REG - Savannah Resources - Interim Results for Six Months Ended 30 June 2023
29/09/2023 07:00
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RNS Number : 0762O Savannah Resources PLC 29 September 2023
29 September 2023
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')
Interim Results for Six Months Ended 30 June 2023
Savannah Resources, the European lithium development company, is pleased to
announce its interim results for the six months ended 30 June 2023.
First half and recent highlights include:
Corporate:
· Experienced Portuguese and international business leader, Emanuel
Proença appointed as Chief Executive Officer ('CEO') in September with
Interim CEO, Dale Ferguson, returning to his previous role of Technical
Director
· Experienced mining executive, Bruce Griffin appointed as an
Independent Non-Executive Director in September
· Experienced energy sector and strategy executive, Mohamed Sulaiman
appointed as a Non-Executive Director in September, replacing the retiring
Imad Sultan as the Board representative of Savannah's largest shareholder, Al
Marjan Ltd
· Technical team expanded in line with increasing workload
· £6.5 million (gross) fundraise completed at market price in July
· The sad passing of former Non-Executive Director, Manohar Pundalik
Shenoy
Barroso Lithium Project (the 'Project'):
Technical:
· The Portuguese environmental regulator ('APA') gave its endorsement
('DIA') to the Project in May. This was the successful culmination of the
Article 16 phase of the overall environmental impact assessment ('EIA')
process which Savannah agreed to enter in July 2022
· Following the DIA, work to complete the environmental licencing
process ('RECAPE' phase) and Definitive Feasibility Study ('DFS') is underway
with key contractors either appointed or to be appointed shortly. We expect to
complete the environmental licencing process and DFS in H2 2024
· A new Scoping Study was published in June 2023 incorporating the DIA
approved Mine Plan and Project design. Based on average production of
191,000tpa of spodumene concentrate, the Study returned post-tax free cash
flow of US$1.7 billion, net present value at an 8% discount rate of US$953m
(41p/share), internal rate of return of 77%, and payback period of just 1.3
years
· The initial phase of the decarbonisation study showed electric mining
equipment provides the best opportunity to reduce the Project's Scope 1
emissions and that a number of viable options exist to secure 100% renewable
energy supply to reduce the Project's Scope 2 emissions to zero. More detailed
analysis of these and other initiatives will be explored over the next 12
months
Stakeholder Engagement:
· The EIA submission was accompanied by a 'Social Issues Scoping
Report', incorporating the views of local people about the Project and
Savannah, the proposed frameworks for the Benefit Sharing Plan and Good
Neighbour Plan, and the financial proposals to acquire access to land required
for the Project from two relevant Baldios Community groups
· To assist local stakeholders' understanding, Savannah held a number
of community meetings, produced two Community Information Sheets, 17 Fact
Sheets and a new corporate video in parallel with the EIA submission
· Community Insights Group has begun work on two elements of the RECAPE
which relate to the Project's interaction with local communities and
stakeholders
Commercial:
· Following the DIA and Scoping Study there has been additional
interest in the Project and potential partnership collaborations with Savannah
from groups across the lithium value chain
· The Company is currently working through an orderly process to
shortlist potential strategic partners for the Project, focusing on groups
willing to assist with the Project's financing and which could bring
complementary skills or additional opportunities to Savannah
Next steps/future news flow:
· Cash balance of £11.4m (July 2023) and expanding team provides
capacity to move the Project towards a final investment decision
· Environmental licencing and DFS related work to continue (with
regular updates provided) and be completed in H2 2024
· Continuation of orderly process to identify a shortlist of potential
strategic partners
· Continue to secure the land or access to the land needed for the
Project, which we hope to do via negotiation and agreement with relevant
parties
· Wider stakeholder engagement programme to continue, focused on
reaching mutually beneficial resolution on tailoring the Project's Benefit
Sharing Plan to meet the area's specific needs
· Continue efforts to have more of the Project's value reflected in the
Company's share price through achievement of milestones and ongoing investor
marketing
CHAIRMAN'S STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2023
The first half of 2023 was one of the busiest and most successful periods
during Savannah's ownership of the Barroso Lithium Project in Portugal (the
"Project"). The milestones are already well known to shareholders, namely the
endorsement of the Project ('DIA') by Portugal's environmental regulator in
May, followed swiftly by the new Scoping Study in June, which highlighted the
Project's near US$1 billion value. These milestones then paved the way for
Savannah to complete a successful fundraise at market price in July, which has
given us the cash balance needed to accelerate the work required to take the
Project towards a final investment decision.
The work completed in the period also gives us the platform to move forward on
other fronts. We can identify those strategic partners who are committed to
building a long-term relationship with Savannah and supporting us with
financing the Project. It provides a catalyst to increase our engagement with
stakeholders as we look to make firm commitments on benefit sharing and give
clear guidance on the Project's development. Finally, it has given us
long-term confidence to build out our team to make this Project and its value
a reality.
However, before speaking of those who have joined Savannah and the Company's
exciting future it is important to remember those who are no longer with us.
It was with deep sadness that we learnt of the passing of Mr. Manohar Pundalik
Shenoy, Non-Executive Director of the Company earlier in September. Manohar
was a dedicated member of the Savannah Board who commanded great respect for
his business acumen and human decency. We will miss his valued contributions,
particularly as Chairman of our Audit and Risk Committee and extend our
deepest sympathies again to his family and friends.
Turning to Savannah's future, I would like to take this opportunity to welcome
again our new CEO, Emanuel Proença and Non-Executive Directors, Bruce Griffin
and Mohamed Sulaiman, who all joined earlier in September and provide new key
skills and experience for developing the Project into a strategic part of
Europe's energy transition. I also express again my great appreciation to Dale
Ferguson, who led us so successfully through the last 15 months as Interim
CEO. He now assumes his former role as Savannah's Technical Director and will
lead the current work programmes we have underway on the Project's
environmental licencing and Definitive Feasibility Study ('DFS'). He will also
retain his seat on Savannah's Board as an Executive Director.
Emanuel brings us a wealth of Portuguese and international business experience
gained across a range of industries and disciplines. He joins Savannah from
his role as CEO of the industrial businesses of Prio, one of Portugal's 20
largest companies and the country's largest green fuels and biodiesel
producer, and its second largest provider of electricity for mobility and a
network of charging points. The subsidiaries under Emanuel's leadership
experienced rapid growth with revenues and profitability more than tripling in
7 years, resulting in over €1.5 billion in revenue and accounting for
approximately 80% of the group's profitability in 2022. Thus, Emanuel is well
placed to lead the Company through significant change and growth as it
delivers the Project into production for the benefit of its stakeholders.
