Savannah Resources Plc · LSE:SAV
Savannah Resources — Investor Presentation (July 2022)
22 slides from Savannah Resources's investor presentation, July 2022
Slide 1: Enabling Europe's energy transition
Enabling Europe’s energy transition Corporate Presentation Europe’s Leading Conventional Lithium Project JULY 2022
Slide 2: Disclaimer
Disclaimer The information contained in these slides and the accompanying oral presentation (together, the "Presentation") have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). If any person is in any doubt as to the contents of th
Slide 3: Contents
Contents 1. Introduction to Savannah & The Barroso Lithium Project (the ‘Project’) 2. European Lithium Market context 3. Barroso Lithium Project overview 4. Summary 3
Slide 4: The Barroso Lithium Project – Savannah's opportunity
The Barroso Lithium Project – Savannah’s opportunity LOCATED IN EU MEMBER STATE PORTUGAL 1 ESG: FOCUSED ON EUROPE’S LARGEST RESPONSIBLE, LOW SPODUMENE IMPACT/LOW CARBON LITHIUM PROJECT PRODUCTION EU LITHIUM PURE PLAY CONVENTIONAL/LOW RISK POTENTIAL PROJECT VALUE MINING & CONCENTRATION NOT REFLECTED
Slide 5: The Barroso Lithium Project – strategically important to Europe
The Barroso Lithium Project – strategically important to Europe A domestic source of lithium, vital for Europe’s lithium battery value chain: EUROPE’S LITHIUM BATTERY VALUE CHAIN •Can help to provide Europe with strategic autonomy in lithium – a critical mineral for the energy transition •Local dema
Slide 6: Savannah's Experienced Executive Management Team
Savannah’s Experienced Executive Management Team DALE FERGUSON, CHIEF EXECUTIVE OFFICER1 JOANA PRAZERES, HEAD OF COMMUNICATIONS & Over 25 years of experience across greenfield and near mine COMMUNITY AFFAIRS exploration, resource delineation, feasibility studies, project An experienced marketing and
Slide 7: A clear path for increased valuation
A clear path for increased valuation Savannah to unlock value by passing milestones on its way to production •Licensing approvals Spodumene peer group valuations1 •DFS & decarbonisation approach 5,000 Production •Offtake & strategic partnerships 4,000 •Final Investment Decision •Construction Mkt Cap
Slide 8: Europe's issue: climate change targets = raw material challenges
Europe’s issue: climate change targets = raw material challenges The targets: •The EC’s1 latest emissions reduction proposals include: •The EC also wants to: •A 55%+ reduction in total greenhouse gas •Maintain and grow its auto industry Li emissions by 2030 (vs. 1990 level) (13.8m jobs; 7% of EU GDP
Slide 9: The Solution: Europe is developing its own Lithium Battery Value Chain
The Solution: Europe is developing its own “Lithium Battery Value Chain” “Both the Covid pandemic and war in Ukraine have highlighted the fundamental need for resilient industrial value chains, including batteries, for the EU’s economic growth and decarbonisation as well as for its strategic autonom
Slide 10: The Lithium value chain build out is underway in Portugal
The Lithium value chain build out is underway in Portugal Barroso Lithium Project Leixões deep THE BARROSO LITHIUM PROJECT (SAV, 100%): water port AURORA JV (50:50 GALP: NORTHVOLT): • Production capacity: 175ktpa+ spodumene concentrate • Refinery Plan: Lithium hydroxide plant (c.25ktpa LCE/29kt Lith
Slide 11: Barroso Lithium Project overview – Quality and Opportunity combined
Barroso Lithium Project overview – Quality and Opportunity combined Project qualities: •Europe’s largest resource of hard rock spodumene lithium •Mineralisation from surface + significant exploration upside •Clean, battery grade spodumene concentrate product •30-year mining lease1 and a 3-block mini
Slide 12: Firm focus on ESG for responsible development
Firm focus on ESG for responsible development Environmental Social Governance Some elements to be optimised in EIA Article 16 process Community Programmes High Governance Low impact design standards (LSE & QCA) (Benefit sharing & Good Neighbour Plan) Responsible ESMS Ensuring Responsible Health & di
Slide 13: EIA Update: Clarity brought to schedule after move into Article 16 process
EIA Update: Clarity brought to schedule after move into Article 16 process • 2018-2020: EIA framework agreed & baseline studies completed • May 2020: Comprehensive EIA submitted • April 2021: EIA documents were declared to be ‘in conformity’ with APA’s requirements 01 Jun-20 • April – July 2021: Pub
Slide 14: Processing circuit finalised – a major milestone for the DFS
Processing circuit finalised – a major milestone for the DFS1 Key flowsheet outcomes: •A high quality spodumene concentrate, in line with current industry product specifications •Li2O recoveries in the range of 77%-81% in laboratory scale locked cycle testing with low levels of impurities2 •Complies
Slide 15: Decarbonisation Strategy Initiated
Decarbonisation Strategy Initiated Decarbonisation options available to Savannah What is the scale of the task? 2020 EIA estimate Pre-Decarbonisation strategy Maximum annual CO2 equivalent emissions (tpa) Scope 1 & 2 62,000 Scope 3 34,200 Total 96,200 •ECOPROGRESSO’s EIA study estimated maximum annu
Slide 16: Spodumene Offtake – a seller's market
Spodumene Offtake – a seller’s market Price backdrop & Impact •Record prices seen in 2021/22 as demand for spodumene and lithium chemicals grew •Spodumene prices have risen over 1200% since Jan-21 with US$6,000/t FOB Australia reported in mid-July 20221 •Price rises and the underlying supply/demand
Slide 17: Current Timeline to Production
Current Timeline to Production 2022 targets Finalise process flowsheet Continue with commercial/offtake negotiations Progress DFS Met-work & 2024 targets 2026 targets Decarbonisation studies •Receive Environmental Licence •1st production & ramp •EIA: Resubmit under Article16 process1 and secon
Slide 18: Summary
Summary Highly favourable commodity markets dynamics •European demand to grow rapidly: 18x growth in Li demand by 2030, 60x by 20501 •Growing focus on supply chain security: Europe looking to cover 60% of its Spodumene peer group valuations1 future lithium demand with domestic chemical production; 5
Slide 19: Appendix
Leadership in Building Responsible Lithium Resilience APPENDIX www.savannahresources.com [email protected] Follow Savannah Resources on LinkedIn Follow @SavannahRes on Twitter 19
Slide 20: Savannah Resources – at a glance
Savannah Resources – at a glance KEY DATA SHAREHOLDER ANALYSIS3 Analyst Coverage MARKETS AIM, FWB, SWB Date of last Recommendation & TICKER – ALL MARKETS SAV Al Marjan research Price Target 16% SHARE PRICE1 3.15p Jul 2022 Buy – 17.9p Institutions Retail/other 12% AVERAGE DAILY VOLUME (last 3M) 4.73
Slide 21: An Experienced Board of Directors
An Experienced Board of Directors MATTHEW KING, CHAIRMAN JAMES LEAHY, NON-EXECUTIVE Having qualified as a solicitor with Slaughter and May, Matthew James has more than 32 years’ experience in financial services, with held a number of risk management positions with HSBC in Asia, a specialisation in c
Slide 22: Leadership in Building Responsible Lithium Resilience
Leadership in Building Responsible Lithium Resilience www.savannahresources.com [email protected] Follow Savannah Resources on LinkedIn Follow @SavannahRes on Twitter 22
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