Savannah Resources Share Discussion Threads

[edgein] 14/5/2019 09:34

Ged,

If that pilot plant is a lith carbonate plant that requires lith concentrate, then when MdB is in production the answer to your question would be yes. The lith carbonate is then supplied to the battery manufacturers.

Regards,
Ed.

[ged5] 14/5/2019 09:26

"One of the first projects for the Franco-German consortium will be a pilot factory, with around 200 employees in France, which will open in the coming months. With this initiative, Savannah excepts to gain further traction from potential partners who understand the compelling supply dynamic that is developing in Europe."

(I wish they would proof-read these announcements: excepts-expects) :)

Would they be able to supply ANY lithium for this pilot factory from their 7M tonnes per annum?

[ged5] 14/5/2019 08:34

Some very big figures in that announcement. It looks like lithium is about to become very big business in Europe and as others have mentioned Savannah, with Mina Do Barroso, is very well placed to take advantage.

This announcement could well be a precursor to a transformational period for SAV.

[edgein] 14/5/2019 08:06

Pale,

It's gotta start somewhere though and SAV are at the head of the queue. I'd like to see these large companies with all their billions start to look at a lith carbonate plant, preferably in another member state, Portugal. They'll need lith carbonate to supply all those battery manufacturing plants. But the financial will is there given today's news to bring battery production to Europe. SAV are the ground floor of that given their shallow high grade discoveries that are well matured with an NPV multiples of our cap (let alone the other assets). I'll be reading the results as much for the other assets as for Portugal, I wonder if they're being held back to get some progress elsewhere.

Regards,
Ed.

[paleje] 14/5/2019 08:01

Yes Ed the right things are happening albeit slowly so far.

"...Mina do Barroso has the potential to become a key upstream anchor of the European EV lithium ion battery value chain by the year 2025..."

VW made an announcement yesterday too to build a battery plant in Lower Saxony, they don't want or intend to be reliant on Asia for batteries.

[edgein] 14/5/2019 07:59

The deacon,

Yes the long term future of the company looks very rosy.

Regards,
Ed.

[the deacon] 14/5/2019 07:56

Well today's RNS reads very well. SAV in a very good position to benefit significantly

[edgein] 14/5/2019 07:52

Regards,
Ed.

[fqr714bhp] 11/5/2019 13:39

Where are these results?? now a month late??

LOL.

[ged5] 09/5/2019 10:35

Yes, it was on Monday.

I note there have been a few tweets recently. Some appear as though they are trying to gain the attention of the Mozambique licencing authority and the others highlighting the need for EVs and lithium.

I'm not really expecting too much before the end of June but is my memory deceiving me or do we usually get a series of tweets just before some news?

[inbrackets] 07/5/2019 10:35

Was it not yesterday?

[ged5] 07/5/2019 09:11

#SAV presenting Mina do Barroso #Lithium to @benchmarkmin World Tour today in New York City. Live via Bloomberg terminals.

A couple of tweets from SAV yesterday.

[ged5] 02/5/2019 13:47

As the insatiable demand for energy coupled with ever our increasing need for mobility continues at a furious pace, so too grows the demand for lithium compounds. Demand from the lithium battery market from all applications including mobile devices like mobile phones and tablets, e-bikes, hybrid and electric vehicles and large scale energy storage is growing at an astounding rate. Deutsche Bank believes we are at the dawn of a new automotive era with “unprecedented technological and regulatory change” set to come in the next 5 years.”

Many analysts acknowledge that batteries use will drive lithium demand in the future. It has been predicted that overall, lithium demand will more than double from present levels through 2025. Currently there is insufficient supply due to fewer than expected producers of lithium. The general conclusion is that lithium prices will rise, particularly, battery grade lithium carbonate and lithium hydroxide should see strong price increases.

Tesla Motors, LG Chem, Boston Power BYD and Foxconn are building battery supper-plants that will come on-stream in the next one to two years. The new supply could revolutionise how we source and use energy, creating a once-in-a-century disruptive event. Last year, the world produced 35GWh worth of battery cells. Total new capacity of 87 GWh should require an additional 70,000t to 100,000t of LCE [lithium carbonate equivalent] by 2021, this supply currently does not exist and requires new producers to come on stream.

Up until very recently lithium carbonate has been the focus of many producers for battery applications. This is because existing battery designs called for cathodes using this raw material. This is about to change. Supply of lithium hydroxide, which is also a key battery cathode raw material, is far less than lithium carbonate at present. It is a more niche product than lithium carbonate, but is also used by major battery producers that are competing with the industrial lubricant industry for the same raw material. Lithium hydroxide is subsequently expected to be in an even shorter supply situation to its carbonate counterpart.

[ged5] 02/5/2019 12:49

Is there a live thread for BCN?

[ged5] 02/5/2019 10:33

I've not been following BCN recently.

It looks like they have a much larger resource but are obtaining lithium carbonate from granite rock. There seems to be a change of emphasis to lithium hydroxide for the battery makers.

I see they have a feasibility study due to be reported this quarter and an option to acquire the other 50% of the project.

Interesting quarter then since SAV should also have their feasibility study completed.

[ged5] 02/5/2019 10:12

There still seems to be a lot of scepticism about EVs and lithium but as your link suggests things could be about to hot up.

May is now upon us and the Portugal auctions are about to to take place. It will be interesting to see who takes part and if there'll be any significance for SAV.

Totally agree that things could change very quickly for SAV.

[paleje] 02/5/2019 09:44

Hmm.

There are signs of the lithium market starting to wake up, companies in talks, others eyeing potential targets.



Demand for hydroxide set to outpace demand for carbonate. Bacanora are presenting simultaneously in UK and Germany today as they have a large German resource expecting a valuation in weeks. German activity within the EV space hotting up. I also read an article by Jim Mellon a few days ago somewhat bearish on global outlook in fact predicting troubles ahead maybe late summer.....except for one area, EV, and with that in mind rating lithium as a strong bet...likening it to picks and shovels.

SAV seems to be in a flat spot all round but that can change very quickly, just a bit boring for now.

[ged5] 02/5/2019 09:20

Tweet from SAV 2 days ago:

Major achievement - #SAV clocks 30,000m of drilling in <21 months at Mina do Barroso - expanding the mineralised envelope and lifting resource categories - Europe's most strategic conventional #Lithium project - helping transformation of Euro transport to low carbon #EV s.

Followed by 3 tweets this morning. The last one highlighting the need for EVs. As if we didn't know already!

[ged5] 30/4/2019 09:27

Only just noticed the tweets about a second cyclone hitting Mozambique. In the north of the country well away from Mutamba but gratified to see a company I'm invested in showing its humanitarian side.

[greatfull dead] 26/4/2019 16:56

That cuckoo few over the nest.

GLA,
GD

[inbrackets] 26/4/2019 09:28

Lots of ticks and lots of tocks. About time we saw the cuckoo.

[edgein] 26/4/2019 09:17

Ged,

Interesting article as lith carbonate facilities don't come cheap. It'll take a big money group to apply for these new licences. PREM were looking at one stage to get the Chinese to build a lith carbonate plant at something like $100-140m. SAV are at the top of the queue considering the amount of drilling they've done and continue to do. A new lith processing plant in Portugal would significantly reduce the cost of shipping the concentrate to the offtakers. The processed lith could be sold directly into Europe too. There's bound to be some big money businesses that would see this as a sensible option (car and battery manufacturers as the obvious example). With SAV's growing and upgraded reserves there's years worth of lith concentrate supply sitting ready to be developed. Good to see the EU and Portugal seeing the significance of this asset, well done DA.

Regards,
Ed.