REG - Savannah Resources - Financial Results for Year Ended 31 December 2024
10/04/2025 07:00
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RNS Number : 4814E Savannah Resources PLC 10 April 2025
10 April
2025
Savannah Resources Plc
(AIM: SAV) ('Savannah', or the 'Company')
Financial Results for the Year Ended 31 December 2024
Savannah Resources plc, the developer of the Barroso Lithium Project (the
'Project') in Portugal, a 'Strategic Project' under the European Critical Raw
Materials Act and Europe's largest spodumene lithium deposit, is pleased to
announce its audited financial results for the year ended 31 December 2024.
Commenting on the results, Savannah's Chief Executive Officer, Emanuel
Proença said, "Savannah took a number of very important steps towards the
development of the Barroso Lithium Project during 2024, which will make 2025 a
pivotal and exciting year for the Company.
"Among the corporate highlights was the completion of our first strategic
partnership and heads of terms offtake agreement with the established lithium
industry player, AMG Critical Materials N.V. Through this relationship, the
Project's potential eligibility for a loan guarantee from the German
Government for up to US$270m was also confirmed. In addition, we were pleased
to see the Portuguese shareholding in Savannah grow to around 20% as domestic
appreciation of the Project increased significantly, backed by ongoing support
from the country's Government and other mainstream political parties.
"On a technical front, we completed Phase 1 of the Definitive Feasibility
Study ('DFS') field programme, with the drilling producing the highest lithium
intercepts recorded to date on the Project. While the start of the Phase 2
fieldwork programme was delayed, we also made good progress with a number of
other DFS-related workstreams, advanced work on the confirmatory phase
('RECAPE') of the environmental licencing process and progressed the design
and implementation of the Project's supporting infrastructure.
"To date in 2025, we are now well advanced with the phase 2 DFS drilling
campaign and have continued to make good progress with the RECAPE exercise.
Furthermore, the Project's significance as a vital source of lithium for
Europe was greatly validated by its classification as a 'Strategic Project' by
the European Commission in March.
"Looking ahead, we will be accelerating our work and continuing to expand our
team as we progress towards completion of the DFS and submission of the RECAPE
report by the end of the year. Ahead of a Final Investment Decision on the
Project next year, we will be also preparing for the Project's construction
financing and engaging with the European Commission to leverage the support
which is to be made available to Strategic Projects such as ours.
"With a successful 2024 behind us, 2025 promises to be an even more exciting
year for Savannah."
2024 Summary
Corporate
· First strategic partnership: Landmark agreement reached with AMG,
which included a GBP16m equity investment (AMG now holds a 15.77% equity
stake), an offtake heads of terms agreement and a mutual option for a 'full
project financing solution' to be led by AMG.
· Chair appointment & other board changes: Experienced lithium
sector executive, Rick Anthon, appointed as Chair following the retirement of
Matthew King. Diogo de Silveira appointed as Deputy Chairman and Mike Connor
appointed as Non-Executive Director as AMG's Board representative. CEO,
Emanuel Proença appointed to the Board. Former Non-Executive Directors, James
Leahy and Mary Jo Jacobi, retired from the Board.
· Financials: Savannah recorded a loss from continuing operations of
GBP4.4m (2023: GBP3.5m). A record cash balance of GBP22.0m was recorded in
June 2024 following the equity investment from AMG. With ongoing investment in
the Portuguese asset base, including further significant team expansion, the
Company finished the year with funds in bank of GBP17.7m.
Barroso Lithium Project, Portugal
Technical
· Phase 1 of DFS drilling programme completed with over 6,000m drilled.
· Drilling confirmed extensions to the Pinheiro, Reservatório and NOA
orebodies. A new mineralised zone identified at Pinheiro returned the
Project's highest lithium assays to date.
· The first in a series of new JORC compliant Resource estimates on the
Project was made for the NOA orebody (0.66Mt at 1.03% Li(2)O), now with 93% of
the tonnage in the Indicated category.
· Work advanced on other critical DFS-related workstreams and design of
key infrastructure.
· Good progress was made with the work required for the current
confirmatory, 'RECAPE', phase of the environmental licencing process following
the key 'DIA' approval in 2023.
Stakeholder Engagement:
· Community Relations team created, headed by an experienced Community
Relations Manager. Multiple community events hosted and regular meetings held
with individuals, parishes and groups.
· Relationships built with key members of the new national government,
relevant government agencies and public entities.
· Greater awareness of Savannah and the Project generated through
regular in-country media coverage and relationship building with businesses,
trade bodies, universities and NGOs.
· Significant growth reported in the Company's in-country shareholder
base with c.20% of the Company's total share capital now owned by Portuguese.
Land acquisition & access arrangements:
· Passed the milestone of 100 properties purchased from private
landowners through ongoing land acquisition programme.
· Government granted Savannah temporary access to land it does not
currently own on the Project's concession area to allow completion of
fieldwork.
2025 Year to date Summary
Corporate:
· The Barroso Lithium Project was selected as one of Europe's first
'Strategic Projects' by the European Commission under its Critical Raw
Materials Act. Projects classified as Strategic are due to "benefit from
coordinated support by the Commission, Member States and financial
institutions to become operational."
Barroso Lithium Project, Portugal
Technical:
· c.13,000m Phase 2 DFS drilling programme initiated in January with
over 6,000m drilled to date.
· Other DFS workstreams further advanced including, specification of
process plant equipment, metallurgical testwork, site infrastructure designs,
hydrogeology, and by-product studies.
· RECAPE work progressed, including further monitoring studies of key
environmental indicators.
· Environmental Impact Assessment for bypass road finalised for
submission to regulator.
Stakeholder engagement:
· Continuous engagement with relevant governmental bodies and local
community maintained through multiple channels, to ensure that stakeholders'
input is captured in the Project's RECAPE.
Land acquisition & access arrangements:
· 3 further land plots acquired and negotiations underway on multiple
other properties.
· Application made to initiate the process for compulsory land
purchases, in line with common practice on infrastructure projects in
Portugal.
Electronic Communications and Notice of AGM
Key excerpts of the Company's Annual Report and Financial Statements to year
end 31 December 2024 are set out below. The full Annual Report and Financial
Statements will be posted to those of our members electing to receive paper
format notifications. The Company is grateful to the remainder of our
shareholders choosing to receive digital notifications as this helps to reduce
the Company's carbon footprint. The report is also available for download from
the Company's website at:
www.savannahresources.com/investors/corporate-documents/
(http://www.savannahresources.com/investors/corporate-documents/)
Information regarding the Company's AGM will be announced in due course.
