Savannah Resources’ 2025 results: cash in the bank, a chunky state grant, and a clear path to 2028
Savannah 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.
Key numbers investors should know
| 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 |
What changed in 2025 – and why it matters
€110 million grant meaningfully reduces funding risk
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.
Resource upgraded, upside expanded
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.
Permitting and studies are converging on mid-2026
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 Lithium Project: strategic context looks better
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.
Local engagement is deepening
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.
Financials: lean Opex, strong cash runway for studies
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.
Operational pieces you should watch
- Aldeia Mining Lease transfer – all financial and legal steps are complete, vendor instruction given, formal transfer awaited. Aldeia includes the highest-grade orebody.
- DFS and RECAPE – delivery targeted for July 2026. These are the core derisking catalysts.
- Environmental confirmation – DCAPE award aimed for Q3 2026.
- Project finance and offtake – engagement includes KfW IPEX-Bank and a potential German Government guarantee linked to the proposed offtake with AMG. Additional offtake Heads of Terms are targeted by end 2026.
- FID – by end 2026 or Q1 2027, with construction in 2027 and commissioning in 2028.
Jargon buster
- DFS – Definitive Feasibility Study, the final technical and economic study used for financing and construction decisions.
- RECAPE/DCAPE – Portugal’s environmental licence compliance process and decision point following the earlier licence award.
- Spodumene concentrate – the lithium-bearing concentrate typically sold to converters. Price strength here directly benefits Barroso.
- FID – Final Investment Decision, when the board commits to build.
My take: de-risked, but not de-risked enough to relax
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.
What could move the share price next
- Confirmation of the second temporary land access and start of the remaining fieldwork.
- Delivery of the DFS and RECAPE submission in July 2026.
- Formal transfer of the Aldeia Mining Lease.
- Announcements on offtake beyond existing discussions and clarity on the project finance structure.
- Progress towards DCAPE in Q3 2026 and any updates on construction readiness for 2027.
Bottom line for retail investors
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.
