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The Markets
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Northland Capital Partners View on the City - Savannah Resources (LON:SAV)

SAVANNAH RESOURCES (SAV.L)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £38.5m

CURRENT PRICE – 5.6p#

ANALYST – DR RYAN LONG

Year-end Dec

2016A

2017A

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(1.8)

(2.8)

Adj. pre-tax Profit (£m)

(1.8)

(2.8)

Adj. EPS (p)

(0.46)

(0.53)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.7

1.2

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and provides commissioned research coverage to Savannah Resources and therefore this information should be viewed as a Marketing Communication.

FY17 results

NORTHLAND VIEW

  • LBT totalled £2.8m in FY17, up from £1.8m in FY16, largely as a result of an increase in administrative expenses.
  • Net cash increased to £1.2m in FY17 up from £0.7m in FY16.

Savannah Resources has made significant progress across all three of its principal assets, as the Company moves towards generating cash flow. Looking forward, the Block 4 & 5 Copper Project, located in Oman, is now at the final stage of permitting with production expected this year. The Scoping Study at the Mina do Barroso Lithium Project, located in Portugal, is expected to be completed in Q2’18. While at the Mutamba Heavy Mineral Sands Project, located in Mozambique, the Company is working on completing the Pre-Feasibility Study that is targeted for 2019.

COMPANY DESCRIPTION

Savannah Resources is an energy metals group with copper-gold projects located in Oman, lithium projects in Portugal, and a operates a mineral sands project in Mozambique that is a JV with Rio Tinto

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