His arrival adds new energy and a fresh approach to our corporate culture and
business practices as we look to press forward with the Project. As Savannah's
first Portuguese CEO, located in Lisbon, Emanuel can give Savannah the
constant, high level, presence in Portugal, which it has not fully enjoyed to
date. He will be prioritising our engagement with all Portuguese stakeholders
including national and local government and local communities. The Board and I
all look forward to working with him.
Mr Proença's appointment as CEO will initially be in a non-Board capacity but
the Company envisages that he will formally join Savannah's Board during H1
2024. In the interim, we have made two appointments to the Board as we look to
add individuals to our leadership team with the specific knowledge and
experience needed by a Company developing its first major natural resource
project. Over the next 2-3 years Savannah will be required to significantly
increase its interaction with all stakeholders including governments, service
providers, customers and communities, as well as effectively assessing and
executing financing and partnership options. Hence, we must have the
experience and capacity in our team to allow us to do this successfully.
As part of this scale up we welcomed Bruce Griffin as an additional,
independent Non-Executive Director. Bruce may be familiar to some shareholders
from the period he spent advising Savannah during its strategic review of its
Mutamba mineral sands project in 2021, which resulted in a successful
transaction with Rio Tinto. Bruce has over 20 years of mining sector
experience which crucially includes recent mining project construction. As the
Executive Chairman of Sheffield Resources Limited, Bruce is playing a key role
in commissioning the 10Mtpa Thunderbird minerals sands project in Australia,
which the Company has recently constructed with its 50/50 JV partner YGH
Australia Investment Pty Ltd (Yansteel).
Al Marjan Ltd ("Al Marjan"), Savannah's largest shareholder, also chose to
change its representative on the Board. We give our thanks to Imad Sultan who
is stepping down from the Board after seven years of valuable service and
contribution. We wish him well with his many other business interests. Going
forward, Al Marjan will be represented by Mohamed Sulaiman, Head of Strategy
at the Omani conglomerate business, Towell Group and the former lead for
Strategy and Performance at OQ, the Omani energy company. As with Bruce's
mining experience, Mohamed's experience in strategy leadership, including in
the energy sector, and his familiarity with directorship roles from the Boards
of other public and private companies will be invaluable to Savannah and we
look forward to his contribution.
Importantly we are not just adding strength to our executive and Board teams.
We are actively recruiting for roles to ensure delivery of the Project and
have recently recruited a project management expert, an Environmental Officer,
and a new group of geologists and technicians. This includes three new members
of staff from the local community, to be part of the team for the new field
programmes we are about to start as part of efforts to conclude both the
Environmental Licencing process and the DFS. It is an exciting and defining
time at Savannah, and I look forward to us continuing with our current
recruitment drive as we move to deliver the Project for our shareholders,
stakeholders and Portugal's economic benefit.
As Savannah delivered on its stated goals in the first half of the year, we
were pleased to see the share price responding positively, increasing by over
115% from the start of the year to reach its recent peak of 4.95p on 6 June
2023. However, we all recognise that the share price started from a low base
following the additional uncertainty placed on the Project by the Article 16
process between July 2022 and the end of May 2023. As I have highlighted
before, the Board believes the current share price remains wholly unreflective
of the underlying project value (e.g., NPV/share of 41p/share) and we continue
to flag this anomaly to investors whenever possible. Equally, our share price
and that of many of our direct peers has not been helped by the significant
correction experienced in lithium prices during the year to date and the wider
macroeconomic issues impacting capital markets recently.
Lithium raw material prices, including for spodumene concentrate, all fell by
over 40% during the first half of the year but this must be seen in the
context of the 1,200% to 2,000% increases seen in prices in the two years up
to November 2022. We must be prepared to expect such volatility in a small
volume commodity and speciality chemical market like lithium. On prices it is
important to note that, despite the correction, the current price of
US$2,750/t for spodumene remains nearly twice the average price we used in our
Scoping Study.
The recent downtrend was likely driven by the temporary slowdown in EV sales
in the first quarter of the year, cooling buying sentiment along the lithium
battery supply chain. This was predominantly the result of COVID lockdowns,
New Year celebrations and the removal of vehicle purchasing incentives in
China, the world's largest EV market, during January and February. Pleasingly,
sales have subsequently improved with EVvolumes.com reporting that over 6
million plug-in vehicles were sold globally in the first half of the year,
representing a 39% increase on the first half of 2022. Encouragingly, that
website is forecasting annual sales of 14 million plug-in vehicles for the
full year (+33% vs. 2022), implying an increase in sales of 33% for 2H 2023
over the first half.
While stock markets often tend to respond badly, and quickly, to falling
commodity prices, groups within the commodity sector in question usually
continue to take a much more pragmatic view, seeing strategic value in assets
based on a longer-term perspective. This is true in the lithium sector, and is
reflected in the amount of commercial interest we continue to receive about
the Project. Following the progress which we have made recently, I believe
that many in the lithium sector, and many keen to enter it, see significant
strategic value in a partnership with Savannah. Our job is now to identify
from the many groups who have approached us, a shortlist which are really
committed to helping make the Barroso Lithium Project a reality.
Furthermore, with Sibanye-Stillwater's integrated spodumene and lithium
hydroxide Keliber project now in construction in Finland and following the
publication of the European Commission's Critical Raw Material Act ('CRMA') in
March, lithium raw material production in Europe should be seen as a very
likely reality in coming years. Among a number of positive initiatives, the
CRMA calls for at least 10% of Europe's future demand for critical materials,
including lithium, to be met from domestic supply sources such as the Barroso
Lithium Project.
To sum up, given the progress we have made in the first half of the year, the
personnel we have added and the robust cash position we have, the Company can
move forward to deliver its plans with real confidence.
You will find further brief summaries of the major work streams and topics
below.
Barroso Lithium Project, Portugal
Environmental Licencing process
On 31 May Savannah announced the Portuguese environmental regulator ('APA')
had issued a positive Environmental Impact Statement, the DIA, on the Project.
