Savannah Resources PLC – SAV – Interim Results

Savannah Resources PLC – SAV – Interim Results

Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV), the resource development company, is pleased to announce its interim financial results for the six months ended 30 June 2020.

 

Highlights:

 

Corporate

·    Net loss from continuing operations 44% less than in first half 2019 at £1.1m. COVID-19 related cost saving measures contributed to first half 2020 Administration Expenses being 42% (£0.8m) lower than the same period in 2019.

·    Cash position at 30 June 2020 was £1.7m. Following significantly oversubscribed placing of £2.34m in September, proforma cash position as at 30 September was £3.2m

·   An impairment of £5.4m was recorded in anticipation of the sale of the Company's projects in Oman to Force Commodities resulting in an overall loss after tax of £6.5m

·  Measures taken in early March to mitigate COVID-19 impact on staff and stakeholders. Mitigation measures continuing with staff & stakeholder wellbeing a priority

 

Mina do Barroso, Portugal

Technical:

·   Environmental Impact Assessment (EIA) and Mine Plan (MP): Reports submitted to the regulator as part of the project approval process. Savannah now preparing responses to the regulator's recent additional information requests (as per the licencing process)

·   Metallurgical test work: Encouraging results received from battery chemical production test work on Mina do Barroso concentrate

·    Definitive Feasibility Study ('DFS'): Revisions made to the project's design for the EIA and MP to be fully assessed and incorporated into the DFS which is to be completed in 2021

Commercial:

·    Offtake and Strategic Partnerships: Negotiations continued around a life-of mine-lithium offtake and strategic project investment with a number of industrial counterparties

·     Agreement with EIT InnoEnergy: EU-linked group engaged to secure commercial partners and finance for Mina do Barroso as part of the European Commission's battery initiative

Community & Public/Government Relations:

·   Community engagement: Continued with COVID-related restrictions observed. The Benefit Sharing Plan was advanced and will be presented in the near future

·     Socio-economic impact report: The School of Economics and Management at the University of Minho, published a report highlighting the economic and social benefits Mina do Barroso could bring to the local and national economy

·    Public & government engagement: Increased awareness of the project through greater media, government and industry engagement through a range of channels and events

Mutamba Mineral Sands Projects, Mozambique

·    Third key, 25-year, Mining Licence (9228C) formally awarded. 4.4Bt Indicated and Inferred Mineral Resource now wholly covered by Mining Licences

·     Work on the project accelerated to ensure compliance with the requirements of the new licences and to re-activate the Pre-Feasibility Study

·      Farview Solutions appointed as strategic adviser to assist in identifying the best technical, economic and corporate development options for Mutamba

·      Ilmenite prices continued to increase during the first half of the year

Block 4 & Block 5 Copper Projects, Oman

·   Divestment of stakes in the copper joint ventures to ASX-listed Force Commodities announced 1 September following a strategic review of options available to Savannah

·    The transaction, which is expected to close shortly, gives Savannah long term, cost free, exposure to these projects

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