Savannah Resources in 'strong operational and financial position' despite Covid-19 pandemic

(Sharecast News) - Mineral resource development company Savannah Resources said on Wednesday that while the Covid-19 pandemic had created "many challenges", the electric vehicle market and, in turn, the lithium sector had experienced "a period of significant positive growth" against an otherwise difficult backdrop.
Savannah stated that despite "the hard times of the last year" and the ongoing risks posed by the pandemic, the firm was in "a strong operational and financial position" moving into the second half of 2021.

At the project level, Savannah said "good progress" had been made at Mina do Barroso as an Environmental Impact Assessment review process was advancing, with the current public consultation phase due to finish in mid-July and the firm expecting the whole process to reach the Declaration of the Environmental Impact stage in the fourth quarter of 2021.

The AIM-listed group also highlighted that with the spodumene lithium price now at around $800 per tonne, it was seeing commercial interest in the project "increasing markedly".

In Mozambique, Savannah said it was working to meet the obligations of its mining licences, including initiating EIAs and other tasks.

Chairman Matthew King said: "Savannah now stands ready to leverage its strong position in the rapidly developing European lithium sector over the coming years.

"The remainder of 2021 is set to be a very busy and exciting time for the company as we continue to advance Mina do Barroso, hopefully, add to our lithium portfolio and define our strategy around Mutamba with our partner, Rio Tinto."

As of 0920 BST, Savannah shares were down 0.65% at 3.80p.