TIDMSAV
RNS Number : 5036A
Savannah Resources PLC
02 June 2021
2 June 2021
Savannah Resources Plc
('Savannah' or the 'Company')
Financial Results for the Year Ended 31 December 2020
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV), the
resource development company, is pleased to announce its audited
financial results for the year ended 31 December 2020.
2020 Summary:
Mina do Barroso Lithium Project, Portugal
-- Submitted the Project's Environmental Impact Assessment and
Mine Plan to the Portuguese authorities for the Environmental
Licencing process
-- Advanced negotiations around the Project's future commercialisation
-- Continued with the metallurgical test work programme in
Australia and desk-based project design tasks while field work was
restricted by COVID-19
-- Continued with widespread stakeholder engagement while observing COVID-19 restrictions
Mutamba Mineral Sands Project, Mozambique
-- Received the 3(rd) and final Mining Concession Licences
covering the project's 4.4Bt resource
-- Initiated work programmes to meet the Mining Licence obligations
-- Initiated a review to identify the best technical and
corporate development options available
Block 4 & 5 Copper Projects, Oman
-- Divested Savannah's majority stakes in these non-core assets
to ASX-listed Force Commodities Ltd; the transaction structure
gives Savannah ongoing exposure to the projects
Corporate
-- Introduced COVID secure working practices and additional
business mitigation measures to protect our staff, stakeholders and
the Group from the impacts of COVID-19
-- Qualified to receive support from the Business Investment
Platform initiative managed by EIT InnoEnergy, coordinator of the
European Commission's European Battery Alliance
-- Completed an oversubscribed GBP2.3m (gross) equity financing
-- Loss from continuing operations of GBP2.9m (2019: GBP3.6m);
overall loss including non-cash adjustment to intangible assets
associated with Oman divestment GBP8.3m (2019: GBP3.8m)
-- Year-end cash position of GBP2m
Subsequent Events & 2021 Outlook
Mina do Barroso Lithium Project, Portugal
-- Public consultation on the EIA initiated in April 2021; Key
milestone of 'Declaration of Environmental Impact' expected later
this year
-- Received increasing investment and offtake interest in
parallel with H1 2021 lithium price recovery; announced Heads of
Agreement ('HoA') on offtake and project-level investment announced
with Galp Energia SGPS, S.A ('Galp') in January 2021
-- Amid a backdrop of increased interest, the HoA expired on 31
May 2021, allowing Savannah to fully evaluate its strategic options
for the project against the improved market conditions
-- Subject to ongoing COVID-related restrictions, complete the
project's Definitive Feasibility Study in support of securing
construction financing
-- Adding to our in-house team in preparation for the development of Mina do Barroso
Mutamba Mineral Sands Project, Mozambique
-- Maintain the licences in good standing, complete the current
technical and corporate review and action its findings
Corporate
-- Completed an oversubscribed GBP10.3m (gross) equity financing in April 2021
-- Creating a Corporate Environmental and Social Management System ('ESMS')
-- Seeking to expand Savannah's interests in the lithium sector beyond Mina do Barroso
To view the press release with the illustrative maps and
diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5036A_1-2021-6-1.pdf
Availability of Annual Report and Financial Statements
Copies of the Company's full Annual Report and Financial
Statements are expected to be posted to shareholders shortly and
will also be made available to download today from the Company's
website www.savannahresources.com.
Annual General Meeting
The Company gives notice that its Annual General Meeting ('AGM')
will be a closed meeting due to UK Government COVID-19
restrictions, it will be held at 10:00 on 30 June 2021 at the
Company's registered office, Salisbury House, London Wall, London,
EC2M 5PS. As a result, shareholders will not be permitted to attend
the AGM in person and should therefore vote by proxy.
The Board continues to monitor the evolving COVID-19 situation
and the safety and security of our workforce and our shareholders
remains paramount. We appreciate that shareholders and their
corporate representatives or proxies may wish to raise questions
and comments, therefore the Company will hold a webcast meeting at
11:00 on 30 June 2021 which will include a short presentation from
David Archer, Chief Executive Officer. Shareholders are invited to
submit appropriate questions by email to info@savannahresources.com
by 17:00 (UK time) on 24 June 2021.
The formal notice of the 2021 AGM has been posted to
shareholders and is available to review on the Company's website
at
http://www.savannahresources.com/investor-relations/corporate-documents/.
Further details regarding the webcast will be made available in
due course.
Regulatory Information
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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 / Matthew Chan (Corporate
Finance)
Adam Pollock (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".
CHAIRMAN'S STATEMENT
The world is much changed since Savannah published its 2019
Annual Report. A number of these changes, such as record sales of
electric vehicles, lithium being added to the European Commission '
s critical raw materials list, and a 30% increase in the price of
spodumene, were extremely favourable for Savannah. However, 2020,
and now 2021 as well, are likely to be remembered for a single
event, the COVID-19 global pandemic. The rapid spread of this virus
around the world has significantly impacted all our lives with the
World Health Organisation reporting over 160 million cases and
nearly 3.4 million fatalities by 18 May 2021. It has been a truly
difficult and challenging period for us all. The Board of Savannah
and I hope that the toll on our shareholders, project stakeholders
and service providers has been as limited as possible. Savannah
introduced measures in early March 2020 to protect its staff,
stakeholders and the business itself from the direct and indirect
threats posed by the pandemic and has maintained these measures and
adhered to relevant laws and guidance ever since. In simple terms,
while some of our plans have been disrupted and delayed by the
pandemic, the impact on the Group could have been much worse.
The rapid development of multiple, highly effective, vaccines
and the subsequent initiation of a worldwide inoculation programme
in which over 1.4 billion vaccine doses have been administered to
date represents a huge achievement by all involved. It will
eventually bring an end to the restrictive conditions we are all
experiencing but worldwide ' normality ' remains some time away.
Hence Savannah must continue to prioritise the safety of its staff,
contractors and project stakeholders through mitigation planning
and adherence to guidance until restrictions are lifted. However,
we remain determined to push forward with our plans to drive
increased shareholder value.
