to 1% mark if possible. Also, can we produce a higher than 6% spodumene without ramping up the capex too much in order to put a better, higher priced product in to the market that outperforms the average competitor.

Ultimately, we all need the lithium prices to start trending up, which requires significant end demand by users buying EVs, and I think the new EVs being released in the next 6 months will be something of a turning point....hopefully!

Until then, it's tough...

IMHO

[ged5] 02/9/2019 15:52

Just been looking at prices and battery range for electric cars.

140-205 miles from VW, Vauxhall, Mini Clubman and Renault, but the one that caught my eye:-



Edit:-

If they start producing cars with that sort of range (285mils) then more people will be interested.

If you have to pre-register then it looks like the demand will not be until next year.

[mattjos] 30/8/2019 16:14

many thanks again Ged5 …. think i will email him to check. I don't like having unanswered Q's in my research

[ged5] 30/8/2019 16:11

There was this in the last results:-

Also, the renewal of the Block 4 exploration licence has been delayed due to claims by a party in relation to certain areas within Block 4. According to our legal advisers in Oman, the Group has the right to renew the Block 4 exploration licence area in full, without any exclusions. Hopefully, 2019 will bring resolution for the Group with respect to the mining licence applications but in the meantime we maintain regular dialogue with PAM and have provided additional information at PAM's request.



As stated above, the combination of the licence delays experienced in Oman and the rapid progress at Mina do Barroso has meant that our copper projects now have a lower priority in our overall portfolio. While award of the outstanding mining licences would significantly advance these projects, Savannah must evaluate the risk/reward opportunity currently presented by Oman against those available elsewhere. Hence we are undertaking a strategic review to identify Savannah's best course of action with regards to these projects.

TBH I had written off Oman so I didn't pay much attention to it. We only have 51% of block 4.

David Archer usually answers most questions especially if he knows you're a potential investor.

Try him on this:-

[e-mail]

[mattjos] 30/8/2019 15:52

is there some sort of legal impediment on one of the Oman blocks?

[mattjos] 30/8/2019 15:51

Thank you Ged5

[ged5] 30/8/2019 15:12

The original plan was to bring Oman into production, start getting an income and then develop Jangamo in Mozambique.

The delays in getting a mining licence in Oman scuppered that plan.

Then SAV had a Consortium Agreement with RIO Tinto in Mozambique which combined 4 areas to become known as the collective Mutamba project which they started to develop. There is a close alliance with RIO. SAV do all the work but use Rio's facilities. SAV have 20% of the joint venture and when they complete the PFS will have 35%. They can earn upto 51%.

The PFS can't be completed until they have a mining licence. That could be awarded any time but we've been saying that for a long time.

SAV then bought an interest in a Lithium asset in Finland. Although the initial grades were good I think the very hard rock put them off and soon after we acquired Mina do Barroso in Portugal.

This has a mining licence for 7Mt of lithium, quartz and feldspar from 7 pegmatites.

The scoping study was very favourable with a pre-tax IRR of 63%. There have since been improvements on that figure.

A recent interview outlines the plan for Oman but we wont know until the mining licence is finalised.

I think we will develop Mozambique upto the 51% and then possibly sell it to Rio.

Portugal is the focus.

Positives: Excellent assets
Strong honest team
Great communication with shareholders

Negatives: Delays

Hope this helps a little. Feel free to ask any further questions.

seagullslimjim, bronco warrior and inbrackets were here before me. There are many excellent posters who may add their views.

[ged5] 30/8/2019 14:11

Busy at the moment but in the meantime most of the information is in the header.

[mattjos] 30/8/2019 14:02

been talking a very casual look at this off/on over the last couple of years .. no postion.
I can see that the Lithium assets are the main focus for the company and understand why that is the case.
What is going to happen / is happening about Mineral sands in Mozambique & Copper in Oman?
Any posters know the history and what they think will happen?
Surely someone like mineral sands specialist Base Resources would be obvious company to take on the Mozambique project from them?
There seems to be a couple of much larger global mining entities already mining in Oman .. surely they would be interested in taking these projects on?
Then Savannagh would have more cash and can become a 100% Lithium focussed mining company … rather than six of one half a dozen of the other as they seem to be at present.

Or am i being too simplistic?

Any comments appreciated please

[jotoha2] 30/8/2019 13:48

It had to turn at some point , Portugal will happen , the country sees itself as the future source of Lithium for the whole of ev sector in europe , happy to keep on adding .

[fqr714bhp] 30/8/2019 10:38

God, look the bloody share price is up today??? how long for???

[paleje] 30/8/2019 10:05

Fair to say you're in Mr Hyde mode today then FQ. In fact most days. Up the meds.

Thought Hipprocates was one of the good guys.

[inbrackets] 29/8/2019 18:17

Is the CEO a position based on the election by shareholders? Or by appointment by the elected board? Minor point but it might make things a bit tricky for you.

[busraker1] 29/8/2019 17:53

The Lithium price is weak for a temporary period. Alita Resources suspended trading, the big Aussie mines are scaling back production and investment plans and are stockpiling material. Pilbara has called a Trading Halt two days ago and can't find investors to take a big chunk in their lithium mine at reasonable prices.

There are some high cost Aussie mines, starting with Bald Hill by Alita Resources, which will not be profitable at spodumene prices around $550 - $600/t. It's not a bad thing that higher cost ones go bust as it speeds up the time when the lithium price turns because of less supply on the market. When Glencore put their huge cobalt mine in the DRC on care and maintenance recently the Cobalt price immediately moved up. There's not been a lot of investment in new lithium mines in 2019 either which means the supply may not ramp up as quick as the demand for EVs rises, creating the next lithium bubble.

You don't actually want spodumene above $900/t it seems because it puts the prices of the batteries up and that dampens demand in the EV car market, so there's a sweet spot to be had.

Does the lithium price turn in Q4 this year or not til Q2 or Q3 next year or beyond? It will certainly determine how the share prices move and has a sizeable impact on the NPV8 of the mine and on the attractiveness of the economics to the financiers. It's always best to be able to sit on your shares for the long term and not be too exposed. These are top up opportunities if anyone has money spare....but only on the assumption things actually go to plan with the mine! :-)

Although SAV has been targeting starting its mine in the sweet spot of a demand surge in EVs in 2021 and beyond, it also means they are currently trying to obtain financing in a very quiet period of low lithium prices, which is tough. I do think SAV is fairly attractive though relative to other lithium mines with lower grades, smaller resources, higher impurities or less conventional than hard rock spodumene.

IMHO

[jotoha2] 29/8/2019 16:48

Only by name , looks like major holders are keeping loyal , so our friend Archer is being supported for the time being , one could assume that the recent drop in share price has been played to grab some weak shares , this same game happened at both at BCN and SAVP , if so then a 50% upturn will follow soon.

[ged5] 29/8/2019 16:29

You know Al Marjan?

[jotoha2] 29/8/2019 16:27

Nice hammer head formation today , seller gone and all waiting for bingo.