Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Best take away from the article,
"SAVANNAH CEO Dale Ferguson ignores HS's question about whether Northvolt and Galp will invest in the Savannah mining project.
"Savannah's upcoming production has attracted the interest of numerous parties. They are involved in different stages of the lithium value chain, such as groups planning to build refineries as well as those outside the industry. [...] Negotiations are ongoing."
As chairman stated they intend to go on a marketing campaign for Sav. This will result in JV's and major investment. He expects X5 on where we are now (25p) on DFS completion. Hang tight!
Zarro, very unlikely to go alone.
We already had one JV in place a few years back, a new JV will have to take into account the new scoping study figures, Approved EIA, improved Lithium price and unique European location. It's Likely to be a very lucrative JV with a major Blue Chip.
Always said this was a billion dollar company - it is
o Base Case post -tax NPV8 of US$953 million, IRR of 77% and payback period of 1.3 years
o Life of Mine ('LOM') revenue of US$4.2 billion
o LOM EBITDA of US$2.8 billion
o LOM post-tax free cash flow of US$1.7 billion
o Based on average 5.5% grade spodumene concentrate LOM price of US$1,464/t vs. current 6% grade spot prices of US$3,500/t
Importance of European produced batteries they emits 83% less than a similar petrol car and even with batteries from China 37% less.
https://www.theguardian.com/commentisfree/2023/jun/07/petrol-diesel-engines-technology-electric-cars
From todays Q&A
"Principally tripping has been to do with increased flow rates but also load balancing around the compressors, the control systems and ongoing teething problems with the units as the third compressor is settling in. "
*27 million tons of know resource at 1.06% Li2O = 270,000 tons
Current price Li2O $45 kg - 907 KG per ton = $40,815 per ton
270,000 x $40,815 = $11,020,050,000
*Note resource likely to double
Buried in the RNS full of good news
"The Namurian reservoir, which sits below the Westphalian from which the Company currently extracts natural gas, has produced 1.5 bcf to date but a very wide variation of gas in place exists between our own recent CPRs and internal estimates by previous Operators, Gazprom-Wintershall and Roc Oil. To date no detailed interpretation of the Namurian, independent from the Westphalian, has been undertaken and accordingly a full third party re-interpretation of both reservoirs is presently underway, expected to complete in October."
Couldn't be clearer Angus is a bargain, it can only go up from here.
Four consecutive days above 9mmscf.
Clean up ongoing and permanent pipe work being installed. Hedge reduction in July.
Three consecutive days above 9mmscf.
Clean up ongoing and permanent pipe work being installed.
Even at @60p we have £3 million a month of revenue!
True value will happen.
Our concern is actually liquid management across the plant. The designers had reckoned on about 95 barrels a day of condensate from the combined flow of 10 mmscfd. Whereas we are looking at nearer 120 bbl/day from about 6 mmscfd. This higher condensate gas ratio may reflect the fact that historically the site never measured the actual condensate rates with any accuracy – stabilisation and cleaning the gas was left to Theddlethorpe refinery so they had the book on that. It’s a real problem to have but a nice one as we don’t believe that the liquids will limit our gas production.
No figures from the three wells have been published. However the figure banded about was around £1 million/annum although that's likely to have increased
Therm over Hedge = 3,167,060.77
Price per therm = £0.65
Total over Hedge = £2,058,589.50
Hedge paid to Angus = £890,000
TOTAL = £2,948,589.50
All, just want to make clear the £1 prediction is when we are a producing mine selling Lithium - yes I realise we are talking at least 2026. I'm in for the long term as the price of Lithium will only rise and the Barroso Mine resource will likely double. I also expect Savannah to be granted further mine licenses in Portugal on the strength of the excellent environmental impact analysis produced for Barroso.
Always said this share can get to £1. One billion pounds of Lithium in the ground (very likely to increase).
The EIA approval is major step 1. Then many other things can follow, EU funding; JV with refiner; JV with Car Manufacturer; Take over; Mining etc
As Singhie pointed out maintenance over and improved calorific value. No well issues to report!
Therm over Hedge = 1,667,386.02
Price per therm = £0.85
Total over Hedge = £1,417,278.11
Hedge paid to Angus = £890,000
TOTAL = £2,307,278.11
True value will soon come for this share.
Make that decision APA.
Therm over Hedge = 3,131,801.26
Price per therm = £0.85
Total over Hedge = £2,662,031.07
Hedge paid to Angus = £890,000
TOTAL = £3,552,031.07
YEARLY= £ 42,624,272
License to print money!