COVID-related uncertainty will continue to be a risk factor for
the foreseeable future which we must continue to manage. In the
meantime, we are simply grateful that through the combination of
the efforts of our staff, ongoing shareholder support, and a
notable improvement in lithium prices and sentiment towards the
sector, Savannah looks set to enter the second half of 2021 in a
position of good corporate health. This is very important as the
remainder of the year is going to be a significant and exciting
period for the Group.
Before reviewing the developments made at each project, I wanted
briefly to touch on one major theme which has emerged during the
last 12 months that will have a direct bearing on our future
corporate behaviour and presents Savannah with an important
opportunity.
Corporate policies around Environmental, Social and Governance (
" ESG ") matters have been given increasing consideration by
institutional investors, industrial consumers and the public for
some time. However, during 2020, the importance of ESG
considerations reached a new level. For example Morningstar report
that inflows into ESG focused funds in Europe in 2020 was EUR
233bn, nearly twice the inflow reported in 2019 with asset managers
launching a record 505 new funds and repurposing a further 250
conventional funds. In the US, ESG investment vehicles received
nearly one quarter of all inflows into US funds and bonds during
the year (vs. just 1% in 2014). Meanwhile in the manufacturing,
industrial and retail sectors, corporates are placing significant
emphasis on traceability of raw materials and sourcing from
responsible producers.
Hence it now seems more important than ever that natural
resource projects are developed and operated in a responsible way,
prioritising ESG principles . If not, they risk failing to attract
the investment, commercial partners and social goodwill they need
to succeed. Pleasingly, Savannah is already well positioned to
respond to this trend, particularly given its starting point as a
group set to produce lithium, a raw material vital to the world ' s
efforts to reduce greenhouse gas emissions under exacting national
and EU standards.
Strong corporate governance has always been a particular focus
of mine, and I believe Savannah already ranks highly amongst its
direct listed peers on this front. Furthermore, it has always been
Savannah ' s policy to operate its projects to ensure their impact
on the environmental and society are reduced, mitigated against, or
wholly eliminated and that the socio-economic benefits associated
with a new project are shared with stakeholders.
To consolidate our ESG-related policies, Savannah has been
working since the start of the year with an experienced consultant
to review all our existing relevant protocols and add to them where
necessary to create an overarching Corporate Environmental and
Social Management System ( " ESMS "). The goal of the ESMS, based
on guidance from relevant international bodies and industry best
practice, is to create a comprehensive policy framework which
shapes our project-specific ESG-related policies. In this way
Savannah will be able to implement a uniform, well defined approach
to these critical issues across its assets. More information on our
recent ESG activities, including our Corporate Social
Responsibility programmes, can be found in the Corporate Social
Responsibility section.
Sales of plug-in electric vehicles set a new annual record in
2020 despite the impact of COVID-19.
Source: iStock
Portugal - Lithium
Our original work schedule for 2020, which included the target
of completing the Definitive Feasibility Study ("DFS") for the Mina
do Barroso Lithium Project in northeast Portugal, was heavily
impacted by COVID-related restrictions which began to take effect
in Portugal last March. Additionally, key features of the
development plan for the Project await a decision by the Portuguese
authorities on the current Environmental Impact Assessment and Mine
Plan. Nevertheless, Savannah made good progress on all the major
aspects of the Mina do Barroso Project ("Mina do Barroso", " MdB"
or the "Project") during the year.
On a commercial front, we entered discussions with an increasing
number of parties regarding product offtake agreements and/or
project-level investment as the year progressed and sentiment and
prices within the lithium sector improved. In January 2021 we
announced a non-binding Heads of Agreement ("HoA") with the
Portuguese energy major, Galp Energia, SGPS, S.A ("Galp"), in
relation to a potential offtake agreement for up to 100,000tpa of
spodumene lithium concentrate and a potential US$6.4m investment in
the Project company for a 10% shareholding in the enlarged Project
entity. During 2021 the continuing strengthening of lithium market
has resulted in the Company receiving further interest from groups
seeking to strategically undertake investment in the Project or
Savannah with or without requiring a spodumene offtake. This
interest reflects the increasing appetite for exposure to the
lithium value chain within the wider investment community which has
developed in parallel with the ongoing recovery in lithium prices.
Amid this backdrop the HoA expired on 31 May 2021 and any further
discussions with Galp in relation to a strategic investment and
offtake agreement will continue outside of the exclusive terms of
the HoA. Aided by our stronger financial position, following the
equity placing in April 2021, we are now in a position to evaluate
a wider range of commercial opportunities fully and move forward in
a way which maximises shareholder value while also ensuring a solid
foundation for the development of a new lithium industry in
Portugal. This evaluation of options may include alternative or
supplementary offtake contracts, with or without investment from
the offtaker(s) in Savannah or the project directly. It may also
result in strategic investments in the Company independent of
offtake, or the sale of a portion of the Mina do Barroso Project.
Much more negotiating will need to be done but from a commercial
perspective we believe Savannah is in a favourable position to
secure offtakes for all the Project ' s annual lithium production
and, if required, investments from strategic partners as well.
Any commercial arrangements made on the project must be
underpinned by its comprehensive technical design, the approval
process by the relevant authorities, and social licencing by
stakeholders.
Submission of the Project ' s Environmental Impact Assessment
and Mine Plan to the Portuguese Environmental Agency, Agê ncia
Portuguesa do Ambiente, ("APA") in June 2020 represented a very
significant effort by Savannah ' s technical team and our
consultants and marked the beginning of the key phase in the
amendments to the environmental licencing of the Project. After
initial reviews of the extensive material submitted, and requests
for additional information, APA declared the EIA ' to be in
conformity' with its requirements for the content of the documents
on 16 April 2021 with the follow up, public consultation stage,
initiated on 22 April 2021. This stage will continue through to 16
July 2021 having been extended by APA from its original closing
date of 2 June 2021. As I expressed in my opening remarks, Savannah
is firmly committed to its ESG responsibilities, and the
Environmental Impact Assessment ("EIA") contains some 238
individual measures to eliminate, mitigate or minimise the Project
' s impact.
