Member Info for CVN65

SP Angel research report released today on Sav. They point out that spodumene lithium prices went up by a factor of 10X since early 2021 and SP Angels group of selected explorers/developers/producers share prices went up by an median of 137% since January 2021 – Savanah up by 8% over the same time.

Sav at the bottom of the range for SP Angels selected spodumene producers as well on a EV/MI & I resource metric – average of $527 per tonne, median of $394 per tonne – SAV $128 per tonne

SP Angels main point is that such drastic underperformance sets the stage for a significant rerating in Savannah stock

Sav has always talked about funding being a combination of equity, debt, grants and prepayments. The last 3 are non dilutive and a funded project would be given a higher P/NAV score anyway. Plus really should be a premium element for being a licenced project in Europe versus say Africa/Wagner group countries. in any case Sav will likely be taken out prior to this as the only sizable licensed conventional spodumene project in europe with refiners crying out for feed

The US is working hard to secure reliable supply of battery raw materials - great oppoortunity for Portugal and SAV to be part of the solution.

From New York Times; On Saturday, the leaders of the Group of 7 countries reaffirmed the need to manage the risks caused by vulnerable mineral supply chains and build more resilient sources. The United States and Australia announced a partnership to share information and coordinate standards and investment to create more responsible and sustainable supply chains.

“This is a huge step, from our perspective — a huge step forward in our fight against the climate crisis,” President Biden said Saturday as he signed the agreement with Australia.

But figuring out how to access all of the minerals the United States will need will still be a challenge. Many mineral-rich nations have poor environmental and labor standards. And although speeches at the G7 emphasized alliances and partnerships, rich countries are still essentially competing for scarce resources.

Any approval will have a whole series of conditions attaching to it from APA - 100% certainty. Mine development approvals are always conditional no matter where you are in the world

Tropicalblast, I think it is called magical thinking

The Portuguese President last night announced that he would not dissolve the Assembly of the Republic preferring to guarantee institutional stability. So the PS majority government remains in place and it will continue to run the day to day business of the country

Pointed article in the FT this morning on Lithium in Africa saying China has stolen the march on Europe - it’s not so much a fear of the Chinese getting there first and buying mines they are there first already. Highlights the value of Barroso in Europe’s own backyard

https://www.ft.com/content/02d6f35d-e646-40f7-894c-ffcc6acd9b25

While peddling two falsehoods at the same time

SAV Release
“On the same day as Savannah submitted the revised Environmental Report and Mine Plan for the Barroso Lithium Project, we were pleased to see the EU recognise the importance of raw materials as the key ingredient in achieving Europe’s net zero ambitions.

“The Barroso Lithium Project can make a meaningful contribution to the targeted minimum 10% of EU sourced raw materials. Savannah welcomes the development of a common framework at the European level to recognise and support companies and their investments right from the beginning of the value chain, and to harmonise procedures in the future, such as permitting processes.
“Savannah is committed to being among the first of the new generation of raw material projects in Europe that will contribute to meeting the goals of the European Green Deal Industrial Plan, by providing a responsibly sourced, stable and secure supply of lithium that enhances the EU’s strategic autonomy, and underwrites the transition to a low carbon economy. The Barroso Lithium Project can be a catalysing force in the development of a European battery value chain, bringing with it new opportunities and employment to the region and beyond.”

While the pause button has been on at SAV for 9 months or so its good to reflect on the size of the prize as mentioned: 27Mt at 1.06% Li2O plus an exploration target of 12 to 20Mt (thanks CM) taking it to a range of 39-47Mt and not forgetting the quartz and feldspar credits. Plus refineries being developed in Portugal and others elsewhere in Europe all based on spodumene and hungry for local Euro low carbon feedstocks like SAVs. The proeject will be the a key baseload supplier for a new Euro industrial ecosystem

McKinsey concludes several materials critical for the energy transition will see severe shortages in both the midterm and long term - this includes Lithium
https://twitter.com/robert_ivanhoe/status/1633936062153383936/photo/1

Plus 40% of the EUs annual consumption of each strategic raw material will have to be refined within the EU. This will supercharge the build out of lithium refinery capacity in Europe which will only stoke demand for lithium produced in Euro mines

As SAV moves the project forward the huge gap in relative valuations with its Australian peers with similar sized spodumene resources will narrow. Ultimately the equity capital markets will attribute a premium to a conventional European Li development that can feed Europe’s and Portugal’s expanding lithium refining base. Plus not dependent like the Aussie miners on China trade. Plus not located in Africa where the Wagner Group is hoovering up mines in failing states.

The comments about the Indian lithium discovery really highlight how far the Barroso project has progressed - significant resource drilled out, metallurgical work all ironed out and now in the sprint to the finish of the licensing. Australian lithium peer valuations show what can be looked forward to for SAV

Europe is crying out for lithium to feed its burgeoning electric car industry, and there just doesn't seem to be enough to go around - https://www.msn.com/en-gb/money/other/small-cap-ideas-european-lithium-explorers/ar-AA17HTEl

Interesting article that highlights the slow pace of the EUs' support for the energy transition with slow and cumbersome funding processes and strong competition from the US attracting battery companies like Northvolt. Battery plants can be located anywhere however the EU can play to its natural advantage by helping to support the development of indigenous sources of conventional lithium like the Barroso Project. Lithium deposits can't be moved. https://europe.autonews.com/automakers/northvolt-could-reap-billions-us-green-tax-incentives

Wolster69, Emerman, a geophysicist by training and an academic, is the global, go-to choice for commissions from activist and anti-mine groups on the civil engineering aspects of mine developments. His business is called Malach Consulting.

Savannah’s original EIA lodged with APA in 2020 featured a design to industry best practices with the storage of dewatered, solid tailings in stacks using well proven, conventional technologies. The design neither involves the construction of an ''upstream tailings dam'' or the deposit of wet tailings in a slurry form in an upstream tailings dam.