SAVANNAH RESOURCES (LON:SAV)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £32m
CURRENT PRICE – 6.25p#
COMPANY DESCRIPTION
Savannah Resources is an exploration and development company with copper-gold projects located in Oman, a mineral sands project in Mozambique and lithium projects in Finland and Portugal.
Completion of Mutamba Scoping Study
NORTHLAND VIEW
Savannah Resources has completed a Scoping Study at the Mutamba Mineral Sands Project, located in Mozambique. This increases its interest in the consortium with Rio Tinto to 20%.
The base-case scenario, highlights a pre-tax NPV of US$154m and pre-tax IRR of 19% with a payback period of 5 years, assuming an ilmenite price of US$185/t and non-magnetic concentrate prices of US$250/t. The project will have a 30 year life of mine based on a resource estimate of 451mt at a grade of 6% total heavy minerals.
The consortium is targeting first production in 2020, with average annual production of 456,000t of ilmenite and 118,000t of non-magnetic concentrate. Total capex, including contingency, is estimated at $226m with an opex of US$121.4/t. Total revenues on the base case assumption is US$3.5bn.
A positive development for Savannah Resources with the completion of the Scoping Study at the Mutamba Mineral Sands Project. The metrics from the study indicate positive returns and upside potential remains through the refinement of costs and with additional resource drilling bringing in potentially higher-grades. The next phase of development for the consortium is the completion of a pre-feasibility study (PFS) which will be followed by a definitive feasibility study (DFS). The Company expects to complete the DFS within 18 months from when it commences the PFS. The Company is looking to commission a group to commence the PFS shortly. As Savannah completes these milestones it will see its interest in the project increase from its current 20% up to 51%.
SECTOR – MINING
RATING – CORP*
MARKET CAP – £7.8m
CURRENT PRICE – 0.72p#
COMPANY DESCRIPTION
Edenville Energy is moving the Rukwa Coal Project towards near-term production alongside advancing its Coal to Power Project.
Rukwa Coal Project update
NORTHLAND VIEW
Edenville Energy has received a formal request from the Ministry of Energy and Minerals of Tanzania for the Company to proceed with the development of its Rukwa Coal-to-Power Project.
Following the release of the Power Master Plan Update by the Government of Tanzania that included the Project, earlier in the year, the Government is now implementing its plan to provide further power generation and transmission for the country up to 2040.
The Company also received permission to upgrade and construct a new access road to connect the site with the main north-south sealed highway, located to the west of the Project. Work on the road is underway and it should usable by the end of June 2017.
Positive news for Edenville Energy that now means the Coal-to-Power Project at Rukwa can continue to advance alongside the Company’s near-term production strategy. The near-term production aspect of Edenville’s development plan should assist in de-risking the Coal-to-Power Project for potential development financiers by demonstrating the quality of the Company’s product.
SECTOR – MINING
RATING – CORP*
MARKET CAP – £2m
CURRENT PRICE – 0.14p#
COMPANY DESCRIPTION
Alexander Mining is a mineral processing technology business, seeking to commercialise its leaching technologies.
FY16 Results
NORTHLAND VIEW
LBT reduced to £0.6m in FY16 from £0.9m in FY17, largely due to a reduction in administrative expenses and operating costs.
Net debt remained level with the previous year at £0.4m
During the year Alexander Mining signed a licence agreement for its technology in Australia, with Accudo Metals. Initial test work and a full scoping study on the first targeted opportunity, a copper project, has been completed, with positive results. Accudo is now reviewing the study and will decide on the next stage of work, likely to be a feasibility study. Accudo is negotiating with the owners of the copper project on a variety of matters, including the proposed feasibility study and commercial terms beyond.