CHAIRMAN'S STATEMENT
Returning to market fundamentals, such as battery demand, and contrary to many
reports in the mainstream press, EV sales were strong last year. The Chinese
market continued to dominate, recording 1m+ sales per month for the first time
and seeing 40% year on year growth to 11m vehicles. Growth was also seen in
North America (+9% to 1.8m EVs) and the Rest of the World (+27% to 1.3m EVs)
and although European sales declined by 3% to 3m units, largely due to a
weakening German market, growth was seen in many countries, including the UK
and Portugal. Overall, EV sales grew by 25% to 17.1m worldwide last year and
have started 2025 strongly too (source: Rho Motion). Rho Motion is forecasting
sales of 20m units in 2025 (+18%) with growth in all major markets, including
Europe.
Growth in battery grid storage capacity in 2024 was even more impressive than
EVs, surpassing early expectations for the year with over 200GWh of capacity
installed worldwide, a 53% increase year-on-year (source: Rho Motion). As with
EVs, China also dominates the BESS sector, seeing a 66% increase in its grid
scale battery storage capacity and accounting for 59% of the world's overall
capacity. However, Europe saw the fastest rate of growth at 110% with North
America matching China at 66% year-on-year. While other battery technologies
exist in this rapidly growing sector, it is still dominated (87% of total
energy storage installations) by Lithium iron phosphate ('LFP') batteries.
Hence, despite the persistently challenging economic environment, we have
clear evidence of strong demand growth in the two key applications for
batteries, lithium's key demand segment of the future.
Despite this reasonable short-term demand, lithium commodity prices continued
to decline following the c.80% fall recorded in 2023. Lithium chemical prices
fell by over 30% and spodumene was down around 14% vs. year end 2023 levels
(based on S&P Global Platts data). Importantly, in the case of spodumene
concentrate, the 2024 year end price of USD830/t is still well above our
Project's breakeven average price of USD650/t (for 6% Li2O spodumene
concentrate based on the 2023 Scoping Study). As a pre-production company,
Savannah is largely insulated from current prices. However, as recent
financial results from current producers and those commissioning projects have
shown, current price levels for spodumene and lithium chemicals are uneconomic
for many and therefore unsustainable given the growth in output required to
meet forecast future demand.
During 2024, the lithium producers frequently responded to the sustained price
pressure by cutting production to stimulate price recovery. While this
initially had some positive impact during Q1 and Q2, the trend was reversed in
Q3 before a subsequent minor rally began on the back of more production
shutdowns and a slight improvement in sentiment. Pleasingly, this upward trend
has continued into early 2025. Having been through a number of lithium cycles
myself already with my previous companies, Orocobre and Allkem, I'm confident
that pricing will improve over time to a level at which all participants along
the battery value chain can thrive again and this view continues to tie in
with the market consensus. Demand is still forecast to grow significantly over
the next decade with prices rising alongside it as market conditions tighten
and move into deficit from 2028 onwards (source: Canaccord Genuity). All of
which suits Savannah as we continue to target first production from the
Barroso Lithium Project in 2027.
While current pricing trends are yet to demonstrate a firm recovery in demand,
I believe other activities in and around the market continue to flag lithium's
ongoing significance and strategic importance for the future. For example, the
sector did see some notable M&A activity during the year, indicating that
the industry itself continues to mature and see opportunity in the current
low-price environment. This began last January with the completion of the
merger of, Allkem with Livent to create a new lithium major, Arcadium Lithium
('Arcadium'). Arcadium subsequently received a USD6.7bn proposed takeover from
Rio Tinto in October, which represented a 90% premium to Arcadium's market
value at the time. That deal completed in March 2025, making Rio Tinto one of
the largest producers in the sector. In addition, in August, Pilbara Minerals
proposed an all -share acquisition of Brazilian developer, Latin Resources,
for USD369m, a 57% premium to Latin's share price at the time in a deal which
completed in February 2025.
There was also greater engagement in the sector from key governments. In
Europe, the Critical Raw Materials Act came into effect, and as I flagged
earlier, we were delighted when the Barroso Lithium Project was classified by
the European Commission as a 'Strategic Project' in March 2025. We now look
forward to engaging with the authorities to leverage this support as well as
additional potential opportunities that may stem from other relevant new
policies which the European Commission is enacting. All in all, this should
create a stronger and more supportive development framework for the minerals
industry and battery value chain in the region. We also enjoyed critical
support from the Portuguese Government during the year which showed the value
it places on our Project by granting the temporary land access order in
December which we needed to continue our fieldwork on land at the Project
which the Company does not own.
In the USA, many companies benefitted from funding through the Inflation
Reduction Act. Following the return of President Trump to office that source
of government funding is now in question. However, the ongoing significance of
critical minerals to the US, has been made abundantly clear in other ways by
the new President, including through his interest in making Greenland a US
territory and in receiving access to Ukraine's critical mineral wealth in
exchange for ongoing support and brokering of a peace deal with Russia. China
too continues to push hard at all points in the battery value chain both
domestically and internationally, to maintain and grow its already dominant
position.
Hence, I believe, many of the elements for a supportive background to our
continued progress are appearing or are already in place. My sector experience
tells me that the path ahead will likely have further bumps and turns, but
that we will be able to complete our journey and reach our target of becoming
a major European lithium producer.
Drilling at the Barroso Lithium Project and Savannah's geologists examining
drillcore samples
Source: Company
Savannah's key successes in 2024
The Company made some very important progress during 2024 both at the Project
and corporately, which continues to contribute to the de-risking of Project
and the optimisation of the Company as an investment opportunity. Our key
achievements at the Project during the year are summarised below.
Progress towards the major DFS and environmental licence milestones
These two milestones are the next key deliverables on the Project, and the
Board and I are supporting the team to push hard to achieve these goals.
Completion of the first phase of the drilling required for these studies in
May 2024 represented a good start, particularly with the programme delivering
the highest lithium intercepts recorded to date at the Project from the
Pinheiro deposit and showing again the potential extensions to other
orebodies. Even though we have already outlined Europe's largest spodumene
resource, this Project clearly has much more to offer in terms of resource
potential.
The data from our current drilling programme is critical for a number of
aspects of the DFS, including resource modelling and pit design, and for the
environmental licence for its various hydrology-related studies. However,
there is much work that goes into the DFS aside from the drilling, such as
infrastructure planning and design, and the team also advanced these key
themes during the year in partnership with our highly experienced consultants.
The environmental team also continued to gather the all-important background
data required for the RECAPE submission to the environmental regulator.
Combined with the key design features which will come from the DFS, this
baseline data will confirm Savannah's ability to construct and operate the
Project in line with all the conditions set as part of the positive DIA award
in 2023.
Savannah expects to complete the DFS and submission of the environmental
licence by the end of 2025.
Further expansion of the team
With Project work ramping up during the year, Savannah responded by adding
staff in key areas. This not only included those critical to the technical
work, such as geologists and field assistants (with some hires coming from the
existing local population), but also in Community Relations and in
Communications. Our Project is able to attract good quality staff and the fact
that the vast majority are Portuguese underlines the interest and support the
Project enjoys domestically. Furthermore, a considerable number are now living
full time in the Project area while others are spending significant time
there, utilising the additional staff accommodation we have added recently.
