TIDMSAV
RNS Number : 5256M
Savannah Resources PLC
22 September 2021
22 September 2021
Savannah Resources Plc
Interim Results
Savannah Resources plc (the "Company" or "Savannah"), the
European lithium development company, is pleased to announce its
interim financial results for the six months ended 30 June
2021.
First half and recent highlights include:
Corporate
-- Cash balance: Stood at GBP9.7m as at 30 June (31 December
2020: GBP2.0m) after the oversubscribed placing completed in April
2021, raising gross proceeds of GBP10.3m
-- Net loss from continuing operations: Reported at GBP1.4m
(2020: GBP1.1m). The total attributable loss reduced to GBP1.2m
(2020: GBP6.0m) as there was no repeat of the non-cash write-down
(GBP5.5m) associated with the Oman project divestment
-- Corporate Environmental and Social Management System
("ESMS"): Initiated our Corporate ESMS which is being aligned with
internationally recognised ESG standards
-- Recruitment: To support the Company's continued growth, key
new staff with a range of skills have been added to our project and
corporate teams in Portugal and the UK respectively
-- COVID-19: Mitigation measures continued with staff and stakeholder wellbeing a priority
Mina do Barroso, Portugal
Technical:
-- Environmental Impact Assessment ("EIA"): The Portuguese
environmental regulator extended the public consultation phase of
the review from 2 June 2021 to 16 July 2021. We understand the
regulator is now reviewing the submissions received and we expect
to receive news on the EIA review process in the final quarter of
2021
-- Lab and Field work: Lab-based process design work continued
in Australia throughout the period. We expect to be able to return
to meaningful fieldwork before the end of the year following the
lifting of COVID-related restrictions
-- Definitive Feasibility Study ("DFS"): The DFS is now expected
to be completed in 2022 following ongoing COVID-restrictions on
fieldwork and the definition of EIA requirements from the ongoing
EIA process
Commercial:
-- Offtake and Investment: Encouraging discussions were ongoing
with multiple, well credentialed commercial counterparties during
the period and are continuing into the 2H 2021. Useful precedents
have been set by the significant number of offtake, investment and
M&A transactions in the lithium sector in the year to date
-- EV sales: EV-volumes.com reported global 1H 2021 EV sales of
2.65m units (+168% vs. 1H 2020) including 1m vehicles sold in
Europe. Full year sales forecast at 6.4m units (2020: 3.2m
units)
-- Lithium prices: 1H 2021 lithium chemical prices in China rose
on average by 80% vs. year-end 2020 and spodumene prices doubled to
around US$800/t (source: S&P Global Platts). On 14 September
2021, Pilbara Minerals achieved a price of over US$2,200/t for 5.5%
spodumene concentrate at its second online auction
-- Partnerships: Savannah became a founding member of the
Portuguese Association for the Battery Cluster, created to maximise
Portugal's potential across the battery value chain and promoting
the country as a future leader in European lithium production
Public and Government Relations:
-- Local stakeholder engagement: Savannah continued to engage
and inform the local community about the Project through multiple
channels; support was also maintained for local ventures and
services
-- Wider stakeholder engagement: As travel restrictions eased,
interaction with civil society, business and academic leaders, and
journalists was stepped up. We expect to increase our market and
stakeholder engagement activities in the remainder of the year
-- Post-COVID Government funding: Savannah is currently
assessing the possibility of applying for funding from the
Portuguese Government following approval of the country's EUR16.6bn
Recovery & Resilience facility funding by the European
Commission
Mutamba Minerals Sands Project, Mozambique
-- Fieldwork and studies: Continued during the period dominated
by landowner identification and communication programmes,
collecting a bulk sample for metallurgical test work by Rio Tinto,
and initiating baseline studies for the EIA on each licence
-- Business review: A comprehensive review of the project's
technical parameters and its future corporate positioning has been
undertaken since last October. We remain on track to inform
shareholders of the outcome of this review by year end.
CHAIRMAN'S STATEMENT
Savannah has continued to establish its position in the new
European lithium value chain effectively, despite the ongoing
challenges posed by the COVID pandemic during the first half of
2021. Forecasts of a significant lithium shortage by the middle of
this decade and associated higher prices have been in the market
for some years but it is still remarkable how rapidly this market
has tightened, and prices have risen since late last year. Growing
EV uptake is underpinning lithium's recovery with global first half
sales, as reported by EV-volumes.com, reaching 2.65m units (+168%
vs. 1H20), including over 1m vehicles sold in Europe and 1.15m in
China. Lithium chemical prices in China rose on average by 80% in
the first half while spodumene prices in Australia doubled to
around US$800/t (source: S&P Global Platts). Savannah was able
to utilise this step change in the market to complete an
oversubscribed placing to new and existing shareholders to provide
greater working capital for the exciting period that lies ahead. We
were also able to broaden our commercial negotiations with multiple
parties all keen to secure exposure to Mina do Barroso's
lithium.