In parallel, our commitment to act as a responsible corporate
citizen and to share with local stakeholders the many direct and
indirect benefits that a project like Mina do Barroso can bring has
been demonstrated by the Benefit Sharing Plan and Good Neighbour
Plan we created to accompany the EIA. We are keen to earn the
respect of the local communities through our efforts to integrate
the Project into everyday life in the area and by becoming a valued
member of local society for the long term. To achieve this, while
also providing Europe with the critical lithium raw material it
needs to reach its emissions reduction targets, would represent a
significant ' win-win'.
We have increased the pace of our metallurgical test work
programme in Australia, and our team have continued with desk-based
studies to refine key design parameters of the Project which will
be finalised in the DFS. Input for the final DFS will also come
from the current EIA process, as APA is required to make some
selections on various site layout options we were asked to provide
in our submissions. In addition to the current parameters of the
DFS, the team has already begun researching various ESG-related
enhancements to the Project which it may be possible to introduce
over time. This includes the use of an electric powered mining
fleet and sole use of renewable energy across the Project , either
drawn from the national grid (which already includes around 60%
renewable power) or from specific renewable sources. This would
significantly reduce the carbon footprint of our lithium and
increase its appeal to carbon conscious end users.
Savannah intends to power Mina do Barroso with northern
Portugal's abundant sources of renewable energy:
Source: Getty Images
As you will read in the CEO ' s statement, the lithium market
has been experiencing a significant recovery since the second half
of 2020 as the transition to electrified transport gathers ever
greater momentum. Savannah is already one of the leading players in
Europe ' s new lithium value chain and should now leverage its
hard-earned position to further expand its lithium supply business
in Europe to maintain and grow its future share of the market.
Hence, we plan to participate actively in the Portuguese Government
' s lithium exploration tender process which is now slated for
2022, and will use some of the funding from the recent placing to
assess other opportunities across the Iberian Peninsula.
Mozambique - Mineral Sands
There were three distinct parts to our work in Mozambique during
2020 but all were underpinned by the same long-term goal of adding
value to the globally significant Mutamba Minerals Sands Project.
Under the restrictions created by COVID-19, our in-country team
worked diligently towards fulfilling the commitments created by the
newly awarded Mining Licences. We also continued with our ESG
activities and government relations which have given Savannah and
Mutamba good standing in the country. Finally, with ilmenite prices
remaining robust, we initiated a wholesale review of the project to
clarify both the most appropriate development option for Mutamba
and how to distil more of its inherent value for Savannah ' s
shareholders.
On the ground, the award of the last of the three key 25-year
Mining Licences in January 2020, committed Savannah to ensuring
compliance with the licence requirements and gave us the basis on
which to restart the technical analysis on the Project after the
long licence approval process. To this end, prior to COVID--related
restrictions impacting on field activities in the Spring of 2020,
our local team and its consultants successfully demarcated the
boundaries of the licences. Following that, successful competitive
tenders were held to select consultants to work on securing land
use and utilisation agreements (DUATs) with the relevant
landowners, and to complete EIAs on each of the licences. As a
result, work on the DUATs is well underway, with the EIA work also
now initiated.
The wholesale project review we started last October, led by the
highly experienced mineral sands specialist, Bruce Griffin of
Farview Solutions, is continuing in collaboration with our project
partner, Rio Tinto. A portion of the funds raised recently will be
used to maintain the project, finalise the review work and execute
its findings. This should ensure that Mutamba ' s future and its
true value can be clarified for the benefit of our shareholders and
the other stakeholders in the project.
Oman
Following a strategic review of Savannah ' s exposure to the
Block 4 and 5 copper projects in Oman, we concluded the divestment
of our shareholdings in these assets to ASX-listed Force
Commodities Ltd ( " Force ") last November. Savannah received 50m
new fully paid ordinary shares in Force (46m net of shares used to
settle transaction costs) and will receive preferential payment of
AUD$3.5m in cash from an existing loan out of cash flow generated
from production on Block 5, and payment of a 1.0% net smelter
royalty on any future metal sales from Block 4 and/or Block 5. The
Board considered this to be the most attractive option available at
the end of the strategic review period as it gave Savannah ongoing
exposure to these assets in a favourable copper market, while
entirely removing the Group ' s direct commitment of time and
resources to these non-core projects.
Corporate
Savannah ' s position as a key market participant in the
European lithium value chain was reaffirmed last May by its
selection to receive support from the Business Investment Platform
initiative managed by EIT InnoEnergy, the group appointed by the
European Commission to catalyse the industrialisation of the
battery sector in Europe and manage the European Battery Alliance.
Savannah has played an increasingly active role in the European
Battery Alliance in the past year, presenting at two of its recent
meetings, including representing battery raw material producers at
the second meeting of high-level industrial actors attended by EC
Vice-President Maroš efčovič in March 2021. Government-level
relations have also been well maintained in Portugal as has our
good relationship with the British Embassy in Lisbon, and the
British High Commission in Mozambique.
In addition to our key corporate objective of implementing our
ESMS during 2021, we also hope to add to our existing team. As we
move towards construction and eventual production in Portugal it is
going to be vital to have the capacity as well as the experience
within our team to deal with the many complexities involved in
these phases. We look forward to announcing new members of the
executive team in due course.
Financial Overview
I explained in my interim results statement, that the 2020
accounts reflect the dual influences of the cost control measures
put in place by the Board to mitigate against potential disruptions
caused by the COVID-19 situation, and the treatment of the
divestment of the Oman assets. Instigation of the additional cost
control measures in March 2020 helped to reduce Savannah ' s annual
operating loss in 2020 by approximately 18% to GBP2.96m (2019:
GBP3.60m) with the loss from continuing operations reduced by an
equal percentage to GBP2.92m (2019: GBP3.57m). In contrast the
non-cash adjustment to our intangible asset base associated with
the Oman divestment meant that losses on discontinued operations
were GBP 5.40m (2019: GBP0.23m) which resulted in an overall loss
for the period of GBP8.33m (2019: GBP3.80m). Due to COVID-19
related restrictions and our cost control programme, exploration
spending was reduced by 60% to GBP1.58m (2019: GBP3.89m) which,
along with the oversubscribed GBP2.34m placing completed last
September, contributed to the Group ' s year end cash position of
GBP2.0m (2019: GBP3.48m).