Overall, the team in Portugal approximately doubled during the year to over
25.
Deepening our integration with local stakeholders
During the year our community relations and communications teams organised a
comprehensive programme of meetings, events, initiatives and media
publications which significantly boosted our engagement with local
stakeholders. Equally importantly, however, is the greater interaction and
organic relationship building which has come through increasing the size of
our team living and working locally.
I will leave you to read more about stakeholder engagement activities in
subsequent sections of the Report, but I'm pleased to confirm that we are
seeing positive results from this greater, more proactive, engagement. This
may not always be apparent to those viewing from afar and simply seeing
headlines about the Project, but at the local level there are now many more
people willing to engage with us, speak in favour of the Project or show their
support in other ways. At the same time, the impact of those vehemently
opposed to the Project is being diluted as the discussion and presentation of
this critical raw material project in the media becomes more balanced. It is
clear to us, while understandable concerns among local communities about the
future impact of the Project remain, stakeholders are wanting and valuing
accurate information being made available, not misinformation. In this way
they can make informed decisions about the Project and make plans about what
it will mean for them. I believe that an increasing number share our view that
the Project represents a significant opportunity for the local population and
the region and we welcome ongoing dialogue, feedback and engagement.
Land acquisition and access
Savannah continued with its land acquisition programme during the year and
completed a further 9 transactions during 2024. This took the total number of
properties owned by Savannah to 106 by year end with a further 13 under
promissory notes with EUR2.1m paid to local community members for land to
date. Acquisitions have continued into 2025 with new transactions already
completed. However, to keep Project workstreams such as the DFS on track,
Savannah undertook the legal process which grants it temporary access to land
it does not currently own on the Project's concession area. After some delay
caused by the change in Government during the year, the new Government
demonstrated its support for the Project by granting the temporary land access
order in December 2024, allowing Savannah to start immediate preparation for
fieldwork in the areas concerned. With an eye on the Project's future
development, the Company subsequently initiated the process for compulsory
acquisition of relevant land which it does not own at the Project but Savannah
continues to also offer relevant landowners the opportunity to sell or lease
land to the Company based on its previously proposed frameworks and rates.
Award of the C-190 Mining Lease
In December 2024, the 'C-190' Mining Lease application over the 3 block
'Aldeia' area was awarded to its current owners, the Portuguese company Aldeia
& Irmão, S.A.. The new Mining Lease, which is adjacent to the C-100 Lease
has an initial duration of 25 years and can be extended twice, initially by a
further 15 years and then by a further 10 years. With 3.5Mt of resource
already outlined on Block A of the Lease area and following some exciting
exploration results recently reported from Block B, this was an important
development for the Project and reaffirms that mining is seen by the
government as a priority land use in this area due to its significant mineral
wealth.
Our major achievements on a corporate front included:
Our strategic partnership with AMG
We now have AMG Critical Materials N.V ('AMG') onboard as our first strategic
partner, largest shareholder and proposed first offtaker. This was the initial
outcome from the Strategic Partnering Process we ran during 2023-24. The
GBP16m equity investment by this established lithium group last June, which
was made at a significant premium to the share price at the time, gave us a
greater financial reserve with which to push on as quickly as we can with the
current work programme. Meanwhile the connection into Germany, as demonstrated
in December when the Project's eligibility for a German Government loan
guarantee of up to USD270m was announced, further shows the scale of the long
-term value of this relationship. I am sure many more benefits of this
European-focused partnership will present themselves as we proceed together,
and we are looking forward particularly to collaborating on the study for
potential joint construction of a spodumene-to-lithium carbonate refinery in
Portugal or Spain.
Growth of our Portuguese shareholder base
Savannah has also greatly benefitted from the significant support it has
received from our new Portuguese investors. Portuguese individuals and
institutions, including retail investors from the Boticas region as well as
some of the country's most prominent entrepreneurs and businesses such as
Mario Ferreira and Grupo Lusiaves, now own close to 20% of the Company. This
follows consistent buying in the market over the last year and the size of the
shareholding clearly demonstrates the growing in-country interest and support
for the Project and Savannah. This interest is not only as a simple investment
opportunity, but also because many Portuguese people want to support the
development of a new national industry based on Portugal's substantial natural
resources, its existing infrastructure and high-quality workforce.
Reconfiguring the Board for project development
Savannah's Board has seen significant change over recent years and my thanks
go again to my predecessor in the Chair, Matthew King and to former
Non-Executive Directors James Leahy and Mary Jo Jacobi who all stepped down in
June 2024. I'm sure I speak for all in saying that their direction and counsel
over many years as the Company first developed and then streamlined its
portfolio of projects is greatly appreciated.
Following Emanuel Proença's appointment to the Board in April and my own
appointment as Chair and Diogo de Silveira's appointment as Deputy Chairman in
June, we welcomed Mike Connor to the Board in August 2024 as the
representative of AMG. Mike, who joined our Board as a Non-Executive Director,
is Chief Corporate Development Officer at AMG and a member of its Management
Board. Mike has been involved in building AMG's own lithium business and
played a significant role in creating the strategic partnership with Savannah.
Hence, he is well placed to act as the link between our companies and to
provide insight to Savannah based on AMG's deep lithium sector knowledge.
With Mike's appointment and the other changes made last year, I believe
Savannah now has the skills and experience necessary on its Board to
successfully direct the development of this Project. While every project is
different, the development of mining projects typically follows well
established processes in relation to their financing and technical
development. We have Board members, including myself, who have been intimately
involved in such projects in a variety of commodities, including lithium.
However, and of equal importance to the successful development of a project,
is the ability to operate in the jurisdiction concerned. Knowledge of local
business practices and relationships with key stakeholders is essential.
Hence, with two Portuguese Directors in senior positions at the Company, we
believe we have the local expertise to successfully steer the Project through
to production.
Gaining greater political support
In addition to the European Commission and German Government support
highlighted above, we have also enjoyed valuable support from the Portuguese
Government and parliament. Clear government support was shown by the award of
the temporary land access order in December, and again in February 2025, via
the 'Reasoned Resolution' from the Minister for the Environment and Energy
which led to the immediate lifting of the suspension on our fieldwork
activities. Furthermore, in September, following a debate in the Portuguese
Parliament about domestic lithium development, only 6% of MPs voted to try to
restrict our Project. Cross party support in Portugal for economic
development, including the creation of the battery value chain in Portugal
remains strong.
The UK Government also remains an advocate of the Project, and we were
delighted to win the 2024 Overseas Direct Investment Award from the
UK-Portugal Business Alliance. We were also very pleased to welcome HM
Ambassador Lisa Bandari at site, as well as the Australian Ambassador to
Portugal, Indra McCormick, and representatives from the German Embassy.
