In physics you would call this wave dynamics. One bit of good news compounding the effect of another bit of good news. And the great thing about SAV is that it has 3 excellent projects on the go (Oman, Portugal and Mozambique) so there is triple the possibility of a good news story coming out.
If Oman can get the final rubber stamp from the PAM and be mining by say September/October it could give SAV a very handy income stream for 2019 to pay for other developments.
Any one of these developments could be worth a multiple of the current market cap on their own. So still much upside potential in my view. Perhaps that 41p target for SAVP should be re-written for SAV after all!
Guitarsolo - happy with this and hopeful for more.
"Barclays Capital today initiates coverage of Savannah Resources (LON:SAV) with a overweight investment rating and price target of 41p."
Crikey! I presume this is one of the brokers who was recently out in Portugal. He/she must have been pretty impressed to post a price "target" 700% of the current share price! Unless that is a typo somehow!
I've not delved into the coverage (and don't subscribe to Barclays Cap) but it would be interesting to know how they have got to this conclusion.
This must be the placing Cornhill are holding up as there most successful placing in last 6 months.
6p to 6.25p ( placing 5.25p ( it went a little higher first few days ) About 17% up to date .
Easily mixed up with SAVP. !!!!
As of Jun 02, 2017, the investment analyst covering Savannah Resources Plc advises investors to purchase equity in the company. This has been the consensus forecast since the sentiment of investment analysts improved on Nov 28, 2016. The previous consensus forecast advised that Savannah Resources Plc would OUTPERFORM the market.
FinnCap ...good choice, shows that SAV is moving ahead with this appointment. A few years ago they would not have been interested, now we can expect more media and institutional coverage, possibly with broker price targets ?
Savannah Resources plc (AIM:SAV) (the 'Company') is pleased to advise that it has appointed finnCap Ltd to act as sole broker to the Company with immediate effect. Northland Capital Partners will continue to act as the Company's Nominated Adviser.
According to Bloomberg New Energy Finance, Daimlers Kamenz plant will be the biggest battery factory yet in Europe, with large lithium-ion battery factories planned for Sweden, Hungary, and Poland. The research organization estimates that by 2021, the cost of batteries will drop 41 percent, from $271 per kWh today to $156 per kWh.
Daimler begins construction on a $562 million lithium-ion battery factory in Germany
German automaker wants to bring 10 new electric models to the market by 2020.
MEGAN GEUSS - 5/22/2017, 11:45 PM
Enlarge / Federal Chancellor Dr. Angela Merkel in a conversation with Dieter Zetsche (Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars) and others.
On Monday, German Chancellor Angela Merkel visited the site of a future lithium-ion battery factory in the eastern German town of Kamenz. The factory is being developed by Mercedes-Benz manufacturer Daimler, which will devote approximately 500 million (or $562 million) to churning out batteries for electric vehicles and stationary storage.
Mercedes-Benz Energy pairs with solar company to sell batteries, rooftop panels
If the project seems similar to Teslas Nevada-based Gigafactory, you wouldnt be alone in making that comparison. Tesla and Panasonic partnered to devote $5 billion to building a lithium-ion battery factory outside of Reno, Nevada, and the electric-car maker has said it hopes to produce 35 gigawatt-hours of auto and stationary batteries by 2018.
Daimler didnt give any projections for its factorys potential capacity, but it did say that its investment would quadruple the size of an existing battery factory on the site, which is run by Accumotive, a wholly-owned subsidiary of Daimler. The German automaker is also pledging another 500 million to expand battery production worldwide. And if all goes well at the Kamenz site, Daimler says it will go into operation in mid-2018.
Last week, Daimler subsidiary Mercedes-Benz Energy announced a partnership with Vivint Solar to sell stationary storage batteries along with solar panels in California. The company has also experimented with reusing old electric-vehicle batteries for grid-tied storage. (When electric-vehicle batteries degrade past a certain point, theyre no longer road-worthy, but they can still store energy as part of infrastructure.)
According to Reuters, Chancellor Merkel said on Monday, We need long-term horizons and companies that invest in the future. It is important that electric mobility is ready for the market as quickly as possible." She had noted earlier in the week that the German government had invested 35 million in battery research, and she claimed she had been briefed about the latest lithium cells which could allow cars to travel up to 1,000 kilometers (621 miles) without needing to be recharged, Reuters said.
But wheres all the electrical power coming from to charge these wonderful vehicles?
UK is already at a critical point in power generating capacity. Im very much afraid we will not have the resources to meet this future electrical demand!
