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Savannah Resources secures a €110m Portuguese grant for its Barroso Lithium Project, upgrades its resource, and targets first production in 2028. A pivotal year ahead.
This article covers information on Savannah Resources PLC.
LON:SAVSavannah Resources has published its audited 2025 numbers and set out a punchy plan for the Barroso Lithium Project in Portugal. The headline is the non-reimbursable Portuguese State grant of up to €110 million, locked in via an investment contract with AICEP. Alongside steady technical progress and a larger resource, the Company is targeting first spodumene concentrate production in 2028.
There are still moving parts – most notably land access and project financing – but the foundations look stronger than a year ago.
| Cash and cash equivalents (31 Dec 2025) | £17.2 million |
| Additional bank deposits | £5.0 million |
| Loss from continuing operations | £4.0 million (2024: £4.4 million) |
| Administrative expenses | £4.4 million |
| JORC Mineral Resource | 39.1Mt at 1.05% Li₂O |
| Measured & Indicated resources | Nearly 27Mt |
| Exploration Target | 35–62Mt at 0.9%–1.2% Li₂O |
| Project milestones | DFS and RECAPE submission in July 2026, DCAPE award targeted Q3 2026, construction 2027, first production 2028 |
| AGM | 11:00 a.m. BST, 21 May 2026, 88 Wood Street, London EC2V 7QR |
The investment contract with AICEP for a non-reimbursable grant of up to €110 million is a big deal. The first 75% (€82.25 million) is earmarked for initial development spend, with the balance linked to operational milestones. In plain English: the state is putting serious money behind Barroso, which should help crowd in lenders and offtakers.
A 13,000m drill campaign lifted the JORC resource to 39.1Mt at 1.05% Li₂O – roughly a 40% increase in tonnage – and pushed Measured and Indicated to nearly 27Mt. The Exploration Target also jumped to 35–62Mt at 0.9%–1.2% Li₂O. Bigger, better defined resources usually translate into stronger mine plans and improved financing terms.
To keep the schedule moving, Savannah will complete the Definitive Feasibility Study (DFS) and the RECAPE environmental submission in July 2026 without some outstanding geotechnical field data. That data is expected once a second temporary land access order is granted and will be fed into detailed engineering and financing documents thereafter. It is a pragmatic call to protect the 2028 start-up target, but it does leave a small technical to-do list for later.
Barroso was recognised by the European Commission as a Strategic Project under the Critical Raw Materials Act in March 2025 and has since benefited from Portugal’s CPAI support to streamline processes. On the market side, spodumene concentrate prices rose by approximately 90% in 2025 to around USD1,600/t and are cited in 2026 to be around USD2,080–2,340/t. That pricing backdrop strengthens the economics for a 2028 start-up.
Over 1,000 local engagements were recorded in 2025, with multiple MoUs signed, including with Terra Quente Saúde Group for improved healthcare. This matters – community acceptance is central to permitting longevity in Europe. Savannah also progressed voluntary land purchases and expects compulsory purchase mechanisms to play a role later.
Savannah booked a £4.0 million loss from continuing operations, down 11% year-on-year, with administrative expenses of £4.4 million. Cash was £17.2 million at year end, with a further £5.0 million ringfenced in deposits to support land acquisitions and the Aldeia Mining Lease completion. Two equity placings raised approximately £14.6 million gross in 2025.
Intangible assets rose to £30.7 million as spend was capitalised into the project. The balance sheet is built for the study and permitting phase, but construction will require a full project finance package – hence ongoing discussions with KfW IPEX-Bank and the appointment of Cutfield Freeman & Co as adviser.
On the positives, the €110 million grant is a strong vote of confidence and a material funding contribution. The enlarged resource and European Strategic Project status add heft. Cash is healthy for the 2026 work programme, and the lithium price tone is helpful.
On the watch-outs, completing the DFS without all geotechnical data introduces follow-up work, albeit manageable. Land access has been the serial schedule niggle. There is no revenue yet and the big lift – project finance, offtake build-out and then construction – still sits ahead. Execution in H2 2026 will be pivotal.
Savannah has shifted from “prove it” to “fund it and build it”. The state grant, larger resource and firmed-up timeline are meaningful steps. The remaining risks – permitting cadence, final engineering data, and financing – are standard for European mining developments but should not be underestimated.
If management delivers the July 2026 milestones on time, the narrative tilts decisively from promise to execution. For now, this is a cleaner, better backed story than it was a year ago, with 2028 production in sight.
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