This was the successful culmination of the Article 16 phase of the overall
Environmental Impact Assessment ('EIA') process which Savannah agreed to enter
in July 2022.
Achieving the DIA award is the most challenging part of the overall
environmental licencing process. We can now say that the regulator has agreed
to the design of the Project and that Savannah and APA have mutually agreed a
set of accompanying conditions for the Project's construction and operation.
For the remaining 'RECAPE' phase (the Environmental Compliance Report of the
Execution Project), we are required to produce a final design which complies
with the DIA and its associated conditions.
Completion of the Article 16 process and award of the DIA required a huge
effort by all our team and our consultants. Approval of the design shows that
we have successfully captured and responded to all of the feedback received
from APA, the groups on its evaluation committee, and other key stakeholders
during the Article 16 process. As a result, everyone can be assured that every
effort has been taken by all involved in the process to minimise the Project's
environmental and social impact while allowing the production of over 2.5
million tonnes of lithium-bearing concentrate which Europe so greatly needs
for its energy transition.
We are now underway with the work for the RECAPE phase, which we expect to
complete in the second half of 2024. The consultancy, Quadrante, a major
contributor to our successful DIA, has been awarded the contract for the
RECAPE work on the Project itself and we expect to award the contract for the
separate RECAPE on the new bypass road shortly.
Scoping Study
The new Scoping Study published in June 2023, the first in five years,
combined the DIA approved Mine Plan and Project design with a conservative
average spodumene price of US$1,464/t (5.5% Li(2)O grade) over the life of the
Project versus the current spot price of US$2,750/t (6% Li(2)O grade). I
believe the post-tax free cash flow of US$1.7 billion, net present value at an
8% discount rate of US$953m, internal rate of return of 77%, and payback
period of just 1.3 years, clearly demonstrate the outstanding economics of the
Project. Furthermore, it is satisfying for Savannah that this level of value
creation can be achieved while also: providing a tax and royalty income for
Portugal of over US$900m; generating over 300 new jobs; investing over US$40m
in infrastructure, which will either directly benefit local communities (e.g.,
the new bypass road) or further reduce the Project's impact for them; the
€0.5m/year which we have committed to providing to a new foundation focused
on funding community initiatives; and over US$100m in rehabilitation costs.
We now look forward to confirming the Project's potential in the Definitive
Feasibility Study, which our team is currently working on and which we expect
to complete in the second half of 2024. I hope this will give the market the
greater level of confidence it appears to need to allow more of the underlying
value of this Project (e.g., NPV/share of 41p) to be reflected in Savannah's
share price.
Definitive Feasibility Study & Decarbonisation Study
While we did not receive APA's positive decision on the Project until the end
of May, preparations were being made during the first half of the year for the
potential restart of work relating to the DFS. It is pleasing that work is
soon to get underway again with the restart of drilling on Savannah owned land
at the Project after a near four-year break. This is the first of two phases
of drilling, scheduled for around 6 months in total, focused on upgrading
existing mineral resources, providing further samples for metallurgical test
work and geotechnical drilling for the final open pit designs.
We were also pleased to announce recently that the DFS processing work package
was awarded to a collaboration between the plant construction experts Sedgman
Pty Ltd ('Sedgman') and the processing experts Minsol Engineering Pty Ltd
('Minsol'). Shareholders will be familiar with Minsol, which has already
played a key role in the Project, producing the plant's final processing
circuit design which combines conventional spodumene processing methodologies
with near neutral pH conditions and environmentally friendly reagents suitable
for use under Portuguese and European legislation. We look forward to building
a strong relationship with Sedgman, which will also see us working with their
sister company, the Spanish engineering group, DRAGADOS.
We look forward to awarding the contract for the DFS' infrastructure package
soon, following completion of that tendering process over the summer.
In parallel with the DFS, Savannah will also be continuing with its
decarbonisation study work. As announced in February, the initial study showed
that battery powered electric mining equipment will provide the most effective
and flexible means to reduce Scope 1 emissions at the Project to zero. It also
concluded that a number of viable options are available to secure 100%
renewable energy supply to the Project including regional solar and wind
generation, on market purchase, direct Power Purchase Agreements, or a
combination of these. Portugal's grid power already features a contribution
from renewables of over 70%, but use of 100% renewable energy would reduce the
Project's Scope 2 emissions to zero.
Over the next 12 months, Savannah and its consultants will conduct a more
detailed analysis of these and other initiatives and Studies, with a number of
mining equipment manufacturers to determine a site-specific solution for a
future transition to a battery-operated mining fleet as and when appropriate
equipment becomes available.
Savannah has also committed to reducing its Scope 3 emissions as much as
possible and looks forward to working with its future suppliers, customers and
haulage partners on that front.
Stakeholder Engagement
Management of the Project's social impact as well as effective sharing of its
socio-economic benefits with stakeholders was a major theme within the overall
environmental impact assessment process conducted by APA.
As a result, the 'Social Issues Scoping Report', written by Community Insights
Group ('Community Insights') and incorporating the views of local people about
the Project and Savannah, accompanied Savannah's revised EIA submission in
March alongside Savannah's proposed frameworks for its Benefit Sharing Plan,
its Good Neighbour Plan and its financial proposals to acquire access to land
required for the Project from two relevant Baldios Community groups in the
area (see Land acquisition and land access section below).
Stakeholder feedback collected by Community Insights during 2022 included
requests for more information on the Project. Therefore, to accompany the EIA
submission and public consultation period in the EIA process, Savannah held a
number of community meetings, produced two Community Information Sheets, 17
Fact Sheets and a new corporate video (the documents and video can be found on
Savannah's website and at our local Information Centres), all aimed at
explaining the key aspects of the new Barroso Lithium Project.
Savannah remains firmly committed to ongoing stakeholder engagement and
remains open for dialogue on any aspect of the Project which stakeholders
would like to discuss. There are also some formal actions which Savannah has
been requested to undertake in relation to the Project's stakeholders as part
of the RECAPE process. Community Insights has been selected to provide support
in responding to two elements within the RECAPE which relate to the Project's
interaction with local communities and stakeholders. Work is now underway on
these and is expected to take around 8 months to complete.
Commercial Discussions
As our shareholders will know, the Project contains the largest JORC (2012)
Compliant spodumene resource in Europe making it hugely strategic in the
continent's plans for a domestic lithium battery value chain. Savannah owns
100% of the Project with no offtake committed to date, giving it full leverage
to the potential value that can be created by advancing the Project in this
supportive environment.
