Savannah Resources PLC

Latest Results (19.03.2026):

Savannah Resources PLC — results for Q2 2025 (six months ended 30 June 2025): the company reported continued development progress at its Barroso Lithium Project alongside a modest operating loss and a strengthened cash position following a July fundraise. Operational milestones include completion of the resource-focused Phase 2 drilling, a material JORC Resource upgrade and a much larger Exploration Target; DFS completion is re-timed to H1 2026 and first production is now expected in 2028. Financially, H1 2025 shows a reduced loss versus H1 2024, higher exploration spend and a cash balance that was increased in July by a £4.78m placing.

Key financial results

Loss from continuing operations: £1.486m for the six months to 30 June 2025 (down ~21% vs H1 2024). Total loss after tax: £1.511m. Basic loss per share: c. 0.07 pence. Cash at 30 June 2025: £9.5m; increased to £13.3m in July after a £4.78m equity raise (136.6m shares at 3.5p). Total assets: £42.2m; intangible assets (mainly project) rose to £25.8m.

Exploration & resource upgrade

Phase 2 resource drilling (c.12,463m in 103 holes) completed for the resource-focused element. Post-period JORC (2012) Resource: 39.1 Mt at 1.05% Li2O (a ~40% increase in tonnage and ~41% increase in contained Li2O versus May 2024) with 68% in Measured & Indicated categories.

Exploration target expansion

Updated Exploration Target (post-period): 35–62 Mt at 0.9–1.2% Li2O — an increase of over 200% from the prior estimate, indicating materially greater project upside.

Project timetable & permitting

Definitive Feasibility Study (DFS) now expected to complete in H1 2026 because a second temporary land easement (for final geotechnical work) is likely delayed until Q4 2025. First production is therefore pushed from late 2027 to 2028.

Strategic and government support

Barroso was classified as a ‘Strategic Project’ under the EU Critical Raw Materials Act (March 2025). Savannah reports active engagement with the European Commission, Portuguese CPAI (AICEP) and other bodies — steps that may improve access to coordinated finance, permitting support and off-taker links.

Offtake / financing progress

Strategic partner and major shareholder AMG Critical Materials remains engaged; Savannah cites a non‑binding indication that the German Government (via export credit mechanisms) could support guarantees for up to US$270m (subject to due diligence). Savannah appointed Cutfield Freeman as Project Finance Advisor to progress financing discussions.

Operational spend and balance sheet impacts

Exploration cash spend increased to £3.2m in H1 2025 (vs £2.3m H1 2024) reflecting the intensive drilling programme. Intangibles increased ~19% year‑on‑year to £25.8m. Lease liabilities and modest payables are the main liabilities; equity holders’ funds were £38.4m at 30 June 2025.

Management & governance

Strengthening of senior team during H1 2025: Henrique Freire appointed CFO, additional hires (Project Finance Manager, Offtake Adviser, Head of HR) and internal reorganisations to prepare for financing and construction phases. The Board notes ongoing legal matters and the “Operation Influencer” investigation has not impeded project work.

Going concern and risks

Directors note a material uncertainty over going concern: current cash and the July fundraise are expected to cover DFS/RECAPE through to the next stages, but significant additional funding will be required to reach FID and construction. Availability of such funding is judged likely but is not guaranteed.