Petrol and diesel engines will be redundant in just "8 years"
Updated / Monday, 22 May 2017 14:43
Tesla's electric cars are part of the tsunami that is going to engulf the traditional car and oil industries, according to the Seba report.
Tesla's electric cars are part of the tsunami that is going to engulf the traditional car and oil industries, according to the Seba report.
By Donal Byrne
Professor Tony Seba doesn't mince his words when talking about the end of petrol and diesel. Conventional transport - from cars to buses and trucks - is facing a tsunami of change and by 2025 everything on four wheels will be electrically-powered, he argues.
He also predicts that there will be a "mass-stranding of existing vehicles", that the value of second-hand cars will plummet, that people will have to pay to get rid of their cars and that by 2024 there won't be any car dealers in business anymore. The latter claim seems well justified by the decision of Tesla not to have any dealers but to sell directly to customers.
"It's the end of energy and transportation as we know it, and it's coming very quickly," Mr Seba told investors in Australia recently. He went on to say this revolution will "be over by 2030" and likened it to the move from horse-drawn carriages in the early 20th century.
Professor Tony Seba of Stanford University.
The renowned Stanford university guru isn't just an academic and champion of green energy. He is also an advisor to some of the world's biggest companies and has worked with Google and many other Silicon Valley entities. His advice is sought by governments and investors alike and his predictions are contained in a report titled: "Rethinking Transportation 2020-2030"
The Daily Telegraph recently reported him as stating in his report that people will stop driving altogether - something that is not inconceivable when you look at the rapid pace of development of autonomous driving cars by car companies.
He says the coming revolution is down to key factors, including solar power, increased battery storage, electric vehicle development and self-driving cars.
His report argues that the "tipping point will arrive over the next two to three years as electric vehicle battery ranges surpass 200 miles and electric car prices in the US drop to US$30,000. By 2022 the low-end models will be down to US$20,000. After that, the avalanche will sweep all before it."
Electric cars like the this Tesla represent "an avalanche" for the traditional motor and oil industries, says the Seba report.
"What the cost curve says is that by 2025 all new vehicles will be electric, all new buses, all new cars, all new tractors, all new vans, anything that moves on wheels will be electric, globally".
He said the "residual stock of fossil-based vehicles will take time to clear but 95 per cent of the kilometres driven by 2030 in the US will be in autonomous electric vehicles for reasons of costs, convenience, and efficiency. Oil use for road transport will crash from 8 million barrels a day to 1 million.
He argues the cost per mile for EVs will be 6.8 cents, rendering petrol cars obsolete. Insurance costs will fall by 90 per cent. The average American household will save US $5600 per year by making the switch. The US government will lose US$ 50bn a year in fuel taxes.
"Our research and modelling indicate that the US $10 trillion annual revenues in the existing vehicle and oil supply chains will shrink dramatically," he says.
Another world expert on the oil industry, Professor Dieter Helm of Oxford University, also told the Telegraph that the end of the big oil business has "just started". He argues that demand for electric vehicles will soar and this will have a huge effect on an already declining oil market
While the Oman increased JORC and Scoping study are important milestones for SAV to achieve, they are less relevant from a financial (see my previous note) and progress viewpoint. Indeed, Oman will be a relatively small operation (albeit generating much-needed near-term cash flows) and the key steps of permitting and financing will likely be achieved in-country with local players (Al Marjan, MDO, etc) that are incentivized to make it happen, almost regardless of the economics of the project.
When it comes to Mozambique, the scoping study is a big deal for different reasons:
1/ Ilmenite prices are going through a massive recovery (tripled in the past 12 months) and big commodity players (asset managers and miners) are looking at this commodity closely. There arent many world-class Ilmenite projects in the world so Mutamba is one of a few key projects out there. However, for any commodity professionals to do some serious analysis and flag the investment opportunity to their boss, they need to come up with a thorough study of the mine plan. Jorc is a great first step but the scoping study is what can really get a serious discussion going with decent economic analysis to look at.
If you look at how Base Resources share price has performed over the past 12-18months (10-fold), SAV will stand out as a new opportunity for investors to replicate this type of share price performance. Admittedly, Base resources was seriously leveraged at a low point in ilmenite prices, so the 10x performance is due to this leverage. But to look at it crudely, Base enterprise value is about 4-5x gross margins. If SAV produces 500kt of HMS per year (as per DAs indication) on their initial 200mt mine plan, I end up with approx £20mn of annual gross margin for 51% SAV. So on the first mine plan alone (200mt out of a 4.4bn Jorc), one could value SAVs part of the initial project at £100mn (20p/share). Add to that the massive upsize potential of Mutamba and the Oman activity, and one can see why SAV would become an attractive investment at current prices once the scoping study comes out. By the way, Kenmare shows similar valuations as Base but their wet mining approach is less profitable and the firm has recently got out of a messy bailout so it is less clean to use as a comparable.
