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Full year financials show Savannah Resources well-funded for further work on Mina do Barroso

A feasibility study for Mina do Barroso is due later in the year
Full year financials show Savannah Resources well-funded for further work on Mina do Barroso
Mina do Barroso now boasts a 23.5mln tonne lithium resource

Savannah Resources PLC (LON:SAV) booked a loss for the year to 31 December 2018 of £3.4mln, up somewhat from the £2.8mln posted in 2017.

During the year, Savannah's net assets increased to £25.4mln from £13.1mln, primarily due to an increase in exploration activity, completion of the scoping study and the ongoing execution of the definitive feasibility study at the Mina do Barroso lithium project in Portugal.

WATCH: Savannah Resources reports 'world-class' lithium hit at Mina do Barroso

Another significant driver in the net assets' growth was the increase in cash and cash equivalents of £5.3mln, as a result of well-supported equity fundraisings during the year.

Year-end cash totalled £7.7mln. In April and July 2018, Savannah raised a total of £14.7mln.

All four of Savannah’s largest shareholders increased their share positions in 2018, primarily through the record oversubscribed £12.6mln fundraise in July.

Al Marjan Ltd remained the company's largest shareholder during the year, increasing its ownership by over 21mln shares to 208.3mln. Slipstream Resources also boosted its stake to 5.1%, as various milestones in the project acquisition agreement were passed.

Mina do Barroso has now been confirmed as the largest resource of spodumene lithium in Western Europe, with a current resource of 23.5mln tonnes at 1.02% lithium oxide and a post-tax NPV of US$241mln.

A feasibility study is expected later this year.


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