Savannah's key challenges during the year
As I said above, our achievements in the year were hard won and for
completeness and transparency it is important to highlight some of the issues
which our team have faced and effectively dealt with during the year.
Project opposition and misinformation
I have already spoken about the noise around the Project from those who are
vehemently opposed to it being increasingly countered by a growing number in
our local communities who support the Project and those just wishing to
understand the facts and not wishing to be labelled with the extreme views and
behaviour of others. However, as we advance the Project, I have no doubt that
those which remain against its development will continue to distribute more
misinformation and seek ways and means to hinder progress. Shareholders should
be assured that we are equally committed in our resolve to maintain progress,
to work safely, respectfully and within the law, to listen and respond to
genuine concerns from stakeholders, to continue the distribution of accurate
information about the Project, and to keep engaging regularly with all of the
Project's local stakeholders. We are also firmly committed to upholding our
legal rights to conduct this important work and to seek redress from those
involved if we are impacted by wrongdoing or misinformation.
Change of national government
The first half of 2024 was also marked by a change of government in Portugal
with the centre-right Democratic Alliance (AD), led by Luís Montenegro,
forming a minority centre-right government and replacing the previous majority
government of the Socialist Party (PS). Following this, Savannah was effective
in developing relationships with the new incumbents within the new government
and other public entities.
However, the change of government did lead to a delay of more than half a year
in the development of the Project due to the time taken to receive approval
for the temporary land access order we required to proceed with our fieldwork
on land situated on the Project's concession area, which the Company does not
own. As a result, it was necessary to push back delivery of the DFS and
confirmation of the environmental licence into the second half of 2025 and
first production from 2026 to 2027. However, as I have highlighted, the
Project will still be coming online at a time of much more favourable market
conditions and higher prices.
Operation Influencer
The Operation Influencer investigation which the Portuguese Public Prosecutor
initiated in November 2023 obviously impacted the Company's brand and share
price at the time and into early 2024. However, Savannah responded quickly,
comprehensively and professionally with a full independent legal review and
legal opinions on its business, the findings of which were released on 30
January 2024.
The independent legal review found no evidence which would give rise to
liability of the Company. It also found no evidence of improper offers,
improper payments, or other forms of wrongdoing by the Company regarding the
suspicions set out in the Investigation.
The separate legal opinions also confirmed that, based on the findings of the
independent legal review, but also on the functioning of the Portuguese
permitting process, past legal experience, and constitutional protections,
under no realistic circumstance would the Project's execution and its expected
future cash flows be at risk from the Investigation's findings. The
conclusions of the independent legal review and the legal opinions
demonstrated Savannah's solid legal position in relation to the alleged facts
and circumstances contained in Operation Influencer. Though the investigation
continues and no guidance on future steps or outcome can be given at this
stage, Savannah had no further significant contact with the investigating
authorities during the year and has been able to continue with all its work
unencumbered.
Financial Overview
From an opening cash position of GBP9.7m, Savannah recorded its highest ever
cash balance of GBP22.0m in June 2024 following the GBP16m equity investment
from AMG. With the first phase of DFS-related drilling completed by May,
Savannah was keen to maintain this momentum and utilise its replenished cash
reserves in support of the second phase of the planned programme. However, the
delay caused by the completion of the temporary land access process, meant the
second phase of drilling was delayed and spending in the second half of the
year was less than expected, though staff costs did rise as forecasted due to
the larger team and key workstreams not related to fieldwork continuing.
Overall ongoing investment in the Portuguese asset base reached GBP4.6m (2023:
GBP2.3m). As a result, the Company finished the year with GBP17.7m of funds in
bank, which is now being committed to the completion of the DFS and
confirmation of the environmental licence later this year.
In terms of the broader financial performance, Savannah recorded a loss from
continuing operations of GBP4.4m (2023: GBP3.5m). Administration costs for
2024 amounted to GBP4.3m (2023: GBP3.5m), representing a 23% increase, and is
driven by investments in building a strong team for the development of the
Project. Foreign exchange losses rose from GBP0.1m to GBP0.4m as a result of
the strengthening of the GBP against the EUR and AUD, in which the group held
cash balances which matched the planned expenditure. On the other hand, by the
careful cash management the Group reported Finance Income of GBP0.3m (2023:
GBP0.1m). Discontinued Operations Income of GBP0.2m (2023: loss GBP0.2m) is
primarily driven by the reduction of the tax provision (Note 19).
Outlook
In my previous reports to shareholders I have said that Savannah is in its
strongest ever position with the Project and I continue to believe that is the
case.
Lithium is established as a metal critical to future global economic growth
and tackling the impacts of climate change. We have an excellent Project and a
capable team. Corporate activity remains high with one of the largest M&A
transactions in the whole mining sector seen in lithium during the year.
Europe has committed to developing a domestic critical raw materials industry,
our Project has been among the first to be classified as a Strategic Project,
and the Portuguese Government has demonstrated its support on multiple
occasions. Savannah has cash in the bank to allow the continuation of our
value adding work on the Project and we have a supportive, highly credible
first strategic partner. We also retain 100% of the Project and at least 50%
of the future lithium offtake. Hence, we have the significant leverage with
which to strike other partnerships and secure further finance.
Given that backdrop, we should look to the future with great confidence and
seize the opportunity to progress our Project as quickly as we can towards
production while continuing to build meaningful ties with local stakeholders.
In that way, we will be ready to take advantage of the more favourable
conditions and higher prices, which will return to the market in the future.
We must also communicate our story as widely as we can to increase awareness
of Savannah as an attractive investment opportunity in the battery metals and
energy transition sectors. We were pleased with the 100%+ improvement in the
Company's share price during the year, but much greater value remains to be
crystallised in our market value.
2025 is set to be another very important year in the development of Savannah
and the Barroso Lithium Project. The team and I look forward to reporting on
our progress as we move forward. My thanks go to our shareholders, staff, and
stakeholders for their ongoing support and to our dedicated team for their
continuing hard work.
Rick Anthon
Chairman
Date: 9 April 2025
CHIEF EXECUTIVE'S REPORT
I am delighted to have this opportunity to provide an update for shareholders
on what was my first full year in the CEO role at Savannah. We took a number
of very important steps towards development of the Barroso Lithium Project
during 2024, which will make 2025 a pivotal and exciting year for the Company.
In my first CEO's report to shareholders last year, I listed some key
observations which I had made about our business during my early months in the
role. I also identified the key areas (project development and delivery, team
building, growing our mandate for the Project's development, and changing the
perception of Savannah) which I would be focusing on to make the Barroso
Lithium Project a reality and to deliver greater value to shareholders. I
provide an update on the progress made in those key areas below.
