Savannah Resources Share Discussion Threads

[busraker1] 15/10/2019 15:10

I would find the need for cash really quite risky if it wasn't for the fact that it's in the EU with almost first mover advantage and is a conventional spodumene and fairly decent grade resource compared to other EU deposits and I don't think the EU can afford to let it fail.

Also, if the EU want to build a lithium hydroxide plant in Portugal instead of SAV shipping their spodumene to China, then they may well need SAV to provide the baseload of material to justify its construction etc. So, a double lock if the EU want to gain some traction in the battery materials market.

Then there is the lower capex approach that SAV has been taking which 'only' needs $130m or so to fund construction, compared to some multi million dollar capex mines built recently where financing has been a struggle.

Of course, we still need the final Metallurgical tests to confirm we do have high quality material and the mine design needs optimising so the first year ramp up isn't beset with Aussie style problems etc.

If we make it through all that, then it's a ten bagger from here. If we don't, then it's not....Lol :-)

[fqr714bhp] 15/10/2019 11:10

We still need a shed load of cash to build all this stuff.

[jotoha2] 14/10/2019 08:05

BCN deal now completed , come on BOD lets get moving on our projects.

[greatfull dead] 14/10/2019 08:00

Ged,

The only RNS I personally would like to see for now is a positive one on Mina de Barrosa.

ATB,
GD

[ged5] 13/10/2019 22:38

And the odds of a RNS in the morning are ....?

[ged5] 11/10/2019 14:43

Seems strange to me there has been no announcement although I seem to remember there was a couple of days between the change on the cadastre website and SAV announcing.

For those who are unsure this is the website:-



Zoom in once and you'll see Inhambane at the bottom of the screen.

9228C is the green concession underneath the pink one just below Inhambane.

It is that one which has had the status changed this week. The other two changed in September just before the announcement.

Once at this status there are just administrative tasks including payment for each tenement of 6000 pounds or dollars (I forget which) for the licences to be granted.

[ged5] 11/10/2019 08:21

9228C changed status.

Perhaps we may get an official update when it's convenient. Perhaps they haven't realised yet.

Link in header.

[fqr714bhp] 09/10/2019 15:06

Not sure what that 1000000 was today.

Currently:
==========

BID 2.1825p
OFFER: 2.225p

[ged5] 07/10/2019 09:22

Thanks IB.

I think this Guardian article makes the situation a little more clear and includes this about PAN:-

"The prime minister added that he may also talk to the new People-Animals-Nature party (PAN) party, which won four parliamentary seats and has said it is ready to support Costa if he commits to its environmentalist platform."

[inbrackets] 07/10/2019 08:52

Not much changed but they have dropped a few and need support. Understand that they are looking to Pan and hopefully their greater importance doesn't cause difficulty.Lucker had posted this link which was written prior to election but looks like even pan would prefer lithium and a cleaner future than fossil fuels. Positive outcome if so.https://www.portugalresident.com/2019/10/03/pan-says-it-could-change-its-position-over-lithium-mining/

[ged5] 07/10/2019 08:29

Not much change in Government in Portugal:-

[ged5] 06/10/2019 10:37

Thanks IB for the reminder. The wait does seem to be going on far longer than I ever anticipated.

My apologies Jim, the mkt cap from ADVFN is wrong. It should be 27.89M. I'll edit the above.

[inbrackets] 05/10/2019 21:29

Hi Ged, Portuguese Gov just one of the pieces on the board. In the interims it says that applications have been made for EU funding, so presume they will be waiting on that as well. There have been a number of comments that the EU are marshalling their plans through a number of different agencies. The wait seems interminable, but so was Christmas when I was 5,6,7.....50,51....57,58, just different reasons.

[ged5] 05/10/2019 14:21

Hi IB, maybe you're correct but are they not just waiting for the Portuguese Government?

We might have a better chance of finding out after tomorrow.

[inbrackets] 05/10/2019 12:28

Think that that is one of the reasons they have been waiting to see what funding is or grants are available from EIB or other such EU/Gov bodies. Suspect that they may be on very different terms.

[seagullsslimjim] 05/10/2019 09:20

$179m loan at 14-15% interest !!! so interest is say $15m a year before anything else.

Put into perspective the potential costs that Sav would face and the challenge to find external finance and off take agreements with the threat of a global recession looming year on year. Admittedly not like for like project wise but not so simple as turn up with some shovels and dumper truck.

Still the plates business may pull things through and justify the £30m market cap.

[busraker1] 02/10/2019 14:31

Worth a read through Altura's 6 monthly results report issued Monday if you've not done already. Been in operation for 12 months, but only at full commercial tilt for the last 3 months. Plenty of complications and financial losses during the start up year, including not so great recovery rates initially, but now near to full nameplate capacity and finally delivering a profitable quarter of $9.3m EBITDA with some improvement on that to come per quarter.

This is quite encouraging profitability in the current low price environment, and with wmt costs of $393 per tonne, which SAV hope to match or beat. Their offtake agreements have a floor price of $550/t and ceiling of $950/t. Obviously, they're selling near the floor at the moment but still able to function profitably through that now it's ramped up.

One wobbly moment is that they are required to refinance their $179.1m loan having breached its covenants every quarter this year, but they are confident it will get sorted shortly. Certainly, it's a more investable project now the profitability can be seen. The loan was at 14% to 15% interest rates!.

[ged5] 02/10/2019 09:34

I feel like a newcomer!

Share holdings updated today in header. Away at the moment so I hope I've got it right.

[inbrackets] 01/10/2019 22:52

BW, God, is it nine years? I was thinking 7/8. Still feel as we are on the edge of a diluted cusp.

[broncowarrior] 01/10/2019 22:03

Zero risk for the employee, risk for us. Still failing to understand the placing price. Likely done way too late. I met DA once and suggested in a placing he should get as much as he can. Means they don't have to keep placing. Anywhoo, staying with this long term. Only been here 9 years! ?

[bristol97] 30/9/2019 19:56

Yes I was going to make that point too

[sambuca] 30/9/2019 18:52

Bronco
I beg to differ you could have brought at 2p a share on the 23rd 24th and 25th of September not through the placing admittedly.

Sam

[broncowarrior] 30/9/2019 12:23

One of their employees got shares at 2p - a whole 2k worth. Lucky him. We didn't get that chance.

[ged5] 30/9/2019 09:24

Thanks. We could do with Portugal appearing on that Pie Chart soon.

[paleje] 30/9/2019 09:11

Ged,

Sorry I'm a bit behind. Re the Battery Alliance meeting, yes it was a separate section, I didn't read them all either.

That EON email is a great little source of info. As for EV's being a no-brainer well they would say that:)

Little snippet from Edison today very brief less than 2 mins:-

www.edisongroup.com/edison-tv/bitesize-briefing-global-lithium-resources-by-country/