Share Name Share Symbol Market Type Share ISIN Share Description
Savannah Resources Plc LSE:SAV London Ordinary Share GB00B647W791 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 2.30 562,831 11:09:35
Bid Price Offer Price High Price Low Price Open Price
2.20 2.40 2.35 2.30 2.35
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining -3.38 -0.44 30
Last Trade Time Trade Type Trade Size Trade Price Currency
16:22:20 O 50,000 2.204 GBX

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Trade Time Trade Price Trade Size Trade Value Trade Type
2020-08-06 15:22:212.2050,0001,102.00O
2020-08-06 15:22:132.3050,0001,150.00O
2020-08-06 14:39:572.2011,547254.50O
2020-08-06 13:55:302.3078418.03O
2020-08-06 13:00:142.3074,8561,721.69UT
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Savannah Resources (SAV) Top Chat Posts

Savannah Resources Daily Update: Savannah Resources Plc is listed in the Mining sector of the London Stock Exchange with ticker SAV. The last closing price for Savannah Resources was 2.30p.
Savannah Resources Plc has a 4 week average price of 1.90p and a 12 week average price of 1.88p.
The 1 year high share price is 4.30p while the 1 year low share price is currently 0.80p.
There are currently 1,298,959,820 shares in issue and the average daily traded volume is 1,333,147 shares. The market capitalisation of Savannah Resources Plc is £29,876,075.86.
biopop: what more? share price north of my break even of 6p would be good. at least it shows there is still a spark of life in the old dog
ukgeorge: 4p is my average so the sparkling water (all i can afford now) can remain un opened. :) but yes good to see the share price bouncing back.
busraker1: Jiangxi Ganfeng Lithium (big Chinese listed lithium player) is doing a Tesla and has now quadrupled since its low on Sept 1st. There's excitement in some leading lithium stocks as we move towards an upturn in demand for EVs and an uptick hopefully in lithium pricing some time this year. I thought the SAV newsletter left more qns than answers. I'm not convinced that waiting for the EIA is the primary issue that SAV are facing. My largest holding is AVZ Minerals with a whopping high grade lithium deposit in the DRC and they have caught and are overtaking SAV in development timescales and the newsflow is constant including finance and offtake partners ready to roll once their DFS is out in Q1 2020. Ok...their deposit is world leading, but the contrast with SAV newsflow is notable. In a low priced lithium environment ($450 to $550 per tonne), the numbers in your DFS don't look so good and it can be harder to convince financiers to back your project. They may need to see the lithium price actually start to move in the right direction before hitting the go button. Also, the financiers may be requesting improvements to the current 11 year mine life proposed, or more met testing to prove that recovery rates will actually be achieved and not have the year one production and cash flow troubles of an Aussie Pilbara Minerals or Altura Mining etc. I'd be surprised if it was just a delay with the EIA holding things up and feel like it's not possible for SAV to tell us the whole story at the moment....and the share price seems to feel like that too. I hope the news can turn very positive soon. All imho.