Post year end, the Group ' s cash balance was subsequently
significantly increased by the oversubscribed placing completed in
April 2021 which raised a further GBP10.3m before expenses. Hence
we believe the Company has the necessary financial reserves to
advance Mina do Barroso towards development, maintain the Mutamba
project and execute the actions from the current review, and
undertake project acquisition and exploration to expand its lithium
portfolio.
Outlook
Despite the ongoing disruptions to our working practices caused
by COVID-19, the outlook for Savannah is very promising. Electric
vehicle sales have continued to grow in the first quarter of 2021 ,
lithium prices have rebounded, interest in our flagship project and
its spodumene concentrate have increased and the Group is in a
strong financial position. In the remainder of the year in
Portugal, we expect to further advance the commercial framework
around Mina do Barroso, receive approval for the Project's EIA,
complete the DFS and expand our lithium project portfolio. In
Mozambique we will undertake the fundamental work required to
maintain the valuable Mining Licences and conclude and action the
findings of the current review.
In 2020 all senior management and remunerated Board members
voluntarily agreed to a temporary 20% reduction in salaries as part
of the cost-saving measures taken in response to the pandemic, as
described in more detail in Note 3 in the financial statements.
These measures have enabled your company to navigate through a
period of exceptional uncertainty. Moreover, despite these very
difficult circumstances management have achieved some key
objectives that have put Savannah in a favourable and exciting
position for its future development.
My thanks also go to all our shareholders, both old and new. We
understand that Savannah is in a very competitive global investment
marketplace and we are grateful for your ongoing support and for
sharing our vision and values. It remains our firm goal to grow
Savannah into a valuable business based on responsible and
sustainable practices which benefit our shareholders and other
stakeholders alike.
Matthew King
Chairman
Date: 1 June 2021
CHIEF EXECUTIVE'S REPORT
As our Chairman has highlighted, while COVID has dominated the
world ' s agenda and all our lives during the past twelve months,
Savannah was able to make meaningful progress with its project
portfolio. Furthermore, beneath the overbearing presence of the
virus, the economic, political and investment landscape around
Savannah and its flagship project Mina do Barroso has, I believe,
moved in a significant and positive way. Now, with the addition of
the funding provided by both existing and new shareholders in our
April placing, Savannah can move forward with confidence and fully
grasp the opportunity that now presents itself to us in Europe's
fast-growing lithium sector.
As set out in my report in last year ' s annual results our main
goals for the year at Mina do Barroso were to complete and submit
the Project ' s EIA and associated reports to the Portuguese
authorities, finalise the DFS, and conclude offtake agreements. We
were delighted to achieve the first of these goals last summer and,
after some follow up information requests from the authorities, the
EIA is now at the public consultation phase of the approval
process. Unfortunately this longer than expected EIA process and
the pandemic moved the completion of the DFS into 2021, but work
completed for the EIA submissions can be used in the DFS, and we
were able to advance other inputs to the DFS, such as metallurgical
test work. We also achieved the commercial goal of a Heads of
Agreement with a potential offtaker, believed to be the first
announced for a European lithium project. The HoA expired on 31 May
2021 and discussions in relation to a strategic investment and
offtake agreement will continue outside of the exclusivity
provisions of the HoA. Such discussions will continue with the
favourable backdrop of the much-improved commercial environment
which has appeared in the lithium sector since the turn of this
year. As a result, we believe Savannah can achieve significantly
better terms for its shareholders.
On the ground in Mozambique, we focused our efforts on working
towards meeting the requirements of the 25-year Mining Licences we
were so pleased to be awarded in late 2019 and early 2020. At a
corporate level, we are determined to clarify the future of Mutamba
for our shareholders and its stakeholders. As one of the world ' s
largest undeveloped projects in a commodity sector where prices
have continued to rise and the outlook is favourable, the lack of
recognition of the project ' s strategic and economic value is a
frustration for all and represents a missed opportunity. We are
working, under expert guidance, and with our partner Rio Tinto, to
bring resolution on this project in a meaningful timeframe.
While we work to provide a clear path forward for Mutamba, we
did achieve this on our copper projects in Oman during the year,
concluding a divestment deal which allows Savannah to retain
exposure to these assets without any further commitment. The Board
believe the transaction represented a welcome outcome for Savannah
given the smaller scale nature of the projects. By removing the
commitment of management ' s time and resources to these non-core
projects we have had more capacity to deal with our higher priority
projects, particularly Mina do Barroso, and I ' m sure this will
continue to stand us in good stead as the commitment required grows
greater as we move towards development.
Portugal
Given the socio-economic impact caused by COVID, it is of
particular note that the prevailing market forecasts I highlighted
to you in my report last year all became reality. 2019 was a
transitional year in the auto industry to far greater Electric
Vehicle ("EV") penetration in 2020 and the difficult conditions in
the lithium supply industry caused by inventory buildup and low
prices were ' growing pains ' . However, back in the uncertain days
of the first half of 2020, it was extremely difficult for anyone to
have real confidence that electric vehicle sales, along with all
vehicle sales, were not going to suffer a year-on-year decline
because of the pandemic. Or that this would not further increase
the inventory of lithium that existed at that point and further
depress prices which had been falling since the second half of
2018.
The record shows, however, that the exact opposite happened,
albeit with a very heavy weighting on the second half of the year.
Website EV-volumes.com reports global sales of plug-in electric
vehicles rose by 43% year-on-year in 2020, passing 3 million units
for the first time, while overall vehicle sales fell by 14%.
Furthermore, the growth in sales was dominated by Europe (1.4m,
+137% y-o-y), which overtook China (1.3m, +12%) as the largest EV
market as the combination of the first year of new EU emissions
legislation and significant government subsidies on EVs married
automakers' desire to sell EVs with greater consumer appetite to
buy them. As EV sales accelerated from July onwards, so did demand
for battery grade lithium raw materials. As residual inventory was
consumed, lithium prices began to recover led by the domestic
lithium carbonate price in China. The price of this key lithium
chemical has subsequently more than doubled. Other lithium product
prices subsequently also began to recover. The spodumene price for
example, which is of such importance to Savannah, bottomed out in
the 4 (th) quarter of 2020 just below US$400/t and has since risen
by around 80% to be close to US$700/t in mid-May.
