Savannah Resources Share Discussion Threads

[goodday1] 02/12/2021 21:24

Yeah, mate been lining up for 6 years ++Lol

[sc2000uk] 02/12/2021 20:58

550-600KM from Mine to Processing plant, probably about 6-8 hours lorry drive. Compared to original SS and shipping to China, this would have massive cost savings.

Since SS;

Double SC6 price
Resources x2
LOM increase
Mine per year increase.
Cheaper shipping costs
Reduce waste
Increase Side Products

Let's get the DFS done and put a rocket under the share price

[sc2000uk] 02/12/2021 20:52

Not my find, but from @21lucker on twitter.

hxxps://www.essential-business.pt/2021/12/02/sines-selected-as-lithium-processing-plant/

Forget Ducks Ar5e more like Ducks All lined up

Let's hope for news before Xmas.

[ukgeorge] 02/12/2021 12:15

From SPAngel
Savannah Resources* (SAV LN) – BUY, 17.9p – 20% in Mutamba disposed of in a $9.5m cash deal

BUY – 17.9p
• The Company agreed a deal with Rio Tinto following the strategic review of the Mutamba mineral sands project in Mozambique.

• Rio Tinto paid $9.5m in cash to Savannah in regards of the termination of the Consortium Agreement.

• Savannah and Rio owned the Mutmaba project under the Consortium Agreement signed in Oct/16 under which Savannah had an option to progressively earn into the asset taking its current 20% interest to 35% (upon completion of the PFS) and ultimately 51% (upon completion of the FS).

• Rio Tinto will take full responsibility for the Mutamba project including Jangamo 9228C, Dongane 9229C and Ravene 9229C mining concessions hosting 4,280mt at 3.85% THM (60% Ilmenite).

• Savannah will transfer its in-country team to Rio Tinto.

• Following the transaction, Savannah will have only an interest in its regional subsidiary and Mining Concession 9735C hosting 65mt at 4.20% THM (60% ilmenite) that it intends to divest in due course.

• The sale provides immediate access to $9.5m that will be directed towards development of the flagship Barroso Lithium Project in Portugal that is currently going through the permitting process.




Conclusion: The Company secures $9.5m in cash sale proceeds exiting non-core mineral sands assets in Mozambique and directing all focus on the flagship Barroso Lithium Project in Portugal. Disposal proceeds for an effective 20% interest in the Mutamba project mostly covers aggregate Savannah’s investment (~$10m). While the value secured is lower than what we had in our NAV estimate of $17m (NPV10% (after tax) $215m adjusted for a 0.4x risk factor and 20% SAV’s interest), the project was a non-core asset accounting for 7% of the Group’s value and a shortfall in deal proceeds versus our estimates amounting to just 0.3p/share. Ultimately, we view the transaction as a positive as Savannah secures nearly $10m in a straightforward cash deal while avoiding potential future capital commitments for Mutamba project development and allowing management to direct its focus entirely towards the flagship lithium project. The Company is well funded to complete the Barroso DFS (exp 2022) with ~$10m in sale proceeds coming on top of £9.7m in cash as of Jun/21.



We adjusted our SAV valuation for the transaction replacing risk adjusted Mutamba NPV with $9.5 in cash while applying higher long term spodumene prices to the Mina do Barroso NPV ($1,000/t vs 2018 Scoping Study Base Case price of $685/t SC6 CFR China). At $1,000/t SC6 price, MdB NPV8% (post tax) comes in at $691m that on a risk adjusted basis (0.6x multiple) translates into $415m (17.5p/sh contribution) yielding 17.9p updated target price. Although that may still prove to be conservative given the tightness in the spodumene market as implied by unprecedented spot market prices. Mt Cattlin (Orocobre) concentrate prices averaged $779/dmt (SC5.7 CIF China) in Q3/21, +120% on Q1/21, with spot prices for Pilbara Minerals concentrate 10,000dmt and 8,000dmt shipments in July and September attracting $1,400/t and $2,500/t (both SC6.0 CIF China), respectively. Orocobre, for instance, is talking to its offtakers to lock in $1,650/t (SC6.0 CIF China) for ~39kt delivery in Q4/21 (c.65% of quarterly Mt Cattlin production) and ~25kt shipment in January while Pilbara Minerals is reviewing prices with its customers aiming for $1,650-1,800/t levels (SC6.0 CIF China). Separately, Roskill spodumene price forecasts used in the latest Kathleen Valley FS (Liontown Resources, Nov/21) referred to an average of $1,422/t (SC6 CIF China ) for the 2024-2041 period starting at +$1,100/t in 2024-25 and climbing past $1,400/t in 2030-31 reflecting strong spodumene market fundamentals.
*SP Angel act as Nomad to Savannah Resources

[broncowarrior] 02/12/2021 09:54

Good to get that cash in the bank, should prevent the annual dilution taking the place with the discounted fund raise.Does mean DA is all in for Portugal so let's hope we get some good news soon.

[ged5] 01/12/2021 15:25

They've been swift to remove all reference to Mozambique on the website.

EDIT 15:38: Apart from the link on the home page.

