Savannah Resources Share Discussion Threads

[yorkie14] 14/6/2018 16:42

I come back from Scotland after a weeks golfing and see we are finally off to the races after being here for 4 years and not before time. I have being reading back through the posts and had a right chuckle to myself reading FQR's posts looking more ridiculous from one post to the next. Good to see the long term posters having the last laugh here.

GLA LTH

[highly geared] 14/6/2018 14:43

Based on current lithium price and the likelihood of moving from 14MT toward 20MT, it’s logical to see a likely doubling of the current NPV. Depending on the Jorc when they publish the DFS and the sales price used for Li concentrate,we may see an NPV above $500 million.

[5chipper] 14/6/2018 13:55

Anyway, got a few back at 13p

[5chipper] 14/6/2018 12:03

I had a sell order in for half my shares at 16p.

Didn't get triggered first thing but seems to have gone through at some point during the morning???

Seems odd but suggests there is demand for these at higher prices?

[ged5] 14/6/2018 11:23

Main bits for me from this interview:-

Still 2 rigs on site
Feasibility study to start in the next month or 2.
Will take 7 months to complete

[ged5] 14/6/2018 10:17

Some superior economic characteristics.
Clearly it's a very valuable project.
NPV of $356mm
Superior economic returns IRR 63%
Very cash generative.
CAPEX $109mm a lot of it sourced from potential strategic partnerships.
Talking to a whole sort of series of very well credential groups
Speaking to more after today's news release
Looking to secure offtake arrangements as well - a key element to underwrite the debt part of financing.
When we stop finding pegmaatite we'll stop drilling
Physically in production by 2nd quarter of 2020.
A mining company that gets on with it.
Lithium in $900 range
All of the numbers that are in our scoping study have been done on a very conservative spodumene price deck $685.

[edgein] 14/6/2018 10:00

Ged,

Interesting interview, SC based on a $685/tn vs the current $900/tn for lith concentrate. So good margin in there too. Sounds like DFS being the next plan before construction next year. Drilling to late '18 or until they stop finding the stuff. Plenty more news to come from Port. Perhaps they'll fund some of the development at the asset level like KEFI for example, good to see DA his usual happy and relaxed self.

HG,

Looks about right on the numbers, should be showing some healthy divis at that stage. Rio Tinto potentially could assist with the financing for Moz, the offtake agreement with them will be instrumental to getting that one closed.

Regards,
Ed.

[nick9013] 14/6/2018 09:54

Haha jog on, we all know you lost your shirt! Bitter is an understatement!

[highly geared] 14/6/2018 09:39

Fast forward to 2020-21 and Portugal and Oman will be throwing off $100 million + Ebit.
Let’s assume a PE of 10 into an in demand market for the commodities and that gets you to about £600 million market cap. Assuming 30% finance dilution, £420 million or around 65p/ share.

Portugal will be expanded and by 2020, Mutamba will be in range.

Whichever way you look at it, 14p will be history in 12 months and I remain of the view £1.00 is possible within 18-24 months.

[ged5] 14/6/2018 09:34

Hxxp://www.proactiveinvestors.co.uk/companies/stocktube/9575/scoping-study-highlights-outstanding-appeal-for-savannah-resources-lithium-project-9575.html

[ipwil] 14/6/2018 09:29

see video at pro active with smiler Dave.... link was deleted

[ged5] 14/6/2018 09:26

Ah yes, paleje, parental duties never seem to end. You should be able to fully ennjoy your holiday after reading this RNS.

"An NPV of around £350 million on Portugal with a ML already in place means a quick finance decision based on feasibility study and every chance to be mining in 2020.

HG, from your post 833. I was going to sack you for being an amateur but I've just noticed you said "around". Do try to be more accurate in future. :-))

Looks like we've got sell on the news brigade leaving their seats which will soon be occupied by serious investors.

Music please!

[ipwil] 14/6/2018 09:25

There it is smiler at proactive

- [...]

[broncowarrior] 14/6/2018 09:20

FQR, you are coming across as a rank amateur. Shall they pluck the money from the money tree you must have in your back garden?

[ipwil] 14/6/2018 09:18

FQR, you are familiar that ALLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL minging companies have some form of dilution to get to production. Its not a new concept and you seem to think SAV is the only miner in history that will need to raise money for production?

[fqr714bhp] 14/6/2018 09:14

Highly Geared: Yes and a lot more shares to finance it all. LOL!!!!

[highly geared] 14/6/2018 08:46

Not really, we now have figures to underpin value at much higher than these levels and we should, have a finance to mine decision within 6 months whilst they prove up more and more resources.This will be north of 50p within 12 months.

[morgank] 14/6/2018 08:38

Well that was a flop

[edgein] 14/6/2018 08:27

FQR,

$109m is way less than the £400m you suggested several days ago. :)

Regards,
Ed.

[edgein] 14/6/2018 08:26

HG,

With Oman scheduled to go into production before then shouldn't be an issue raising the money for Portugal. Rapid development of Oman, estimated previously at about 6 months makes this a very interesting proposition now. All permits in, final stage of ML awaited and now Portugal in terms of EBITDA and LOM revenues starting to rival the mighty Moz in terms of scale. I didn't rate Portugal just as big as its turned out and with these discoveries open in all directions its just gonna get bigger, future sets of assays due for the ongoing continuous drilling are going to be interesting reading. Target was for 21Mt or about 50% higher than the 14Mt in the SC. Should that happen and they get consistency or even better grades it'll be a direct comparable to our billions of tns of Ilmenite in Moz. Dizzying numbers then for just one or should I say two of our assets.

Regards,
Ed.

[highly geared] 14/6/2018 08:24

The other pertinent point on Portugal is they’ll significantly expand the resource will the remaining 2018 drill programme and beyond, somI see today’s figures as Base case with significant upside potential.

It’s frightening to think that Mutamba is almost the forgotten asset , yet we’re sitting with a NPV share north of £100 million on that on a fully earned in basis.

[fqr714bhp] 14/6/2018 08:24

Well done to all here.

Now SAV will need loads of money to bring all this into production???

Where are they going to get the cash from???

Between having assets and bringing those into production is a BIG gap and wait.

I said cash call at 8.5p and i will stick with that.

GLA.

[highly geared] 14/6/2018 08:17

Fantastic scoping study. The metrics mean this should be readily financed and with production only 18 months away, it’s right in the sweet spot of the EV market.
With the Oman ML due any time and with the copper mine now likely H1 2019, it means within 2 years SAV will be generating huge cash flows.

Some profit taking on the news but time to be buying more in my opinion.

Based on the NPV value of Portugal and the value of Oman/ Mozambique, 40p now would not be unreasonable although I stated 22-25p fair value now which I’ll stick with.