European Annual Plug-in Vehicle Sales & Market Share:
Source: EV-volumes.com
We cannot expect lithium prices to continue to rise
indefinitely, but this change in market dynamic and sentiment has
had a very positive impact on the lithium raw materials industry.
The average share price performance for a large group of lithium
equities over the last 12 months has been an increase of 437%.
Given their far better market valuations, listed lithium companies
have raised over US$3 bn in equity since the start of 2021. The
additional capital raised will go some way to financing the
expansion of existing projects and construction of new projects
required if supply is going to satisfy future demand. However, back
in June 2019, Galaxy Resources estimated that US$9 bn of investment
was needed to construct the extra production capacity required, and
demand forecasts have only increased since then. As market
commentators such as Benchmark Minerals highlight, even with all
probable and possible future supply developments, a deficit in the
lithium market is still expected from as early as 2023.
The supply-demand outlook for lithium to 2025:
Source: Benchmark Mineral Intelligence
It has taken some time, but it now appears that mid and
downstream participants in the global lithium battery value chain,
as well as legislators, are now cognisant of the fact that supply
of critical battery raw materials is going to have a major bearing
on the success of the planned e-mobility transition. Nowhere is
this growing awareness more evident than in Europe. The region has
become the largest and fastest growing market for EVs and the
European Commission expects the region ' s demand for lithium to
increase 18x by 2030. It is also focused on becoming the world ' s
second largest lithium battery manufacturing base with the capacity
of the region ' s domestic battery manufacturing industry forecast
to grow more than 10x over the current decade (reaching 610GW by
2030, source: Bloomberg NEF). However, at present it has no
domestic production of lithium battery raw materials such as
spodumene concentrate or lithium chemicals. Remembering that all
the world ' s major economies are trying to make the same
e-mobility transition at the same time using the same lithium
battery technology, and that the battery industry is already
dominated by China, it is easy to see that Europe must do all it
can to produce its own battery raw materials. Hence, we were
delighted last September when lithium was added to the European
Commission's list of materials critical to its economic stability
and growth. We also welcomed the creation of the European Raw
Materials Alliance, a sister organisation to the European Battery
Alliance, which is dedicated to supporting the creation of a
domestic, sustainable, critical raw material production
industry.
Given the expected growth rates, it is unlikely that Europe will
be able to wholly satisfy its own demand for battery raw materials
from domestic sources. However, by producing as much of its own raw
materials as possible, Europe will be able to partially reduce the
supply risk faced by its major downstream consumers, who are so
important to the overall European economy. Domestic production will
also supplement the Commission ' s goals on lowering
transport-related emissions by reducing the carbon footprint
associated with importing these materials from distant producers.
In addition, domestic end users will be able to take confidence in
the fact that these materials have been produced in a responsible
way by suppliers operating under stringent EU laws.
Clearly this backdrop is extremely favourable for Savannah and
its development of Mina do Barroso, and the situation is made even
more promising by the significant increase in interest in ESG
considerations which our Chairman has highlighted in detail in his
statement.
In practical terms, what these changing market dynamics have
meant for Savannah is both a notable increase in commercial
inquiries about our future spodumene concentrate production, and a
marked increase in the number of groups evaluating the option of
building lithium chemical plants in Europe requiring spodumene
feedstock. Where previously our only option appeared to be shipping
our concentrate to Asia for conversion into chemicals, operating
conversion capacity within Europe in the 2020s now seems likely.
Furthermore, we are very aware that the Portuguese Government would
like to establish a new lithium industry in the country as part of
its economic diversification and recovery plans post COVID. In
summary, we believe that there is more than enough demand to ensure
that Mina do Barroso ' s concentrate can be fully committed, and
that interest in strategic investment in Savannah from relevant
parties exists if required.
While this economic and commercial framework continues to drop
into place around us, we have remained very busy in country moving
the Project forward as best as we can under the restrictions
created by COVID. As I say, the submission and subsequent
progression of the EIA through the approval process has been one of
the significant achievements for the Group in the last 12 months.
It has required a very substantial effort by our team and our
consultants for which I am very grateful.
The current public consultation phase allows our stakeholders
their first real opportunity to see the extensive planning we have
undertaken for the Project and the ongoing commitments we are
making to its management and to them. Our key intent is to
responsibly develop Mina do Barroso such that Mina do Barroso ' s
impact on everyday life in the nearby villages and the environment
is not only minimised, but that the Project is used as a catalyst
for significant socio-economic growth in the area, which has been
suffered from a falling population for a number of decades due to
the lack of employment opportunities locally.
Last July, Professors Cerejeira and Carballo --Cruz from the
School of Economics and Management at the prestigious University of
Minho, published a report which highlighted the very compelling
economic, social and demographic benefits the Mina do Barroso
Project could bring both to the local region, and to the Portuguese
economy as a whole. For example, the Professors estimated that the
jobs created at the Project would represent a 9% (17% including
contract workers) increase in the number of private sector jobs in
the Boticas Municipality. The study also calculated that the
Municipality would see a 133% increase in its annual tax revenues
once the project was in operation, excluding any further income it
could receive through sharing in the Government ' s 3% royalty on
revenues from the Project. Beyond highlighting the compelling
economic benefits for the local authorities, the Professors also
made recommendations to the national and local authorities in
Portugal, the European Commission, and ourselves regarding the
opportunity presented by the Project and how these benefits could
best be shared with local stakeholders.
We have taken these ideas on board and combined them with our
own analysis and input from other stakeholders and produced our
Benefit Sharing Plan and Good Neighbour Plan, which were included
as part of our EIA submission. We believe these two plans, more
details of which can be found in the Corporate Social
Responsibility section, represent an excellent opportunity for the
local communities, local businesses and local institutions to share
in the long term social and economic opportunity that the Project
represents. As our Chairman has said, we want the Mina do Barroso
Project, Savannah and its current and future staff to become valued
members of the local community.