busraker1: ...and the lithium price will rise when the demand for lithium rises, which requires much higher sales of EVs, and I agree with the below article from the Guardian that 2020 will be the 'year of the EV' with lots of new and very viable models being released from major brands (i.e. not just Tesla dominating the EV market). I suspect EV sales will grow by more than the already high expectations in 2020 and that some people have held off buying their next car until some really good EVs come on the market at acceptable prices, thus depressing petrol / diesel car sales a little recently. Some lithium miners are waiting for higher lithium prices to re-initiate their expansion plans i.e. Talison / Greenbushes, Albermarle etc so their expansions will initially hold back a lithium price rise. However, SQM in Chile is facing court rulings that they are using too much water in their brine lithium operations, thus threatening the beautiful Atacama salt flats, which may hold back or slow down their large expansion plans etc.....and others like Alita Resources and Nemaska are going bust because they tried to build / operate in a low price lithium environment with high operating costs of high capex construction costs. It's really really important to run your mine with lower opex costs so that you will survive and still be profitable at lower lithium prices, whilst higher opex mines die away. Some of the big Aussie mines are quite high opex to run but they have the cash to build a hydroxide plant, which is more profitable, to enable them to survive and dominate etc. Personally, I think SAV are navigating all of this well, but it's a difficult thing to be doing. If it all works out, then the share price will be a lot higher. I'm also invested in AVZ Minerals, which has the world's largest high grade spodumene lithium mine in the DRC (400Mt at 1.6%Li with upside to over 1bn tonnes), which is at the same stage as SAV, and has a £55m mkt cap. Https:// Https://
busraker1: SAV touched 1.9p back in September and, if it's forming a double bottom or bottom pattern of some sort on the share chart, it may go there again, but if 2020 is going to be as good a year as it seems from EV sales, given the raft of exciting new cars coming out, then I'd want to be in SAV sooner rather than later.... The lithium price is likely to be higher by the back end of next year as inventories are worked off and the SAV share price up with it. One of the big boys, Jianqxi Ganfeng Lithium, (30% owner of Bacanora etc) has gone up from 870cny on 1st Sept to 1760cny today so there are signs of early movement in some and a bottoming out in many other lithium shares. Of course, this all assumes that SAV navigates its mine in to life without major hinderance... IMHO
highly geared: Yes, I’m c £20k down on my investment which is sizeable for me. I suspect major shareholders have been de-risking portfolios for some time and selling down what are perceived as high risk investments which SAV is one. Looking at SAV , unfortunately and often for reasons outside the companies control, it hasn’t delivered a single share value enhancing milestone. Oman has been an unmitigated disaster (that was my main reason for investing). If the mine licences ever get granted, they’re c.3 years late on original timescales. The Portugal Lithium has been a saviour, in part, and the pace of resource drilling impressive but we were promised DFS Q1 2019 and that has now ‘moved out’ by c 1 year for ‘project economics ‘ reasons. Mozambique, next decade , next century....? The issue with the market’s is timing is everything. We’ve missed the boat for now on copper, Lithium hopefully but our track record... write off Moz re: pace of progress. Major investors are thinking, market crash around the corner, sell down risky stocks. So , just when SAV will need to raise major equity to fund Portugal, the share price is likely to be at new lows and we potentially see horrendous dilution. Seen it so many times on AIM. Archer has a serious shareholding and put in £500k of his own cash years back so his and our interests are aligned. But, it’s all about financing projects and the constant delays have taken us to exactly the wrong point in the market cycle. I sincerely hope to be proved wrong as I’d like to recover my money but I’m not optimistic.
busraker1: He did mention a possible sale of the Oman asset but his preference was to put it in to a separate entity to ringfence it away from Portugal, because financing both projects within SAV would be 'challenging'...and you'd have to agree with that. I guess that would mean SAV retaining the controlling share in that entity, but it can sort its own financing out without diluting SAV. In other words he'd prefer to retain majority ownership and have access to the future rewards rather than sell it off too cheap now. He talked about making it a mid-cap copper mining company, so that's a few hundred million mkt opposed to selling now for a tenth of that. SAV may find it hard in the current environment to find financing for the Lithium mine, unless the lithium price and our share price rise this year rather than next which is possible. Of course, Europe may be keen to finance things hopefully. It is likely to involve some equity and the recent broker note had the assumption that SAV would issue another 700m shares to raise their part of the money for the lithium mine, plus hopefully a big loan etc. I hope that's 350m shares at 10p and not 700m at 5p! Personally, I think the lithium price will start to rise in response to growing demand within the next 3 to 9 months, which would encourage greater financing to come on tap. Some negative forecasters, including Morgan Stanley, still think we will be in an increasing lithium supply glut through to 2023. If that proves to be the case then we should all move on now! They will turn soon enough when it suits them!! Some smaller independent forecasters think the demand will be 2 to 3 times that forecast by some of these big players. In that case, we'll get the promised lithium price surge and it should stay high for a little while. In those peaks we'll get our share price rewards, assuming SAV haven't really messed up the difficult steps that still lie ahead. imho.
rickyhatton: From another poster. "Savannah, via an issue of new shares to the vendors, is acquiring the outstanding 25% minority stake in its advanced Mina do Barroso (MdB) spodumene hard rock lithium project in Portugal. The deal, struck at 5.63 p/share, values 25% of MdB at £9.1m. MdB’s Bankable Feasibility Study (BFS) Completed By Year End In a July 2018 Scoping Study, a post-tax NPV of £184m, was estimated at an 8% discount rate. Since then, the company has started a BFS to be completed by year end. By drilling they have increased resources and have upgraded from inferred into indicated and measured. Analytical testing has shown that already low levels of iron are smaller than originally expected and metallurgical and marketing work has shown much greater potential for by-product revenues. However, in line with all lithium markets, the price of spodumene concentrates have fallen from the US$900/t highs seen in July 2018, hence, the conservative $685/t assumed then, is around the current price and the financial numbers in the BFS may be pulled in opposite directions. Shares Trading At Big Discount To Our Valuation If 25% of MdB is worth £9.1m, so 100% of MdB is £36.3m or 3.5p/share, or 70% of the current share price. 75% of the £184m project NPV is £138m, which is 13.2p or 2.6 times the current share price. Savannah retains ownership of 20% of a Heavy Mineral Sands project in Mozambique and varying majority holdings in two Omani copper projects. In spite of little recent visible signs of progress on either, we maintain our respective £25m and £5m valuations. There is dilution with the share issues, but this is offset by the move to 100% ownership of MdB. Hence, our Savannah valuation increases to £170m from £140m, but our per share valuation slips to 16.2p from 17p. Europe’s Most Significant Spodumene Project This MdB deal is very good and gives Savannah 100% ownership of Europe’s most significant spodumene hard rock lithium project at a cheap price. It simplifies the company’s structure and reduces project funding uncertainties."
busraker1: It's interesting looking at other Lithium mining companies around the world and what they're up to. Most of them ,juniors at least, have the same shaped share price chart as SAV, including the spike in mid 2018. It shows you how they are moving to the same tune often, which is the Spodumene or Hydroxide / Carbonate pricing. There does indeed seem to be a serious undervaluing of lithium stocks globally at the moment after a long downtrend and this seems to be quite at odds with the more optimistic demand curve for the material over the next few years. It depends who you listen to about whether there might be a lithium oversupply or whether the demand for batteries will be so strong as to outrun the supply. Personally, in a fast moving market I expect there to be a price spike or two taking lithium shares with it at a time that may or may not be related to how near production your particular lithium share happens to be! Rio Tinto's huge lithium borate mine at Jadar in Serbia has had some commentators suggesting it should be delayed (beyond current 2023 startup plans) because it might tip the market enough to reach oversupply etc in 2024 onwards, but who knows. The point is, it's important to watch the wider market and lithium pricing. Comparing SAV to many global lithium miners I do like our project economics. We have one of the shortest payback periods at 1.7 years and one of the highest IRRs. It will help with financing. I think it will be very necessary to have a lithium hydroxide plant soonish. Otherwise, you end up sending the spodumene to China or somewhere before it comes back to Europe, but really Europe is looking at integrating the process from mine to car manufacture within its boundaries. Hopefully, Europe is keen to offer financing though. One of the companies that caught my eye is Piedmont Lithium in the US of A. Mainly because it's almost a carbon copy of Savannah. Similar sized mine, similar healthy economics, identical timescales, £63m mkt cap. Interestingly, they have a plan to make capex financing easier i.e. they intend financing initial capex and mining spodumene for the first two years with $70m or so free cash flow each year, then using some of that cash to fund a lithium hydroxide plant after two years, with the other half of the cash required for the plant coming from outside financing. The plant would be $250m or so. This looks a smart model. Bacanora seemed to come unstuck at their huge Mexico Lithium mine because they went all in for starting the mine at full capacity with a hydroxide plant from the start, and $700m or so capital expenditure. They seemingly couldn't swallow all that, worried people they might go bust, and in the end have given 50% of the mine to Ganfeng for about $30m or so (peanuts) who will now provide expertise, some financing, offtake etc, so it is more stable now. They also have the smaller Zinnwald Lithium mine in Germany, about the same size as Mina do Barosso, but about 1 year behind SAV. All that and yet only £35m mkt cap due to the large financing issues they've given themselves. So, it shows you have to be smart and not swallow too big a financial requirement before you can run, or else risk becoming someone else's slave for a cheap price....hope I'm not doing BCN a disservice here. I like SAV's capex of $109m to build the spodumene mine, as it's fairly 'modest' for their mkt cap. Before they release plans for a hydroxide plant, I'd like to either hear a cashflow plan like Piedmont's or, even better, if someone like the European Investment Bank is willing to finance the bulk of it without too much risk because Europe is so keen to secure lithium supply. I see Infinity Lithium are planning a full hydroxide plant from day one for their mine in San Jose, Spain. They're a year behind us it seems. They have a low grade mine, claiming to be 111Mt at 0.61%. They claim to be Europe's second largest. However, that's using a cutoff of 0.1%. It seems at a higher cutoff they actually have 25.2Mt at 0.9%, smaller than SAV. European Metals lithium mine at Cinovec, Czech Republic, claims the largest in Europe crown with 695Mt at 0.4% with a 0.1% cutoff. Not sure what that is at a higher cutoff. SAV use 0.5% as their cutoff grade. Clearly, San Jose and Cinovec are bigger in the sense that they have much higher Mt of lithium contained, but at low grades. Rio Tinto's at Jadar, Serbia looks the biggest really. 135Mt at 1.86%. I think there's more than enough lithium to meet demand. It's just the timing of how quickly mines can start up compared to demand etc. It really isn't always straightforward bringing them online. Nemaska in Canada has had huge cost blowouts and have had to go looking for another $300m financing, putting the whole thing at risk and dropping the share price accordingly. When there is a price crunch due to some oversupply, be it 2023 or 2028, who knows!, one form of protection is having one of the lower cost mines. Hence the project economics are important. Again, I like SAV. Some of the Aussie mines are quite high cost, though they are now incorporating very large hydroxide plants to extract more revenue and profit from their resource. It's interesting to see Galaxy Resources at Mt. Cattlin in AUS about 3 yrs ahead of SAV, in to their second proper year of mining spodumene on a similar size resource to SAV, and doing 180,000tpa, which is about what our Scoping Study suggested we'd do. They had 2018 revenues of $153.9m, EBITDA / Free Cash Flow of $70m and market cap (ex. cash) of around £250m ish, but were nearly 3 times higher in the late 2018 price spike. On the occasion I've found some lithium companies seemingly more undervalued than SAV, I've also usually found some reasons why that may be justified, or where they're having some wobbly financing issues etc, of where I don't like the project economics as much. I've not felt tempted to put money elsewhere. Many of them are currently cheap though, in my view, not just SAV. I can certainly see why SAV are going as fast as they can to get to production. They're at the front of the line in Europe, with others pushing hard too. Keliber's lithium mine in Norway is marginally ahead, though smaller. Keliber report interest from carmakers themselves to either take a stake in the lithium company or get involved in financing to secure supplies near home etc. Carmakers investing in mining companies seems to be a pretty new thing! Europe is the world's second largest carmaker, so they need to play catchup in the lithium space to not be held to ransom if supply gets tight and to avoid import tax, transport costs etc. That's a very generalised round up. Lots more that could be said. Hope it's of interest.
nick9013: So 356mn USD is gbp 265mn, or 200mn gbp net to sav...thats 28p net SAV share price worth! Strap in folks
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