21st May 2019 11:23
LONDON (Alliance News) - Savannah Resources PLC on Tuesday reported a widened annual loss due to higher administrative expenses.
For 2018, the resource development company posted pretax loss of GBP3.4 million compared to GBP2.8 million a year prior. This was due to administrative costs rising to GBP3.3 million from GBP2.8 million.
A further GBP140,024 charge on impairment of intangible assets also affected the firm's profitability.
Since it is still in the exploration stages of its flagship project Mina do Barroso in Portugal and projects in Mozambique and Oman, Savannah did not generate any revenue in the year, or the year prior.
"I am delighted with the substantial progress made at the Mina do Barroso lithium project throughout 2018 and extending into 2019. Development progress has been excellent and recognition of the importance of the project was underscored by the GBP14.7 million cash investment we received from existing and new institutional shareholders," Chief Executive Officer David Archer.
He added: "On a wider level we continue to progress the Mutamba minerals sands project and await the grant of mining leases. It remains a valuable long-term asset to Savannah given its scale, our project partner, and the opportunity for us to continue to add value with further study work.
"2019 is set to be another defining year for the now 100% owned Mina do Barroso lithium project, with the expected conclusion of the definitive feasibility study, as well as significant developments in relation to permitting, funding and offtake agreements."
Savannah Resources shares were trading up 1.8% at 5.50 pence each.
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