With EV sales expected to accelerate during the second half of
the year to reach 6.4m units, almost double 2020's annual sales,
and scant lithium inventory available, prices have continued to
rise in the second half of the year. Lithium chemical prices in
China are now up on average 170% versus. December 2020, and the
price of Australian spodumene concentrate as reported by Pilbara
Minerals at its second online auction on 14 September is more than
460% higher at over US$2,200/t. Shareholders will remember that our
2018 Scoping Study on Mina do Barroso assumed an average sales
price for spodumene of US$685/t, so from an economic perspective,
the future of Mina do Barroso looks ever brighter. Our focus
therefore remains on turning that potential into reality and
developing the project in a responsible manner which minimises its
impact and shares economic and other benefits with local
communities.
With the COVID-restrictions now easing, we look forward to
getting back in the field to resume gathering the data we need to
complete the Definitive Feasibility Study ("DFS"). To this end, we
have added to our in-country technical team. We are also aware that
the technical robustness of the project is only one factor in our
future success, and that we must work equally hard to ensure
sufficient support for the project among the key stakeholder
groups. Hence, we have added capacity to our governmental and
public relations efforts in Portugal and expanded our investor
relations and media team in the UK. I take this opportunity to
welcome our new staff members and advisers to the Savannah family
and we look forward to announcing more appointments as we continue
to grow the business and move towards construction and production
in Portugal.
In Mozambique, we remain active on the ground as we continue to
progress the key tasks as the joint venture with Rio Tinto moves
the project forward towards development. We have been also
voluntarily playing our part in the in-country COVID vaccination
programme and have maintained our strong links with our stakeholder
communities and key administrators.
Overarching our work on each project is the progress we are
making in formalising, expanding and equalising our Corporate
Social Responsibility ("CSR") and Environmental, Social &
Governance ("ESG") activities through our Corporate Environmental
and Social Management System ("ESMS") which we announced in May.
Savannah has always made a firm commitment to CSR but by
formalising our efforts across the Company we will be best placed
not only to deliver effective CSR programmes for our project
stakeholders but also effectively measure our performance and
therefore meet and surpass the expectations of investors and
lenders who are increasingly focusing on these parameters.
Mina do Barroso, Portugal
At Mina do Barroso during the first half of the year, we
continued to move ever closer to the next three major project
milestones: the Environmental Impact Assessment ("EIA"), an offtake
agreement, and the DFS. COVID restrictions aside, the Board and I
acknowledge that reaching these milestones is taking longer than we
had first envisaged. However, Mina do Barroso and its significant
lithium production represents a wholly new endeavour for Portugal,
the European Union, and Savannah. Hence, it is vital that the
project is executed in a way that demonstrates that this new
industry is one that can be conducted responsibly, and which brings
far-reaching benefits. There can be no doubt that the recent price
movements in lithium which I have already highlighted, give a clear
indication of how important it is for Europe to begin to develop
its domestic supply of such critical raw materials if it is to meet
its own long term energy transition and climate change goals.
Regarding the EIA, as we flagged in the 2020 Annual Report,
Agência Portuguesa do Ambiente ("APA"), the Portuguese
environmental regulator, revised the closing date for the public
consultation phase of the review programme from 2 June 2021 to 16
July 2021. We welcomed the opportunity for all interested parties
to register their views on the project and will respond to APA as
quickly and comprehensively as we can if it requests any further
information from us. We understand APA is now reviewing the
submissions received and we expect to receive news on the EIA
review process in the final quarter of 2021. Should we receive a
'Declaration of the Environmental Impact' this milestone won't
represent the conclusion of the environmental licencing process as
approval of detailed final designs is subsequently required, but it
will demonstrate the Regulator's satisfaction with the project's
operating parameters and Savannah's innovative plans to eliminate,
mitigate and manage any environmental and social impacts, and to
utilise the project to create meaningful long-term benefits for
stakeholders throughout Portugal and beyond.
As we have highlighted previously, conducting the outstanding
fieldwork required for the DFS has been severely impacted by
COVID-related restrictions in the past 18 months. Pleasingly, as
restrictions lift and contractor availability improves, we expect
to be able to return to meaningful field work before the end of the
year. We have also talked previously about the need for APA to
state its preferences on several features of the project on which
it required Savannah to present it with options in our EIA
submission. Until these decisions are made as part of the EIA
approval process, Savannah won't be able to fully finalise the
project design and encapsulate that in the DFS. A brighter point
for the DFS's progression has been the lab-based process design
work in Australia which has been continuing with little disruption
throughout the period. Overall, however, after much effort
internally to revise and rework the DFS schedule, shareholders
should expect its conclusion next year and not by the end of 2021
as previously guided. Alongside the DFS we have also begun to
engage with Portugal's leading power companies around the provision
of wholly renewable energy to the project and some leading
manufacturers of mobile mining plant and equipment regarding the
potential to supply electrically powered units to the project in
the future.
While referring to fieldwork, I am also pleased to report that
our programme of land acquisition across the C-100 Mining Lease
area which covers the project has progressed well since the turn of
the year and will be continuing alongside our other project
commitments for the remainder of 2021 and beyond. We have been
delighted to be able to strike mutually beneficial agreements with
a number of local landowners which will allow Savannah to own,
manage and remediate these areas responsibly during the project's
life, before returning them to the community once the project has
ceased operating.
On a commercial front, buoyed by the much stronger lithium price
environment, encouraging discussions are ongoing around offtake and
associated investment with multiple, well credentialed
counterparties. This includes with Galp Energia, SGPS, S.A.
