Savannah Resources reduces FY loss after productive 2016

Savannah Resources has almost halved its full-year pre-tax loss to £1.8m, from a loss of £3.1m, after a productive 12-month period that had enabled it to start 2017 with three projects, each at exciting stages of development.

"We have secured and amalgamated our individual projects in Mozambique into a globally significant ilmenite project at a time of rising prices, increased demand and declining inventories," said chief executive David Archer.

This was thanks to the Consortium Agreement that Savannah had entered into with Rio Tinto regarding the Mutamba Project.

"The project appears to be amenable to dry mining which should provide a faster, lower-cost and flexible route to production," said Archer in a statement.

In parallel, Savannah continued to make solid progress towards copper production in Oman from the Mahab and Maqail deposits.

"In the meantime, we look forward to providing updates on the lithium potential of the newest additions to our portfolio in Finland."

This would provide longer-term potential to Savannah's core heavy mineral sands and copper projects where it expected to see significant milestones being achieved throughout 2017.

At 12:35 GMT, shares in AIM-quoted Savannah were flat at 5.75p each.