Savannah Resources Share Discussion Threads

[busraker1] 14/11/2019 11:26

Ged, I think they are a pretty pleasing set of interim met test results to keep us going. There's clearly a lot of hard work going in to getting it right before putting a spade in the ground. The low iron and impurities figures look good too.

Two-thirds (16Mt) of the 24mt current resource is fresh pegmatite within the Grandao area which can achieve 6% Li20 average with low impurities and nearly 80% recovery. That's looking like it could be a very good quality saleable product.

277 samples from Grandao were sent off but only 2 each for Pinheiro and Aldeia, so you can see where the focus is. The smaller Aldeia certainly needs more testing and optimising as it isn't over the line yet.

Altura Mining said they expected 80% recovery in their DFS but have spent their whole first year of mining struggling to come up from 60% in to the 70's, so the reality on the ground can be harder than the optimised target DFS recovery.

Hopefully, SAV can learn some lessons from the first movers and get closer to nameplate capacity and recovery target % quicker and with less of the early cash burn / loan defaults that Altura have faced. Altura put out a 6% spodumene which is very well regarded in the market and continues to sell well at $575 to $600/t in difficult times with wmt cash costs of around $360/t so making good money in this market now the mine is running more smoothly.

Altura is only around 3.5 times greater market cap than SAV as a 'producer' of similar scale and quality, but it was 8 times higher than that at the peak of lithium prices in 2018, so we await the holy grail of being a producer in 2022 within a better pricing environment! ;-)

If SAV's lithium mine falls apart I think we're back under 1p. If it goes to plan then I think we're between 10p and 30p in 3 or 4 years time, assuming $700+/t pricing and no more share dilution of course, which SAV have stated they're hoping to avoid.

ALL IMHO

[greatfull dead] 14/11/2019 09:58

I am confident Savannah will turn into the company we envisage it to become, Europe's most significant producer of spodumene lithium . So much so I bought some more today and will continue to do so at this price levels.

GLA,
GD

[ged5] 14/11/2019 08:40

I felt the same way after the placing, HG. However I decided the best strategy was to buy when it went down to 2p. I still think there is a reasonable chance of success here but no longer have the same confidence of reaching my optimistic target price when I was buying at 9p.

EIA next. Let's hope there's enough in that to pacify the protestors/neighbouring landowners.

[fqr714bhp] 14/11/2019 08:26

Great result here and some great news for the future survival of SAV

Looks like they have some great Lithium to produce and sell.

Roll on the OFF TAKE news?
Roll on the partnerships?
Roll on first sales of Lithium.

And above all ROLL ON THE DFS IN 2Q 2020.

[highly geared] 14/11/2019 08:26

GED, I think investor fatigue and the share price mean most have given up the ghost. Mine are bottom drawer now , being 75% underwater. The last placing did it for me...
I look in now and again. If I ever get back to somewhere near break even, I’ll be happy and out.

[ged5] 14/11/2019 08:15

I take it from the lack of posts that everybody has given up looking out for RNS announcements. Yes there was a RNS this morning.

The long awaited metallurgical results have arrived. On first reading I must admit I was slightly disappointed with the recovery rates. Compared to the January initial results these are not too far off but just seem to be slightly lower.

My reading is that we have viable deposits for a profitable mine with some good grades.

Ed, if you are still about and Busraker you both seem to have a good understanding of the grades. Your thoughts please.

[busraker1] 12/11/2019 15:34

I've added 60% more at 2.39p. When you look at many other lithium mining plays and the LIT ETF there appears to be a bottom forming and some, like Jiangxi Ganfeng, are up 75% from their lows. Many expect the lithium price to bottom out during 2020, either early or late in the year. But, I suspect many stocks will rise up to 6 months in advance of that and I'm thinking (hoping) that's what is starting to happen now. SAV won't be one of the first to rise as it is a smaller player, but I don't want to wait any longer.

I think MdB will get financed, constructed and mined, but I still need final confirmation of met test results to be entirely comfortable as to the quality of product that will be produced for sale.

Having a European hydroxide plant operating in 2023 is very positive also as it removes the transport cost element out of the mining costs, nevermind any share SAV may perhaps be able to take in its ownership and profits.

I'm thinking it's worth the risk from here.

ALL IMHO

[greatfull dead] 12/11/2019 14:51

They scuppered the fun.

GLA,
GD

[fqr714bhp] 12/11/2019 14:41

Two nice BIG sells today???

[greatfull dead] 12/11/2019 14:07

Now that would be nice Sandy...

ATB,
GD

[sandy12345] 12/11/2019 13:06

I see revisiting the 3p area very soon imho!

[broncowarrior] 12/11/2019 12:48

guitarsolo, have held this right from the beginning and used to have a very healthy average. Will continue to hold, but pretty disappointed with how this has all gone.

[greatfull dead] 12/11/2019 11:26

I feel the winds picking up a little...

