26th Sep 2019 12:17
(Alliance News) - Savannah Resources PLC on Thursday reported a flat interim loss as it looked ahead to progressing projects in Portugal and Mozambique.
The resource development firm's pretax loss was flat at GBP1.2 million for the six months to June 30, with no revenue generated in either period.
Savannah said it views recent volatility in the lithium sector as "symptomatic of the changes in its supply and demand dynamics" over the short term.
"We believe that the outlook for lithium prices remains positive in the medium and long term with demand driven by ever tightening emissions legislation, the public's growing concern regarding climate change and the reducing cost of ownership of Electric Vehicles," the firm said.
The Mina do Barroso project in Portugal provides Savannah with exposure to this industry, and the company said it remains "firmly focused" on delivery of the definitive feasibility study on the project in the second quarter of 2020.
Meanwhile, Savannah will continue with preparations for the recommencement of the pre-feasibility study on Mutamba, Mozambique.
"We will also continue to evaluate the options available to us for value creation around our Oman projects. Given that developments are expected across the portfolio, future meaningful news flow should be generated on a regular basis," said Savannah.
Shares were down 2.4% at 1.95 pence in London on Thursday.
By Lucy Heming; [email protected]
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