While there has always been significant commercial interest in the Project,
following the endorsement of the DIA and publication of the new positive
Scoping Study, there has been additional interest received from groups 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. We expect to provide
an update on this later in the year.
Land acquisition & access arrangements
To develop the Project, Savannah must either own or have agreed access rights
to the land which is to be developed. Due to the distance of the Project from
the communities in the area, there is no requirement to purchase any houses or
other buildings from local people for the Project to progress. Nor is there a
requirement for any resident to leave their home. All agreements and proposed
agreements relate only to land.
From an extensive mapping exercise, Savannah estimates that the total area of
land that is required for the Project, spread across the Mining Lease, the
proposed road, and ancillary areas is approximately 840 hectares (8.4km(2))
with private landowners holding around 24% of the total. The remainder is
managed on behalf of the community by management groups ('Baldios'). The land
is spread across four parishes.
Since 2021, Savannah has been operating a land acquisition programme. To date
more than 40 private landowners have sold, or agreed to sell, their land to
Savannah and Savannah has acquired, or is in the process of acquiring, over 90
hectares of land in the local area for which it has paid approximately €1.8m
(including relevant taxes). Based on the attractive rates which Savannah is
offering, prior to mine construction the Company expects to spend
approximately €5m in total on acquisition of land identified to date, with
the money going directly to local people. Further investment on private land
will depend on matters including the progress of private property
identification and the completion of agreements.
Savannah has also engaged with the local Baldios communities from Covas do
Barroso and Dornelas, and presented financial proposals to access the Baldios
lands. The Company has benchmarked its offer against other relevant land
access agreement and transactions in Portugal and believes it to be a highly
attractive figure. For its total financial proposal, Savannah has added to its
land access fee, a royalty linked to the volume of spodumene concentrate
production and compensation for drilling platforms. Savannah is also offering:
direct payments to all the community members in the impacted parishes,
compensation for anyone losing agricultural grants as a result of the Project,
and financial support for the local firefighters. Overall, Savannah estimates
it will pay approximately €10m for access to the community lands managed by
the Baldios over the Project's life, with approximately €4m being paid
directly to community members.
Savannah remains open to discussions with private landowners, Baldios
representatives, and other stakeholders around its land acquisition programme
and land access proposals. The Company's preferred option is to secure the
land or access to the land it needs to develop the Project through direct
negotiation and agreement.
The 30-year Mining Lease granted in 2006 safeguards Savannah's access to land
that may be necessary for the development of the Barroso Lithium Project. This
condition applies to both private land and land managed by the representatives
of the Baldios. Despite the existing legal coverage, Savannah will always
favour direct agreement with the owners of the lands and representatives of
the Baldios. The Company will use the mechanisms provided in Portuguese law
but only when it is not possible to reach an agreement.
As shareholders will know, Savannah is committed to responsible land
management and will be comprehensively rehabilitating, relandscaping and
revegetating impacted areas during the operating life of the Project
(beginning in the second year of operation) and after it closes. At the end of
the Project's life, the land will be returned to the community for its own
use.
Legal Proceedings
The use of 'lawfare' is a common tool used by parties seeking to disrupt
project developments, and there are three such cases relating to the Project,
for which the Company has continued to provide updates when appropriate. Two
of these cases relate to challenges by the Parish of Covas do Barroso to the
Portuguese Government (including the environmental regulator, APA) and seek to
nullify administrative acts relating to changes to the C-100 mining lease
(which contains the BLP) and the grant of the DIA to the Project. In respect
of the former case, Savannah has contested the claim and is awaiting news from
the court, and in respect of the latter case, Savannah is preparing the
contestation which it shall submit to the court by the end of October 2023.
Importantly:
· the lawsuits do not impact the Company's activities at the
Project
· the C-100 mining lease is fully granted, has a term of 30 years
to 2036 and remains in good standing
· the DIA remains in force
· the advice from Savannah's lawyers is that the lawsuits are
without foundation.
A third case relates to the Management Commission of the Covas do Barroso
Baldios' challenge against certain private landowners and Savannah in respect
of some land packages at the Project which were purchased by Savannah. The
challenge relates to alleged minor land border disputes, and no date has been
set by the court for a preliminary hearing.
Financials
Despite continuing prudent cost management contributing to a 28% reduction in
administrative expenses to £1.4m during the period (30 June 2022: £1.9m),
Savannah recorded an 18% increase in net losses from continuing operations to
£1.5m (30 June 2022: £1.3m) due to a swing from a £0.6m exchange rate gain
in first half 2022 to a £0.1m exchange rate loss in the current period. The
Company finished the period with cash of £4.8m (30 June 2022: £9.4m) but
pro-forma cash reserves were subsequently increased to £11.4m in July 2023
via the successful completion of a £6.5m equity fundraise.
July's fundraise, which was successfully completed at 4.67p/share,
representing a discount of just 0.6% to the Company's closing share price the
day prior to its launch, combined three elements, a subscription, a placing
and, for the first time, an offer to private investors via the PrimaryBid
platform. Seeking to raise in excess of £5.8m, £6.1m was raised via the
subscription and placing with a number of existing shareholders taking part
including Savannah's two largest shareholders Al Marjan (now 15.1%) and
Slipstream Resources (now 8.1%) and members of the Board. Alongside
investments from our existing institutional shareholders, two natural resource
focused funds joining the register for the first time invested a total of
£3.4m. With good demand via the PrimaryBid offer raising a further £0.4m at
the same price, the gross total of £6.5m was achieved.
Outlook
The remainder of 2023 and 2024 is set to be another very busy and exciting
period for Savannah as our growing team, under the new leadership of Emanuel
Proença, look to take the Company towards a final investment decision on the
Barroso Lithium Project. To get there we must complete the Project's licencing
process and DFS, identify the strategic partners we wish to work with, and
leverage our valuable Project and its spodumene concentrate to attract the
finance we need for construction.
We will continue to secure the land or access to the land we need for the
Project, which we hope to do via negotiation and agreement with relevant
parties. This will be part of our wider stakeholder engagement programme
through which we aim to reach mutually beneficial resolution on how our
commitments to benefit sharing from the Project are tailored to the area's
specific needs, and then delivered.