1. Project development & delivery
Project delivery is fundamental to everything we do and it remains the top
priority for me and the team. Development of the Project and eventual supply
of responsibly sourced lithium raw material into the European market
represents Savannah's best opportunity to generate maximum value for
shareholders. Fulfilling this goal would also mean that Savannah makes a
meaningful contribution to economic growth locally, nationally and potentially
in a number of other countries as well while playing its part in society's
efforts to tackle climate change and decrease geopolitical and geoeconomic
tensions.
Our near-term goals are delivery of the DFS and the RECAPE submission for the
Project by the end of 2025. Achieving those targets will keep us on track to
start construction of the Project in 2026 and to reach the greatest milestone
to date for the Project and the Company, first production, in 2027. Our job is
to make every effort to reach that point and hence we need to control and
manage as many of the inputs and variables in the multiple processes involved
in achieving that goal as we can.
To this end, we successfully managed and executed a number of elements during
the year. This included, securing additional financing and our first strategic
partnership, building out our team, completing the first phase of drilling and
other important fieldwork, advancing DFS design work and environmental studies
away from the field, strengthening our ties with the local community and
frequently engaging with key Portuguese State entities and government
stakeholders. We also continued with our land acquisition programme, adding
more plots during the year and passing the 100-plot milestone.
Knowing that we would not be able to acquire all the land plots we need to
complete the DFS-related fieldwork, we also applied for a temporary land
access order from the government to gain permission to work on ground we do
not own. This application was made well in advance of access being required.
Unfortunately, the change of government in Portugal during the year (the
application had been made to the previous government) meant that the granting
of the order took much longer than expected, which impacted our timeline. Most
importantly though, the order was eventually granted in December 2024 and we
moved straight into the field. Drilling commenced in January 2025 and as at 31
March 2025, 57 holes have been drilled for a total of 6,204m.
Any slippage from the timetable is a frustration for all, and though the cause
was a matter which we could not control, we have taken learnings from the
experience, which we are already applying.
The most obvious of these is on future land management. We have stated many
times that our preference is to reach amicable agreements with owners on sales
or access rights to land on the Mining Lease. We have been pursuing this
policy since 2021 and have purchased over 100 plots to date and injected
EUR2.1m into the local community as a result. Savannah will continue to offer
landowners the opportunity to sell or lease land. However, we have chosen to
also initiate the process for compulsory purchase of relevant land at the
Project, in advance of it being required, in order to maintain the Project's
development schedule. This is a very commonly used legal process in relation
to infrastructure projects in Portugal and has been used previously in the
region surrounding our Project for hydroelectric dams and roads. It also
offers a practical solution for completing purchases in a variety of
situations, e.g. for plots with inheritance issues, undefined ownership, or
very small dimensions. Though not our chosen approach, it is the appropriate
time to utilise this legal process.
Overall, our goal is to continue to increase the level of control we have in
all aspects of the Project's development schedule. No doubt there will be
other unexpected situations as we move forward with the Project, but we are
firmly focused on clearing as many obstacles from the path as we can so that
the technical team and our consultants can progress efficiently with their
work. We can then demonstrate this Project's economic, environmental and
social credentials to the required level of accuracy to secure the licencing,
finance and commercial support we need to make this Project a great success.
2. Team building
As a function of the Project's ongoing progress towards key milestones and
future development, the team in Portugal has increased by 109% since the start
of 2024 with the Company's total staff, including those in Australia and the
UK now standing at approximately 40, excluding Non-Executive Board Directors.
82% of our staff are Portuguese nationals and our demographic is approximately
70:30 male to female, which is significantly more balanced than the current
industry standard (source: McKinsey). We continue to promote employment of
local community members wherever possible and are delighted that more chose to
join the team during the year.
With the Project and Company maturing, not only have we made excellent hires
to our technical team in support of the ongoing appraisal work, but also in
functions such as Community Relations, Communications and HR. The extra
capacity in these areas is proving critical as we increase our engagement with
stakeholders and the wider population and look to introduce more formal
business processes into the Company. Based on the number of inquiries and
applications we continue to receive, interest in working for Savannah is
growing and we look forward to further expanding our team in 2025 and beyond.
CEO Emanuel Proença and other members of the Savannah team in the Boticas
Information Centre
Source: Company
In parallel with our team building, we are also increasing and improving
Savannah's footprint in the local area so that our colleagues, old and new,
have suitable places to live and work. In recent months we have completed the
comprehensive refurbishment of the former core shed to create our 'Geology
Centre', which now features substantial office space for our technical team
alongside the warehouse area for logging core and cutting and preparing
samples. The Centre has also become an excellent space for hosting our regular
community events to which we are now regularly attracting more than 100
people. We are also in the final stages of fitting out a new 30-person office
in the town of Boticas, close to our Information Centre. This will provide
working space for the Environmental, Community Relations, Communication,
Technical, and Administration teams, as well as for additional employees as
they come onboard. In terms of accommodation, we have taken on and refurbished
additional houses in the local area, so that colleagues can live there
permanently or stay for extended periods. As of today, we have 16 colleagues
permanently living in the local area, the majority of which were existing
local residents, with a further 7 living there during the week. A corporate
office in Lisbon has also been opened.
Once in operation, the Project is expected to employ approximately 300 people
directly, so there is clearly much work for us still to do in terms of
securing more work and living space for our growing team and contractors. In
addition to strengthening bonds within our own team, the great benefit we have
seen from having more of our staff living and staying locally has been the
extra opportunities it provides to build ties with the local community. We are
simply more 'present' and that has proved to be of great value and will be
even more so in the future.
3. Getting support to achieve the achievable
In last year's report I talked about the Project being 'achievable' for
Savannah based on its scale, conventional mineralogy and modest capital
requirements, and making sure that we 'achieve the achievable'. Part of making
that happen is partnerships and finance and a major success of 2024 was the
completion of our first strategic partnership.
With its combined experience in open pit spodumene mining in Brazil (another
lithium producing Portuguese speaking country!) and lithium chemical
production in Germany, AMG is an ideal partner for Savannah. Its investment of
GBP16m last June at a significant premium to the prevailing share price, and
becoming our biggest shareholder in the process, was an early demonstration of
AMG's positive view on Savannah and the value it places on spodumene offtake
from a reliable, European source. This is further underlined by its
willingness to take a leading role in helping us to secure a full financing
solution for the Project. Already this has led to a strong endorsement for the
Project from the German Government and associated entities through the form of
a potential USD270m loan guarantee. We are very excited to pursue these
financing opportunities with AMG, as well as the joint study we are planning
on a potential refinery.
This first deal also leaves us still owning 100% of the Project and at least
50% of the future offtake. Hence, we have significant leverage available to
attract other partners and associated finance. We will continue to engage with
other potential partners during the remainder of the year as we move towards
the next milestones and then project financing and start of construction in
2026.
We will also progress discussions with potential partners for our by-products
(feldspar-quartz and potentially mica) during the year. On both fronts it will
be exciting to see the additional commercial interest the Project generates.
