Savannah Resources (LSE:SAV) has reported continued development at its Barroso Lithium Project in northern Portugal, with progress across feasibility studies, permitting activities and local stakeholder engagement strengthening the pathway toward project construction.
The company said work on the Definitive Feasibility Study (DFS) and RECAPE licensing process is advancing, highlighted by submission of a revised bypass road design to Portuguese authorities and approval from grid operator E-Redes for plans to relocate an overhead power line. These developments represent key infrastructure milestones required to support future mine construction.
Operational planning has also moved forward, with updated pit designs and revised mining schedules delivered to the company, keeping Savannah on course to publish its maiden JORC-compliant Ore Reserve estimate. In parallel, rock chip sampling at the Carvalha da Bácora pegmatite returned high-grade lithium results, reinforcing the potential for additional resource growth beyond the current development scope.
Savannah is also increasing engagement with local communities and stakeholders, signing Memorandums of Understanding with four regional groups and holding a series of public consultations. The company continues to advance land acquisition and secure temporary land access permissions needed for infrastructure works, including the planned power-line realignment.
Against a more supportive lithium pricing backdrop and rising commercial interest in its uncommitted spodumene concentrate output, the developer is coordinating a significant state grant application alongside broader financing discussions. Investor outreach efforts have also intensified as the company works toward completing the DFS and preparing for construction of what it aims to establish as Europe’s leading spodumene lithium operation.
While operational progress remains strong, Savannah’s outlook continues to be constrained by its pre-revenue status, ongoing losses and elevated cash burn, resulting in negative operating and free cash flow. Technical indicators provide some support due to recent share price momentum and strength relative to key moving averages, although an overbought RSI suggests potential near-term volatility. Valuation metrics remain limited by negative earnings and the absence of dividend income.
More about Savannah Resources
Savannah Resources is a London AIM-listed lithium developer focused on advancing the Barroso Lithium Project in northern Portugal, widely regarded as Europe’s largest spodumene lithium deposit and designated a Strategic Project under the EU Critical Raw Materials Act. The company aims to supply lithium concentrate to the European battery and electric vehicle supply chain, positioning itself as a key regional source of critical raw materials supporting energy transition goals.
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