Savannah Resources focused on two key assets in critical commodities
- Savannah Resources chairman highlights company's strong position into second half of 2021
- Savannah Resources set for significant role in Europe’s green revolution
- Savannah Resources’ Mina do Barroso lithium project is right commodity at right time, says broker
- Savannah Resources' create cluster with industry heavyweights to maximize Portugal's potential
Quick facts: Savannah Resources PLC
Price: 3.95 GBX
Market Cap: £66.71 m
About the company
Savannah Resources Plc is a multi-commodity mineral resource development company focused on building cash generative and profitable mining operations.
The company operates a strategic portfolio of assets, spanning near term production potential and longer term development opportunities.
How it is doing
Savannah Resources PLC’s (LON:SAV) chairman said the company is in a “strong operational and financial position moving into the second half of 2021” and is “ideally placed to take advantage” of the evolution of the electric vehicle (EV) and lithium markets.
In a statement to be delivered at the AIM-listed firm’s AGM later today, chairman Matthew King said improving market trends established in the second half of 2020 have “continued strongly throughout [the first half of 2021” and that a race to secure lithium supply is “well and truly underway”.
As a result, the firm said its Mina do Barroso project is “the most significant conventional lithium mine development in Europe” and is a prime example of critical raw materials projects in Europe that have been targeted by the European Commission as part of efforts to develop domestic end-to-end value chains for materials critical to the economy.
“We have been greatly encouraged by the developments we have seen in this value chain in the past year where a growing number of companies are now evaluating the option of building lithium chemical production capacity in Europe. With this development, it should be possible for Mina do Barroso's lithium concentrate to be refined in Europe, allowing Savannah to play its part in the production of low-carbon, responsibly manufactured, domestic lithium-ion batteries for use in Europe”, King said.
The association, also known as ‘The Cluster’, has been created to maximize Portugal's potential across the battery value chain and complement its strategically important lithium resources and its focus on becoming a European leader of lithium production.
The resource development company’s losses from continuing operations fell to £2.9mln from £3.6mln in 2019. It has no revenue.
Insight: Savannah Resources set for significant role in Europe’s green revolution
Savannah Resources PLC (LON:SAV) has been a multi-asset company since inception, but one of the major highlights in the portfolio for investors has long been the Mina do Barroso lithium project in Portugal.
This project has several things going for it, not the least of which is that it’s a long way down the track towards a development decision.
What the brokers say
Earlier, Savannah Resources raised £10.3mln to progress the spodumene lithium project.
What management says
Savannah Resources PLC's (LON:SAV) David Archer joins Proactive London's Katie Pilbeam to discuss the newly created Portuguese Association for the Battery Cluster (BATPower) which his firm is now a founding member.
The Cluster has been created to maximize Portugal's potential across the battery value chain and complement its strategically important lithium resources and its focus on becoming a European leader of lithium production.
The renewable energy company, DST Solar, will assume the Presidency with other founding members including the integrated energy company, Galp, electrical equipment manufacturer, Efacec, technology and services group, Bosch and Prio, the owner of the largest private EV charging network in Portugal.
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