Savannah Resources Share Discussion Threads

[inbrackets] 14/2/2020 09:19

The fact that there are obviously issues that are to be sorted, I think it is good that the company is engaging with its difficulties up front. "Lusorecursos said it saw no reason to approach associations before starting negotiations over land rights." Then again, we already have the existing mining licence and are looking to increase so circumstances may be different.

[ged5] 13/2/2020 08:41

Good morning Biopop.

I can't see anything in there that hasn't been in an RNS or is deserving of one.

[biopop] 13/2/2020 08:29

if it is a genuine rely maybe they could take the trouble to issue some sort of update via an rns to the whole market. tiresome i know but it may be of interest to long suffering shareholders

[ged5] 12/2/2020 18:24

George the newsletter was originally for the locals and was only published in Portuguese until a shareholder asked them for an English translation to be put on the website.

I know this is a very frustrating time for shareholders and we all feel bitter when losing large sums of money.

There is a post on LSE which is said to be correspondence from the company. I believe it to be genuine and is not too dissimilar to what some shareholders were told just before Christmas.

From Quietmode3

Sent a message to SAV this week, thought might like to see the reply:
Hi John,
Thanks for your note.

All is going well at Savannah and we are marking good progress on both our lithium project and Mozambique.

On Moz first, you will have seen the announcement early in January of the award of the final mining lease for the project. This completes this major value adding process and we are delighted that we, together with our joint venture partner Rio Tinto, have now secured control of one of the largest undeveloped mineral sands deposits in the world. We are working on a number of aspects including on ground and harbour studies that will feed into the pre-feasibility study.

We have been exceptionally busy in Portugal. Efforts have concentrated on completing the Environmental Impact Study and moving the definitive feasibility study forward. The EIA has taken a bit longer to conclude as we have been asked to include the impacts on Spain which is some 30kms north of the project. Nevertheless we hope to lodge the EIA in coming weeks and this will be followed by an extensive programme of stakeholder engagement. In parallel we are working on offtake arrangements both for the lithium and the quartz and feldspar products and we are receiving very good interest from a number of European groups. Our observation is that that interest in our project is accelerating as the awareness around EVs is increasing. Ours is head and shoulders the best in Europe. And you will have seen in the UK the move to the banning of the sale of petrol and diesel engine cars in 2035. Then on Sunday Jaguar Land Rover was reported as having problems sourcing enough lithium ion batteries which is indicative of what we believe will be an emerging crisis around the lack of supply of lithium.

I can assure you we are not idle and that we are putting in place the building blocks for a very successful future.

I do appreciate your investment patience.

Kind regards,

[ukgeorge] 12/2/2020 14:32

Looks like some news has been leaked 5m traded and share price looking like a black run

[biopop] 12/2/2020 14:16

hugely disappointing - takes something special to have 3 projects in different countries all years behind time.

[busraker1] 12/2/2020 11:23

Jiangxi Ganfeng Lithium (big Chinese listed lithium player) is doing a Tesla and has now quadrupled since its low on Sept 1st. There's excitement in some leading lithium stocks as we move towards an upturn in demand for EVs and an uptick hopefully in lithium pricing some time this year.

I thought the SAV newsletter left more qns than answers. I'm not convinced that waiting for the EIA is the primary issue that SAV are facing.

My largest holding is AVZ Minerals with a whopping high grade lithium deposit in the DRC and they have caught and are overtaking SAV in development timescales and the newsflow is constant including finance and offtake partners ready to roll once their DFS is out in Q1 2020. Ok...their deposit is world leading, but the contrast with SAV newsflow is notable.

In a low priced lithium environment ($450 to $550 per tonne), the numbers in your DFS don't look so good and it can be harder to convince financiers to back your project. They may need to see the lithium price actually start to move in the right direction before hitting the go button. Also, the financiers may be requesting improvements to the current 11 year mine life proposed, or more met testing to prove that recovery rates will actually be achieved and not have the year one production and cash flow troubles of an Aussie Pilbara Minerals or Altura Mining etc.

I'd be surprised if it was just a delay with the EIA holding things up and feel like it's not possible for SAV to tell us the whole story at the moment....and the share price seems to feel like that too.

I hope the news can turn very positive soon.

All imho.

[jotoha2] 11/2/2020 17:51

It's about time DA had his P45 , the man is a total none achiever . Sp back to ground zero when their so called products are in high demand all around the globe , new blood required here pronto.

[ukgeorge] 11/2/2020 16:23

Thanks for that. They should try proof reading documents before sending them out. Bloody amateur hour, seemingly much like the company.

