Savannah Resources Share Discussion Threads

[ukgeorge] 09/3/2021 10:36

Thanks for the article.

[inbrackets] 08/3/2021 22:48

https://eco.sapo.pt/2021/03/08/associacoes-pedem-ao-governo-decisoes-celeres-para-nao-matar-investimento-no-litio/This has potential to be huge news as Portuguese Gov looking to make sure the decision to kick start the Portuguese lithium industry is made by the 'professionals" for the good of the country.Couple this with the potential EU flagship support come Friday.

[ukgeorge] 08/3/2021 15:13

Last top up 111,213 shares at 4.57p. Dragged my average up to 3.33p

Roll on the EV story, and SAV being part of it roll on the Galp deal, higher lithium prices, a refinery in portugal, a deal with northvolt and VW and a load of free money from the EU.

[ukgeorge] 08/3/2021 15:03

tempted to have one last top up


Good to see that Lithium prices have been heading in the right direction this year.

[ukgeorge] 04/3/2021 13:56

Thanks for the link, I couldn't find it.

EIA completion
DFS later this year
Investment decission early 2022
Production 2023

Seems to still be under the general publics radar, surely these are a good bet.

[sev22] 04/3/2021 13:37

Here is the interview highlighted in the last post.

[inbrackets] 04/3/2021 13:17

ProActive interview with DA on today's RNS but really getting the message out on the future. Earlier, pointed towards 12th March Decision Day. Listening to this certainly makes me feel that the expectations are set to be more than matched short term and exceeded in the future.

[sev22] 04/3/2021 09:29

Target price 10.2p (132% upside from last night's closing price).

[inbrackets] 04/3/2021 09:19

Another snippet, this time from the takeaway report from the EU meeting that DA apparently presented at. Talking looks like it's over (if ever) but they have clearly identified that 12th March is to be a decision day, just a question whether SAV is to be their chosen flagship project (out of the limited choice available."the Commission and the EIB will discuss with the Member States at the EBA Ministerial on 12 March ways to strengthen the application of industrial and customs policies to bolster production and refining of raw materials in the EU, and to achieve a better balance between domestic and external supplies of battery active materials (e.g. facilitated planning and permitting procedures, and phasing-out of battery-related duty suspension requests);the industrial actors will consider developing a flagship initiative on sustainable and social extraction activities in Europe in view of addressing the important social acceptance challenge. This could include an industry-led charter on sustainable and socially fair practices, and an inclusive roundtable/platform to hold a regular, open and transparent dialogue on these relevant matters with stakeholders;"Not long to find out.

[ukgeorge] 04/3/2021 09:16

Did they have a taget price?

[sev22] 04/3/2021 09:11

A snippet from SAV's House Broker this morning.

Lithium market and outlook: We have a positive view on the lithium market based on continued uptake of electric vehicles in Europe (driven by regulation) and new entrants to the market. Two weeks ago, Ford announced that its European fleet will be 100% electric by 2030 – adding new demand to an already tightening market outlook.

[flc] 04/3/2021 08:17

Looks good

[ukgeorge] 04/3/2021 07:43

RNS out potential to lower capital and opex costs. Also promise of future news flow.

[reba] 02/3/2021 14:20

Time we had some good news
MD gone to sleep again

[nick9013] 02/3/2021 13:10

Hoping for double figures within the next 3/6 months. This, XTR and SNG :)

[ukgeorge] 01/3/2021 12:46

I'm hoping to have one last top up before it rockets :)

[desflurane] 01/3/2021 12:27

Double top forming?

[inbrackets] 28/2/2021 13:46

Much like Easter, potentially a bit of a moveable feast. Might have been March last year but was May the previous.It would be a good opportunity to give an update but they may prefer to couple with further info such as Galp DD, conformity and EIA which likely to be later than next couple of weeks. How I would love to be wrong.

[flc] 28/2/2021 07:23

Finals are out in a couple of weeks so hopefully an update on progress across the board.

[ged5] 27/2/2021 11:39

Sev22, thanks for posting the article.

Sheldon, my thoughts are that the EU is determined to secure as much lithium as they can for their EV strategy. Batteries are going to be needed and until an alternative to lithium batteries are tried and tested SAV are well placed.

Galp agreement signed.
EIA approved.
Mining licence amended
Production 2023

Lots to look forward to from the company. Let the others get on with processing plants.