We will also continue our efforts to have more of the Project's value
reflected in the Company's share price. Significant strides to de-risk the
Project have been made in the first half of 2023 and more are expected to
follow over the coming months. I remain hopeful that the backdrop to our
strong investment case will also improve with global EV sales expected to
accelerate in the second half of the year, which should in turn improve the
recent negative trend in lithium prices. Progress should be made in the
adoption of the European Commission's Critical Raw Materials Act, which is
targeting 10% of European demand to be met by domestic supply by 2030, and
hopefully wider sentiment in stock markets will also improve. I believe a
broader pool of investors should see a compelling backdrop to complement
Savannah's investment case. In the meantime, I would like to thank our old and
new shareholders alike for their ongoing support and enthusiasm for the
Company and its goal to become a major supplier of responsibly sourced lithium
raw material for Europe.
Matthew King
Chairman
Date: 28 September 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30
JUNE 2023
Unaudited Unaudited Audited
Six months to 30 June 2023 Six months to 30 June 2022 Year ended 31 December 2022
Notes £ £ £
CONTINUING OPERATIONS
Revenue - - -
Other Income - - -
Administrative Expenses (1,383,467) (1,932,032) (3,531,894)
Foreign Exchange (Loss) / Gain (148,008) 628,980 814,468
OPERATING LOSS (1,531,475) (1,303,052) (2,717,426)
Finance Income 32,588 341 34,695
Finance Costs - - (265)
LOSS FROM CONTINUING OPERATIONS BEFORE TAX (1,498,887) (1,302,711) (2,682,996)
Tax Expense - - -
LOSS FROM CONTINUING OPERATIONS AFTER TAX (1,498,887) (1,302,711) (2,682,996)
LOSS ON DISCONTINUED OPERATIONS NET OF TAX (48,060) (50,838) (176,396)
LOSS AFTER TAX ATTRIBUTABLE (1,546,947) (1,353,549) (2,859,392)
TO EQUITY OWNERS OF THE PARENT
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to Profit or Loss:
Net Change in Fair Value through Other Comprehensive Income of Equity (4,111) (13,844) (19,598)
Investments
Items that will or may be reclassified to Profit or Loss:
Exchange (Loss) / Gains arising on translation of foreign operations (414,958) 397,464 665,656
OTHER COMPREHENSIVE INCOME FOR THE PERIOD (419,069) 383,620 646,058
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY OWNERS OF THE (1,966,016) (969,929) (2,213,334)
PARENT
Loss per Share attributable to Equity Owners of the parent expressed in pence
per share:
Basic and Diluted
From Operations 3 (0.09) (0.08) (0.17)
From Continued Operations 3 (0.09) (0.08) (0.16)
From Discontinued Operations 3 (0.00) (0.00) (0.01)
The notes form part of this Interim Financial Report.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023
Unaudited Unaudited Audited
30 June 30 June 31 December
2023 2022 2022
Notes £ £ £
ASSETS
NON-CURRENT ASSETS
Intangible Assets 4 16,660,692 15,235,815 16,459,599
Right-of-Use Assets 14,515 18,052 17,627
Property, Plant and Equipment 5 1,598,389 1,366,935 1,583,944
Other Receivables 6 434,350 - 454,651
Other Non-Current Assets 7 92,398 74,863 77,667
TOTAL NON-CURRENT ASSETS 18,800,344 16,695,665 18,593,488
CURRENT ASSETS
Equity Instruments at FVTOCI 7,866 17,731 11,977
Trade and Other Receivables 6 408,502 1,035,356 560,060
Other Current Assets 7 395 18,211 1,036
Cash and Cash Equivalents 4,839,155 9,433,689 7,202,334
TOTAL CURRENT ASSETS 5,255,918 10,504,987 7,775,407
TOTAL ASSETS 24,056,262 27,200,652 26,368,895
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share Capital 9 16,889,598 16,889,598 16,889,598
Share Premium 41,693,178 41,693,178 41,693,178
Merger Reserve 6,683,000 6,683,000 6,683,000
Foreign Currency Reserve 211,972 358,738 626,930
Share Based Payment Reserve 495,612 425,019 403,749
FVTOCI Reserve (45,146) (35,281) (41,035)
Retained Earnings (42,546,826) (39,606,088) (40,999,879)
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 23,381,388 26,408,164 25,255,541
LIABILITIES
NON-CURRENT LIABILITIES
Lease Liabilities 9,306 11,051 12,263
TOTAL NON-CURRENT LIABILITIES 9,306 11,051 12,263
CURRENT LIABILITIES
Lease Liabilities 5,210 5,214 5,364
Trade and Other Payables 8 638,389 776,223 1,085,778
Other Current Liabilities 21,969 - 9,949
TOTAL CURRENT LIABILITIES 665,568 781,437 1,101,091
TOTAL LIABILITIES 674,874 792,488 1,113,354
TOTAL EQUITY AND LIABILITIES 24,056,262 27,200,652 26,368,895
The Interim Financial Report was approved by the Board of Directors on 28
September 2023 and was signed on its behalf by:
………………………………………………..
Dale Ferguson
Executive Director
Company number: 07307107
The notes form part of this Interim Financial Report.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE
2023
At 1 January 2022 Share Capital Share Premium Foreign Currency Reserve Share Based Payment Reserve FVTOCI Reserve Retained Earnings Total Equity
£ £ Merger Reserve £ £ £ £ £
£
16,889,598 41,693,178 6,683,000 (38,726) 305,095 (21,437) (38,284,665) 27,226,043
Loss for the period - - - - - - (1,353,549) (1,353,549)
Other Comprehensive Income - - - 397,464 - (13,844) - 383,620
Total Comprehensive Income for the period - - - 397,464 - (13,844) (1,353,549) (969,929)
Share Based Payment charges - - - - 152,050 - - 152,050
Lapse of Options - - - - (32,126) - 32,126 -
At 30 June 2022 16,889,598 41,693,178 6,683,000 358,738 425,019 (35,281) (39,606,088) 26,408,164
Loss for the period - - - - - - (1,505,843) (1,505,843)
Other Comprehensive Income - - - 268,192 - (5,754) - 262,438
Total Comprehensive Income for the period - - - 268,192 - (5,754) (1,505,843) (1,243,405)
Share Based Payment charges - - - - 90,782 - - 90,782
Lapse of Options - - - - (112,052) - 112,052 -
At 31 December 2022 16,889,598 41,693,178 6,683,000 626,930 403,749 (41,035) (40,999,879) 25,255,541
Loss for the period - - - - - - (1,546,947) (1,546,947)
Other Comprehensive Income - - - (414,958) - (4,111) - (419,069)
Total Comprehensive Income for the period - - - (414,958) - (4,111) (1,546,947) (1,966,016)
Share Based Payment charges - - - - 91,863 - - 91,863
At 30 June 2023 16,889,598 41,693,178 6,683,000 211,972 495,612 (45,146) (42,546,826) 23,381,388
The notes form part of this Interim Financial Report.
