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The Markets
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Battery Metals

Savannah Resources well cashed up at end of first half as progress with Barroso continues

Constructive dialogue with Portuguese regulators is underway, with the initiation of a DFS now on the horizon

Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF) booked a loss before tax of £1.53mln in the six months to June 2022.

The company closed out the period with a cash balance of £9.4mln.

During the period Dale Ferguson was appointed as interim chief executive after David Archer stepped down. The search for a permanent chief executive replacement has been initiated.

Meanwhile, work on the Barroso lithium project in Portugal continued. The company agreed with the Portuguese environmental regulator (APA) that the review of the Environmental Impact Assessment (EIA) on the project would be conducted via the time-controlled and more interactive 'Article 16' process.

The company said a number of constructive meetings have already been held with APA. Accordingly, Savannah and its consultants are revising elements of the project's design for resubmission of the EIA before the new resubmission deadline of 17 March 2023.

Design of the process flowsheet has now been finalised, based on standard plant and environmentally friendly reagent regime, and a decarbonisation study has been initiated, with initial results expected shortly.

As such, the definitive feasibility study will be completed once the final design has been agreed through the second phase of the environmental licencing process and necessary fieldwork undertaken. The DFS is expected to take around 12 months from restart of fieldwork, Savannah noted.

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