4. Leveraging our mandate
I believe our mandate to develop the Project increased significantly during
2024 and into early 2025 with more stakeholders stepping forward to give us
their backing.
Successive Portuguese Governments have now demonstrated their support for the
Project through critical approvals on environmental licencing and land access.
It was particularly pleasing to read in the Reasoned Resolution submitted to
the Mirandela court by the Minister for Environment and Energy in response to
a claim made by three local landowners in February 2025 that the government,
"…believe that any postponement of the execution of the administrative act
(the temporary land access order) being challenged in court is …seriously
detrimental to the public interest, and that its full effectiveness should be
maintained". This Resolution not only allowed us to immediately restart our
work on land concerned, it also clearly reconfirmed the Portuguese State's
view on the value of the Project to Portugal and the strength with which it
will act to support its ongoing development. We also had the wider Portuguese
Parliament voting strongly in favour of lithium development last September.
This national government support was decisively complemented in March 2025 by
the European Commission's classification of the Project as a 'Strategic
Project' under the Critical Raw Materials Act, which came in force during
2024. This validation is a massive boost to our mandate to develop the
Project, and the classification should also result in practical assistance
from the Commission and its agencies in getting the Project into production.
Engaging with the key actors and leveraging this opportunity will now be an
important task during the remainder of 2025.
Away from government, and alongside AMG making a significant investment and
becoming our largest shareholder, we saw rapid growth in our Portuguese
shareholder base which now represents close to 20% of our register. Notably,
our Portuguese shareholders range from members of our local communities
through to an institution, a prominent entrepreneur and a major Portuguese
business. Earlier this year we also saw the formation of the 'Future of
Barroso Association' by a group of local people. They represent those in the
community who wish to engage with the Project to ensure that the opportunities
it generates are maximised for local people. Savannah looks forward to
engaging more with this group going forward, as part of its wider stakeholder
engagement activities.
While wider agendas across these stakeholder groups may vary, they, like all
our other existing shareholders, share a desire to see this Project move
forward. Together, they make for a very strong support base for the Project
and provide great confidence to us. We will be sure to highlight and utilise
this mandate as we push forward.
5. Changing the perception of Savannah
I said last year that I thought this was the biggest challenge that Savannah
faced. I think it still is, but that does not mean that we haven't made some
very significant improvements to Savannah's brand over the last year.
Throughout this report you will read about the great work that our Community
Relations and wider team have done at a local level to build trust and deepen
ties with our local communities. This has yielded results, as demonstrated by
local people applying jobs with us and the attendance we see at our community
events. Much work remains to be done, and we understand that many identified
concerns still need to be addressed. We are committed to doing this and remain
firm in our view that with regular engagement, provision of accurate
information, effective community-related policies, and by listening more than
talking, we will continue to build understanding and acceptance. This will
also further reduce the impact of the small group which wishes to stop the
Project's development.
Welcoming local stakeholders to our Information Centre in Boticas
Source: Company
In the media, thanks to the hard work of our expanded Communications team, we
have seen improvement in the balance of coverage the Project receives both
within Portugal and elsewhere. Importantly, we have been able to secure more
media coverage 'on our terms', i.e. not just where we are being asked to
respond to some misinformation or allegation voiced by those against the
Project. We are also speaking more regularly on the investment attributes of
the Project having received more interest from business journalists. The
Project is perhaps too frequently 'big news' in Portugal and given its
significance to Europe's energy transition it also attracts good interest
elsewhere across print, radio, TV and online. During 2025, we will continue to
try to translate this widespread interest into coverage on the Project's many
positive attributes including its strong investment case.
Away from the press, we marketed the Company extensively last year to industry
participants through the strategic partnering process and at conferences, and
to investors via online presentations, roadshows, podcasts and investor
events. Already in 2025, we have marketed in the UK, Portugal, Australia and
at multiple industry and investor events. More is planned for the remainder of
the year as we look to raise awareness of Savannah in key markets and with key
stakeholders.
To conclude, the team and I have a very clear job to do, which is to deliver
the Project. Our top priority short term goals being completion of the DFS and
confirmation of the environmental licence. Alongside that we will continue to
strategically build out our team, engage with the European Commission
following the 'Strategic Project' classification, re-engage with potential
commercial partners and strengthen our position in the local community as a
respectful, responsible and supportive organisation.
While the challenges ahead are many, the opportunities are even greater and
the team and I am looking forward to pushing ahead as quickly as we can and
reporting our progress as we go. Exciting times lie ahead for Savannah and my
thanks go to our shareholders and stakeholders for their ongoing support.
Emanuel Proença
Chief Executive Officer
Date: 9 April 2025
The Financial Statements below should be read in conjunction with the Notes
contained within the full Annual Report which is available online at the
Company's website at:
https://www.savannahresources.com/investors/corporate-documents/
(https://www.savannahresources.com/investors/corporate-documents/)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER
2024
2024 2023
£ £
CONTINUING OPERATIONS
Revenue - -
Other Income - -
Administrative Expenses (4,250,179) (3,477,405)
Foreign Exchange Loss (438,018) (81,116)
OPERATING LOSS (4,688,197) (3,558,521)
Finance Income 265,451 108,286
Finance Costs (2,855) (555)
LOSS FROM CONTINUING OPERATIONS BEFORE TAX (4,425,601) (3,450,790)
Tax expense - -
LOSS FROM CONTINUING OPERATIONS AFTER TAX (4,425,601) (3,450,790)
GAIN/(LOSS) ON DISCONTINUED OPERATIONS NET OF TAX 181,859 (167,304)
LOSS AFTER TAX ATTRIBUTABLE (4,243,742)
TO EQUITY OWNERS OF THE PARENT (3,618,094)