Looking east across the Grandao orebody:
Source: Company
Looking at practical activities on the Project during the
remainder of the year; the public consultation stage of the EIA
approval process is due to finish in mid-July. Assuming, the
remaining parts of the review run as expected, we hope that APA
will be in a position to issue the 'Environmental Impact
Declaration' or 'DIA' later this summer. This will not complete the
EIA process, but will be a defining point in the Project ' s
overall approval. While that process continues, we will refocus our
efforts on the DFS, including the ongoing metallurgical work in
Australia which returned some very encouraging results recently
around use of Dense Media Separation. Some inputs from the
finalised EIA as well as access to the field for resource/reserve
and geotechnical drilling are required for completion of the DFS.
Assuming these factors go in our favour, and contractor
availability is also good, we hope to complete the DFS by year end,
but as we highlighted in the April placing this will be subject to
any further COVID or EIA related aspects.
As I have said, we also expect to advance potential commercial
agreements so that we can provide clarity about our future revenue
streams to project finance providers and other potential providers
of construction finance when we move to that stage in the process
next year. With that stage in mind, it is also the right time to
start adding to our project team at all levels, including those
experienced at managing project construction processes in
Portugal.
We will also initiate studies on enhancing the Project ' s ESG
credentials and further reducing its carbon footprint. This will
include evaluating the use of an electric mining fleet, and we have
already entered discussions with several new and established
equipment providers. We will also evaluate powering the project
solely with renewable power, potentially from new or existing
locally dedicated renewable sources.
Savannah will evaluate the use of an electric mining fleet at
Mina do Barroso:
Source: Behault Mining
No doubt Mina do Barroso is going to keep us extremely busy in
the remainder of 2021 and beyond, it is our flagship asset and our
best opportunity to become cash generative. It also has significant
exploration upside. However, it should not be our sole focus in the
European lithium sector. Such is the opportunity now that we should
be looking to increase our exposure to this sector to generate more
shareholder value and a pipeline of projects which will help to
maintain Savannah as a major player in the European lithium space
for a long time to come. To this end, a portion of the funds we
raised recently are to be dedicated to growing our lithium
business, primarily in the Iberian Peninsula. We are awaiting the
Portuguese Government ' s lithium exploration tender and intend to
be very active in that process once it is initiated. We are also
looking at other early-stage opportunities, including across the
border in Spain.
Mozambique
As the Chairman and I have flagged, there is a strong desire
internally to give the Mutamba Project clear direction and a new
lease of life. As a significant project in the mineral sands sector
it deserves greater recognition in the industry and in the capital
markets than it currently receives, and our shareholders and the
project ' s stakeholders also need clarity. A portion of the funds
raised recently will be used to maintain our work on the ground
whilst we, our experienced consultant, and Rio Tinto work together
to plot an appropriate course for Mutamba. No doubt it is a
valuable strategic asset. We will look to complete our current
review and actions its findings in the remainder of the year.
Sample collection taking place on the Mutamba Project,
Mozambique:
Source: Company
Summary
The global impact of COVID-19 has resulted in a year like no
other in recent times. Thanks to the highly dedicated efforts of
its staff in these difficult circumstances, Savannah finds itself
in a promising position as the world starts its rehabilitation and
long-term recovery from the pandemic. I pass on my thanks and best
wishes to all our shareholders and stakeholders and hope that we
can all enjoy more 'normal' times very soon.
David Archer
Chief Executive Officer
Date: 1 June 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31
DECEMBER 2020
2020 2019*
GBP GBP
CONTINUING OPERATIONS
Revenue - -
Other Income 26,099 35,325
Administrative Expenses (2,988,663) (3,633,672)
OPERATING LOSS (2,962,564) (3,598,347)
Finance Income 38,747 25,621
Finance Costs (765) (1,528)
------------- -------------
LOSS FROM CONTINUING OPERATIONS BEFORE
AND AFTER TAX (2,924,582) (3,574,254)
LOSS ON DISCONTINUED OPERATIONS BEFORE
AND AFTER TAX (5,401,176) (227,672)
------------- -------------
LOSS BEFORE AND AFTER TAX ATTRIBUTABLE
TO EQUITY OWNERS OF THE PARENT (8,325,758) (3,801,926)
------------- -------------
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified
to profit or loss:
Net change in Fair Value Through Other
Comprehensive Income of Equity Investments 320,151 2,496
Items that will or may be reclassified
to profit or loss:
Exchange Losses arising on translation
of foreign operations (163,284) (609,228)
------------- -------------
OTHER COMPREHENSIVE INCOME / (LOSS)
FOR THE YEAR 156,867 (606,732)
------------- -------------
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
ATTRIBUTABLE TO EQUITY OWNERS OF THE
PARENT (8,168,891) (4,408,658)
============= =============
Loss per share attributable to equity
owners of the parent expressed in pence
per share:
Basic and diluted
From Operations (0.62) (0.36)
From Continued Operations (0.22) (0.34)
From Discontinued Operations (0.40) (0.02)
* The disclosures as at 31 December 2019 have been re-presented
so that the operations that are discontinued at the end of the 2020
financial year are classified as discontinued.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER
2020
2020 2019
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible Assets 17,246,222 21,068,376
Right-of-Use Assets 21,709 37,785
Other Intangible Assets 6,682 10,804
