SAVANNAH RESOURCES (LON:SAV)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £72m
CURRENT PRICE – 8.35p#
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 update
NORTHLAND VIEW
- Savannah Resources announced a significant increase in the Mineral Resource Estimate at the Mina do Barroso Lithium Project in Portugal.
- The Mineral Resource Estimate for Mina do Barroso has increased by c.44% and now stands at 20.1Mt at 1.04% Li₂O for 209,000t of contained Li₂O. The total Mineral Resource Estimate at the Grandao Deposit has increased c.64% to 16.4Mt at 1.04% Li₂O for a total contained Li₂O of 171,400t.
- Significant volumes of new mineralisation has been identified at Grandao, below the Stage 1 and 2 pits, supporting the potential to expand the current mining inventory.
- Continued resource expansion at Mina do Barroso, confirms it as Western Europe's largest spodumene lithium mineral resource.
- Additional Mineral Resource Estimate updates are expected through 2018 and the feasibility study is on track for completion late Q119 in order to build on the Scoping Study results from June 2018. (pre-tax NPV8 of US$365m, IRR 63% on the previous Resource Estimate of 14Mt at 1.1% Li2O).
David Archer, CEO, commented "Mina do Barroso has grown remarkably over the last 12 months with this being the third Mineral Resource Estimate upgrade in less than seven months; this is testament to both the quality of our Project and skill set of our team. There is considerable potential to expand the Mineral Resource Estimate even further, as highlighted by the 9Mt to 15Mt Exploration Target, and our intensive round of drilling continues with three drill rigs on site. Alongside this, at a commercialisation level we are making good progress with the Feasibility Study and continue to target making a mine development decision next year.”
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
W RESOURCES (LON:WRES)
SECTOR – MINING
RATING – BUY*
MARKET CAP – £22.7m
CURRENT PRICE – 0.415p#
TARGET PRICE – 1.2p
Year-end Dec
2016A
2017A
2018E
2019E
Revenue (£m)
0.1
-
-
28.9
EBITDA (£m)
(0.6)
(0.5)
(0.7)
15.3
Adj. pre-tax Profit (£m)
(0.9)
(0.7)
(4.2)
7.7
Adj. EPS (p)
(0.0)
(0.0)
(0.1)
0.1
DPS (p)
-
-
-
-
Net Cash/(Debt) (£m)
(0.7)
(0.8)
(26.2)
(15.3)
P/E (x)
n.a.
n.a.
n.a.
3.8
Dividend yield (%)
-
-
-
-
EV/EBITDA (x)
(28.4)
(44.3)
(34.4)
1.6
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited provides commissioned research coverage to W Resources and therefore this information should be viewed as a Marketing Communication.
Half Year Results Ended June 30: Executing Development
NORTHLAND VIEW
- La Parilla is on schedule and on budget, making solid development progress in H118, with project completion on track for H119. With funding in place from the BlackRock term loan, earthworks began in April, with plant civil works near completion; concrete and civil works are now complete for the crusher; and the structural steel delivery has begun. Earthworks for the Jig & Mill are complete, with construction on target for completion Q418; the concentrator construction is expected to be complete Q119.
- Significant progress at the Regua Tungsten Project continues with all approvals in place. Preparatory mine grade control drilling began Q218 with nearly 2,000m of RC drilling completed in July. Diamond core drilling is ongoing and preparatory mine works will begin after the analysis of results is complete.
- Initial results at Tarouca Tungsten Project have reported very high-grade tungsten zones, providing greater assurance to the company that the project can provide additional high-grade feed to the Regua mine development. The full assay results are expected to be received Q318. The drilling campaign is expected to further delineate the resource and provide the basis for a trial mine license application later in 2018.
- Results from the RC drilling campagn for the Sao Martinho gold project are expected to form part of the update for the upgrade to the JORC compliant mineral resource estimate expected H218. Initial results from 07/18 highlighted continued strong gold intersections, allowing further delineation of the project. RC drilling at the Monforte-Tinoca Copper project were completed mid-year.
- The company reported half year losses of for the period of £1.9m or £(0.03)/shr. Cash and equivalents were £15.1m, with loan capital of £27.3m. The second tranche of the BlackRock term loan was completed in 05/18; 307.6m warrants were issued as part of the funding completion. The company also completed a £1.5m financing in 04/18 through the placement of 330m ordinary shares.
W Resources is making solid progress on the development of its key projects and has successfully strengthened its management team ahead of production at the La Parrilla Tungsten Mine. We continue to expect the Company to achieve sales from La Parilla beginning 2019, transforming operations from development to commercial sales.
COMPANY DESCRIPTION
W Resources is in the process of constructing the La Parrilla Tungsten Mine, located in Spain.
THOR MINING (LON:THR)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £12m
CURRENT PRICE – 1.8p#
Year-end June
2016A
2017A
Revenue (£m)
-
-
No forecasts provided
EBITDA (£m)
(1.7)
(1.3)
Adj. pre-tax Profit (£m)
(1.7)
(1.3)
Adj. EPS (p)
(1.0)
(0.4)
DPS (p)
-
-
Net Cash/(Debt) (£m)
(0.4)
(0.1)
P/E (x)
n.a.
n.a.
Dividend yield (%)
-