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2023
Notes Unaudited Six months to June 2023 Unaudited Six months to June 2022 Audited
£ £ Year ended December
2022
£
Cash Flows used in Operating Activities
Loss for the period (1,546,947) (1,353,549) (2,859,392)
Depreciation and Amortisation charges 5 5,472 12,137 23,456
Share Based Payments Reserve charge 91,863 152,050 242,832
Finance Income (32,588) (12,697) (34,695)
Finance Expense - 3,557 265
Exchange Losses / (Gains) 166,683 (628,090) (858,679)
Cash Flow from Operating Activities before changes in Working Capital (1,315,517) (1,826,592) (3,486,213)
Decrease / (Increase) in Trade and Other Receivables 137,471 (97,472) (78,217)
Decrease in Trade and Other Payables (396,205) (765,133) (538,972)
Net Cash used in Operating Activities (1,574,251) (2,689,197) (4,103,402)
Cash flow used in Investing Activities
Purchase of Intangible Exploration Assets 4 (607,380) (939,423) (1,771,821)
Purchase of Tangible Fixed Assets 5 (63,940) (665,952) (852,127)
Interest received 32,589 12,697 28,438
Proceeds from Relinquishment of the Rights and Obligations of Discontinued - 86,675 89,981
Operations
Net Cash used in Investing Activities (638,731) (1,506,003) (2,505,529)
Cash Flow used in Financing Activities
Principal paid on Lease Liabilities (2,605) (2,275) (5,022)
Interest paid - (3,557) (265)
Net Cash used in Financing Activities (2,605) (5,832) (5,287)
Decrease in Cash and Cash Equivalents (2,215,587) (4,201,032) (6,614,218)
Cash and Cash Equivalents at beginning of period 7,202,334 13,002,083 13,002,084
Exchange (Losses) / Gains on Cash and Cash Equivalents (147,592) 632,638 814,468
Cash and Cash Equivalents at end of period 4,839,155 9,433,689 7,202,334
The notes form part of this Interim Financial Report.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30
JUNE 2023
1. BASIS OF PREPARATION
The financial information set out in this report is based on the Consolidated
Financial Statements of Savannah Resources Plc (the 'Company') and its
subsidiary companies (together referred to as the 'Group'). The Interim
Financial Report of the Group for the six months ended 30 June 2023, which is
unaudited, was approved by the Board on 28 September 2023. The financial
information contained in this interim report does not constitute statutory
accounts as defined by s434 of the Companies Act 2006. The statutory accounts
for the year ended 31 December 2022 have been filed with the Registrar of
Companies. The Auditors' Report on those accounts was unqualified and did not
contain a statement under section 498 (2) or 498 (3) of the Companies Act
2006.
The financial information set out in this report has been prepared in
accordance with the accounting policies set out in the Annual Report and
Financial Statements of Savannah Resources Plc for the year ended 31 December
2022. New standards and amendments to IFRS effective as of 1 January 2023 have
been reviewed by the Group and there has been no material impact on the
financial information set out in this report as a result of these standards
and amendments.
The Group Interim Financial Report is presented in Pound Sterling.
Going Concern
In common with many mineral exploration companies, the Company has in the past
raised equity to fund its exploration activities and to date has not earned
any revenues from its exploration projects.
In July 2023 the Company raised £6.5m (before expenses), effectively at
market price, providing a pro-forma cash balance of £11.4m. The Company
confirmed that it would use this to focus on the completion of the DFS
drilling programmes, the Mineral Resource Estimate upgrade, the RECAPE
submission, the processing plant and infrastructure design, plus team
expansion and community relations development. The Directors prepared cash
flow forecasts for the period to December 2024. This indicates that additional
funding will be required in 2024 in order to fund through Final Investment
Decision and into Project construction. The Directors believe that following
the granting of the DIA the Group's Barroso Lithium Project and the
publication of the Company's new Scoping Study it is attractive to investors
and are confident that funding for the Project's development would be obtained
through options which may include equity, strategic partnership or offtake, in
a lithium market with a bright outlook as the green energy revolution is
driven by burgeoning EV demand and the increasing emergence of ESS (energy
storage systems).
While the Company has been successful at raising equity finance in the past,
and while the Directors are confident of raising additional funding should it
be required, their ability to do this is not completely within their control
and the lack of a binding agreement means there can be no certainty that the
additional funding required by the Group and the Company will be secured
within the necessary timescale. These conditions indicate the existence of a
material uncertainty which may cast significant doubt about the Group and the
Company's ability to continue as a Going Concern, and its ability to realise
its assets and discharge its liabilities in the normal course of business. The
Financial Statements do not include any adjustments that would result if the
Group and Company were unable to continue as a going concern.
2. SEGMENTAL REPORTING
The Group complies with IFRS 8 Operating Segments, which requires operating
segments to be identified on the basis of internal reports about components of
the Group that are regularly reviewed by the chief operating decision maker,
which the Company considers to be the Board of Directors. In the opinion of
the Directors, the operations of the Group are comprised of exploration and
development in Portugal, headquarter and corporate costs and the discontinued
operation in Mozambique.
Based on the Group's current stage of development there are no external
revenues associated to the segments detailed below. For exploration and
development in Portugal and the discontinued operation in Mozambique the
segments are calculated by the summation of the balances in the legal entities
which are readily identifiable to each of the segmental activities. Recharges
between segments are at cost (including transfer price charge) and included in
each segment below. Inter-company loans are eliminated to zero and not
included in each segment below.