Property, Plant and Equipment 973,528 1,337,229
Other Non-Current Assets 73,530 248,275
Bank Deposits 590,175 742,363
-------------- --------------
TOTAL NON-CURRENT ASSETS 18,911,846 23,444,832
-------------- --------------
CURRENT ASSETS
Equity instruments at FVTOCI 606,245 36,762
Trade and Other Receivables 194,301 285,699
Other Current Assets 13,670 19,171
Cash and Cash Equivalents 2,000,209 3,484,781
-------------- --------------
TOTAL CURRENT ASSETS 2,814,425 3,826,413
TOTAL ASSETS 21,726,271 27,271,245
============== ==============
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share Capital 14,309,910 12,974,598
Share Premium 34,474,884 33,511,787
Merger Reserve 6,683,000 6,683,000
Foreign Currency Reserve (193,541) (30,257)
Warrant Reserve 12,157 975,679
Share Based Payment Reserve 393,865 410,121
FVTOCI Reserve 276,712 (43,439)
Retained Earnings (35,450,713) (28,163,712)
-------------- --------------
TOTAL EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE PARENT 20,506,274 26,317,777
-------------- --------------
LIABILITIES
NON-CURRENT LIABILITIES
Lease Liabilities 1,130 12,059
-------------- --------------
TOTAL NON-CURRENT LIABILITIES 1,130 12,059
-------------- --------------
CURRENT LIABILITIES
Lease Liabilities 11,608 18,990
Trade and Other Payables 1,207,259 922,419
-------------- --------------
TOTAL CURRENT LIABILITIES 1,218,867 941,409
-------------- --------------
TOTAL LIABILITIES 1,219,997 953,468
-------------- --------------
TOTAL EQUITY AND LIABILITIES 21,726,271 27,271,245
============== ==============
The Financial Statements were approved and authorised for issue
by the Board of Directors on 1 June 2021 and were signed on its
behalf by:
David Archer
Chief Executive Officer
Company number: 07307107
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER
2020
2020 2019
GBP GBP
ASSETS
NON-CURRENT ASSETS
Investments in Subsidiaries 621,582 894,993
Other Intangible Asset 5,948 5,948
Other Receivables 32,995,016 33,265,297
Other Non-Current Assets 6,776 41,068
------------- --------------
TOTAL NON-CURRENT ASSETS 33,629,322 34,207,306
------------- --------------
CURRENT ASSETS
Equity instruments at FVTOCI 604,136 33,935
Trade and Other Receivables 47,908 70,338
Cash and Cash Equivalents 1,237,876 3,277,943
------------- --------------
TOTAL CURRENT ASSETS 1,889,920 3,382,216
TOTAL ASSETS 35,519,242 37,589,522
============= ==============
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share Capital 14,309,910 12,974,598
Share Premium 34,474,884 33,511,787
Merger Reserve 6,683,000 6,683,000
Warrant Reserve 12,157 975,679
Share Based Payment Reserve 393,865 410,121
FVTOCI Reserve 276,712 (43,439)
Retained Earnings (21,455,793) (17,341,234)
TOTAL EQUITY 34,694,735 37,170,512
------------- --------------
LIABILITIES
CURRENT LIABILITIES
Trade and Other Payables 824,507 419,010
TOTAL LIABILITIES 824,507 419,010
------------- --------------
TOTAL EQUITY AND LIABILITIES 35,519,242 37,589,522
============= ==============
The Company total comprehensive loss for the financial year was
GBP4,833,165 (2019: GBP4,598,068).
The Financial Statements were approved and authorised for issue
by the Board of Directors on 1 June 2021 and were signed on its
behalf by:
David Archer
Chief Executive Officer
Company number: 07307107
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31
DECEMBER 2020
Share
Foreign Based
Share Share Merger Currency Warrant Payment FVTOCI Retained Total
Capital Premium Reserve Reserve Reserve Reserve Reserve Earnings Equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 8,814,518 31,060,554 - 579,126 1,000,221 508,051 (58,737) (16,485,626) 25,418,107
------------------ ------------ ------------ ----------- ----------- ----------- ----------- ---------- -------------- -------------
Loss for the
year - - - - - - - (3,801,926) (3,801,926)
Other
Comprehensive
Income - - - (609,383) - - 15,298 (12,802) (606,887)
------------ ------------ ----------- ----------- ----------- ----------- ---------- -------------- -------------
Total
Comprehensive
Income for the
year - - - (609,383) - - 15,298 (3,814,728) (4,408,813)
Issue of share
capital (net
of expenses) 2,500,000 2,326,400 - - - - - - 4,826,400
Consideration
for
acquisition of
non-controlling
interest 1,630,000 - 6,683,000 - - - - (8,019,000) 294,000
Consideration
for
settlement
deferred
consideration 30,080 124,833 - - - - - - 154,913
Share based
payment
charges - - - - - 33,170 - - 33,170
Lapse of options - - - - - (131,100) - 131,100 -
Lapse of
warrants - - - - (24,542) - - 24,542 -
------------ ------------ ----------- ----------- ----------- ----------- ---------- -------------- -------------
At 31 December
2019 12,974,598 33,511,787 6,683,000 (30,257) 975,679 410,121 (43,439) (28,163,712) 26,317,777
------------------ ------------ ------------ ----------- ----------- ----------- ----------- ---------- -------------- -------------
Loss for the
year - - - - - - - (8,325,758) (8,325,758)
Other
Comprehensive
Income - - - (163,284) - - 320,151 - 156,867
------------------ ------------ ------------ ----------- ----------- ----------- ----------- ---------- -------------- -------------
Total
Comprehensive
Income for the
year - - - (163,284) - - 320,151 (8,325,758) (8,168,891)
Issue of share
capital (net
of expenses) 1,300,113 920,537 - - - - - - 2,220,650
Shares issued
in lieu 20,199 16,160 - - - - - - 36,359
Share based
payment
charges - - - - - 58,979 - - 58,979
Exercise of
options 15,000 26,400 - - - (16,650) - 16,650 41,400
Lapse of options - - - - - (58,585) - 58,585 -
Lapse of (963,
warrants - - - - 522) - - 963,522 -
At 31 December
2020 14,309,910 34,474,884 6,683,000 (193,541) 12,157 393,865 276,712 (35,450,713) 20,506,274
================== ============ ============ =========== =========== =========== =========== ========== ============== =============
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.
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 Gains/losses arising on retranslating
Reserve the net assets of
group operations into Pound Sterling.
Warrant Reserve Fair value of the warrants issued.
