Savannah Resources Share Discussion Threads

[ukgeorge] 21/4/2021 17:11

Roll on some good news flow over the rest of the year.

I expect it will take a few months to get back to 5.5p but the thematic remains the same, my main fear is that DA just screws the share holders on multiple more occasions.

[ged5] 21/4/2021 10:14

Thanks IB.

Kaa does it every time for me. Better go and get some fresh air to wake up!

[inbrackets] 21/4/2021 10:02

https://twitter.com/proactive_UK/status/1384797067034378243DA interview

[sif12] 21/4/2021 09:54

I made a very small top up at 4.03p. at least was able to add in close to placing.

overall strategy is still there/ in play.

Sure that 10m has a nice bit of fluff for management- but placings generally do.

[robertjbeck] 21/4/2021 09:49

The placing was significantly over subscribed which means that the placing price was well below a realistic placing valuation. A 20% discount is ridiculous given interest in battery metals. A 10% discount would probably still have achieved the funding objective. Seems our board are very naive and not well served by their brokers.

[ged5] 21/4/2021 09:01

Thanks for that Sev. Those numbers don't add up.

[ged5] 21/4/2021 08:58

I'm sorry to hear about your big paper losses, Reba and George. I suspect several others are in the same boat.

Good to see you posting here again, Paleje and yet again I agree with your post.

Yet again there has been a lack of strength in negotiating the placement price and we can complain 'till the cows come home but looking at this slightly objectively I think there is a lot of hope for SAV.

First the chart. There is now a gap just above 5p and they usually get filled. Also well above the 200 day moving average - usually a positive.

EIA: The 45 day period for consultation would have put the brakes on the share price and would probably have drifted anyway. But it is good news.

Galp: Archer's statement in the RNS makes me believe he thinks it's a done deal.

"The £10.3m raised combined with the US$6.4m investment expected from Galp Energia SGPS"

If that's the case I expect the gap will be closed swiftly. (I shudder to think of the alternative)

There has been some forward selling (not 250m) so we wait to see who the placees are. Hopefully strong holders like Al Marjan who didn't take part this time.

I think SAV will look to purchase the rights for other areas in particular Reigoso, if the Portuguese eventually put them out for tender.

All-in all I think those losses will be back to profit before too long and funds permitting I will be looking to purchase more.

[jimbomorry] 21/4/2021 08:53

Confidence instilling that international equity markets subscribed. Forecast 18x increase in EU lithium demand by 2030

[sev22] 21/4/2021 08:48

An extract from a detailed Broker note released this morning (free access).

Savannah has raised c.£10.3m to progress its flagship lithium project Mina do Barroso.

Use of proceeds are:
1) £5.2m into Mina do Barroso:
 £2.1m – build Owner’s team and fund Portugal activities.
 £1.7m – land acquisition in the Mina do Barroso area.
 £1.0m – drilling for resource expansion and resource upgrades.
 £0.4m – study enhancements.

2) £2.0m into footprint expansion on the Iberian Peninsula – acquiring/bidding for new lithium prospective ground.

3) £1.7m into renewable initiatives, corporate G&A, business development.

4) £1.1m into Mutamba Mineral Sands – update technical studies, licence fees, prepare for possible corporate action.

Lithium price recovering – The lithium price has performed extremely well in recent weeks. YTD 6% spodumene concentrate is up 68% and lithium carbonate up 67% (see p4). This bodes well for the lithium price, Barroso’s cashflow potential and value.

Carbon neutral product – Mina do Barroso is the right commodity at the right time. The project is also favourably located in north Portugal, close to locally produced hydroelectric power, with solar and wind power also potentially sourced from within Portugal. Barroso could feasibly produce a near carbon neutral product.

Barroso’s work programme – The next 12 months will be busy for the Savannah team. On the technical and ESG side, Savannah is progressing the Mina do Barroso definitive feasibility study, as well as environmental and social programmes. The DFS work will include metallurgy (underway), resource drilling and upgrades, mine scheduling, economic modelling and detailed engineering design.

Valuation – We have updated our valuation to account for the new shares in issue. Along with other small adjustments, this moves our target price to 9.8p.

Outlook – Savannah’s shares have performed well, driven by the EV theme, the Galp Heads of Agreement and lithium price recovery. Near-term catalysts include signing the Galp investment and offtake agreements, EIA approval and lithium prices.

[ukgeorge] 21/4/2021 08:38

Added 103,274 @ 4.062p.

#When will I learn. Must remember to sell.

[paleje] 21/4/2021 08:14

Anger driven down-selling after discounted placings is almost a given these days until the placing price is matched or even lower. But the amount of dilution doesn't justify the size of drop and the balance sheet is stronger. Not saying DA shouldn't have done better, he should, just that it seems illogical to sell sometimes.

[goodday1] 21/4/2021 06:53

This is how the Trumpian gullible think!From LSEGet a gripToday 07:42If you read this mornings RNS it's clear to see that this is a significant turning point and a very positive move.Moz is 100% going to be spun off and listed on ASX, that will create shareholder value.More importantly we are very clearly going after more areas in Portugal, aggresively acquiring more lithium assets can only be a good thing.

[broncowarrior] 21/4/2021 06:24

Completely missed this news yesterday. 4p again and no opportunity for retail shareholders of course. Use of the money also pretty vague.

[goodday1] 20/4/2021 21:45

DA lap dog on LSE.Been ripped off & still grateful, you can't make it up!RE: £10.3 million today 22:41This is significant......."conducting further exploration on the Project" raise £10M to generate £100M works for me, frustrating as we have consolidated arund 5p yes but don't lose sight of the bigger picture.

[flc] 20/4/2021 16:46

...will be topping up in the morning.

[flc] 20/4/2021 16:41

I'm staying positive. Clearly, the purpose of an ABO is to raise cash quickly and more than likely so they can finalise the deal with GALP who are investing £6.4m in this project. The announcement states that the bulk of the funds are to be used for Portugal so hopefully it's a way of accelerating proceedings and moving us to production. We may dip a bit tomorrow but I'm staying upbeat and think the share price will tick up nicely from here.

[goodday1] 20/4/2021 16:32

Well, 250 million at 20% discount.To top it up, DA doesn't say this raise will take us to production.Let us hope the share price doesn't meet the placing price!I halved my holdings on the last RNs, which was completely lucky for me.On the last spike, I have sold out & traded SAV till now after been a LTH for years from

[highly geared] 20/4/2021 16:27

Got to love Archer....
The DFS that’s forever in progress
The forever dilutive placings to further progress this n that ...
Will he ever deliver an actual project to production?

[ukgeorge] 20/4/2021 16:15

Very annoying, I thought given Galp were going to invest in the project that this risk was reduced.

[goodday1] 20/4/2021 16:02

What do you think now?DA must go.