("Galp") and other European and non-European industrial groups. A
significant number of offtake, investment and M&A transactions
have been completed in the lithium sector during the year to date
which set useful precedents for Savannah in its own commercial
discussions. We hope to bring more news on the project's future
commercial arrangements later in the year.
Away from the project itself, we continue to consolidate our
position in Portugal's commercial and political spheres as we
receive growing recognition for the critical position Savannah will
play as the main supplier of raw material to the country's much
anticipated new lithium industry. In June we announced that we had
become a founding member of the new Portuguese Association for the
Battery Cluster which brings together a large group of industrial,
academic and government bodies to work together to develop a new
lithium-ion battery industry in Portugal under the co-ordination of
the International Nanotechnology Laboratory.
Portugal has also been the first country to have its post-COVID
Recovery and Resilience facility funding plan approved by the
European Commission with EUR2.2bn of the EUR16.6bn package already
received. With nearly EUR1bn of this package earmarked for business
innovation and green agendas, Savannah is currently assessing the
possibility of applying for funding from this facility to put
towards the project's capital expenditure.
With travel restrictions now easing, David Archer, our CEO, has
been spending an extended period of time on the ground in Portugal
in recent weeks working closely with our in-country team and our
public and governmental relationship advisers. This has resulted in
a series of meetings with key government officials, leaders from
the business and academic communities, potential commercial
partners and journalists from national and international
publications. We expect to increase our marketing and stakeholder
engagement activities still further in the remainder of the
year.
We continue to believe that our proposals for the development
and operation of Mina do Barroso combined with our proposals around
sharing the project's economic and social benefits with
stakeholders represent a modern and responsible approach to
managing the production of a raw material essential to the
transition to cleaner energy provision and reduced
transport-related greenhouse gas emissions. The Portuguese
Government has stated its desire to create a new lithium industry
in the country based on its enviable resources of the mineral and
the European Commission, through its 2020 Action Plan on Critical
Raw Materials, has set forward its target of securing access to
reliable sources of raw materials to support Europe's Green Deal
and to maintain Europe's leadership in technologies of the future.
Savannah would be delighted to be part of making these targets into
a reality.
Mineral Sands Project, Mozambique
As I outlined in my statement in the 2020 Annual Results in
June, there are three elements to Savannah's work on the Mutamba
Minerals sands project in Mozambique; licence-related studies and
fieldwork; our engagement programmes; and the business and project
review.
Despite ongoing COVID-related restrictions and cases amongst our
own staff, work on the ground has continued (with appropriate
safety protocols) as we seek to ensure compliance with the
requirements set by the Mining Licences the consortium was awarded
in late 2019 and early 2020. Identification and communication with
relevant landowners to secure land use and utilisation agreements
(DUATs) has been the major work programme, but the team has also
been able to produce a bulk sample of material for a metallurgical
test work programme being run by Rio Tinto overseas and is underway
with baseline studies for the EIA work on each of the licences.
Regarding the business review we initiated last autumn, we
continue to work very closely on this with our consultant, Bruce
Griffin of Farview Solutions, and Rio Tinto. Since that time, we
have carried out a comprehensive review of the project's technical
parameters and its future corporate positioning. As a result, we
believe that we have identified a suitable course of action and
remain on track to inform shareholders of the outcome before the
end of the year.
Corporate Social Responsibility
Our Corporate ESMS is being aligned with internationally
recognised ESG standards, namely the requirements of the
International Finance Corporation's Performance Standards on
Environmental and Social Sustainability, as well as the World Bank
Group's Environmental Health & Safety, Mining and General
Guidelines. As a UK listed entity, the policy will also reflect the
principles and provisions of the Quoted Companies Alliance's
Corporate Governance Code. Savannah's operating subsidiaries will
be responsible for ESG management and performance at their
respective projects, through the development and implementation of
project-specific ESMSs, aligned with the Corporate ESMS, and in
compliance with all applicable ESG-related laws, regulations and
permits of the host country.
In Portugal during the first half of the year, we were delighted
to be able to re-open our local Information Centre in May, staffed
by a new recruit from the Boticas area, after its closure due to
COVID-related restrictions. The Information Centre is currently
displaying a 3D model of the proposed project, so that residents
can get a better understanding of the project's layout and the
steps being taken to minimise its impact on the local environment.
While the EIA review process is ongoing (there were two public
sessions held in May hosted by APA), Savannah continues to engage
with the local community keeping residents informed about APA's
review process, the Benefit Sharing and the Good Neighbour Plans
that have been proposed, and by making further donations of locally
purchased provisions to the area's firefighting team. We have also
maintained our multi-channel communication through newsletters,
content in local publications and radio announcements. I have
already touched on our engagement with national level media and we
will continue this engagement in the remainder of the year as
interest builds in Portugal's lithium battery chain, while
maintaining our locally focused communication efforts as well as
sponsorship of local rally car and mountain biking teams.
