Savannah Resources Share Discussion Threads

[the deacon] 01/7/2019 12:45

Excellent interview just out from MiningMaven with DA. Ongoing discussions with refiners from Asia, as well as car manufacturers and battery developers in Europe. Looking to finalise off take arrangements and strategic partnerships, to help fund MdB and obviously offtake once in production

[ged5] 01/7/2019 09:25

Good luck. If you're thinking of investing it might be worth talking to the company. They are usually willing to answer non price sensitive questions.

[ged5] 01/7/2019 09:25

Good luck. If you're thinking of investing it might be worth talking to the company. They are usually willing to answer non price sensitive questions.

[jotoha2] 30/6/2019 16:52

Thank you for your replies , have done a bit more scratching around and will join the party this week , lets hope I can get a decent price for my purchase.

[ged5] 30/6/2019 10:44

You've also been around long enough to know a valuation is given by the market. In SAV's case they are lucky enough to have a cornerstone investor, other large investors and large director holdings. Shares here are tightly held because there is belief that SAV will deliver.

[ged5] 30/6/2019 10:37

jotoha2, thanks for dropping in and asking your question.

It looked like good news for BCN late Friday. They seem to be at a far more advanced stage than SAV. Looking at the IRR for both BCN projects they are both in the mid-twenties and quoted as pre-tax. Compare that with Mina do Barroso which currently has a pre-tax IRR of 63%.

If you are just talking about the lithium project, then I think you're being very unfair with your comment. I think they have made tremendous progress in little over 2 years and now have an excellent asset. AND its still growing. Spodumene hard rock is going to be very much sought after by battery producers and will be in demand especially in Europe. Ok there have been delays in publishing the FS but that is so the latest drilling results can be included. I think you will find that the above IRR will be improved when the results of the FS are published later this year.

Given that news could come at any time about the assets in Oman or Mozambque (base case LOM revenue of US$3.53 billion forecast), then I hardly think that a Mkt Cap of £51M is valued highly. (ADVFN figure is incorrect)

[paleje] 29/6/2019 21:27

I know BCN is on a roll jotoha, I hold them you didn’t see my previous post, but they had a tough time getting to where they are now. I agree it’s too slow here and there are lots of reasons but I’m not going there, I think we're currently worth about twice our mcap to a buyer but that would be a lowball offer and opportunistic and I don’t think we’ll need to go that way.

GEDs article above is a good one and part of a growing number of commentators stressing the need for more support at government level if EVs are going to make it on time and not leave them with egg on their faces. I think the motor industry will get involved directly to secure their supply lines and we will get taken out at some point further on probably by a bigger miner with whom the car giants will have arrangements because big boys want to play with big boys. We are too small to go all the way ourselves, that’s just my opinion of course. I think it will be better than twice our mcap too.

[jotoha2] 29/6/2019 17:59

Palaje , I think you will find BCN is clearly going places and its share price is on a roll , why is this outfit valued so highly with so little progress , and mega loses to date.

[ged5] 29/6/2019 17:22

Thanks paleje.

Just came across this whilst watching Aus v NZ:

Q. Regarding lithium, what is the rationale and how are you playing it?

By 2030, the number of electric vehicles (EVs) may increase to 100 million, according to IEA. That requires a lot of lithium and cobalt for EV batteries.

This all requires huge increase in mining activities. If this doesn’t happen, the energy transition is not going to happen on the scale many governments are now planning. This energy transition requires major government intervention and EVs need to be technically successful and cost competitive as well.

The main risk about the EV growth projections is that the track record of government policies is poor overall no matter where you look at. But it doesn’t have to reach that 100 million EVs by 2030 to make lithium a great investment. You will make a lot of money if EVs reach only 50 million or even less by 2030.

All this leads once again to oil. EVs will take at least 10 years to have a meaningful impact on oil demand if all those projections come into reality. And even then total oil demand is going up from here. We will be in trouble long before 2030 if we are not investing in oil production now. My message is that you don’t need to choose between oil and EVs. It’s not a binary bet. EVs and oil will both make you money if you invest wisely.

I’d like to add a few words about geopolitics here. Look, according to European commission’s data, our primary production of certain raw materials by the EU member states is alarming: 0.1% for lithium; 1.1% for natural graphite; 7.7% for cobalt and 13.8% for nickel of global production. Industrial strategies in EU countries have to change because of global realities. Competition of raw materials is increasing and countries are getting more and more aggressive in securing their future needs. We have a lot of raw materials in Europe and long tradition of extraction activities, we have just lacked political will to support our industries. I want to be positioned well before that turn in strategic thinking really happens and there are signs it’s already underway.

