The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
“We´re in a series of very active conversations and negotiations with potential offtake partners and commercial partners. This looks it'll be the most significant lithium mine development in Europe” I bet we are 😎 The size and quality is astonishing! https://www.youtube.com/watch?v=4uYUep_eaNY
https://www.zdf.de/nachrichten/heute-in-europa/lithiumabbau-in-portugal-100.html
I was ironic. :-) but guys - let the numbers sink in. What we need is a bigger reach. Can’t even see the normal news outlets on twitter sharing SAV news. Very odd. Portugal is probably worth £200mln net to Sav post tax. We will find partners with a resource surely closer to 40mt (we haven’t even touched Aldeia yet!) with a lot of the new stuff in the early days of mining meaning even better economics.
Think it always was March/April and you know how often things are done quicker rather than slower. To get these numbers also into the dfs gives me huge confidence that post tax net NPV to SAV at dfs will be above £200mln so well worth another week or two
SAVANNAH RESOURCES (SAV)* - REITERATED BUY Time to catch up with the ASX lithium bulls Latest drill results from their 75% owned Mina do Barroso spodumene hard rock lithium project in Portugal are very encouraging as a fourth near surface deposit, Pinheiro, could be added to their mining plan. This potentially enhances the scheduling of any mine development. The best hole at Pinheiro is probably 90 metres (m) from 39m grading 1.23% lithium oxide (Li₂O) and this includes 34m from 94m @ 1.6% Li₂O. Drilling continues, as a compliant maiden resource for Pinheiro has yet to be declared. At the same time, the company announced encouraging infill drill results from their Reservatorio and NOA deposits, where compliant resources have already been defined. This drilling confirms consistency and grade, while these two deposits remain open in numerous directions. They also reported that Phase 3 metallurgical testing is underway and is set for completion before the end of the year. Pinheiro is potentially shaping up to provide a positive boost to their Feasibility Study. The June 2018 Scoping Study on Mina do Barroso showed a post-tax Internal Rate of Return of just under 50% and a post-tax Net Present Value (NPV) of US$241m, assuming an 8% discount rate, with an upfront cost of just under $110m. With more near surface material for the mill in the early years, the cost of waste stripping could reduce significantly. Hence the added attraction of good results from Pinheiro. Using the Scoping Study results, we estimated in July a £100m valuation for Mina do Barroso, a 25% discount to the company’s share of the project’s NPV. If Pinheiro, plus infill drilling on the other deposits continues to impress, we will be forced to upgrade our valuation and price target of 17 pence per share, as the Feasibility Study result is likely to show an improvement on the Scoping Study numbers, owing to lower waste stripping in the early years of mine operation. This is without even considering increasing our spodumene price assumption. This appears more possible than back in July, as the scope for increasing lithium brine production from both Chile and Argentina now looks less likely than it did then.
“This new discovery is likely to positively impact the current Feasibility Study and further work at Pinheiro will now be fast tracked so that it can be included.” Means the resource used + amount of shallow resource upfront in the mine life will increase npv considerably
This is very good. Not sure if the new Grandao yet though. A bit too steep down for that. Waiting for aledeia to take that position but very very good. Nothing from Pinheiro in the current exploration target so it’ll surely increase further. Very important for partners to see the continued increase in size. Loved this update.
regardless of price... This is a 45million GBP enterprise value... For a 135mln gbp post tax npv on the 14mt study. That's really cheap, especially when we have over 8mln gbp in the bank account. The FS will be on closer to 30mt. Our total resource with positive drilling at Aldeia could probably be closer to 40mt. So.. this super overreaction will probably in retrospect be viewed as an early Christmas present...
Hey guys. Check out the aldeia spot where we will be drilling soon. Looks white and promising from the road and up the hill. Found an old picture and a newer one with the quarry. Apple maps: https://maps.apple.com/?address=4870%20Ribeira%20de%20Pena,%20Portugal&ll=41.605001,-7.763605&q=Markerad%20plats&_ext=EiQpuKg+MejBREAxICRTszyJH8A5ivDRCvXYREBBwBNfEaCSHsA%3D&t=m Google earth/maps: https://earth.app.goo.gl/dD81Mw And Grandao: https://maps.apple.com/?address=5460%20Boticas,%20Portugal&ll=41.616976,-7.777921&q=Markerad%20plats&_ext=EiQpvFpBlHDDREAxAF4Qi+uXH8A5RwKzan3aREBB4GhDUkOhHsA%3D&t=h Both white and crispy.
Had email exchanges and calls w the team re this. See below: “I would not be alarmed by what you are reading. We see the interest of politicians in what we are doing as a very expected feature. We have good local relationships with the local mayor and we have worked hard with the community and have held multiple community meetings. The community is learning more about mining and what we are proposing and how we are looking to mitigate and manage the impacts. It is a process and we have dealt with community concerns successfully in the past – both in Oman and particularly in Australia. In the case of Kanmantoo the process of engagement that we built become the model for engagement of mining companies with the local communities and this ended up being recognised with a State Government award/prize to Hillgrove Resources Limited. It is important to remember that we have an existing, granted Mining Lease – this can’t be taken away from us and is a granted, existing property right. We are amending the Mining Lease terms as you know and we are engaging with the relevant stakeholders and regulators and have had this underway for some time using expert Portuguese environmental consultants. Also remember that mining is actually going on both on our Mining Lease and other Mining Leases near us. Mining is an existing industry in the area. The proposed expansion of our activity on the Mining Lease has been a point of focus and this is entirely expected. We maintain an active, open and transparent engagement with the local community and regional leaders. What we are seeing is what mining is about these days – there is nothing surprising in this and nothing that we won’t be able to manage to.” I also learned that this is driven by a person with no real facts which makes this a non issue. The team was super calm ab it. Hope this helps guys. I’m not worried at all.