In Mozambique, the Company made COVID-19 vaccinations available
to all staff and their adult family members, and also purchased and
donated 200 double vaccines to the Ministry of Health in Inhambane
Province to help protect vulnerable individuals. We were also
delighted to provide support to the Provincial Environment Day
which helped to raise awareness of Environmental issues in the
Province and we remain committed to, and supportive of, other
community interventions in Jangamo and Inharrime districts
Financial Summary
Savannah recorded a first half net loss from continuing
operations of GBP1.4m (2020: GBP1.1m) with much of the GBP0.3m
increase the result of a move from an exchange rate gain in 1H 2020
to an exchange rate loss in 1H 2021. However, without the one-off
write-down (GBP5.5m) associated with the Oman project divestment,
which was recorded in last year's accounts, the total attributable
loss reduced significantly to GBP1.2m (2020: GBP6.0m).
Of greater interest to shareholders will be the Group's cash
balance which stood at GBP9.7m on 30 June (2020: GBP2.0m, 31
December 2020) after the oversubscribed placing, raising GBP10.3m
gross proceeds in April. This stronger cash position, along with a
GBP0.6m increase in Intangible Assets to GBP17.8m resulted in a 42%
increase in Savannah's Net Assets to GBP29.1m (2020: GBP20.5m).
Outlook
The Board and I are very grateful for the ongoing interest and
commitment shown towards the Company by its shareholders. With the
capital now in reserves, Savannah is well placed to press ahead
with its work programmes at Mina do Barroso and its engagement with
all stakeholders and relevant commercial groups. We also have
sufficient capital available to meet our ongoing commitments in
Mozambique. As ever, our dedicated staff will undertake this work
and I thank them for their efforts to date and for their efforts in
the future.
The lithium market is proving to be an exciting and rapidly
developing sector with Europe set to be a major part of the world's
new lithium battery industry. Savannah is determined to take its
place in this market and we look forward to reporting on
developments relating to the three project milestones I have
outlined above from 4Q 2021 onwards. We also look forward to
updating the market on Mutamba, so that the project's stakeholders
and our shareholders are clear on its future direction and that of
Savannah.
Matthew King
Chairman
Date: 21 September 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2021
Unaudited Unaudited Audited
Six months Six months Year ended
Notes to 30 June to 30 June 31 December
2021 2020 2020
GBP GBP GBP
CONTINUING OPERATIONS
Revenue - - -
Other Income - - 26,099
Administrative Expenses (1,443,120) (1,080,385) (2,988,663)
OPERATING LOSS (1,443,120) (1,080,385) (2,962,564)
Finance Income 12,711 21,789 38,747
Finance Costs (3,671) (448) (765)
---------------------------------------- -------- ------------ ------------ -------------
LOSS FROM CONTINUING OPERATIONS
BEFORE AND AFTER TAX (1,434,080) (1,059,044) (2,924,582)
LOSS ON DISCONTINUED OPERATIONS
BEFORE AND AFTER TAX - (5,469,581) (5,401,176)
LOSS BEFORE AND AFTER TAX ATTRIBUTABLE
TO EQUITY OWNERS OF THE PARENT (1,434,080) (6,528,625) (8,325,758)
---------------------------------------- -------- ------------ ------------ -------------
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 100,060 (13,210) 320,151
Items that will or may be reclassified
to Profit or Loss:
Exchange Gains / (Losses) arising
on translation of foreign operations 131,362 589,230 (163,284)
---------------------------------------- -------- ------------ ------------ -------------
OTHER COMPREHENSIVE INCOME FOR
THE PERIOD 231,422 576,020 156,867
---------------------------------------- -------- ------------ ------------ -------------
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD ATTRIBUTABLE TO EQUITY
OWNERS OF THE PARENT (1,202,658) (5,952,605) (8,168,891)
---------------------------------------- -------- ------------ ------------ -------------
Loss per share attributable to
Equity Owners of the parent expressed
in pence per share:
Basic and Diluted
From Operations 3 (0.09) (0.50) (0.62)
From Continued Operations 3 (0.09) (0.08) (0.22)
From Discontinued Operations 3 - (0.42) (0.40)
---------------------------------------- -------- ------------ ------------ -------------
The notes form part of this Interim Financial Report.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Unaudited Unaudited Audited
Notes 30 June 30 June 31 December
2021 2020 2020
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible Assets 4 17,836,604 16,893,437 17,246,222
Right-of-Use Assets 12,256 31,237 21,709
Other Intangible Assets - 8,920 6,682
Property, Plant and Equipment 5 1,064,198 1,259,197 973,528
Other Non-Current Assets 7 70,803 83,648 73,530
Bank Deposits 7 687,467 698,411 590,175
-------------------------------------- -------- ------------- ------------- -------------
TOTAL NON-CURRENT ASSETS 19,671,328 18,974,850 18,911,846
CURRENT ASSETS
Investments 66,002 25,333 606,245
Trade and Other Receivables 6 423,513 173,688 194,301
Other Current Assets 7 16,137 16,141 13,670
Cash and Cash Equivalents 9,659,326 1,714,040 2,000,209
Assets in Disposal Groups Classified
as Held for Sale - 437,007 -
-------------------------------------- -------- ------------- ------------- -------------
TOTAL CURRENT ASSETS 10,164,978 2,366,209 2,814,425
-------------------------------------- -------- ------------- ------------- -------------
TOTAL ASSETS 29,836,306 21,341,059 21,726,271
-------------------------------------- -------- ------------- ------------- -------------
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share Capital 9 16,889,598 12,989,598 14,309,910
Share Premium 41,695,948 33,538,187 34,474,884
Merger Reserve 6,683,000 6,683,000 6,683,000
Foreign Currency Reserve (62,179) 558,973 (193,541)
Warrant Reserve 12,157 942,802 12,157
Share Based Payment Reserve 152,335 370,695 393,865
FVTOCI Reserve (14,120) (56,649) 276,712
Retained Earnings (36,214,631) (34,604,250) (35,450,713)
TOTAL EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE PARENT 29,142,108 20,422,356 20,506,274
LIABILITIES
NON-CURRENT LIABILITIES
Lease Liabilities - 6,728 1,130
-------------------------------------- -------- ------------- ------------- -------------
TOTAL NON-CURRENT LIABILITIES 6,728 1,130
-------------------------------------- -------- ------------- ------------- -------------
CURRENT LIABILITIES
Lease Liabilities 6,477 15,422 11,608
Trade and Other Payables 8 687,721 793,409 1,207,259
Liabilities Directly Associated
with Assets in Disposal Groups
Classified as Held for Sale - 103,144 -
-------------------------------------- -------- ------------- ------------- -------------
TOTAL CURRENT LIABILITIES 694,198 911,975 1,218,867
TOTAL LIABILITIES 694,198 918,703 1,219,997
-------------------------------------- -------- ------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 29,836,306 21,341,059 21,726,271
-------------------------------------- -------- ------------- ------------- -------------
The Interim Financial Report was approved by the Board of
Directors on 21 September 2021 and was signed on its behalf by:
........................................................
