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Looks like the EU and in particular Maros Sefcovuc (EU Vice President) are to speed up the production/ mining of important raw materials, by removing bottlenecks.
Recent tweet from the Raw Materials Summit, @MarosSefcovic confirms new EU legislation is in planning to;Develop and derisk sustainable domestic projects, Strengthen global partnerships , Accelerate the Circular Economy, Consider stockpiling, Reduce environmental & social footprint.
Clearly SAV falls into some of the above, Maros obviously listened to what David Archer told him last week and recognised the need for action.
My understanding is that local opposition to the MdB mine is not great, but like many anti demonstrations, many objectors travel from afar. The EU are heavily involved in SAV through their EU Raw Materials initiatives, with SAV listed as first to mine. The EU need this mine approved just as much as we do, because they can’t just keep talking about the Green Revolution, EV’s and raw material security without having some success stories.
I have a part funded EU Horizon 2020 project and these days EU projects are scrutinised, analysed and supported to maximise chances of success.
Oops, apologies to my error, well spotted m96, it is obviously profits per year. Typing on an iPhone while not concentrating fully let’s me down. However potential profits in excess of £120 million per year is a fantastic sum of money for a relatively small company.
Welcome to new share holder’s. Reminder re recent Midas Money Mail article which stated that at envisaged long term Lithium prices of $1,500 a ton, then SAV will generate ANNUAL profits in excess of £120 million. Savannah is expected to be one of the lowest cost lithium miners in the world, according to the article; this is backed up by recent Savannah presentations (low IRR) - see their website for recent presentations .
Very interesting that VW’s Strategic Purchaser Battery Materials took the time to read and like David Archers recent LinkedIn post re his very important meeting with the EU vice president. In my experience German industrialists don’t do things unless it means something to them, Germans are a very logical people. Join the dots …
Great post Starfoxx, which David Archer and his LinkedIn account, the guy DA met is probably the 2nd most powerful person in the EU. His post reads:
Strengthening Resilience
Savannah is proud to showcase the Barroso Lithium Project which is aligned with Europe’s Green Deal and RePowerEU initiatives while helping to strengthen Europe’s strategic autonomy.
We met with European Commission Vice-President Maroš Šefcovic today in Brussels to discuss key developments for locally sourced lithium.
Portugal has the opportunity to lead the way in Europe as a major lithium production hub matched with value adding, downstream processing and so helping to responsibly deliver on climate change emissions targets.
Savannah is committed to ensuring a safe, secure and responsible supply chain for the EU, aiming to benefit industry, skills development and communities.
Looks like great news for Teesside, my home abode re a £500 million Li refinery - wonder where the Li ore will come from - to ship Li ore from the port not too far from MdB to Teesside Freeport is an easy journey.
Trafigura, the world's largest private metals trader and second-largest oil trader, will supply all the unprocessed lithium “feedstock” to the refinery, which will turn it into battery-grade metal and shipped to Europe's 'gigafactories'. It will also invest an undisclosed sum in Green Lithium to help fund construction.
Europe's first lithium refinery - which is understood to be planned for Teesside - has taken a big step closer to reality.
Work could start on Green Lithium's £500m plant as early as next year, after the company agreed a major deal with one of the world's largest commodities traders - Trafigura. There is currently no lithium refinery in Europe to feed the fast-growing electric vehicle (EV) market despite there being a "significant opportunity", the firm says.
This leaves the continent "wholly reliant" on China for critical battery metals. Green Lithium, which has confirmed its facility will be built in the "North of England", expects to create the "missing link and guarantee supply chain security".
Did anybody see the EV car documentary the other night. Clearly BEV (battery electric vehicle) car sales continue to rise significantly in UK. Apparently EV cars are great to drive, is that right CM ?
No wonder Li has been termed the new white gold.
Keep hold of your SAV shares and buy more when you can.
There were more BEVs registered in March 2022 than during the entirety of 2019, and they now have a 16.1% market share.
According to the latest vehicle stats, the EV market is booming. Electric passenger car sales increased by 186% in 2020 and today there are an estimated 400,000 electric cars (EVs) on the road in the UK and more than 750,000 plug-in hybrids (PHEVs)
Just looking at the Daily Mail article again, coupled with a mine life of at least 10years, then profits will be at leat £1.2 Billion. Don’t forget the SAV are also bidding for new Li ore sites in Portugal, so very likely that SAV will be mining in Portugal for at least 20 years.