Discontinued Operation Mozambique Mineral Sands (2) Portugal Lithium HQ and Corporate Elimination Total
£ £ £ £ £
Period 1 January 2023
to 30 June 2023
Revenue (1) - 429,358 321,171 (750,529) -
Interest Income - - 32,588 - 32,588
Share Based Payments - - (91,863) - (91,863)
Loss for the period (48,060) (571,419) (927,468) - (1,546,947)
Total Assets 601,133 18,694,198 4,760,931 - 24,056,262
Total Non-Current Assets 434,350 18,365,994 - - 18,800,344
Additions to Non-Current Assets - 638,991 - - 638,991
Total Current Assets 166,783 328,204 4,760,931 - 5,255,918
Total Liabilities (46,971) (237,496) (390,407) - (674,874)
Discontinued Operation
Mozambique Mineral Sands(2) Portugal Lithium HQ and Corporate Elimination Total
£ £ £ £ £
Period 1 July 2022
to 31 December 2022
Revenue (1) - 843,542 500,566 (1,344,108) -
Finance Costs - (265) - - (265)
Interest Income - - 34,354 - 34,354
Share Based Payments - - (394,882) - (394,882)
Loss for the period (125,558) (729,413) (650,872) - (1,505,843)
Total Assets 607,124 18,575,420 7,186,351 - 26,368,895
Total Non-Current Assets 456,490 18,130,222 6,776 - 18,593,488
Additions to Non-Current Assets 454,651 1,150,536 - - 1,605,187
Total Current Assets 150,635 445,197 7,179,575 - 7,775,407
Total Liabilities (111,567) (326,564) (675,223) - (1,113,354)
Discontinued Operation Portugal Lithium HQ and Corporate Elimination Total
Mozambique Mineral Sands(2)
£ £ £ £ £
Period 1 January 2022
to 30 June 2022
Revenue (1) - 1,065,095 471,016 (1,536,111) -
Finance Costs - - - - -
Interest Income - - 341 - 341
Share Based Payments - - (152,050) - (152,050)
Impairment of Assets - - - - -
Loss for the period (50,838) (932,463) (370,248) - (1,353,549)
Total Assets 752,409 17,298,526 9,149,717 - 27,200,652
Total Non-Current Assets 1,831 16,687,058 6,776 - 16,695,665
Additions to Non-Current Assets - 1,516,978 - - 1,516,978
Total Current Assets 750,578 611,468 9,142,941 - 10,504,987
Total Liabilities (96,113) (315,723) (380,652) - (792,488)
(1) Revenues included in the Portugal Lithium segment include £429,358 (31
December 2022: £843,542; 30 June 2022: £1,065,096) related to intercompany
recharges within this segment and therefore eliminated in the Elimination
column.
(2) This is including costs related to the Company's Mozambican subsidiary,
Matilda Minerals Lda.
3. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the
earnings attributable to the ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
In accordance with IAS 33 as the Group is reporting a
loss for both this and the preceding period the share options are not
considered dilutive because the exercise of share options and warrants would
have the effect of reducing the loss per share.
Reconciliations are set out below:
Unaudited Six months to 30 June 2023 Unaudited Six months to 30 June 2022 Audited Year ended 31 December 2022
Basic and Diluted Loss per Share:
Losses attributable to Ordinary Shareholders (£):
Total Loss for the period (£) (1,546,947) (1,353,549) (2,859,392)
Total Loss for the period from Continuing Operations (£) (1,498,887) (1,302,711) (2,682,996)
Total Loss for the period from Discontinued Operations (£) (48,060) (50,838) (176,396)
Weighted average number of shares (number) 1,688,959,820 1,688,959,820 1,688,959,820
Loss per Share - Total Loss for the period from Operations (£) (0.00092) (0.00080) (0.00169)
Loss per Share - Total Loss for the period from Continuing Operations (£) (0.00089) (0.00077) (0.00159)
Loss per Share - Total Loss for the period from Discontinued Operations (£) (0.00003) (0.00003) (0.00010)
4. INTANGIBLE ASSETS
Exploration and Evaluation Assets
£
Cost
At 1 January 2022 14,137,817
Additions 840,532
Exchange differences 257,466
At 30 June 2022 15,235,815
Additions 890,791
Exchange difference 332,993
At 31 December 2022 16,459,599
Additions 557,175
Exchange differences (356,082)
At 30 June 2023 16,660,692
Amortisation and Impairment
At 1 January 2022 -
At 30 June 2022 -
At 31 December 2022 -
At 30 June 2023 -
Net Book Value
At 30 June 2022 15,235,815
At 31 December 2022 16,459,599
At 30 June 2023 16,660,692
All Exploration and Evaluation Assets relate to the Barroso Lithium Project.
5. PROPERTY, PLANT AND EQUIPMENT
Motor Vehicles Office Equipment Land Total
£
Cost
At 1 January 2022 54,401 37,748 649,180 741,329
Additions - 8,068 657,884 665,952
Exchange differences 1,350 1,106 30,477 32,933
At 30 June 2022 55,751 46,922 1,337,541 1,440,214
Additions - 1,027 185,148 186,175
Exchange difference 1,604 1,259 37,127 39,990
At 31 December 2022 57,355 49,208 1,559,816 1,666,379
Additions - 1,521 62,419 63,940
Exchange differences (1,648) (4,197) (46,010) (51,855)
At 30 June 2023 55,707 46,532 1,576,225 1,678,464
Depreciation
At 1 January 2022 46,333 18,460 - 64,793
Charge for the period 5,767 971 - 6,738
Exchange differences 1,276 472 - 1,748
At 30 June 2022 53,376 19,903 - 73,279
Charge for the period 2,425 4,473 - 6,898
Exchange difference 1,554 704 - 2,258
At 31 December 2022 57,355 25,080 - 82,435
Charge for the period - 2,817 - 2,817
Exchange differences (1,648) (3,529) - (5,177)
At 30 June 2023 55,707 24,368 - 80,075
Net Book Value
At 30 June 2022 2,375 27,019 1,337,541 1,366,935
At 31 December 2022 - 24,128 1,559,816 1,583,944
At 30 June 2023 - 22,164 1,576,225 1,598,389
The additions in land reflect the land acquisition program that Savannah has
in place in Portugal to acquire the land required for the future development
of the Barroso Lithium project.
All Property, Plant and Equipment Assets relate to the Barroso Lithium
Project.
6. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
£ £ £
Non-Current
Other Receivables 434,350 - 454,651
Total Non-Current Trade and Other Receivables 434,350 - 454,651
Unaudited Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
£ £ £
Current
VAT Recoverable 125,078 109,117 155,205
Other Receivables 283,424 926,239 404,855
Total Current Trade and Other Receivables 408,502 1,035,356 560,060
7. OTHER CURRENT AND NON-CURRENT ASSETS
Unaudited Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
£ £ £
Non-Current
Guarantees 62,755 66,257 64,611
Other 29,643 8,606 13,056
Total Other Non-Current Assets 92,398 74,863 77,667
Current
Other 395 18,211 1,036
Total Other Current Assets 395 18,211 1,036
8. TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited
30 June 2023 30 June 2022 31 December 2022
£ £ £
Current
Trade Payables 392,612 276,820 618,805
Other Payables 16,385 54,646 56,745
Accruals 190,829 435,275 410,228
Taxes 38,563 9,482 -
Total Current Trade and Other Payables 638,389 776,223 1,085,778
9. SHARE CAPITAL
Six months to Six months to Six months to
30 June 2023 30 June 2022 31 December 2022
£0.01 ordinary shares number £ £0.01 ordinary shares number £ £0.01 ordinary shares number £
Allotted, issued and fully paid
At beginning of period 1,688,959,820 16,889,598 1,688,959,820 16,889,598 1,688,959,820 16,889,598
Issued during the period:
Share placement - - - - - -
At end of period 1,688,959,820 16,889,598 1,688,959,820 16,889,598 1,688,959,820 16,889,598
The par value of the Company's shares is £0.01.
10. GROUP CONTINGENT LIABILITIES
Details of contingent liabilities where the probability of future payments is
not considered remote are set out below, as well as details of contingent
liabilities, which although considered remote, the Directors consider should
be disclosed. The Directors are of the opinion that provisions are not
required in respect of these matters, as at the reporting date it is not
probable that a future sacrifice of economic benefits will be required and the
amount is not capable of reliable measurement.
Consideration payable in relation to the acquisition of
Mining Lease Application for lithium, feldspar and quartz (Portugal lithium
project)
In June 2019 the Company exercised its option to acquire a
Mining Lease Application for lithium, feldspar and quartz from private
Portuguese company, Aldeia & Irmão, S.A.. The total purchase price for
the acquisition is EUR €3,250,000 (~ GBP £2,794,000), which will only
become due once the Mining Lease Application has been granted and the Mining
Rights transferred to an entity within the Group, at which point the agreed
payment schedule will consist of an initial EUR €55,000 (~ GBP £47,000)
payment with the balance due in 71 equal monthly instalments. Upon delivery of
the request for transfer of the Mining Rights to an entity within the Group,
the Group shall provide with a bank guarantee of EUR €3,195,000 (~ GBP
£2,747,000) that will be reduced in accordance with the 71 monthly
instalments. As at 30 June 2023 the mining lease has not been granted.
Contingent tax liability in relation to the relinquishment of
the rights and obligations of discontinued operations in Mozambique
In October 2016 the Savannah Group and Rio Tinto entered into
a Consortium Agreement ('CA'), whereby both Savannah Group and Rio Tinto
combined their respective projects in Mozambique to form an unincorporated
consortium. On the 1 December 2021 Savannah signed a Deed of Termination
relating to the CA. Under the Deed of Termination, a compensation amounting to
$9.5m (£7.0m) cash was agreed (the "Transaction"). The advice received from
the Company's tax advisers was clear that the Transaction was not in scope for
tax under Mozambique law, and this continues to be the Company's and its
advisers' view. However, the Mozambican Tax Authority has indicated that it
considers that the Transaction is in scope for Mozambican tax. The Company is
working with its tax and legal advisers on this matter, and notes that in the
2021 Audited Consolidated Financial a gain on relinquishment of the rights and
obligations of discontinued operations in Mozambique of £627,078, was
recorded.
11. EVENTS AFTER THE REPORTING DATE
In July 2023 the Company approved a share placement and subscription of £6.5m
(before expenses) through the issue of 139,190,084 ordinary shares at an issue
price of 4.67 pence per share.
On 12 September 2023 the Company appointed two new Non-Executive Directors.
Bruce Griffin joined as an Independent Non-Executive Director, and Mohamed
Sulaiman joined as Non-Executive Director, replacing the retiring Imad Sultan
(Non-Executive Director) as the Board representative of Savannah's largest
shareholder, Al Marjan Ltd. Mohamed Sulaiman has become the Chairman of the
Board's Audit and Risk Committee and a member of the Nomination Committee, and
Bruce Griffin has become a member of the Remuneration Committee.
On 18 September 2023 Emanuel Proença was appointed as the Company's new Chief
Executive Officer.
It was with deep sadness that the Board of Savannah announced on 19 September
2023 the passing of Manohar Pundalik Shenoy, Non-Executive Director of the
Company. He also was Chairman of the Board's Audit and Risk Committee and
served on the Remuneration Committee.
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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For further information please visit www.savannahresources
(http://www.savannahresources) .com or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
Emanuel Proença, CEO
SP Angel Corporate Finance LLP (Nominated Advisor & Joint Broker) Tel: +44 20 3470 0470
David Hignell/ Charlie Bouverat (Corporate Finance)
Grant Barker/Abigail Wayne (Sales & Broking)
RBC Capital Markets (Joint Broker) Tel: +44 20 7653 4000
Farid Dadashev/ Jamil Miah
Tel: +44 20 3757 4980
Camarco (Financial PR)
Gordon Poole/ Emily Hall / Fergus Young
LPM (Portugal Media Relations) Tel: +351 218 508 110
Herminio Santos/ Jorge Coelho
About Savannah
Savannah Resources is a mineral resource development company and sole owner of
the Barroso Lithium Project in northern Portugal.
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. Through the Barroso Lithium Project, Savannah can help Portugal to
play an important role in providing a long-term, locally sourced, lithium raw
material supply for Europe's rapidly developing lithium battery value chain.
Production is targeted to begin in 2026, producing enough lithium for
approximately half a million vehicle battery packs per year.
The Company is listed and regulated on AIM and the Company's ordinary shares
are also available on the Quotation Board of the Frankfurt Stock Exchange
(FWB) under the symbol FWB: SAV, and the Börse Stuttgart (SWB) under the
ticker "SAV".
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