David Archer
Chief Executive Officer
Company number: 07307107
The notes form part of this Interim Financial Report.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2021
Share
Merger Foreign Based
Share Share Reserve Currency Warrant Payment FVTOCI Retained Total
Capital Premium GBP Reserve Reserve Reserve Reserve Earnings Equity
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2020 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
period - - - - - - - (6,528,625) (6,528,625)
Other
Comprehensive
Income - - - 589,230 - - (13,210) - 576,020
--------------- ----------- ----------- ---------- ---------- ---------- --------- ----------------- ------------- ------------
Total
Comprehensive
Income for
the
period - - - 589,230 - - (13,210) (6,528,625) (5,952,605)
Exercised
Options 15,000 26,400 - - - (16,650) - 16,650 41,400
Lapse of
Options - - - - - (38,560) - 38,560 -
Lapse of
Warrants - - - - (32,877) - - 32,877 -
Share Based
Payment
charges - - - - - 15,784 - - 15,784
At 30 June
2020 12,989,598 33,538,187 6,683,000 558,973 942,802 370,695 (56,649) (34,604,250) 20,422,356
--------------- ----------- ----------- ---------- ---------- ---------- --------- ----------------- ------------- ------------
Loss for the
period - - - - - - - (1,797,133) (1,797,133)
Other
Comprehensive
Income - - - (752,514) - - 333,361 - (419,153)
--------------- ----------- ----------- ---------- ---------- ---------- --------- ----------------- ------------- ------------
Total
Comprehensive
Income for
the
period - - - (752,514) - - 333,361 (1,797,133) (2,216,286)
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 - - - - - 43,195 - - 43,195
Exercise of
options
Lapse of
Options - - - - - (20,025) - 20,025 -
Lapse of
Warrants - - - - (930,645) - - 930,645 -
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
--------------- ----------- ----------- ---------- ---------- ---------- --------- ----------------- ------------- ------------
Loss for the
period - - - - - - - (1,434,080) (1,434,080)
Other
Comprehensive
Income - - - 131,362 - - (290,832) 390,892 231,422
--------------- ----------- ----------- ---------- --------- ------- ---------- ---------- ------------- ------------
Total
Comprehensive
Income for
the
period - - - 131,362 - - (290,832) (1,043,188) (1,202,658)
Issue of Share
Capital (net
of expenses) 2,579,688 7,221,064 - - - - - - 9,800,752
Lapse of
Options - - - - - (279,270) - 279,270 -
Share Based
Payment
charges - - - - - 37,740 - - 37,740
At 30 June
2021 16,889,598 41,695,948 6,683,000 (62,179) 12,157 152,335 (14,120) (36,214,631) 29,142,108
--------------- ----------- ----------- ---------- --------- ------- ---------- ---------- ------------- ------------
The notes form part of this Interim Financial Report.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHSED 30 JUNE 2021
Notes Unaudited Unaudited Audited
Six months Six months Year ended
to June to June December
2021 2020 2020
GBP GBP GBP
Cash Flows used in Operating
Activities
Loss for the period (1,434,080) (6,528,625) (8,325,758)
Depreciation and Amortisation
charges 5 19,626 23,904 44,663
Impairment of Assets classified
as Held for Sale - 5,370,130 -
Impairment of Other Intangible
Assets 5,948 - -
Share Based Payments Reserve
charge 37,740 15,784 58,979
Shares issued in lieu of payments
to suppliers - - 36,359
Finance Income (12,711) (21,789) (38,747)
Finance Expense 3,671 448 765
Exchange Losses / (Gains) 120,501 (133,412) (37,580)
Loss on sale of discontinued
operations - - 5,373,633
Cash Flow from Operating Activities
before changes in Working Capital (1,259,305) (1,273,560) (2,887,686)
Decrease in Trade and Other
Receivables 29,212 119,010 176,312
(Decrease) / Increase in Trade
and Other Payables (464,981) 149,116 443,541
--------------------------------------- -------- ------------- ------------- -------------
Net Cash used in Operating Activities (1,695,074) (1,005,434) (2,267,833)
--------------------------------------- -------- ------------- ------------- -------------
Cash flow used in Investing
Activities