[inbrackets] 11/2/2020 16:16

Might help explain the recent silence and what seems to have been a delay.http://www.savannahresources.com/cms/wp-content/uploads/2020/02/January-2020-EN.pdfThought it might be something shareholders could have been told about.

[ukgeorge] 11/2/2020 09:10

Almost back to the placing price, I hope those that got in at 2p were able to get there cash out, must be getting almost time for another placing.....

[busraker1] 05/2/2020 11:33

It certainly doesn't feel like a safe lithium share to be in given many lithium plays are starting to move upwards excitingly. We are starting to lag.

Ganfeng was up 20% overnight and has tripled since September. AVZ, ALB, SQM and the LIT ETF moving sharply. Tesla has turned in to a tulip mania. Some separation in to leaders and laggards may be visible. PLS and AJM lagging too.

Luserocursos seem to have gotten their EIA passed, or at least being considered, quickly at Montalegre nearby, so that may not be the hurdle.

If we're looking for problems amongst the silence I'd be more concerned about how easily SAV are able to extend the mine life beyond 11 years in the DFS, which means including other parts (Aldeia and Pinheiro) of the SAV resource in Portugal, which has meant longer metallurgical testing periods at the moment to find a process flow sheet that can treat all of the different ore bodies and still obtain a good 6% spodumene out the back door. I suspect the financiers and offtakers and potential investors in the proposed hydroxide plant want the mine life extending, and we don't really know if that's just a matter of time to solve it or if there's gremlins in the system, including the usual battle with impurities.

We're lacking a newsflow...

[seagullsslimjim] 05/2/2020 08:41

The elephant in the room here for me is if Portugal u-turn on the polluting extraction of lithium and this one trick pony will be off the knackers yard and probably part of the reason of the pullback

As mentioned by another poster - the UK u-turned on fracking so it shouldn't be discarded as nonsense !

Add to that the comical ongoing delays of the past nailed on game changers of Moz and Oman and you can see why there may be better/safer shares elsewhere.

Plus the unknowns as to future dilutive placings.

Apart from that all's good :-)

[highly geared] 04/2/2020 20:03

When is the BFS due..? By June 2020?

[ged5] 04/2/2020 09:10

With the announcement today of phasing out diesel and petrol cars in 2035 - 5 years earlier than planned it would be a good time to publish the EIA and metallurgical results for Portugal.

It's about time Oman set their fees for the mining licence!

[busraker1] 31/1/2020 10:49

A nice summary of some of the woes of even the biggest current lithium producers in a surplus lithium / low price environment. At least SAV didn't jump too early...

[jotoha2] 30/1/2020 14:13

Must be the least Dynamic company on the market , EV sales worldwide have increased by some 35% in the last 6 months , by the time this lot get going cars will be running on air!

[busraker1] 30/1/2020 10:48

Interesting to read the latest on the type of struggles some Aussie lithium producers are facing at the moment and commentary on the market....this is Pilbara Minerals, about £350m mkt cap, running at significantly reduced output(which means higher opex cost) and having to rework parts of the plant that weren't designed correctly in the first place. They've got problems with too high iron content, for example, about double that of SAVs reported Fe20 figure and initially only had lithium recoveries in the 50%s, but beginning to get it up to the 70% mark with extra cost. These are some of the lessons SAV will have been learning from having second mover advantage and part of the reason behind the redesigning of the plant flow process sheet.



It is certainly a little concerning that SAV said in their Sept interims that there should be quite a newsflow to follow, but we've only had Met test Results in November since then over four months.

[busraker1] 30/1/2020 10:40

From Orocobre Results:-

“We expect to see weak market conditions continuing for the first half of this year. There is potential for improved market balance in the second half,” Orocobre CEO Martin Perez de Solay told an analyst call.

[jotoha2] 22/1/2020 17:40

So much potential here , why are they dragging their feet on all fronts , when is cash due to run out ?

[themightyali] 22/1/2020 17:06

I know, I remember reading your post, atleast you didn't top up at 12! Lets hope archer does all he can to retire on a decent lump sum from the 40 million shares he's holding. Otherwise I stand to lose a considerable amount.

[ukgeorge] 22/1/2020 16:55

Sadly I bought a load back around 5-6p so now nursing a 50% loss. Have sold a few down here. The rights issue at 2p was such a disgrace. 9p the year before.

But they only care about banking the monthly pay check.

[themightyali] 22/1/2020 16:47

Ukgeorge atleast you were lucky enough to make a few pennies when you originally sold around 12, I wish I had bailed then after the spike.