GLA,
GD

[guitarsolo] 12/11/2019 09:16

Hi Bronco,
There's no way that SAV are going to release any price sensitive info (particularly positive) for at least 6 months after the 2p placing. It would smack of a stitch-up wouldn't it ;)
As you say, the 2p placing killed the news flow.
My hope is that they are still building up the resource, planning the most efficient way to mine it and working on off-take agreement(s) with major players like VW. The capex for MdB is pretty low (just over $100m I recall) so it's not huge and let's not forget, we simply have to move to EVs and quickly and that means Lithium ion.
I don't like seeing the share price down here but if the work is going on in the background then I'll keep the faith.
Guitarsolo

[guitarsolo] 12/11/2019 09:12

Hi Bronco,
There's no way that SAV are going to release any price sensitive info (particularly positive) for at least 6 months after the 2p placing. It would smack of a stitch-up wouldn't it ;)
As you say, the 2p placing killed the news flow.
My hope is that they are still building up the resource, planning the most efficient way to mine it and working on off-take agreement(s) with major players like VW. The capex for MdB is pretty low (just over $100m I recall) so it's not huge and let's not forget, we simply have to move to EVs and quickly and that means Lithium ion.
I don't like seeing the share price down here but if the work is going on in the background then I'll keep the faith.
Guitarsolo

[greatfull dead] 12/11/2019 08:00

inbrackets,

Nice one. Every little bit of info helps.

ATB,
GD

[broncowarrior] 12/11/2019 07:49

Not even an irrelevant announcement about pottery prices since the placing. Investor relations and news flow died with the 2p placing.

[paleje] 11/11/2019 19:05

So Galamba's trip is to see for himself what has generated the great local community opposition, presumably. Let’s hope he’s seen it all before and keeps a level perspective.

[ged5] 11/11/2019 18:42

Show off! :-)) I'm impressed!

The Secretary of State Deputy state and Energy will meet with the leaders of the concessionaire company. João Galamba, Assistant Secretary of State and Energy, will visit next Monday, November 11, the prospectsite planned to explore lithium in Boticas and Covas de Barroso, by the concessionaire, the British company Savannah.

According to an agenda note, João Galamba will visit next Monday the mines of Boticas and Covas de Barroso, where research and prospecting work takes place in charge of the company Savannah.A meeting between the Secretary of State in the House is planned Boticas Municipal, followed by a departure for Covas deBarroso.

The program also provides for a brief meeting with Savannah officials and a visit to the Covas do Barroso information center.

João Galamba's trip is expected to conclude with a visit to the prospecting site in alto de Alijó. The bet on lithium mines has generated great opposition from local communities and environmental organizations.

The latest information released points to the environmental impact study of this mine being completed by the end of this year, and it is reviewed that, in the exploration phase, about 25 ore trucks per day can be withdrawn from the site.

[inbrackets] 11/11/2019 18:31

https://jornaleconomico.sapo.pt/noticias/litio-joao-galamba-vai-visitar-local-de-prospecao-da-savsannah-em-boticas-511541No private source. Public info.

[paleje] 11/11/2019 16:29

GD - yes still holding but not as many since early in the year.

Loads of projects are on hold across the sector, ridiculous in some cases or so you'd think but money makes it all go round and at the moment with the global unease, financiers can pick and choose and when they do pick they want their pound of flesh and more.

The last raise told the story plainly enough....people just wouldn't pay more. A wealthy partner/jv/offtake arrangement/offer would make a huge difference immediately and that's what I'm hoping for.

[busraker1] 11/11/2019 14:31

I see Volkswagen is on the Advisory Board of the new CERA Certification for which SAV's Lithium mine has been chosen as the pilot mining project for evaluation of the new standards.

[ged5] 11/11/2019 14:14

Thanks all. I've not seen that mentioned anywhere, IB. Private source?

[inbrackets] 11/11/2019 13:29

With Keliber effectively deferred, RT / Serbia deferred, EMH scratting around for deep mining finance with low IRR, and Bacanora faced with similar issues on the other side of the border, this leaves the Iberian Peninsular and Portugal as the great White Gold hopes of Europe.The Portuguese Minister is visiting MdB today. Just wondering whether the increasing pressure to deliver an EU source for all those German, sorry European jobs and carmakers, will finally push this over the top.

[busraker1] 11/11/2019 11:21

Thanks for the info.....it's interesting to see who is on the list of partners in terms of lithium mines. Keliber and European Lithium are about half the size of Savannah's resource but about the same grade. Keliber always said it was the most advanced of the European lithium mines in terms of timescales. Until they released these excerpts from news last week that is:-

"In the beginning of 2019, Keliber decided to change its end product from lithium carbonate to lithium hydroxide. The updated Definitive Feasibility Study (DFS) based on the production of lithium hydroxide was published in early 2019. The DFS clearly demonstrated the economic feasibility of the project. Throughout 2019, Keliber has continued to advance the project in various fields including technical planning, permitting and financing, reaching several significant milestones.

Keliber has identified certain factors that need to be further assessed and planned. Due to the changes in end product and production process, additional technical and environmental planning have been required. Keliber has also evaluated the length of the upcoming construction stage and updated the construction master schedule, leaving more reservations on delivery of long-leading items, acknowledging also that certain construction activities are best to be done outside winter period.

Syväjärvi environmental permit which was received in early 2019 has not yet reached legal force due to appeals. Keliber now estimates that the preparative works at Syväjärvi mine site will not commence in 2019, although the company has received a permit to initiate activities from the Regional Administrative Agency. Currently, Keliber estimates that construction could start in 2021, presuming that sufficient project readiness regarding permits and technical design has been reached, and that favorable market conditions for project financing exists. It is estimated that the construction phase would take over two years."