Think your assumptions are misplaced. The DFS has been worked on for several months and is scheduled to be completed this year. Likewise your other timescales are completely wrong, you need to read the Daily Mail article with your glasses on and read recent SAV RNs’s.
Recent weeks has seen comments from the likes of Tesla and other car manufacturers on the need to increase the supply of Li. Next few years will see significant rise in EV production by Tesla, Ford and VW provided there is a good supply of high quality Li ore for the battery manufacturers. Hence SAV, according to David Archer (CEO of SAV) has had many many enquiries from a range of companies wanting SAV’s high grade ESG Li ore.
Welcome Swest42, hope you are able to buy into this great emerging SAV story.
This bit in Savannah Resources article re price of lithium is very exiting, ‘, most forecasters expect prices of at least $1,500 a ton for several years to come.At such rates, Savannah could generate annual profits in excess of £120 millions’.
Surely a relatively low cost ESG Li mine with quick pay back should easily find funding, isn’t some funding to come from some EU money pot. Also, car manufacturers have billions of euros to spend on supply of EV materials. If high oil prices are here to stay then likely that EV car sales will increase beyond current expectations.
DA wrote recently an article on the importance of Li to the economy of Portugal,so:
Oped - Jornal Económico
I recently wrote an op-ed for Portuguese business weekly Jornal Económico on lithium’s role in Europe’s overall energy independence matrix, arguing why we at Savannah believe that the Barroso Lithium Project has already catalysed a important new value chain for Portugal while bringing competitive advantage and resilience to Europe’s vital EV industry and delivering improved environmental outcomes to millions of Europeans.
You can read it below:
https://lnkd.in/e6ghK43XI
Very funny IK. You never know, miracles do happen !!
I do have a lot of patience, so time will tell. And I do remain optimistic about SAV, as Europe needs ESG mined Lithium.
Just as iron ore and coal mining resulted in the north of England helping/ driving the Industrial Revolution in the 19th century, let’s hope SAV can do the same in Portugal soon.
The very high Li prices underline what a fantastic money making cash machine the MdB mine will become, once EIA approval occurs. .
Whilst Tesla made excellent profits recently, Musk expressed great concerns in future Li supply meeting demand for EV’s. esla Inc. Chief Executive Officer Elon Musk made a public appeal for more investment in lithium mining to close what he sees as a yawning gap between supply and demand that’s being fueled by the adoption of electric vehicles.
Battery production, and more specifically lithium, is the “fundamental limiting factor” for electric-vehicle adoption worldwide, Musk said on an earnings call with investors Wednesday.
We think we’re going to need to help the industry on this front,” Musk said. “I’d certainly encourage entrepreneurs out there who are looking for opportunities to get into the lithium business. Lithium margins right now are practically software margins.”
Earlier Wednesday, Tesla reported a record first-quarter profit, helped in part by raising prices.
An index of global lithium prices compiled by Benchmark Mineral Intelligence surged 280% in 2021 and another 127% in the first quarter. Soaring prices for lithium, a key ingredient in EV batteries, are increasing raw material costs for carmakers such as, Tesla.
Hopefully Musk is fully aware of the potential vast amount of Li ore in Portugal.
Agree, nobody knows when the APA will publish the EIA. Meanwhile Li ore prices are crazy good for Li miners and demand for Li ore continues to accelerate due to significant increase in demand for EV’s.
So, SAVis a relatively low priced Li miner with massive upside, once EIA approved.. Keep the faith, your patience will be rewarded. That is why DA of late is so upbeat.
CM, freight costs for travelling 100 or 400 miles are not too dissimilar. The main cost and time is the loading and unloading of the goods. I worked in the steel industry and for several years we sent over 10,000t per week of steel slabs by train to Port Talbot from Teesside and the travel costs were insignificant compared to the cost of the steel.
With Li ore costing more and more, as supplies tighten, SAV will be making very good profits wherever the Li ore ends up, once we have EIA approval, etc !