Share Based Represents the accumulated balance of share based payment
Payment Reserve 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 YEARED 31
DECEMBER 2020
Share
Based
Share Share Merger Warrant Payment FVTOCI Retained Total
Capital Premium Reserve Reserve Reserve Reserve Earnings Equity
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 8,814,518 31,060,554 - 1,000,221 508,051 (58,737) (12,883,510) 28,441,097
------------------ ------------ ------------ ----------- ----------- ----------- ---------- -------------- -------------
Loss for the
year - - - - - - (4,600,564) (4,600,564)
Other
Comprehensive
Income - - - - - 15,298 (12,802) 2,496
------------------
Total
Comprehensive
Income for the
year - - - - - 15,298 (4,613,366) (4,598,068)
Issue of share
capital (net
of expenses) 2,500,000 2,326,400 - - - - - 4,826,400
Consideration
for
acquisition of
non-controlling
interest 1,630,000 - 6,683,000 - - - - 8,313,000
Consideration
for
settlement
deferred
consideration 30,080 124,833 - - - - - 154,913
Share based
payment
charges - - - - 33,170 - - 33,170
Lapse of options - - - - (131,100) - 131,100 -
Lapse of
warrants - - - (24,542) - - 24,542 -
------------------ ------------ ------------ ----------- ----------- ----------- ---------- -------------- -------------
At 31 December
2019 12,974,598 33,511,787 6,683,000 975,679 410,121 (43,439) (17,341,234) 37,170,512
------------------ ------------ ------------ ----------- ----------- ----------- ---------- -------------- -------------
Loss for the
year - - - - - - (5,153,316) (5,153,316)
Other
Comprehensive
Income - - - - - 320,151 - 320,151
Total
Comprehensive
Income for the
year - - - - - 320,151 (5,153,316) (4,833,165)
Issue of share
capital (net
of expenses) 1,300,113 920,537 - - - - - 2,220,650
Shares issued
in lieu 20,199 16,160 - - - - 36,359
Share based
payment
charges - - - - 58,979 - - 58,979
Exercise of
options 15,000 26,400 - - (16,650) - 16,650 41,400
Lapse of options - - - - (58,585) - 58,585 -
Lapse of
warrants - - - (963,522) - - 963,522 -
At 31 December
2020 14,309,910 34,474,884 6,683,000 12,157 393,865 276,712 (21,455,793) 34,694,735
================== ============ ============ =========== =========== =========== ========== ============== =============
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.
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.
Warrant Reserve Fair value of the warrants issued.
Share Based Represents the accumulated balance of share based payment
Payment Reserve 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 YEARED 31 DECEMBER
2020
2020 2019
GBP GBP
Cash flows used in operating activities
Loss for the year (8,325,758) (3,801,926)
Depreciation and amortisation
charges 44,663 40,872
Share based payment charge 58,979 33,170
Shares issued in lieu of payments
to suppliers 36,359 -
Finance income (38,747) (25,621)
Finance expense 765 1,528
Exchange losses / (gains) (37,580) 196,229
Loss on sale of discontinued operations 5,373,633 -
Cash flow from operating activities
before changes
in working capital (2,887,686) (3,555,748)
Decrease in trade and other receivables 176,312 254,550
Increase/(Decrease) in trade and
other payables 443,541 (589,705)
------------- -------------
Net cash used in operating activities (2,267,833) (3,890,903)
------------- -------------
Cash flow used in investing activities
Purchase of intangible exploration
assets (1,577,532) (4,169,238)
Purchase of other intangible assets - (1,278)
Purchase of tangible fixed assets (2,721) (21,296)
Purchase of investments - (28,371)
Proceeds from sale of investments 3,272 12,112
Bank deposits for mining licences 57,319 (742,363)
Interest received 38,747 25,621
Proceeds from sale of discontinued
operations 27,543 -
Net cash used in investing activities (1,453,372) (4,924,813)
Cash flow from financing activities
Proceeds from issues of ordinary
shares (net of expenses) 2,220,650 4,826,400
Proceeds from exercise of share
options 41,400 -
Principal paid on lease liabilities (18,310) (20,488)
Interest paid on lease liabilities (765) (1,528)
Net cash from financing activities 2,242,975 4,804,384
Decrease in Cash and Cash Equivalents (1,478,230) (4,011,332)
Cash and Cash Equivalents at beginning
of year 3,484,781 7,715,435
Exchange losses on cash and cash
equivalents (6,342) (219,322)
Cash and Cash Equivalents at end
of year 2,000,209 3,484,781
============= =============
COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER
2020
2020 2019
GBP GBP
Cash flows used in operating activities
Loss for the year (5,153,316) (4,600,564)
Impairment of financial assets (404,684) 1,035,627
Share based payment reserve charge 58,979 33,170
Shares issued in lieu of payments
to extinguish liabilities 36,359 -
Finance income (4,819) (25,514)
Exchange losses / (gains) (1,289,781) 1,718,168
Loss on sale of subsidiaries 5,438,172 -
------------ -------------
Cash flow from operating activities
before changes
in working capital (1,319,090) (1,839,113)
Decrease in trade and other receivables 258,071 182,233
Increase/(Decrease) in trade and
other payables 439,527 (512,038)
------------ -------------
Net cash used in operating activities (621,492) (2,168,918)
------------ -------------
Cash flow used in investing activities
Investment in subsidiaries (36,180) (27,195)
Loans to subsidiaries (3,658,442) (6,512,623)
Purchase of investments - (26,326)
Proceeds from sale of investments - 12,112
Proceeds from sale of subsidiaries 27,543 -
Interest received 4,819 25,514
Net cash used in investing activities (3,662,260) (6,528,518)
------------ -------------
Cash flow from financing activities
Proceeds from issues of ordinary
shares (net of expenses) 2,220,650 4,826,400
Proceeds from exercise of share
options 41,400 -
Net cash from financing activities 2,262,050 4,826,400
------------ -------------
Decrease in Cash and Cash Equivalents (2,021,702) (3,871,036)
Cash and Cash Equivalents at beginning
of year 3,277,943 7,368,469
Exchange losses on cash and cash
equivalents (18,365) (219,490)
Cash and Cash Equivalents at end
of year 1,237,876 3,277,943
============ =============
** ENDS **
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
FR DDGDLDDGDGBB
(END) Dow Jones Newswires
June 02, 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