Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I have asked the question on the Investor questions - Why has the output dropped since the install of the permanent Flow Line?
Nearly end of month so hopefully an answer on Friday.
Saltfleetby Sub Terminal - on the up again!
2,191,111 EOD (kWh)
0.192 System Entry Volume, EOD (mscm)
41.31 System Entry CV (MJ/scm)
Hits you say "Earning £6 million a quarter... not really!"
Have you forgot to read the October Operations update.
" Production for the Quarter was 7.9 mm thermsup
Estimated revenues of £6.3m for the Quarter"
Angus have been very cheap at the .6p price. Now looks to be climbing with a one month high.
Is it gradually dawning that we are earning £6 million a quarter and the Hedge is slowly winding down?
Directors unfazed by Portugal government turmoil!
"Savannah, the resource development company focused on becoming Europe’s most significant producer of spodumene lithium concentrate from its Barroso Lithium Project in Portugal, has been informed that, on 17 November 2023 the Company Directors and Executives listed below made the following purchases of Ordinary Shares of £0.01 each in the Company:
Mr Matthew King, Chairman, acquired a total of 166,667 Shares at a price of 2.444 pence per Share, totaling £4,073.34;
Mr. Emanuel Proença, Chief Executive Officer, acquired a total of 200,000 Shares at an average price of 2.43835 pence per Share, totaling £4,876.70; and
Mr James Leahy, Non-Executive Director, acquired a total of 210,000 Shares at a price of 2.428 pence per Share, totaling £5,098.80.
Additionally, other members of Savannah’s Portuguese and HQ Team acquired 545,269 Shares on the 17 November 2023 for an aggregate consideration of £13,160."
Stop panicking WG818. Read the latest Investor Q&A's.
"So the refinance is a smaller ask and an easier proposition. At this moment in time we have every reason to remain very confident that we will be able to present to shareholders a refinance proposition for all of the remaining debt, at least in principle, before year end and at any rate before the other £6m bridging facility matures in late January."
No need to panic if Kemexon Ltd want to takeover the company they will have to pay a significant premium.
Kemexon Ltd 23.68%
Forum Energy Services Limited 9.07%
Knowe Properties 5.84%
Aleph Fin C Limited 3.73%
They also decalre "The total percentage of shares not in public hands is 32.63% defined as being beneficial holdings of shares held by shareholders holding above 10% and the directors holdings."
So all other (PI's, directors etc) own 57.68%. With current income, the wind down of the hedge (18 months) and storage potential it's doubtful anyone would accept less than 5p.
Wildtiger - it would be really useful if you could go into details ;-)
Following the heard is never a good idea. This was always a long term investment, nothing has changed in the company fundamentals. The price will recover next week.
Worth noting Barrenjoey where the advisors to Albemarle in the recent Liontown Resources takeover (bid was increased three times before it was agreed, 30%).
"pleased to share positive progress on the 'Strategic Partnering Process' (the 'Process')"
"Due to the high number of positive responses received from a wide range of groups, Savannah has now appointed Barclays and Barrenjoey as joint financial advisers"
"With drilling back underway at the Project"
All looking good, my advice is go with a large known lithium producer or user. No newcomers ;-)
More likely Joint Venture, M&A transactions and strategic investments!
Savannah are relatively cash rich at this moment in time and will only need money for the mine build, which is likely to come from an investor.
Following the research note (see below) Sprott Capital Partners have been appointed as a broker alongside SP Angel. This most likely to do with fund raising as that is their specialist field.
"Since its formation in 2017, Sprott Capital Partners has raised more than $5.3 billion of capital for mining sector clients and advised on almost $2 billion of M&A transactions and strategic investments. In 2022, Sprott Capital Partners ranked as the 4th largest underwriter in sub-$100 million mining public offerings and private placements."
https://bpd-space.nyc3.cdn.digitaloceanspaces.com/scp/231025-scp-savannah-initiation.pdf
Yes, they have been waiting for approval of the EIA approval before spending money on more drilling. I am sure they are after (and will achieve) a JORC of 50mt. This will then be the incentive for some very big players to look at Savannah from either take over or Joint venture.
Rule of origin tariffs of 10% starts from January 1 2024 - at least 45% of an EV's value needs to originate in the UK or EU to avoid the hike, Batteries commonly sourced from overseas meaning EVs get stung by the rules.
https://www.thisismoney.co.uk/money/electriccars/article-12643405/EVs-3400-expensive-rule-origin-post-Brexit-trade-rules.html
More director buys - all be it a small amount - board meetings must be very positive!
Very Positive. Highlights are:
>Post-Tax (probable resource) £90.6m
>Main Field Westphalian Reservoir (probable) BCF 27.2
>Southern Satellite Westphalian Reservoir (probable) BCF 15.6
>The Company is confident that gas usage will prove to be lower than this estimate once the plant has fully stabilised with the new flowline in operation.
>Two further wells on the Main Westphalian reservoir, SF9 and SF10, are scheduled to enter production in January 2025 and January 2026 respectively, to extend plateau production and accelerate the extraction of gas. The cost of these additional wells, expected to be funded out of field cashflows, has been included in the NPV10 valuations outlined above.
> All without the oil income and further production on these sites
Large director buys always a good sign and shows confidence in the company.
Want to add a few more positives to this:-
1. Global finance update VERY soon which means within week or two.
2. Rerate of the share price near term. That’s what we needed to hear.
3. Significant interest in storage facilities and update by year end.
4. Permanent flow line still on track for completion in October.
5. Balcombe decision, expect some news during the 4th quarter
6. All historical hedge payments, including the rolled hedge payments from July-August 2022 when the plant start-up was delayed, have been made and at current production levels, the company is comfortably meeting its hedge commitments.
Lots of nano snippets but th
If the reduction is maintenance why is this taking far longer than the usual 2-3 days.
Definitely something else going on - permanent pipe line connection?