Savannah Resources (SAV) H1 2024 earnings summary

Executive summary

• Secured a strategic partnership with AMG Critical Materials, providing £16m in equity and a pathway to full project financing for the Barroso Lithium Project.

• Advanced the Definitive Feasibility Study (DFS) and environmental licensing, with DFS completion now expected in H2 2025 and project commissioning in 2027.

• Strengthened the management team and board, including the appointment of a new Chairman and AMG's board representative.

• Enhanced stakeholder engagement and increased in-country shareholding to over 12.5%.

Financial highlights

• Cash position reached a record £21.6m at 30 June 2024, up from £4.8m at 30 June 2023, following the AMG investment.

• Loss from continuing operations increased 27% year-over-year to £1.9m (H1 2023: £1.5m), reflecting higher activity and workforce expansion.

• Intangible assets rose by £1.5m to £19.9m, and property, plant, and equipment increased to £1.7m due to ongoing land purchases.

• Total equity grew 50% from year-end 2023 to £41.8m.

Outlook and guidance

• DFS and environmental licensing expected to complete in H2 2025, with project commissioning and first production targeted for 2027.

• Project timeline aligns with forecasts for tighter lithium markets and higher prices from 2027 onward.

• Focus remains on progressing to Final Investment Decision, leveraging strong cash reserves and strategic partnerships.