Interview with Emanuel Proença, CEO of Savannah Resources PLC

Recording date: 15th April 2025

Savannah Resources is positioning itself to become a leading producer of lithium concentrates in Europe, with its flagship Barroso Lithium Project in Portugal targeting production by 2027. Despite current lithium market volatility, CEO Emanuel Proença maintains a pragmatic outlook, noting that global lithium demand grew by over 25% last year and is expected to continue its strong growth trajectory.

The Barroso project plans to produce approximately 200,000 tons of spodumene concentrate annually at 5.5% lithium content, comparable to successful Australian producers like Pilbara Minerals in their early stages. The project boasts a favorable strip ratio of 6:1, which Proença describes as "top benchmark," along with a 73% recovery rate that is "close to top class." Additional value may come from by-products including quartz, feldspar, and mica, which can be sold to nearby ceramics and insulation industries.

The project has received strategic designation under Europe's Critical Raw Materials Act, opening doors to favorable financing options. The European Commission's rapid implementation of this act demonstrates the urgency attached to securing strategic mineral supplies within Europe. Financial institutions, including the European Investment Bank and the German development bank KFW, have shown strong support for critical minerals projects after decades of avoiding the mining sector.

Savannah has secured its first offtake agreement with AMG Critical Materials, who has also become a shareholder, providing important commercial validation. The company reports being fully funded through its Definitive Feasibility Study stage, expected to complete by the end of 2025, with construction planned for 2026 and production commencing in 2027.

Proença emphasizes that even at current depressed lithium prices, the Barroso project would be profitable, with break-even economics at $600 per ton. The project aims to be "in the middle of the global cost curve while producing in Europe," taking advantage of access to skilled local workforce and abundant renewable energy resources.

The company has prioritized community engagement in the economically challenged region, with Proença noting that no relocations will be required as there are no residential structures within the concession area. With 28 million tons of defined resources and mineralization remaining open in multiple directions, the project offers significant expansion potential beyond its initial production plans, positioning Savannah Resources as a key player in Europe's push for critical minerals autonomy.

View Savannah Resources' company profile: https://www.cruxinvestor.com/companies/savannah-resources

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