I'm not sure about some of those big trades. There seem to be more big buys than sells yet there's a slight drift. That double top is a slight concern and maybe a top-up time is approaching.

Last week of on-line live lessons for my grandson. We'll miss him.

[burtond1] 25/2/2021 09:20

Are we entering a commodities supercycle? And what does it mean for small cap investors?https://total-market-solutions.com/2021/02/are-we-entering-a-commodities-supercycle/

[gepetto100] 25/2/2021 08:52

Today's 4.85 are buys

[sev22] 25/2/2021 08:26

SAV get a mention in another positive article in this week's Investors Chronicle.

UK-listed lithium prospects firm up.

After a false start three years ago, prospective producers appear to be on steadier ground.

Picking major technological shifts doesn’t always equal huge investment gains, just ask any investor who put money into the dotcom boom two decades ago. A more recent example is from 2016 and 2017 when the automotive industry’s move from the internal combustion-engine to electric vehicles (EV) seemed a lock, and the mining industry jumped on board.

The following years have largely proved that thesis. Major carmakers and governments are behind this shift and by the end of this decade EVs will dominate new car sales. But investors who initially dived in were left with large losses by 2019 and London companies struggled to get financing for mines. Lithium, cobalt and graphite prices also crashed as 2017-2019 supply overwhelmed demand.

However, share prices are now back up, cash is flying in for mines to be built and new players focused on lithium, graphite, nickel and other EV-exposed raw materials are arriving.

What do we need?

Lithium, graphite, nickel, manganese and cobalt are key ingredients for lithium-ion batteries while copper and rare earths are also needed in large quantities for EV cars. Other demand drivers are stationary batteries, which are used as part of renewable energy systems.

As we explored in our recent feature on EVs (‘Race to Riches’, 28 Jan), demand has shot up in recent years and is expected to grow even more sharply over the next decade. Spending on passenger and commercial EVs and electric buses climbed almost a third to $133bn in 2020, according to Bloomberg New Energy Finance, led by passenger car sales.

Looking ahead, Benchmark Minerals Intelligence forecasts almost 200 battery “megafactories” will be built in the next 10 years, more than doubling the existing number.

These factories are largely found in China, Japan and Korea, although capacity is slowly building in Europe and North America.

Bacanora Lithium (BCN) offers a perfect example of the past five years in the battery metals sector. The company quickly rose from Aim tiddler to promising lithium option in London in 2016. Bacanora’s key prospect is the Sonora clay lithium deposit in Mexico.

Construction at Sonora was set to begin in 2018 but a $100m equity raise was withdrawn three days after it was announced. The weaker lithium price and a large uptick in supply from Australian mines had scared off investors, causing its share price to fall from 137p at the start of 2018 to 25p a year later.

But now site preparation has begun for the build, the share price hit a two-year high last month and production is looking likelier from 2023. Fellow Aim-listed Savannah Resources (SAV) is working on a mine in Portugal to supply European carmakers but is not as far into the development timeline as Bacanora.

The forces driving the renewed interest in the sector are simple.

“You've seen a significant increase in uptake in EVs in the last six months, and also you've seen the Europeans move down that EV path,” says Bacanora chief executive Peter Secker.

“Tesla is building plants all over the world, which is great. And the Chinese are still moving down that route. They will be electric before the rest of the world.”

Lithium has a range of pricing markets, based on how close it is to the product battery manufacturers need. Australia, which along with Chile is a major producer of the mineral, largely exports ore to China given the limited local processing capacity. This spodumene feedstock has not seen as much of a price improvement as lithium carbonate or hydroxide, or the battery-grade chemical product that is another stage removed from ore.

Benchmark said the battery grade lithium carbonate price climbed over 40 per cent in January, to $9,450 a tonne (t). The price increase was less dramatic for raw materials, with spodumene up just 6 per cent in the same period.

Lithium miners in London largely plan to sell a product one or two stages removed from the ore they extract from the ground. Bacanora, likely the first locally-listed miner to reach production, will sell a battery grade product from its own processing facility.

“We are going to try and avoid the pitfalls of being at the mercy of the converters, and sell to the downstream consumers, which are the battery manufacturers, and the cathode manufacturers, which is obviously a much, much larger market,” says Secker. The convertors are largely the Chinese companies that buy up lithium ore or concentrate.