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss:
Net change in Fair Value Through Other Comprehensive Income of Equity (2,357)
Investments
(5,289)
Items that will or may be reclassified to profit or loss:
Exchange Losses arising on translation of foreign operations (729,046) (237,364)
OTHER COMPREHENSIVE INCOME FOR THE YEAR (731,403) (242,653)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT (4,975,145) (3,860,747)
(Loss)/Gain per share attributable to equity owners of the parent expressed in
pence per share:
Basic and diluted
From Operations (0.21) (0.20)
From Continued Operations (0.22) (0.20)
From Discontinued Operations 0.01 (0.00)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
2024 2023
£ £
ASSETS
NON-CURRENT ASSETS
Intangible Assets 21,621,293 18,391,089
Right-of-Use Assets 377,258 56,378
Property, Plant and Equipment 1,879,337 1,660,135
Other Receivables 513,407 432,003
Other Non-Current Assets 78,381 92,869
TOTAL NON-CURRENT ASSETS 24,469,676 20,632,474
CURRENT ASSETS
Investments at FVTOCI 4,331 6,688
Trade and Other Receivables 562,564 426,065
Other Current Assets - 166
Bank Deposits 2,844,220 -
Cash and Cash Equivalents 14,847,386 9,721,281
TOTAL CURRENT ASSETS 18,258,501 10,154,200
TOTAL ASSETS 42,728,177 30,786,674
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share Capital 21,727,742 18,281,499
Share Premium 59,215,369 46,598,337
Shares to be Issued - 43,423
Merger Reserve 6,683,000 6,683,000
Foreign Currency Reserve (339,480) 389,566
Share Based Payment Reserve 673,738 600,709
FVTOCI Reserve (48,681) (46,324)
Retained Earnings (48,720,156) (44,606,003)
TOTAL EQUITY ATTRIBUTABLE TO 39,191,532
EQUITY HOLDERS OF THE PARENT 27,944,207
LIABILITIES
NON-CURRENT LIABILITIES
Lease Liabilities 301,921 39,033
Non-Current Trade and Other Payables 133,587 -
TOTAL NON-CURRENT LIABILITIES 435,508 39,033
CURRENT LIABILITIES
Lease Liabilities 77,140 17,345
Trade and Other Payables 2,519,725 1,993,060
Income Tax (CGT) Provisions 504,272 793,028
TOTAL CURRENT LIABILITIES 3,101,137 2,803,433
TOTAL LIABILITIES 3,536,645 2,842,466
TOTAL EQUITY AND LIABILITIES 42,728,177 30,786,674
The Financial Statements were approved and authorised for issue by the Board
of Directors on 9 April 2025
and were signed on its behalf by:
Emanuel Proença
Chief Executive Officer
Company number: 07307107
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
2024 2023
£ £
ASSETS
NON-CURRENT ASSETS
Investments in Subsidiaries 601,420 333,740
Other Receivables 39,365,256 34,451,813
TOTAL NON-CURRENT ASSETS 39,966,676 34,785,553
CURRENT ASSETS
Equity instruments at FVTOCI 4,331 6,688
Trade and Other Receivables 226,478 146,252
Bank Deposits 2,844,220 -
Cash and Cash Equivalents 13,301,153 8,226,519
TOTAL CURRENT ASSETS 16,376,182 8,379,459
TOTAL ASSETS 56,342,858 43,165,012
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share Capital 21,727,742 18,281,499
Share Premium 59,215,369 46,598,337
Shares to be Issued - 43,423
Merger Reserve 6,683,000 6,683,000
Share Based Payment Reserve 673,738 600,709
FVTOCI Reserve (48,681) (46,324)
Retained Earnings (33,125,624) (29,540,322)
TOTAL EQUITY 55,125,544 42,620,322
LIABILITIES
CURRENT LIABILITIES
Trade and Other Payables 1,217,314 544,690
TOTAL LIABILITIES 1,217,314 544,690
TOTAL EQUITY AND LIABILITIES 56,342,858 43,165,012
The Company Loss for the financial year was GBP3,714,891 (2023: Loss
GBP2,109,648).
The Financial Statements were approved and authorised for issue by the Board
of Directors on 9 April 2025
and were signed on its behalf by:
Emanuel Proença
Chief Executive Officer
Company number: 07307107
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER
2024
Merger Reserve Share Based Payment Reserve FVTOCI Reserve
Foreign Currency Reserve
Share Capital Share Premium Shares to be Issued Retained Earnings Total
Equity
£ £ £ £ £ £ £ £ £
At 1 January 2023 16,889,598 41,693,178 - 6,683,000 626,930 403,749 (41,035) (40,999,879) 25,255,541
Loss for the year - - - - - - - (3,618,094) (3,618,094)
Other Comprehensive Income - - - - (237,364) - (5,289) - (242,653)
Total Comprehensive Income for the year - - - - (237,364) - (5,289) (3,618,094) (3,860,747)
Issue of Share Capital (net of expenses)
1,391,901 4,905,159 - - - - - - 6,297,060
Share based payment charges
- - 43,423 - - 208,930 - - 252,353
Lapse of options - - - - - (11,970) - 11,970 -
At 31 December 2023 18,281,499 46,598,337 43,423 6,683,000 389,566 600,709 (46,324) (44,606,003) 27,944,207
Loss for the year - - - - - - - (4,243,742) (4,243,742)
Other Comprehensive Income - - - - (729,046) - (2,357) - (731,403)
Total Comprehensive Income for the year - - - - (729,046) - (2,357) (4,243,742) (4,975,145)
Issue of Share Capital (net of expenses) 3,426,124 12,562,712 - - - - - - 15,988,836
Shares issued in lieu 20,119 54,320 (74,439) - - - - - -
Share based payment charges - - 31,016 - - 202,618 - - 233,634
Lapse of options - - - - - (129,589) - 129,589 -
At 31 December 2024 21,727,742 59,215,369 - 6,683,000 (339,480) 673,738 (48,681) (48,720,156) 39,191,532
The following describes the nature and purpose of each reserve within owners'
equity:
Reserve Description and purpose
Share Capital Amounts subscribed for share capital at nominal value
Share Premium Amounts subscribed for share capital in excess of nominal value less costs of
fundraising
Shares to be Issued Shares for which consideration has been received but which are not issued yet
Merger Reserve Amounts subscribed for share capital in excess of nominal value in respect of
the consideration paid in an acquisition arrangement, when the issuing company
takes its interest in another company from below 90% to 90% or above equity
holding
Foreign Currency Reserve Gains/losses arising on retranslating the net assets of group operations into
Pound Sterling
Share Based Payment Reserve Represents the accumulated balance of share based payment charges recognised
in respect of asset acquired and share options granted by Savannah Resources
Plc, less transfers to retained losses in respect of options exercised, lapsed
and forfeited
FVTOCI Reserve Cumulative changes in fair value of equity investments classified at fair
value through other comprehensive income (FVTOCI)
Retained Earnings Cumulative net gains and losses recognised in the Consolidated Statement of
Comprehensive Income and other transactions recognised directly in Retained
Earnings
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
Share Capital Share Premium Shares to be Issued Merger Reserve Share Based Payment Reserve FVTOCI Reserve Retained Earnings Total
Equity
£ £ £ £ £ £ £ £
At 1 January 2023 16,889,598 41,693,178 - 6,683,000 403,749 (41,035) (27,442,644) 38,185,846
Profit for the year - - - - - - (2,109,648) (2,109,648)
Other Comprehensive Income - - - - - (5,289) - (5,289)
Total Comprehensive Income for the year - - - - - (5,289) (2,109,648) (2,114,937)
Issue of Share Capital (net of expenses) 1,391,901 4,905,159 - - - - - 6,297,060
Share based payment charges - - 43,423 - 208,930 - - 252,353
Lapse of options - - - - (11,970) - 11,970 -
At 31 December 2023 18,281,499 46,598,337 43,423 6,683,000 600,709 (46,324) (29,540,322) 42,620,322
