TIDMSAV
RNS Number : 5624D
Savannah Resources PLC
30 June 2021
30 June 2021
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or the
'Company')
Chairman's Statement for AGM
Savannah, the AIM quoted resource development company, announces
that at today's AGM Matthew King, the Company's Chairman, will make
the following statement.
"The Board and I very much look forward to opportunities to
interact directly with shareholders, so it is disappointing for all
of us that UK Government COVID-related guidelines make it necessary
for our 2021 AGM to be a closed meeting today. Fortunately, with
the vaccine programme now underway in the UK and internationally,
we can all be very hopeful that our next AGM will be an 'in person'
event once again.
"While the 'COVID world' has created so many challenges for us
all, the electric vehicle ('EV') market and, in turn, the lithium
sector have experienced a period of significant positive growth
against this difficult backdrop. The same is also true of
ESG-focused investing, which has been further complemented by the
commitment made to green initiatives by governments and the EU in
their post-COVID economic recovery planning. Despite the hard times
of the last year and the ongoing risks posed by COVID, which the
Company will look to mitigate wherever possible, Savannah is in a
strong operational and financial position moving into the second
half of 2021.
"In my view, Europe really epitomises the next phase of
evolution in both the EV and lithium markets and Savannah is
ideally placed to take advantage of this growth. In 2020 the
arrival of new, tighter, vehicle emission legislation in the EU
resulted in EV sales more than doubling to over 1 million units,
helped by greater model choice and government incentive schemes.
However, the European Commission is now very aware that it cannot
achieve the future levels of EV penetration needed to reach its
long-term emissions targets without securing the raw materials
required to support domestic battery and vehicle manufacturers. It
also understands that competition for these raw materials,
including lithium, is set to grow significantly as all major world
markets follow similar strategies. In summary, the improving market
trends established during 2H 2020, which have continued strongly
throughout 1H 2021, have brought the long-forecasted threat of a
lithium supply deficit into sharp relief for politicians and
end-users alike. The race to secure supply is well and truly
underway.
"In response to this near-term development of raw materials,
Europe has taken action. Lithium has been added to the European
Commission's Critical Raw Materials list and the European Raw
Materials Alliance was created to highlight and support the
development of raw material production projects in Europe. In our
view, these developments help to underline the Commission's belief
that Europe should develop domestic end-to-end value chains,
beginning with mining, for the materials critical for its economy.
This will reduce future supply risk and ensure that the carbon
footprint associated with the material entering the value chain is
reduced as much as possible. Lithium, anchored by projects like
Mina do Barroso, which is the most significant conventional lithium
mine development in Europe, is a prime example of this. We have
been greatly encouraged by the developments we have seen in this
value chain in the past year where a growing number of companies
are now evaluating the option of building lithium chemical
production capacity in Europe. With this development, it should be
possible for Mina do Barroso's lithium concentrate to be refined in
Europe, allowing Savannah to play its part in the production of
low-carbon, responsibly manufactured, domestic lithium-ion
batteries for use in Europe.
"At project level, good progress has been made over the last
year at Mina do Barroso, despite the impact of COVID. The
Environmental Impact Assessment ('EIA') review process has advanced
with the current public consultation phase due to finish in
mid-July, and we expect the process to reach the important
'Declaration of the Environmental Impact' stage in Q4 2021. Inputs
from the EIA are also required for the ongoing Definitive
Feasibility Study ('DFS') and though DFS-related fieldwork has been
difficult to undertake due to COVID-related restrictions excellent
progress has been made in Australia on the metallurgical test work
programme. Savannah remains firmly committed to completing the DFS
as quickly as the EIA process and COVID restrictions allow.
"With the spodumene lithium price now at recent highs of around
USD$800 per tonne, we are seeing commercial interest in the Project
increasing markedly and Savannah will look to leverage the far more
buoyant lithium market environment in our ongoing negotiations with
multiple parties in the second half of 2021.
"There is still much work to do at Mina do Barroso and it will
remain our main focus throughout 2021. We also plan to add to our
in-house team to have the skills and capacity we need for Mina do
Barroso's development. In addition, we are also aware of the
opportunity available to Savannah in the lithium sector given the
supply-demand fundamentals and the Company's position in the
European industry. Hence, we will be looking to add to our
portfolio of assets to build up a pipeline of lithium projects.
"In Mozambique, our team has been working to meet the
obligations of the Mining Licences including initiating EIAs and
other tasks. On a corporate front, the technical and corporate
review of the project initiated last year to identify a clear path
and structure for the project's development remains ongoing with
our partner, Rio Tinto. We hope to complete the review and action
its findings in the remainder of the year.
"In the face of challenges that none of us have experienced
before, I believe Savannah has managed its business and commitments
very well during the last 12 months. I would like to thank our
shareholders for their continuing support of the Company, and our
staff for their dedicated efforts under the difficult circumstances
created by COVID. Savannah now stands ready to leverage its strong
position in the rapidly developing European lithium sector over the
coming years. The remainder of 2021 is set to be a very busy and
exciting time for the Company as we continue to advance Mina do
Barroso, hopefully add to our lithium portfolio and define our
strategy around Mutamba with our partner, Rio Tinto. We look
forward to providing news on all these fronts in the months to
come."
Additional Information:
The pre-recorded shareholder presentation and Q&A webcast
will be accessible following the AGM on Wednesday 30 June 2021 at
11am (UK time) via the Company website and Proactive Investors
website .
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").
**ENDS**
Follow @SavannahRes on Twitter
Follow Savannah Resources on LinkedIn
For further information please visit www.savannahresources.com
or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
David Archer, CEO
SP Angel Corporate Finance LLP (Nominated Tel: +44 20 3470 0470
Advisor)
David Hignell / Charlie Bouverat
finnCap Ltd (Joint Broker) Tel: +44 20 7220 0500
Christopher Raggett/ Tim Redfern
WH Ireland Limited (Joint Broker) Tel: +44 20 7220 1698
Jessica Cave/ Matt Chan (Corporate Finance)
Adam Pollock/ Jasper Berry (Corporate
Broking)
Camarco (Financial PR) Tel: +44 20 3757 4980
Nick Hennis / Gordon Poole
About Savannah
Savannah is a diversified resources group (AIM: SAV) with two
development stage projects, Mina do Barroso, a hardrock lithium
project in Portugal which has the largest spodumene lithium
resource in Europe, and the world-class Mutamba Heavy Mineral Sands
Project in Mozambique, which is being developed in a consortium
with the global major, Rio Tinto. The Board is committed to serving
the interests of its shareholders and to delivering outcomes that
will improve the lives of the communities we work with and our
staff.
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".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCGZGZVZLFGMZZ
(END) Dow Jones Newswires
June 30, 2021 02:00 ET (06:00 GMT)
Savannah Resources (LSE:SAV)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Savannah Resources (LSE:SAV)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024