Savannah Resources moves towards construction at Portugal lithium mine

Savannah Resources PLC on Friday reported a widened loss in the first half of 2026 as it progressed development of its flagship Barroso lithium project in Portugal.

Shares in London-based Savannah Resources were trading 0.3% higher at 6.02 pence each on Friday around noon.

Savannah Resources reported no revenue for the six months to June 30, unchanged from a year earlier. Pretax loss widened to £2.0 million from £1.5 million a year earlier.

The Barroso project, which is classified as a strategic project under the European critical raw materials act, was awarded a Portuguese state grant of up to EUR110 million.

Savannah Resources said it had completed phase 1 of the definitive feasibility study, which envisaged an initial 14-year mine life, producing 183,000 tonnes of spodumene concentrate per year with a 5.5% lithium oxide equivalent grade.

It also said the project has identified 20 million tonnes of ore classifiable as a Joint Ore Reserves Committee probable ore reserve.

The company signed 10 memorandums of understandings with regional and local organisations and was granted land access for fieldwork.

Before year-end, the company said it targets progressing detailed engineering work ahead of construction, submitting its environmental compliance report and obtaining environmental approval for the project.

Further governmental, European and local financing would support the expected final investment decision in early 2027, the company said.

Looking ahead, Savannah Resources said construction is expected to begin in 2027, with first concentrate production targeted for late 2028.

The company said it was also considering a dual listing on a European or international stock market in 2027.

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