Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
Maybe also publication of significant technological of partner or JV or financing partner will make great jump or .
Lithium grades and tonnages increasing!
https://www.savannahresources.com/investors/rns-feed/
Seems that Savannah and Keliber (Sibanye-Stillwater Keliber lithium project) are currently involved in EXCEED and LITHOS EU Horizon RDI projects. Metso is also involved in LITHOS and if I have understood correctly Keliber will implement Metso's technology for lithium refining. What if Savannah also?
https://exceed-horizon.eu/consortium/
https://lithos-horizon.eu/
It is surely possible to produce lithium hydroxide/carbonate from spodumene concentrate in Europe profitably. Keliber's lithium mine, concentrator and lithium refinery for lithium hydroxide production are under construction in Finland. Because of the 600M€ investments needed, the company is currently owned by South-African Sibanye-Stillwater and Finnish government-based Finnish Minerals Group. Production will start in 2025. Savannah should probably make the same - refine lithium hydroxide with some big industrial partner like Galp/Aurora - not sell spodumene concentrate as such although that is profitable as well.
https://www.sibanyestillwater.com/fi/liiketoiminta/eurooppa/keliber/
Look especially slide s 16 and 17. Potential share increase this year from current 0.02 to about 0.3 that is average for post DFS companies.
Investment in the mining sector in not for non-patient people and money looking for quick profit. But finally the time comes investors will be happy. Time frame from ore firs ore finding to operating mine will be typically from 10 to 20 years. One example is lithium company Keliber in Finland. They started the development project 2001 and are currently building mining site, concentator and lithium refinery. Savannah should also build own lithium refinery to increase the profit of the company. Probably using Metso's lithium soda pressure leaching technology.
The progress of the project will turn fluent after (if) approving Environmental permitting. It will really help raising money for the investments. Construction of mine and minerals processing plant and operation of the plants are just businesses as usual.
You can read the latest updates of the project from company's web site: Investors/RNS feed.
Link to the latest one: https://www.savannahresources.com/investors/rns-feed/rns-announcements/?rid=4430677
- Assay results from the Resource related drilling will be reported in due course with Savannah expecting to start publishing updated Resource estimations on a deposit by deposit basis from Q1 2024.
- Savannah still expects to complete the DFS in 2H 2024.
Savannah still expects to complete the studies, works and adaptations required to confirm compliance with all elements of the DIA in 2H 2024.
Lithium is classified both as CRITICAL material for Europe based on criteria including economic importance and supply risk and as STRATEGIC material for Europe because its importance in trategic areas such as renewable energy, digital, aerospace and defence technologies enabling EU to achieve the technological, environmental and political goals .
Sodium batteries (etc.) might suit well for stationary energy storage where the low(er) specific capacity and high weight and volume of the battery are not essential. But for EVs and mobile electronics Lithium Battery technology will stay as the best choice for decades.
Very eye-opening video concerning the undeveloped state of high-tech metals mining and refining in Europe. China has taken possession of the minerals and metals production and now Chinese EVs are coming like a tsunami.
https://vimeo.com/884346837
This is a goon move - sharing fact-based information to stakeholders, most importantly to local people and those who are against advancing of the project. The physical newspaper has been distributed in the municipality of Boticas, and can also be found at our local Information Centres as well as on our website at: https://www.savannahresources.com/esg-community/our-community/
Savannah plans to publish the next edition of the newspaper later this year.
I rather trust Savannah's own Statement than speculations in news papers!
Statement Re Media Speculation
Savannah Resources Plc, the European lithium development company, notes the recent Portuguese press speculation and confirms that it is not currently in a sale process in relation to the Barroso Lithium Project (the ‘Project’), or the Company itself. The assertion in the press that Savannah is close to a sale is unfounded and misleading.
As noted in Savannah's announcement on 6 September 2023, the Company has received significant commercial interest in the Project for several years now and following the endorsement of the DIA and the completion of the new positive Scoping Study, there has been additional interest generated from across the lithium value chain. From the dozens of commercial inquiries which Savannah has received, the Company is currently working through an orderly process to shortlist potential strategic partners for the Project. Savannah is focusing on identifying groups which are willing to assist with the financing of the Project's construction and bring complementary skills or additional opportunities to a long-term partnership with Savannah. The Company expects to provide an update on the Project's commercial arrangements towards the end of the year.
A further announcement will be made if and when appropriate
I made some research work to get some background for what should be the more real value for Savannah's share price.
Recently, Keliber's lithium project in Finland was taken over by Sibanye-Stillwater reaching 80% ownership. Based on the information from press relases SSW spent about 450 M euros to this investment together with Finnish government based Finninh Minerals Group, the latter having 20% ownership.
According to company presentation seen recently in a conference Kelibers mineral resources are currently 17 M tonnes and ore reserves 10 M tonnes. Keliber is going to produce 200 k tonnes of spodumene concentrate containing about 5 % Li2O and further refine that to 15 k tonnes of lithium hydroxide. The refinery is currently under construction. The total investments are sayed to be about 600 M euros.
In comparison, based on company presentation, Savannah has total minerals resources of 28 M tonnes, i.e. 65 % more than Keliber. Savannah is planning to produce 191 k tonnes of spodumene concentrate that is almost equal to Kelibers production. Total investments needed are sayed to be about 236 M euros.
These projects has dirrerent final products to be sold and differenbt operational costs, thus the conparison is not straight forward. For simplicity, it if we compare these by ore resources, the value of Savannah should be 65 % more than Keliber's 450 M euros i.e. 740 M euros. Multiplying that wit the 1,800 M shares issued gives 0.40 euros per share.
Based on that simplified calculation, it seems Savannah's current share price is only one tenth of its real value.
The Act sets these benchmarks along the strategic raw materials value chain and for the diversification of the EU supplies
-at least 10% of the EU’s annual consumption for extraction
-at least 40% of the EU’s annual consumption for processing
-at least 15% of the EU’s annual consumption for recycling
-no more than 65% of the EU’s annual consumption from a single third country
The Act will reduce the administrative burden, streamlining permitting procedures for critical raw materials projects in the EU while ensuring that we keep high social and environmental protection. In addition, selected strategic projects will benefit from support for access to finance and shorter permitting timeframes (24 months for extraction permits and 12 months for processing and recycling permits). EU countries will also have to develop national programmes for exploring geological resources
First, it is hard to get any main investors to make off-take agreements until you have the final Environmental Permits granted. Secondly, you will get better-priced off-take agreements or other financing agreements after you have got the DFS done and increased the ore reserves.
I have seen several mining projects including lithium projects going from research stage into production stage. It is not easy nor quick to make that. Dear all, just be patient! The share price will sky rocket some day before 2026, IMO.
Recent information from Savannah: investor meeting video and slides:
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What about just to look for current information about what is going on in Savannah.
Dale just did keep a couple of weeks ago a investor meeting/presentation.
Please see and listen what they are working with.
As summarized: mainly finalizing Defenitive Feasibility Study (DFS )work and having discussions with possible off-takers and partners.
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