Post by
ScandiumPower on Jun 21, 2023 5:32am
Savannah valuation
Our other major task, starting right now, is to close the market valuation gap that exists between Savannah and some of its lithium peers. The US$953m NPV of the Project equates to 44p/share, or approximately ten times our current share price. Our Project has been significantly derisked by the favourable DIA decision and other lithium stocks which have also completed a Scoping Study on their respective projects trade on an average multiple to their net asset value of around 0.3x. Savannah currently trades at just 0.1x, so we will be marketing extensively over the coming months to highlight this investment opportunity to market participants. Furthermore, as we move through later milestones, such as the DFS, we expect a re-rating in our multiple to the 'post DFS' peer group, currently trading on an average of 0.5x, and the lithium producers average of 0.8x net asset value. From the position we are now in with the Project and given the commercial interest we are receiving around future offtake and partnership, I firmly believe Savannah can unlock these materially higher valuations over the medium term.
https://www.paidpromotionalmessages.co.uk/LON:SAV/Savannah-Resources-PLC/rns/1325194