Savannah Resources Plc - Financial Results for the Year Ended 31 December 2015

PUBLISHED: 19 Feb 2016 @ 09:16 | Comments (0) |

…and Notice of Annual General Meeting

Savannah Resources plc (AIM:SAV) announces the release of its audited financial results for the year ended 31 December 2015 along with the notice of its Annual General Meeting, which is to be held in London on 16 March 2016.

Operations

· Significant progress made in implementing our strategy of adding value to assets with near to medium-term production potential and superior operating and capital cost characteristics
· Agreement signed with Rio Tinto for the combination of Rio’s Mutamba Project and Savannah’s adjacent Jangamo Project in a joint venture located in a world-class heavy mineral sands (HMS) province in Mozambique
· Targeting defining higher-grade, HMS mineralisation in 2016 for a scoping study for a dry mining operation to produce a HMS concentrate containing ilmenite, rutile and zircon
· Exploration Target of between 150,000 and 700,000 tonnes of contained copper estimated for Block 4 and 5 in Oman
· Targeting commercial copper production in Oman in late 2017 utilising a central processing hub to minimise capital expenditure and maximise operating margins

Financial

· Raised £1.1m in 2015 including private placements to both new and existing shareholders in a challenging funding environment
· Introduction of Al Marjan Limited as a cornerstone shareholder
· The Company decreased administrative expenses by £0.1m in 2015 even with the increased tempo of operational activities from 2014
· Operating loss of £3.11m is mainly attributable to a decrease in the value of the Company’s listed investments with an impairment expense of £1.07m and realised loss on disposal of £0.67m reclassified from other comprehensive income during the year
· Other comprehensive income for the period attributable to the equity owners of Savannah – loss of £0.69m attributable principally to reclassification of expenses on listed investments of £1.73m as noted above, net of a write down of £0.93m in the value of the Company’s investments for the period
· Solid cash position of approximately £2m following the issue of new shares to Al Marjan Limited, as announced on 15 February 2016

David Archer, Savannah’s Chief Executive Officer said today, “We made great progress in 2015, particularly in giving more definition to the copper projects in Oman, with high-grade copper and gold results returned from drilling and the definition of a significant aggregate Exploration Target for the two blocks. This was augmented with a major strategic initiative, subject to Mozambican Government approvals, of the combination of our Jangamo HMS Project with Rio Tinto’s Mutamba HMS Project. With defined development strategies in place targeting commercial copper production in late 2017, and a planned fast paced, staged evaluation of Mutamba/Jangamo I believe 2016 will be a transformational year for the Company.”

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