SECTOR: MINING
SAVANNAH RESOURCES (SAV.L)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £36 m
CURRENT PRICE – 5.2p#
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.
Mina do Barroso updates
NORTHLAND VIEW
From Today:
- Savannah Resources has commenced a bulk sample at NOA.
- The Company has also identified the potential to sell feldspar and quartz (used in ceramics) to generate additional revenue, alongside the sale of a spodumene concentrate. The bulk sample will be used for metallurgical test work and test marketing for both the lithium and ceramics markets.
From Yesterday:
- Ongoing drilling at Grandao Extended intersected further high-grade results: 50m at 1.18 Li2O from 72m, including 41m at 1.39% Li2O from 73m (18GRARC71); 26m at 1.06 Li2O from 71m, including 20m at 1.31% Li2O from 75m (18GRARC77); and 34m at 0.86 Li2O from 6m, including 17m at 1.31% Li2O from 17m (18GRARC71).
- The updated Mineral Resource Estimate and Scoping Study are expected to be completed in Q218.
Progress at Mina do Barroso continues at a fast pace, as Savannah gets closer to commercialisation. The potential to sell feldspar and quartz as by-products of the lithium concentrate would not only increase revenue but also decrease the volume of tailings, potentially have a double impact on the Project. Grades from Grandao Extended show a high-grade core over a significant intercept within the wider lithium mineralisation.
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