Member Info for Inbrackets

As Eric Morecambe might have said, maybe all or most of the right parts, just the wrong order. I often wondered where the designer of the Fiat Frog car ended up.

Interesting.

The ‘max us’ may have been modelled on a WW1 tank on the Somme, but their warranty and guarantees will be picked up by other manufacturers and similar will probably become the norm, hopefully for some better looking beasts.

Https://www.reuters.com/markets/commodities/portugals-mining-strategy-may-favour-copper-over-lithium-2024-07-15/

Make of this what you will, but it would seem that finally, the Portuguese Gov are getting set to announce where they are at.

Not trumpeting Lithium per se, but let’s not forget that the auctions are divorced from the BLP permitting process. Assuming they actually say anything other than ‘listen to the can further down the road’ we shall at least get some sort of angle on where their thoughts are and whether they really are prepared to support a supply chain in Portugal. Could be defining.

Funny how we get a number of days of almost exclusively sells and the sp remains broadly unchanged, but the sp drops as soon as buyers show up.

Summer months madness concentrated due lack of summer - hopefully we don’t get 40 days of St Swithin’s Day share price falls.

Oh, and dilution

Maybe we should question why a company with no green light, little cash, no offtake etc etc, was valued at 4x what it is now at a time when there was a lithium downturn and Australian hard rock was barely a twinkle in comparison to now, and the EV dream was still projected and ESS were still on the project drawing boards. Not all balloons pop but I have yet to see one that doesn’t deflate.

Might make things interesting if it came to pass, for Portugal quite aside the BLP.

Helps to confirm what is already known, that there will be further meat on the bone when the resource upgrade and DFS are finally released. Pity that the wider lithium market is currently toying with vegetarianism.

Interesting report yesterday from Portuguese Gov

“ The Government will create a national strategy for critical and essential raw materials, announced this Wednesday the Minister of Environment and Energy, Maria da Graça Carvalho, who confirmed that support for the mining activity will be maintained.

This strategy will be launched together with the Ministry of Economy.

This strategic plan will allow to promote the use of the best technologies and faster licensing, among other objectives.” lucker (again)

EC / Sevcovic visit last week. ECOs report at the weekend. This statement yesterday.

Will this kettle boil and start to whistle with some sort of timetable being laid out before the holiday season?

Apologies, it wasn’t from Osaka but lucker. I need my eyesight testing.

Got there in the end. Wish SAV would.

M88, just seen your message and credit where credit’s due, I saw the ECO link in a post from Osaka as he must be plugged into ECO updates. I realised he hadn’t posted it himself on LSE but thought it was worthy of a wider audience. No doubt we shall see, eventually.

Https://eco.sapo.pt/2024/07/05/savannah-devera-substituir-a-galp-como-lider-do-consorcio-do-prr-das-baterias-de-litio/

ECO known to have good ears. Couple this with recent EC / Sevcovic meetings and the company presentation when further tie ups in the coming months along with AMGs modular refinery, maybe these approvals are being sought or are in the pipeline. Some serious funding potentially available if all the component parts can be spliced together.

Quite like the idea of a group of hungry minnows getting together rather than a dominant player with associated satellites.

Https://x.com/savannahres/status/1808554832594415869?s=61&t=AJxxcVs_tbxqv1S84UYMow

More discussions - hopefully posing the same questions and pointing out some truths. Must be running out of delaying tactics.

Meanwhile SAV say it was ‘ great to witness’……begs the question, were they there and / or involved or purely as a voyeur.

Https://x.com/lithiumionbull/status/1807597497222607312?s=61&t=AJxxcVs_tbxqv1S84UYMow

Not much green about these days. To be fair EP said in the presentation that whilst SAV may be at or close to the top, he did say that that was mostly just a correction to the reaction to Operation Influencer. If that is so, then it still held up against an otherwise pretty dire sector.

For those that watched the presentation (now available from the SAV website) one of the questions referred to AIM listing. EP took the standard line of ‘always under review’ though seemed to break into a smile for some reason, no doubt best known unto himself. Hope they bear in mind ISA rules for UK holders.

That said, the presentation expanded or filled in areas of understanding regards the arrangement with AMG and unless there is a huge storm, one might expect to get into port as expected.

All well and good but I was particularly interested in the last point on page 6 of the presentation:

Other opportunities: If the studies planned under the cooperation agreement are positive, Savannah could gain exposure to additional spodumene and lithium chemical plants.

Expand the resource base and move downstream - mutual ambition.

Kentan, I was re-reading your initial post on this thread and looked through the AMG site.

Funnily I seem to remember the fanfare when they announced their refinery plans and had thought at the time that the Central European hopefuls would be jockeying for some agreements.

They have obviously got their fingers in a number of different pies and do not seem to have any difficult legacy issues, so a clean ESG slate. I particularly like the fact that in the lithium space, whilst they have been operating, it would not seem to be at such an enormous scale that we should feel ‘dwarfed’. Indeed even in mcap terms it’s only x4 approximately and if the different divisions were taken out, it might be much more of a meeting of minds and any ambitions that both parties have and can see.

I for one, am glad that we now have the certainty of funding through to FID and are partnered up with an outfit that is not so large or T&C where we could be suffocated

Early days and not sure that it is a case of a ‘Winner’ per se.

We are now fully funded to the Final Investment Decision. Certainty. With a relatively short term offtake fora relatively small percentage of the current expected production based on the current tonnage. This % is set to reduce as the resource estimate increases closer to 50mt.

If AMG organise the necessary capex in an agreeable format (and they should have a wider range) then their % increases and the term extends. They therefore have relatively low initial commitment which increases as the likely and hoped for future unfolds. Not forgetting that the 50% is on the current estimate, not the future resource.

Yes they have the rights to maintain their shareholding to avoid future dilution, but that isn’t for free. It still leaves a substantial cash flow potential to help fund all manner of further investment to expand the reaource base and be a part of the downstream developments hinted at in the agreement. That whole prospect would have been too much to chew on by ourselves and maybe we were being sidelined by GALP/NV so the grouping with AMG and their ambitions could be aligned with our own. Meanwhile, plenty of room for further deals,especially when the resource is updated and even more so should further tenements / auction areas are added.

As said, early days, and still some initial hoops to get through but with an mcap of 85m and much in place, we may well see a few more IIs nibbling.

Shareitup, am on that page completely. This initial sum gets the project to the end of permitting and the FID, 25% of the current expected production and if the capex funding is in place, then up to 50% of current expected production. It will be interesting to see what that becomes once the new resource estimates are when they are released later in the year.

They are also, and should be very well placed to expand the resource base with the proposed auctions and maybe the old areas that Savannah were involved with. If that was the case, then developing further downstream, with AMG or alongside others makes huge sense for all parties potentially. I seem to remember this being mooted 3-4 years ago with a near neighbouring area who were keen, but the timing is only coming right now, as things start to develop and suitable parties show interest.

The first port of call is to get the MDB confirmed with people on side. The future could then look very bright assuming the rest of the ducks then line up ( to use an overused phrase). I am excited with the link to AMG and that company’s ambitions and the experience and track record of the new chair, quite aside from EP as they look to move from exploration into production and the much wider supply chain functions. Much to be positive about.

SL, don’t forget it was a sell by someone to enable you to buy. As it happens you got a good price

Readying for the next phase with the necessary experience, building on the substantial work done previously. This to be viewed positively.

Not so sure about the 85% up on the year but certainly over 100% from its drop post Influencer as it has recovered its position. Agree that it should react positively to concentrated period of solid advancing news that is due in the coming months.