[reba] 01/12/2021 13:09

Well well, at least DA’s wages have been taken care of for a couple of months, unless he decides to invest in another idiotic venture. Wouldn’t put it past him.

[inbrackets] 01/12/2021 12:49

We still have the Jangamo asset don't forget.Would be expecting a follow on to confirm sale of that (presumably back to RT) in the near future as they say they are looking to exit Moz and concentrate on Portugal.With SAV cleansed of HMS for ESG purposes, it perhaps now opens arrangements elsewhere. That news door is being opened and we should expect more.

[flc] 01/12/2021 12:45

At least focus can now be 100% on MdB and with a healthy cash pile then no more imminent cash calls. If we get some positive news on Portugal then potentially this could fly from here.

[ukgeorge] 01/12/2021 12:42

goodday it almost certainly cost more than $9.5m..................

fingers crossed more news follows soon.

Hopefully a takeover, so we can forget about this company. 5p would do.

[goodday1] 01/12/2021 12:41

Brilliant 1st time ever in the history of DA.How much time & money was spent on that adventure.Let us hope & pray DA makes a habit of this new way of working.Crossing everything for the future!Gl all

[flc] 01/12/2021 12:05

There we go…..sold out for cash.

[goodday1] 01/12/2021 08:47

Sorry, That was from LSE & posted there on Tuesday.Gl all

[goodday1] 01/12/2021 08:13

RE: Government FundingTue 17:43The election may well be ancient history by the time this project is funded by the EU. Great news nevertheless! We now know that the EU look favourably on lithium mining and a study on the establishment of a lithium supply chain. "Savannah" is mentioned - I presume "Resources" rather than "Petroleum " but so far no tweet from Dave?"Ancient history" what is ancient history?2024, 2025 by the time this project is funded by the EU.As for DA, we have the silence of the Lamb.Gl all

[ukgeorge] 30/11/2021 21:23

I saw it and the many articles over the last year, I've also seen the local protests and now covid scares.There is frankly no point in paying much attention to any of them.I doubt we will be getting any material news before well into 2022.The performance options are a clear sign of DAs aspirations.

[inbrackets] 30/11/2021 14:01

https://eco.sapo.pt/2021/11/30/da-galp-a-efacec-estas-64-empresas-e-universidades-vao-receber-apoio-do-prr/Quite surprised that no one has commented or reposted this link from Pizzarolls on LSE.Ostensibly Galp set to become the single largest beneficiary of the EU recovery funds (with necessary partners and Savannah name crops up). Looks like non refundable monies with interest paid by the Government. Presume they will be covered with tax takes from economic regeneration etc. Bodes well for the whole process including additional auction areas.

[goodday1] 30/11/2021 08:59

LSE, Twitter & on here, the LTH would not speak ill of the silence of DA & the BoD.Private investors were left at the mercy of the market while waiting for the election result & the subsequent coalition negotiations.Let us hope the result of the election is decisive in producing a simple majority.Some people have been holding for north of 5 years while DA has not missed a wage or a bouns, no one mention the expense, please.Let us hope DA will not run out of cash as we wait!Gl all & especially good luck to the long-suffering LTH.

[reba] 29/11/2021 19:16

Looks like the management are sat on their hands doing nothing. Only time the hands come out, is, to hold them out for their massive wages
There is no indication whatsoever what they are upto, The poor investors are completely in the dark as to how near or far we are from any decisions, what is holding things up or what we are doing to answer any problems raised.
DA we need a work programme schedule, something that gives us a calendar idea of what and when to expect progress and decisions.

[goodday1] 26/11/2021 06:59

Assuming no news, next week-ish is buying time.Trust in DA.Lol

[inbrackets] 24/11/2021 10:53

Have been trying to think through any implications of hmz placing as there are certainly positives for the project but whether that will filter through to pi's is another matter.It's quite a spectacular raise, with a knitted package of participants. Putting Moz and any further auction packages/refinery to one side, MDB itself does not need that much funding with part potentially coming from central funds and others willing to come in to secure even a basic certainty of supply. That should deliver something solid for existing shareholders. Additional assets would need to be shared in some way no doubt, obviously with profitable expectations so would hopefully add further to values.Other than providing proof that capital is available for deals to be done, I am not sure that the hmz deal is the only way for a cat to be skinned.

[inbrackets] 24/11/2021 10:37

Not looking to counter the inevitable that opposition parties should look to harness the anti lobby but this was an interesting article that may point towards an unchanged outcome (therefore a mandate to progress by default).https://www.wsws.org/en/articles/2021/11/22/port-n22.htmlLooking like one of the left parties that prompted the election is now eating some humble pie with a side of remorse.

[ukgeorge] 24/11/2021 10:00

Cheers Ged, I just read that article having seen it on LSE and a few others written by that journalist. It did make me think that SAV is never going to get a license.

I guess it really can't be called either way and hence why the share price has done so badly.

Obviously hoping that given the amount of government backing and industry through Galp that the project will get the go ahead.

Nimbys and Nodams sadly always cause problems.

I guess the lesson is stick to mining friendly jurisdictions (Portugal has a few lead zinc mines and must have a few others)