Profit for the year - - - - - - (3,714,891) (3,714,891)
Other Comprehensive Income - - - - - (2,357) - (2,357)
Total Comprehensive Loss for the year - - - - - (2,357) (3,714,891) (3,717,248)
Issue of Share Capital (net of expenses) 3,426,124 12,562,712 - - - - - 15,988,836
Shares issued in lieu 20,119 54,320 (74,439) - - - - -
Share based payment charges - - 31,016 - 202,618 - - 233,634
Lapse of options - - - - (129,589) - 129,589 -
At 31 December 2024 21,727,742 59,215,369 - 6,683,000 673,738 (48,681) (33,125,624) 55,125,544
The following describes the nature and purpose of each reserve within owners'
equity:
Reserve Description and purpose
Share Capital Amounts subscribed for share capital at nominal value
Share Premium Amounts subscribed for share capital in excess of nominal value less costs of
fundraising
Shares to be Issued Shares for which consideration has been received but which are not issued yet
Merger Reserve Amounts subscribed for share capital in excess of nominal value in respect of
the consideration paid in an acquisition arrangement, when the issuing company
takes its interest in another company from below 90% to 90% or above equity
holding
Share Based Payment Reserve Represents the accumulated balance of share based payment charges recognised
in respect of asset acquired and share options granted by Savannah Resources
Plc, less transfers to retained losses in respect of options exercised, lapsed
and forfeited
FVTOCI Reserve Cumulative changes in fair value of equity investments classified at fair
value through other comprehensive income (FVTOCI)
Retained Earnings Cumulative net gains and losses recognised in the Consolidated Statement of
Comprehensive Income and other transactions recognised directly in Retained
Earnings
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
£ £
Cash flows used in operating activities
Loss for the year (4,243,742) (3,618,094)
Depreciation and amortisation charges 48,483 22,095
Share based payment charge - Share Options 202,618 208,930
Shares based payment charge - Shares to be issue in lieu of bonus 31,016 43,423
Finance Income (265,451) (108,286)
Finance Costs 2,855 555
Reverse impairment other assets - (710,467)
Decrease tax provision (301,124) -
Foreign Exchange Losses 443,675 131,325
Cash flow used in operating activities before changes in working capital (4,081,670)
(4,030,519)
(Increase)/Decrease in Trade and Other receivables (173,725) 140,148
Increase in Trade and Other Payables 676,547 982,457
Net cash used in operating activities (3,578,848) (2,907,914)
Cash flow used in investing activities
Purchase of Intangible Exploration Assets (3,989,253) (1,456,075)
Purchase of Tangible Fixed Assets (213,564) (120,573)
Set up Bank Deposits (2,844,220) -
Interest received 242,665 96,367
(6,804,372) (1,480,281)
Net cash used in investing activities
Cash flow from financing activities
Proceeds from issues of ordinary shares (net of expenses) 15,988,836 6,297,060
Principal paid on Lease Liabilities (29,989) (9,252)
Interest paid on Lease Liabilities (2,855) (555)
15,955,992 6,287,253
Net cash from financing activities
Increase in Cash and Cash Equivalents 5,572,772 1,899,058
Cash and Cash Equivalents at beginning of year 9,721,281 7,202,334
Increase Restricted Cash - 701,903
Exchange Losses on Cash and Cash Equivalents (446,667) (82,014)
Cash and Cash Equivalents at end of year 14,847,386 9,721,281
COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
£ £
Cash flows used in operating activities
(Loss)/Gain for the year (3,714,891) (2,109,648)
Impairment of Financial Assets (27,826) (466,912)
Share based payment reserve charge - Share Options 202,618 208,930
Shares based payment charge - Shares to be issue in lieu of bonus 31,016 43,423
Finance Income (265,451) (108,286)
Foreign Exchange Losses 2,084,777 728,241
Cash flow used in operating activities before changes (1,689,757) (1,704,252)
in working capital
(Increase)/Decrease in Trade and Other Receivables (570,049) 39,911
Increase in Trade and Other Payables 295,162 29,126
Net cash used in operating activities (1,964,644) (1,635,215)
Cash flow used in investing activities
Investments in subsidiaries (267,680) -
Loans to subsidiaries (7,421,441) (3,260,033)
Proceeds from repayment of loans to subsidiaries 1,398,823 553,702
Set up Bank Deposits (2,844,220) -
Interest received 242,665 96,367
Net cash used in investing activities (8,891,853) (2,609,964)
Cash flow from financing activities
Proceeds from issues of ordinary shares (net of expenses) 15,988,836 6,297,060
Proceeds from subsidiaries 380,482 -
Net cash from financing activities 16,369,318 6,297,060
Increase in Cash and Cash Equivalents 5,512,821 2,051,881
Cash and Cash Equivalents at beginning of year 8,226,519 6,241,356
Exchange Losses on Cash and Cash Equivalents (438,187) (66,718)
13,301,153 8,226,519
Cash and Cash Equivalents at end of year
Regulatory Information
This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Savannah - Enabling Europe's energy transition.
**ENDS**
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Follow Savannah Resources on LinkedIn
For further information please visit www.savannahresources.com
(http://www.savannahresources.com) or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
Emanuel Proença, CEO
SP Angel Corporate Finance LLP (Nominated Advisor & Broker) Tel: +44 20 3470 0470
David Hignell/ Charlie Bouverat (Corporate Finance)
Grant Barker/Abigail Wayne (Sales & Broking)
Canaccord Genuity Limited (Joint Broker) Tel: +44 20 7523 8000
James Asensio / Charlie Hammond (Corporate Broking)
Ben Knott (Sales)
Camarco (UK Financial PR) Tel: +44 20 3757 4980
Gordon Poole/ Emily Hall / Nuthara Bandara
Portugal Media Relations
Savannah Resources: Antonio Neves Costa, Communications Manager Tel: +351 962 678 912
About Savannah
Savannah Resources is a mineral resource development company and the sole
owner of the Barroso Lithium Project (the 'Project') in northern Portugal. The
Project is the largest battery grade spodumene lithium resource outlined to
date in Europe and was classified as a 'Strategic Project' by the European
Commission under the Critical Raw Materials Act in March 2025.
Through the Project, Savannah will help Portugal to play an important role in
providing a long-term, locally sourced, lithium raw material supply for
Europe's lithium battery value chain. Once in operation the Project will
produce enough lithium (contained in c.190,000tpa of spodumene concentrate)
for approximately half a million vehicle battery packs per year and hence make
a significant contribution towards the European Commission's Critical Raw
Material Act goal of a minimum 10% of European endogenous lithium production
from 2030.
Savannah is focused on the responsible development and operation of the
Barroso Lithium Project so that its impact on the environment is minimised and
the socio-economic benefits that it can bring to all its stakeholders are
maximised.
The Company is listed and regulated on the London Stock Exchange's Alternative
Investment Market (AIM) and trades under the ticker "SAV".
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