RCS - Savannah Resources - Initiation of Research Coverage by CaixaBI

Savannah ResourcesAnnouncement

05/08/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240805:nRSE0748Za&default-theme=true

RNS Number : 0748Z  Savannah Resources PLC  05 August 2024

 

 

5 August 2024

 

Savannah Resources Plc

(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')

 

Initiation of Research Coverage by Portuguese Investment Bank, CaixaBI

 

Savannah Resources Plc, the developer of the Barroso Lithium Project (the
'Project') in Portugal, Europe's largest spodumene lithium deposit, is pleased
to report that leading Portuguese investment bank, Caixa - Banco de
Investimento, S.A. ('CaixaBI'), has recently initiated research coverage on
the Company with a comprehensive report and 'Buy' recommendation.

 

The report (written in English) and available on the Savannah website at
https://www.savannahresources.com/investors/analyst-research/
(https://www.savannahresources.com/investors/analyst-research/) , provides a
compelling overview of the investment case for Savannah including:

 

·    The significant scale of its 100% owned Barroso Lithium Project, the
most significant spodumene lithium resource in Europe, capable of supplying
enough lithium each year for approximately half a million electric vehicle
battery packs.

·    The Project's low risk development profile, approved by Portugal's
environmental regulator in 2023, which combines proven mining and processing
techniques with Portugal's existing high-quality infrastructure to create a
competitive and economically attractive operation within the global lithium
industry.

·    The underlying value of the Project. CaixaBI have set an initial
price target on the stock of approximately 8p/share or around twice the
current share price.

·    The recently announced strategic partnership with AMG Critical
Materials N.V. ('AMG'), an established spodumene lithium miner, which is also
commissioning a new lithium hydroxide plant in Germany. This partnership
further significantly de-risks the Project with AMG's initial £16m investment
providing the funding required for Savannah to complete its current
workstreams and reach a final investment decision point. AMG will also take a
leading role in securing a full project financing solution for the Project's
future construction.

·    The partnership's contribution to the production targets set in the
European Critical Raw Materials Act, which came into effect in May 2024.
Savannah's Project and AMG's lithium hydroxide plant in Germany can make
significant contributions towards both the 2030 domestic extraction (10% of
annual EU demand) and processing (40%) targets set by the new legislation.

 

The research report has been distributed to Portuguese institutional investors
and also, through CaixaBI's membership of the European Securities Network
(https://www.esnpartnership.eu/) , to institutional clients of CaixaBI's
partner firms, which are located in Spain, France and Italy.

 

Emanuel Proença, Savannah's Chief Executive Officer said, "We are very
pleased that CaixaBI has initiated coverage on Savannah and that the bank will
be helping us to engage with Portuguese financial institutions. We also
looking forward to leveraging the opportunity to engage with institutional
investors in other European markets through CaixaBI's European Securities
Network.

 

"With CaixaBI's report available to everyone on the Savannah website,
alongside the regular research written by our joint broker, SP Angel, and our
own corporate documents and content I believe private shareholders and
institutional investors alike have the information available to thoroughly
evaluate the compelling investment opportunity that exists in our Company."

 

About CaixaBI

CaixaBI is an award-winning full-service Portuguese investment bank with
additional presence in Spain. It is active in a wide range of financial
services including debt and equity capital markets, corporate finance,
brokerage, sales, and research. CaixaBI is the investment bank division of the
Caixa Geral de Depósitos, S.A. Group. ('CGD Group'), the largest banking
group in Portugal with more than 140 years of history.

 

CaixaBI is also a member of the European Securities Network, a consortium of
four financial services firms which can provide CaixaBI's corporate clients
access to investors in France, Italy, Spain and elsewhere in Europe.

 

More information on CaixaBI can be found at www.caixabi.pt
(http://www.caixabi.pt) and on the CGD Group at www.cgd.pt (http://www.cgd.pt)
.

 

Regulatory Information

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

 

 

Savannah - Enabling Europe's energy transition.

 

**ENDS**

Follow @SavannahRes on X

Follow Savannah Resources on LinkedIn

 

For further information please visit www.savannahresources.com
(https://www.savannahresources.com/) or contact:

 

 Savannah Resources PLC                                                 Tel: +44 20 7117 2489

 Emanuel Proença, CEO
 SP Angel Corporate Finance LLP (Nominated Advisor & Joint Broker)      Tel: +44 20 3470 0470

 David Hignell/ Charlie Bouverat (Corporate Finance)

 Grant Barker/Abigail Wayne (Sales & Broking)

 SCP Resource Finance (Joint Broker)                                    Tel: +44 204 548 1765

 Filipe Martins/Chris Tonkin
 Camarco (Financial PR)                                                 Tel: +44 20 3757 4980

 Gordon Poole/ Emily Hall / Nuthara Bandara
 LPM (Portugal Media Relations)                                         Tel: +351 218 508 110

 Herminio Santos/ Jorge Coelho/ Margarida Pinheiro

 

About Savannah

Savannah Resources is a mineral resource development company and the sole
owner of the Barroso Lithium Project in northern Portugal, the largest battery
grade spodumene lithium resource outlined to date in Europe.

 

Through the Barroso Lithium Project (the 'Project'), Savannah will help
Portugal to play an important role in providing a long-term, locally sourced,
lithium raw material supply for Europe's rapidly developing lithium battery
value chain. After the Environmental Licence was granted in May 2023 and the
Scoping Study confirmed the economic potential of the Project in June 2023,
production is now targeted and on track to begin in 2026. At that stage,
Savannah will start producing enough lithium (contained in c.190,000tpa of
spodumene concentrate) for approximately half a million vehicle battery packs
per year, equal to a significant portion of the European Commission's Critical
Raw Material Act goal of a minimum 10% of European endogenous lithium
production set for 2030. Savannah is focused on the responsible development
and operation of the Barroso Lithium Project so that its impact on the
environment is minimised and the socio-economic benefits that it can bring to
all its stakeholders are maximised.

 

In June 2024, Savannah entered a strategic partnership with AMG Critical
Materials N.V., the global critical materials business and established lithium
market participant. AMG has invested GBP 16m in Savannah in exchange for a
15.8% stake in the Company and a 5 year, 45ktpa spodumene offtake agreement.
This investment alongside existing cash provides Savannah with the finance
required to take the Project to a Final Investment Decision point. AMG can
increase its offtake to 90ktpa for 10 years if it provides an acceptable full
project funding solution for the Project's construction.

 

The Company is listed and regulated on the London Stock Exchange's Alternative
Investment Market (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 Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAPIMITMTAMBBI