O Man, Savvy investors to benefit…..
Quick blog entry from me tonight to cover some MASSIVE news
re Savannah Resources (sav).
The now well leaked RFC report into the sphere of the
private investors has thrown up some interesting thoughts and views as to the
potential of SAV.
We now have a window of understanding in that SAV are
planning on being the number 1 private company mining copper and other metals
in Oman. The plan of trucking ore to a central very large depot makes amazing
sense in a country with record low petrol and energy prices. A central
processing plant capable of 500K a year is 10 times the size in my previous
blog and really shows that Savannah is serious about being a mid tier copper
producer (mid tier is 1bn to 2.5bn Mcap).
The advance nature of this plan and the signing of new
projects over the next few weeks seems to be pretty certain.
The plans for the Mozambique heavy mineral project also seem
to be solidifying in that this is really just a cash generating project for
Savannah. The plan is to prove it and then sell it.
I have mentioned that it was suggested to me by a 3rd
party that Russians were interested in mineral mining in Mozambique and where
looking for potential deposits and Savannah Resources was mentioned in-particular.
Well a certain Early Bird thought he might ask David Archer about this and his
response was a very interesting “There
are Russians in Mozambique in mineral sands. I dont believe in coincidences...”
Money wise the RFC report
seems to suggest very strongly that SAV
no longer has plans to use the monthly Bergen facility and have allowed it to lapse
but remain on tap. SAV had over 2m in the bank and has been approached to
provide a private placement worth 6m if it needs it and has approx. 2m give or
take a bit in liquid assets attached to its ALO shares. On top of this it has
possible funding from Mozambique sale of 50-80m (my estimate).
Savannah Resources is on
a major trajectory to the high table of AIM miners, with possibly the best,
most comprehensive strategy I have seen this decade. That the strategy has been
put in place by a BoD with a track record of creating large companies from
nothing is not a surprise. Whilst experiencing the tightest fiscal squeeze for
a generation for junior miners, SAV is having money thrown at it (and turning
it down). Confidence is one thing, this is starting to look like a popstar
strut to me.
Lots of news to come,
much of it company changing this year until Christmas and this month. News that
Bergen dilution is no more means no more easy shares for the market makers.
Buy and don’t look back.