Purchase of Intangible Exploration
Assets (685,970) (912,101) (1,577,532)
Purchase of Right-of-Use assets (798) - -
Purchase of Tangible Fixed Assets (20,027) (680) (2,721)
Purchase of Investments - (1,782) -
Proceeds from sale of Investments 462,115 - 3,272
Bank Deposits for Mining Licences - - 57,319
Interest received 12,711 21,789 38,747
Proceeds from sale of discontinued
operations - - 27,543
--------------------------------------- -------- ------------- ------------- -------------
Net Cash used in Investing Activities (231,969) (892,774) (1,453,372)
--------------------------------------- -------- ------------- ------------- -------------
Cash Flow from/(used in) Financing
Activities
Proceeds from issues of Ordinary
Shares (net of expenses) 9,704,501 41,400 2,220,650
Proceeds from exercise of share
options - - 41,400
Principal paid on Lease Liabilities (6,263) (8,900) (18,310)
Interest paid (3,671) (448) (765)
--------------------------------------- -------- ------------- ------------- -------------
Net Cash from Financing Activities 9,694,567 32,052 2,242,975
--------------------------------------- -------- ------------- ------------- -------------
Increase / (Decrease) in Cash
and Cash Equivalents 7,767,524 (1,866,156) (1,478,230)
Cash and Cash Equivalents at
beginning of period 2,000,209 3,484,781 3,484,781
Exchange (Losses) / Gains on
Cash and Cash Equivalents (108,407) 95,415 (6,342)
--------------------------------------- -------- ------------- ------------- -------------
Cash and Cash Equivalents at
end of period 9,659,326 1,714,040 2,000,209
--------------------------------------- -------- ------------- ------------- -------------
The notes form part of this Interim Financial Report.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT
FOR THE SIX MONTHSED 30 JUNE 2021
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 2021, which is unaudited, was approved by the
Board on 21 September 2021. 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 2020 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 2020. New standards and amendments
to IFRS effective as of 1 January 2021 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 raised equity finance to fund its activities. The Group had
cash balance of GBP9.7m at 30 June 2021.
The Directors have reviewed the cash-flow projection for the
Group and concluded that it has sufficient finance in place to meet
its financial commitments for at least 12 months.
In forming their view, the directors have considered the impacts
of COVID-19 related restrictions and potential future delays on the
work schedule. Whilst the potential future impacts are unknown, the
Board has considered the effect that additional delays in the work
schedule could have on the Group's available cash resources. Having
factored in reasonably plausible scenarios and reasonable
mitigating actions (for example, the ability to reduce its
uncommitted future expenditure), the director's consider sufficient
cash balance are maintained under each scenario and that the
Company will be able to meet its obligations as they fall due.
Accordingly, the Directors have concluded that these
circumstances form a reasonable expectation that the Group has
adequate resources to continue in operational existence, for the
foreseeable future. For these reasons, the Directors continue to
adopt the going concern basis in preparing the Annual Report and
Accounts.
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, exploration and development in
Mozambique, headquarter and corporate costs and the Company's third
party investments and the discontinued operation in Oman.
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, Mozambique and the
discontinued operation in Oman the segments are calculated by the
summation of the balances in the legal entities which are readily
identifiable to each of the segmental activities. In the case of
the Investments, this is calculated by analysis of the specific
related investment instruments. 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.
