Member Info for ChameleonMan

Another link in the Iberian lithium circular economy? https://www.northernminer.com/news/glencore-to-open-lithium-batteries-recycling-plant-in-spain-and-portugal/1003854054/

Stellantis are the largest shareholder in Vulcan and are also involved with a U.S. geothermal brine play. Don’t think they will see any lithium out of either this decade? Still, looks good in the group ESG report no doubt.

Given that APA has just bent over backwards to extend the public consultation time and SAV is engaging with the public on the new environment plan, it seems in very bad faith that the parish council has relaunched a legal action against us?

Here we go again! The parish council trying to throw sand in the gearbox? Getting desperate now. Only the lawyers will win and the residents of the parish will bear the costs.

Yes good to get the update on the court case and the cash position. Looks like we are funded to start the DFS but not necessarily complete it? Production earliest now H2 2026 - the ten years that people quote to get a mine into production is starting to seem more realistic counting from the Portuguese asset acquisition in May 2017. Looks like I won’t be retiring just yet!

I have to agree with you somewhat in that I don’t think our government or the EU have thought this change through properly. The provision of public charging points is a current issue and as an EV driver I don’t notice it getting any better as the number of EVs on the road is increasing dramatically. On a geopolitical level it feels as if we are playing straight into dependency on China for batteries and surrendering our car industries to it. This is all driven by worthy environmental targets but should these override defence and economic security? Russia and China laughed at our aims to “net zero” our armed forces as Russia destroys the environment in Ukraine and China builds bases on coral reefs. We must look like mugs to them.
Having said that we have gone a bit too far to turn back from electrification and the demand for lithium should remain high although prices for spodumene may continue to fall. I have always thought that the dates for the end of ICE production were “poster targets” to make politicians look good. I forecast that we will end up with a concession for hybrids and synthetic eco fuel burners where the non-Chinese car producers still have some technology advantage.
Apart from a falling spodumene price none of the above makes SAV any less of an opportunity. We offer low cost production so can tolerate lower prices where some projects can’t. When we get through the DIA and have a revised DFS we should be able to clarify this and look more investable.

A couple of days old but just got round to reading it. Focuses on Europes lack of lithium supply undermining the desire to go all-electric. Mentions several projects including Vulcan, Imerys, Jadar, but not SAV. Interesting if rather negative comment from Albemarle:
“The supply problem has been highlighted by the world’s largest lithium producer Albemarle, which has sidelined plans to extract lithium in Europe after failing to find a commercially viable site.
The resources we are aware of in Europe are not high quality and relatively small,” the group’s chief financial officer Scott Tozier told the Financial Times.”
https://www.ft.com/content/154c53aa-5a9a-4004-abf9-2e6e5396dca4

Seems to have galvanised our friends at Portugal Resident who are referencing a long diatribe on “sacrifice zones” from a UN Human Rights and the environment reporter. I read this in part last week but couldn’t bring myself to post a link as it as it was so dull.
https://www.portugalresident.com/public-pressure-wins-10-day-extension-on-bitterly-contested-lithium-mine-consultation/

A perfect compromise I would have thought? APA show themselves to be listening to local feelings and hopefully avoid another appeal to the Aarhus convention? SAV don’t have to wait any longer for a decision.
Unless the Iberian wolf has recently set up a den on our property, what can possibly go wrong?

IB you can register yourself with FT for limited access for free. Just need email and a password and enter your professional details. Read article straightaway!

Shareitup,
Re your comment “a bit disappointing the sp isn't moving forward as I had hoped”. It made me wonder how other UK-listed junior lithium miners have performed. A bit of a mixed bag it seems with SAV in the lower half as you will see from the table in here:
https://www.sharesmagazine.co.uk/article/our-top-ways-to-invest-in-lithium-miners-and-the-outlook-for-prices
The article is dated February and spodumene prices have continued to fall off a cliff since so it’s not surprising to me that the sector is suffering. SAV has made some progress since then so should be moving up the list to a more positive outlook.

That’s true. Like everything else it’s a waiting game.

Any idea what happened on the judicial action brought against SAV in July by the common lands community of Covas do Barroso alleging the illegal seizure of land?
https://www.portugalresident.com/lithium-wars-lawsuit-filed-against-british-company-for-illegal-seizure-of-common-land/

Sounds spot on thanks!

Not sure what “under penalty of tacit acceptance of the decision” means?

If every home runs on electricity and needs a “lithium battery wall” to store excess, it will probably be supplied from recycled automotive batteries which will create a virtuous circle and support the desire for every home to generate more via solar and drive an electric car. The cost per kWhr has gone up but is more predictable than petrol/diesel at the forecourt where we are being ripped off by the supermarkets in particular who are not passing on wholesale price reductions to the motorist.
Ps Surprised that the EU caved so quickly having convinced its entire car industry to reinvest heavily in ev production? Strength of the oil lobby?

…. while it lasts. The lack of a management commentary keeps it below the radar for now. Nothing worse than the arrival of the herd pumping it to oblivion, riding the genuine upswing from imminent good news.

Local government not happy with the timescale for consultation it seems? Asking for an extension. https://www.portugalresident.com/lithium-wars-anger-over-time-given-for-public-consultation-of-new-barroso-mine-project/
More species to add to the endangered list…. the river mussel, the red-crested jay….. the approved EIA?

No reason for us to fear a fundraise if required. Zinnwald raised last week at a 26% premium to SP. Note the SAV coverage too. https://www.voxmarkets.co.uk/articles/lithium-news-zinnwald-raises-18-75m-and-savannah-reports-barroso-progress-079e1b6/

The corporate video was much improved on the last one. Impressive graphics on the land use and renewal. Will have to see what the current public consultation brings up if anything.

I wonder if we have enough cash to see us through to mine approval in 2024? From the Half-year results “cash position of £9.4m (31 December 2021: £13.0m)”. We seem to have burnt about £3.6m in the first half of 2022 so will need to slow that down. Full year results due around 6th April so will know the cash position shortly.
The 6 months delay for Article 16 wasn’t budgeted for but the DFS was costed into the last cash raise I believe? Takes 12 months work from APA approval according to Dale. Not sure if we contract it out in whole or part? Overall it’s all cost and no income until 2025 at the earliest so cash management will be key.