Savannah Resources (LSE:SAV), the developer of the Barroso Lithium Project in northern Portugal, has received approval to resume fieldwork after Portuguese authorities lifted the suspension of a temporary land easement. The project is intended to provide a long-term domestic source of lithium for Europe’s battery industry, with expected production of sufficient spodumene concentrate to supply around 500,000 electric vehicle battery packs each year.
The Portuguese State issued a Reasoned Resolution that immediately removed the suspension, enabling Savannah to restart essential pre-construction activities and continue work on the project’s definitive feasibility study. In reaching its decision, the authorities cited Barroso’s strategic importance to both Portugal and the European Union, as well as its expected contribution to regional employment, economic growth and the security of critical raw material supplies. The resolution also recognised Savannah’s previous compliance with regulatory requirements during earlier fieldwork.
According to the State, any further delays could undermine wider public interests associated with the EU’s energy transition and efforts to strengthen Europe’s supply of critical minerals. By confirming the project’s strategic significance and acknowledging Savannah’s responsible conduct, the ruling provides greater regulatory certainty for the company as it advances one of Europe’s most important lithium developments.
Despite this positive regulatory milestone, Savannah’s investment case continues to be weighed down by its financial profile. The company remains pre-revenue, is generating ongoing losses and continues to consume cash, although it benefits from minimal debt and a solid equity position. While technical indicators continue to point towards an upward trend, overbought conditions suggest the potential for short-term volatility. Valuation also remains challenged by negative earnings and the absence of a dividend.
More about Savannah Resources
Savannah Resources is a mineral development company and the sole owner of the Barroso Lithium Project in northern Portugal, home to Europe’s largest known battery-grade spodumene lithium resource. Listed on London’s AIM market, Barroso has been designated a Strategic Project under the EU Critical Raw Materials Act and is backed by a Portuguese state development grant worth up to €110 million to support Europe’s battery materials supply chain.
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