As part of the terms of our JV with Rio Tinto, we get increased ownership of the project (from existing 10% towards final 51%) as we progress with studies. The key difference between now (10%) and scoping study (20%) are the terms of the kick-SAV-out option Rio owns. Currently, Rio Tinto can kick SAV out of the entire Moz project by simply paying a multiple of our historical costs on the project. I would think our total spend so far in Moz is in the $3-6mn range. So a multiple of that (say 2-3x) is worth $5-15mn of cash. If this happens in the next few days, it would be a big disappointment, although not the end of the world (SAV would have £12-15mn of cash + Oman so easily covering our 5p valuation).
Once we finalize the scoping study, the K-S-O cost becomes an independent valuation of SAV share of the project. As per my previous note, I think the first 200mt mine plan is likely to have an NPV of 20p+ at 51% ownership. So at 20%, this is worth 8p to SAV. While I prefer for SAV to stay in the JV all the way to 51%, if Rio exercise the option after the study, SAV would have 8-9p of cash, no debt and the Oman project to focus on (which remember is worth anywhere between 10p and 50p to SAV). Note also that once the scoping study is done, DA alluded to the fact the PFS would follow very quickly (likely this year) so the step from 20 to 35% is likely to be much quicker than 10 to 20%.
3/ a few professional equity analysts (including the respected commodity-focused RFC Ambrian) have mentioned that they would wait for the scoping study to publish updated research notes with proper valuation scenarios and
....John Templeton in 1939 he purchased $100 worth of every stock which was trading below $1 per share on the New York and American stock exchanges. This totaled about 104 different companies, a whopping 34 of which were bankrupt, and Templetons initial investment was $10,400. After four years, he managed to sell those shares for nearly four times the money he had initially invested.
Being a value-contrarian investor, Templetons principles pushed him toward stocks that had been entirely neglected. Part of Templetons success in his ventures was his location. He was based throughout much of his career in Lyford Cay in the Bahamas, which was the site of the Lyford Key Club and a hub for business leaders from all over the globe. Templeton excelled at networking and exchanging ideas in the relaxed atmosphere, which he vastly preferred to Wall street.
Laggers waiting for a drop are caught out? Wait too lpng and you'll be paying over 8p. NEWS IS IMMINENT amd may send the late-comers into a frenzy of buying? Not to worry as there will. be plenty of chances to stack up over the coming months. My target is 14p this year .35p - 50p next year early 2019?
NEWS by Thurs imo
Savannah Resources Plc (LON:SAV) Given Consensus Recommendation of Buy by Brokerages
Posted by Eileen French on Sep 23rd, 2016 // No Comments
Savannah Resources Plc logoSavannah Resources Plc (LON:SAV) has earned a consensus rating of Buy from the seven brokerages that are currently covering the company. One equities research analyst has rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is GBX 90 ($1.17).
A number of equities analysts have recently commented on the stock. Beaufort Securities reissued a speculative buy rating on shares of Savannah Resources Plc in a research report on Thursday, June 2nd. Northland Securities reissued a corporate rating on shares of Savannah Resources Plc in a research report on Thursday, August 4th. Panmure Gordon reissued a buy rating and issued a GBX 75 ($0.98) price target on shares of Savannah Resources Plc in a research report on Thursday, May 26th. Finally, Shore Capital reissued an under review rating on shares of Savannah Resources Plc in a research report on Thursday, May 26th.
Savannah Resources Plc (LON:SAV) traded down 4.24% on Friday, hitting GBX 3.95. 677,694 shares of the stock were exchanged. The companys 50 day moving average is GBX 4.03 and its 200 day moving average is GBX 3.19. The stocks market cap is GBX 14.09 million. Savannah Resources Plc has a 1-year low of GBX 1.28 and a 1-year high of
Savannah Resources Plc is a United Kingdom-based multi -commodity and multi-geographic development company. The Companys principal activities include the exploration for copper in Oman and enhancement of the Companys heavy mineral sands Project in Mozambique. The Companys segments include Oman Copper, Mozambique Mineral Sands, Headquarter administration and corporate, and Investments.
What are top analysts saying about Savannah Resources Plc? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Savannah Resources Plc and related companies.
It looks pretty sure they mean SAVP, because the article talks about reducing the target price from 75p to 70p. Panmure did have previous price target of 75p on SAVP (Nov 15); and they have not previously been reported as having a price target on SAV.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.