Mozambique Portugal HQ and Investments Elimination Total
Mineral Lithium Corporate
Sands
GBP GBP GBP GBP GBP GBP
Period 30 June 2021
Revenue (1) - 539,496 385,655 - (925,151) -
Finance Costs (3,557) (114) - - - (3,671)
Interest Income 12,356 - 355 - - 12,711
Share Based
Payments - - (37,740) - - (37,740)
Impairment of
Assets - - (5,948) - - (5,948)
Loss for the
period (209,550) (589,510) (635,020) - - (1,434,080)
Total Assets 6,097,829 13,790,051 9,882,424 66,002 - 29,836,306
Total Non-Current
Assets 5,975,203 13,689,348 6,777 - - 19,671,328
Additions to
Non-Current
Assets 255,871 468,602 - - - 724,473
Total Current
Assets 122,626 100,703 9,875,647 66,002 - 10,164,978
Total Liabilities (23,671) (171,796) (498,731) - - (694,198)
------------------- ------------- ----------- ------------ -------------- -------------- ------------
Discontinued Mozambique Portugal HQ and Invest-ments Elimination Total
Operation Mineral Lithium corporate
Oman Copper Sands
GBP GBP GBP GBP GBP GBP GBP
Period 31 December
2020
Revenue (1) - 30,198 691,100 582,304 - (1,303,602) -
Finance Costs - - (317) - - - (317)
Interest
Income - 16,475 - 483 - - 16,958
Share based
payments - - - (43,195) - - (43,195)
Loss for
the year 68,405 (198,827) (748,551) (918,160) - - (1,797,133)
Total Assets - 5,403,090 13,917,231 1,799,705 606,245 - 21,726,271
Total Non-Current
Assets - 5,274,621 13,624,502 12,723 - - 18,911,846
Additions
to Non-Current
Assets - 37,203 539,374 - - - 576,577
Total Current
Assets - 128,469 292,729 1,786,982 606,245 - 2,814,425
Total Liabilities - (65,977) (260,023) (893,997) - - (1,219,997)
------------------- ------------- ----------- ----------- ----------- ------------- ------------ ------------
Discontinued Mozambique Portugal HQ and Invest-ments Elimination Total
Operation Mineral Lithium Corporate
Oman Copper Sands
GBP GBP GBP GBP GBP GBP GBP
Period 30 June 2020
Revenue (1) - 27,409 419,730 344,515 - (791,654) -
Finance Costs - - (448) - - - (448)
Interest
Income - 17,453 - 4,336 - - 21,789
Share Based
Payments - - - (15,784) - - (15,784)
Impairment of
Assets (5,370,130) - - - - - (5,370,130)
Loss for the
period (5,469,581) (197,750) (470,576) (390,718) - - (6,528,625)
Total Assets 437,007 5,803,639 13,417,870 1,657,210 25,333 - 21,341,059
Total
Non-Current
Assets - 5,724,855 13,228,272 21,723 - - 18,974,850
Additions to
Non-Current
Assets 79,122 49,139 555,937 - - - 684,198
Total Current
Assets 437,007 78,784 522,951 1,302,134 25,333 - 2,366,209
Total
Liabilities (103,144) (34,119) (290,951) (490,489) - - (918,703)
-------------- -------------- ------------- ----------- ------------ -------------- -------------- ------------
(1) Revenues included in the Portugal Lithium segment include
GBP539,496 (31 December 2020: GBP691,000; 30 June 2020: GBP419,730)
related to intercompany recharges within this segment and therefore
eliminated in the Elimination column
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 Unaudited Audited Year
Six months Six months ended 31
to 30 June to 30 June December
2021 2020 2020
Basic and Diluted Loss per
Share:
Losses attributable to Ordinary
Shareholders (GBP):
Total Loss for the period
(GBP) (1,434,080) (6,528,625) (8,325,758)
Total Loss for the period
from Continuing Operations
(GBP) (1,434,080) (1,059,044) (2,924,582)
Total Loss for the period
from Discontinued Operations
(GBP) - (5,469,581) (5,401,176)
Weighted average number of
shares (number) 1,518,176,396 1,295,376,368 1,343,743,432
Loss per share - total loss
for the period from Operations
(GBP) (0.00094) (0.0050) (0.0062)
Loss per share - total loss
for the period from Continuing
Operations (GBP) (0.00094) (0.0008) (0.0022)
Loss per share - total loss
for the period from Discontinued
Operations (GBP) - (0.0042) (0.0040)
----------------------------------- -------------- -------------- --------------
4. INTANGIBLE ASSETS
Exploration
and Evaluation
Assets
GBP
Cost
At 1 January 2020 21,208,400
Additions 734,616
Transfer from Other Intangible
Assets (279,850)
Disposal assets on liquidation (140,024)
Exchange differences 740,425
---------------------------------- ----------------
At 30 June 2020 22,263,567
Additions 774,178
Transfer to Assets classified
as Held for Sale (5,370,130)
Exchange difference (421,393)
---------------------------------- ----------------
At 31 December 2020 17,246,222
---------------------------------- ----------------
Additions 687,447
Exchange differences (97,065)
---------------------------------- ----------------
At 30 June 2021 17,836,604
---------------------------------- ----------------
Depreciation and Impairment
At 1 January 2020 140,024
Reverse on disposal
of assets on liquidation (140,024)
Impairment charge related
to assets transferred
to held for sale 5,370,130
At 30 June 2020 5,370,130
Transfer to Assets classified
as Held for Sale (5,370,130)
At 31 December 2020 -
At 30 June 2021 -
------------------------------- ------------
Net Book Value
At 1 January 2020 21,068,376
At 30 June 2020 16,893,437
At 31 December 2020 17,246,222
-------------------------------- ------------
At 30 June 2021 17,836,604
-------------------------------- ------------
In 2018 the Group started the process of divesting its
investment in Finkallio Oy, and at 31 December 2018 the Exploration
and Evaluation Assets held by the Company were fully impaired. In
2019 the Group started the process to liquidate Finkallio Oy, which
was completed on 4 May 2020.
In 2018 the Board announced that a strategic review was being
conducted in respect of the Oman assets to identify the best
outcome for Savannah and its shareholders. In 2020 the progress
towards an agreement for sale was substantial with the disposal
expected to be completed prior to the end of 2020, and therefore
the assets and liabilities of the Omani operations were classified
as Held for Sale at 30 June 2020 with the disposal completed in
October 2020.
