Savannah Resources PLC’s (LON:SAV) flagship Mina do Barroso lithium project in Portugal is the right commodity at the right time, said finnCap in a broker note.
Earlier, Savannah Resources raised £10.3mln to progress the spodumene lithium project.
READ: Savannah Resources raises £10.3mln to help develop Mina do Barroso lithium project in Portugal
“The lithium price has performed extremely well in recent weeks. YTD 6% spodumene concentrate is up 68% and lithium carbonate up 67%. This bodes well for the lithium price, Barroso’s cashflow potential and value,” said analyst Charlie Long.
“The project is also favourably located in north Portugal, close to locally produced hydroelectric power, with solar and wind power also potentially sourced from within Portugal. Barroso could feasibly produce a near carbon neutral product.
”The next 12 months will be busy for the Savannah team. On the technical and ESG side, Savannah is progressing the Mina do Barroso definitive feasibility study, as well as environmental and social programmes.”