About answering your question about how I am playing the lithium theme? I have a small position in Savannah Resources (OTC:SVNNF). But I’m considering further investments into the lithium space. Savannah Resources has their main asset in Portugal with high IRR and low Capex. It really looks promising with current low valuation. They have some additional lithium assets in Finland as well.

Lithium is a work in progress for me, though, and I’m not comfortable in giving a detailed opinion just yet.

[paleje] 28/6/2019 13:28

Interesting article in today's IC, overall I think encouraging and bodes well for our own financing not following the same tortuous path BCN had to.



Thrust of article being that car makers and even the big oil companies need to get involved in the lithium market/ supply chain because miners are having troubles as ever getting finance.

Conclusion:-
"Carmakers have previously bottled supply agreements with battery mineral producers (see Volkswagen demanding cobalt in an undersupplied market in 2017) and the current price lows have taken away some of the supercharged development from the mining side. The mining industry’s inability to finance projects means carmakers might have no choice but to throw billions at guaranteeing future supply through M&A and project finance."

[edgein] 28/6/2019 07:37

Ged,

Thanks for posting that. One thing about SAV though their shareholder communications are top notch. These newsletters they produce keep everyone up to date on ongoing progress.

Regards,
Ed.

[ged5] 27/6/2019 14:21

June Newsletter:

Exploration works have continued in June, with drilling in the Aldeia & Irmãos area (block A), in the parish of Canedo. Samples from the exploration drilling were also prepared and sent to the laboratory.At the area of NOA a blast for ore extraction was completed with the material transported off site to be use in the ceramic industry. We took this opportunity to arrange vibration measurements before and during the blast and during the mine works. These measurements are part of the work of the Environmental Impact Assessment.

At this moment, the drilling works are temporarily stopped. We are waiting to receive all the results of the samples sent to the laboratory, which will allow us to review of the exploration works that will be necessary to develop in the coming months.

We continue to carry out the assessment of results of the analyses that we are receiving, of the samples already sent to the laboratory.The Environmental Impact Assessment works continue to be developed, and we continue to make every effort to design infrastructure and processes that will eliminate/mitigate the potential impacts that the mine may cause.We continue to develop works to design the project so that it becomes feasible, integrates in the environment where it will develop, both at the environmental and landscape level and at the social level.At the NOA area, the ore continues to be mined and shipped regularly for use in the ceramics industry.

[the deacon] 26/6/2019 20:08

A good read, thanks. Glad there appears to be a lot of EU support for the project, as given the carbonate pricing and general market downtrend I don't think financing the capex is as easy as many think.

[busraker1] 26/6/2019 17:05

Lithium global news round up for June if you want a read (may need to register for free)-

[paleje] 26/6/2019 15:14

Bronco we don't know it's Q3 although I'm sure we'd all like it, we were only told second half so it could drag on later, really hope not though. As idle as a painted ship and all that.

I hedged my bets a couple of months back with some BCN stock which is close to financing now after a torrid time, I hope we don't get the same runaround, I think management here are more sure-footed but I also thought that when they were uptalking Oman and Moz.

[ukgeorge] 26/6/2019 12:11

Yes and their options are at 10p. Just hope patience will be rewarded. Roll on the DFS, funding, production, takeover etc.

[hugothesecond] 26/6/2019 11:47

Patience is required. A good entry rice for new investors thats for sure. Remember DA invested at 5p a few years ago way before investment in Portugal !

[fqr714bhp] 26/6/2019 11:09

There will always be objections by people, until the realize that it will bring income to the local people and employment in the area.

This mine will be developed, only a matter of time.

Roll on the DFS in the last quarter.

Oman and Mozambique will also happen, only a matter of time and Rio-Tinto would not have come on board in Mozambique if it was a dead duck. LOl

IMHO.

[broncowarrior] 26/6/2019 08:56

All nice little stories but we need a proper beast RNS to get this moving. BFS third quarter? That should be the game changer.

[seagullsslimjim] 26/6/2019 07:18

I guess to the outsider that there have been too many false dawns over the last seven years here - Oman, Finland, Moz and so are getting the feeling of another 'Jam tomorrow' Company. Especially as Oman and Moz were touted as game changers.

Aim traders hold shares for a lot shorter than say an investment on the main market and if they don't get a stella rise then they flip it (even for a loss)and thus depress the share price.

I also seem to recall reading here that a local petition against the mine development was signed by 4800 locals - that's a fair number of locals and so one would think that a review of the mine would have to take place at local Government level and so another possible delay.

[the deacon] 21/6/2019 20:13

Thanks Ged5. That first one from 1-1 was particularly good

[ged5] 21/6/2019 15:52

And this with 14 views:

[ged5] 21/6/2019 15:42

Was this interview missed? Only 10 views.