5. PROPERTY, PLANT AND EQUIPMENT
Motor Plant and
Vehicles Office Equipment Machinery Land Total
GBP
Cost
At 1 January 2020 87,902 43,026 1,241,756 53,332 1,426,016
Additions - 680 - - 680
Transfer to Assets
classified as
Held for Sale (36,770) (10,293) - - (47,063)
Exchange differences 10,173 1,061 (69,084) 3,783 (54,067)
---------------------- ---------- ----------------- ----------- -------- ----------------
At 30 June 2020 61,305 34,474 1,172,672 57,115 1,325,566
---------------------- ---------- ----------------- ----------- -------- ----------------
Additions 1,662 379 - - 2,041
Exchange difference (4,741) (2439) (180,785) (778) (188,743)
---------------------- ---------- ----------------- ----------- -------- ----------------
At 31 December
2020 58,226 32,414 991,887 56,337 1,138,864
---------------------- ---------- ----------------- ----------- -------- ----------------
Additions - 20,027 - - 20,027
Exchange differences (2,591) 425 157,227 (2,506) 152,555
---------------------- ---------- ----------------- ----------- -------- ----------------
At 30 June 2021 55,635 52,866 1,149,114 53,831 1,311,446
---------------------- ---------- ----------------- ----------- -------- ----------------
Depreciation
At 1 January 2020 54,548 34,239 - - 88,787
Charge for the
period 14,081 3,276 - - 17,357
Transfer to Assets
classified as Held
for Sale (36,770) (10,293) - - (47,063)
Exchange differences 6,251 1,037 - - 7,288
---------------------- --------- --------- -------- ---------
At 30 June 2020 38,110 28,259 - - 66,369
---------------------- --------- --------- -------- ---------
Charge for the
period 318 4,632 99,189 - 104,139
Exchange difference (2,560) (2,612) - - (5,172)
---------------------- --------- --------- -------- ---------
At 31 December
2020 35,868 30,279 99,189 - 165,336
---------------------- --------- --------- -------- ---------
Charge for the
period 6,127 4,211 57,456 - 67,794
Exchange differences (492) (1,113) 15,723 - 14,118
---------------------- --------- --------- -------- ---------
At 30 June 2021 41,503 33,377 172,368 - 247,248
---------------------- --------- --------- -------- ---------
Net Book Value
At 30 June 2020 23,195 6,215 1,172,672 57,115 1,259,197
At 31 December
2020 22,358 2,135 892,698 56,337 973,528
----------------- ------- ------- ---------- ------- ----------
At 30 June 2021 14,132 19,489 976,746 53,831 1,064,198
----------------- ------- ------- ---------- ------- ----------
Plant and Machinery depreciation amounting to GBP57,456 (31
December 2020: GBP99,189) is capitalised in Exploration and
Evaluation assets (Note 4).
6. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December
2020
GBP GBP GBP
Current
VAT recoverable 63,253 108,155 98,852
Other Receivables 360,260 65,533 95,449
-------------- -------------- -------------
Total Current Trade
and Other Receivables 423,513 173,688 194,301
-------------- -------------- -------------
7. OTHER CURRENT AND NON-CURRENT ASSETS
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December
2020
GBP GBP GBP
Non-Current
Guarantees 62,674 66,497 65,592
Cash deposits 687,467 698,411 590,175
Other 8,129 17,151 7,938
-------------- -------------- -------------
Total Other Non-Current
Assets 758,270 782,059 663,705
-------------- -------------- -------------
Current
Other 16,137 16,141 13,670
Total Other Current
Assets 16,137 16,141 13,670
------- ------- -------
8. TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December
2020
GBP GBP GBP
Current
Trade Payables 398,923 438,300 357,247
Other Payables 100,315 160,587 136,935
Accruals and Deferred
Income 188,483 194,522 713,077
Total Current Trade
and Other Payables 687,721 793,409 1,207,259
-------------- -------------- -------------
9. SHARE CAPITAL
Allotted, issued and fully paid
Six months to Six months to Six months to
30 June 2021 30 June 2020 31 December 2020
GBP0.01 GBP0.01 GBP0.01
ordinary ordinary ordinary
shares number shares number shares number
GBP GBP GBP
At beginning
of period 1,430,991,035 14,309,910 1,297,459,820 12,974,598 1,298,959,820 12,989,598
Issued during
the period:
Share placement 257,968,785 2,579,688 - - 130,011,270 1,300,113
Exercise of
Share Options - - 1,500,000 15,000 - -
In lieu of cash
for professional
services - - - - 2,019,945 20,199
Settlement deferred
consideration
Oman - - - - - -
--------------------- --------------- ----------- --------------- ----------- --------------- -----------
At end of period 1,688,959,820 16,889,598 1,298,959,820 12,989,598 1,430,991,035 14,309,910
--------------------- --------------- ----------- --------------- ----------- --------------- -----------
The par value of the Company's shares is GBP0.01.
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 EUR3,250,000 ( GBP
GBP2,790,000), 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 EUR55,000 ( GBP GBP47,000)
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 EUR3,195,000 ( GBP GBP2,740,000) that will be
reduced in accordance with the 71 monthly instalments. As at 30
June 2021 the mining lease has not been granted.
11. EVENTS AFTER THE REPORTING DATE
There were no Events After the Reporting Date to report.
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/ Ben Good (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
IR FFFIIAVILFIL
(END) Dow Jones Newswires
September 22, 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