Savannah Resources Secures €110m State Backing as Barroso Lithium Project Advances

Savannah Resources ( (GB:SAV) ) just unveiled an update.

Savannah Resources reported a 2025 loss from continuing operations of £4.0 million, slightly improved from 2024, while bolstering its balance sheet through £14.6 million of new equity and ending the year with £17.2 million in cash plus £5.0 million ringfenced for land purchases. The company strengthened its board and senior management, advanced project finance discussions, and continued transitioning from study phase toward development and operational readiness.

At its Barroso Lithium Project, Savannah completed a major drilling campaign that expanded the JORC Mineral Resource to 39.1Mt at 1.05% Li2O and significantly increased the Exploration Target, while progressing the Definitive Feasibility Study and environmental licensing work. It also moved to acquire the adjacent Aldeia mining lease, deepened local and national stakeholder engagement, and secured eligibility for targeted support from Portuguese investment authorities.

In early 2026, Savannah signed an investment contract securing a Portuguese state grant of up to €110 million for Barroso and set July 2026 as the target to complete the DFS and submit its environmental licence application. First spodumene concentrate production remains aimed for 2028, aligning the project with tightening global lithium markets and Europe’s push for secure, domestic supplies of critical raw materials.

The company has called its Annual General Meeting for 21 May 2026 in London, where shareholders will review the 2025 performance and the next steps toward financing and construction of the Barroso project. Management emphasises that improving lithium market fundamentals and heightened European focus on strategic raw materials underpin Savannah’s ambitions to start project construction in 2027, subject to permitting and financing.

The most recent analyst rating on (GB:SAV) stock is a Buy with a £11.00 price target. To see the full list of analyst forecasts on Savannah Resources stock, see the GB:SAV Stock Forecast page.

Spark’s Take on SAV Stock

According to Spark, TipRanks’ AI Analyst, SAV is a Neutral.

The score is held down primarily by weak financial performance (pre-revenue, recurring losses, and elevated cash burn with negative operating and free cash flow). Technicals provide a partial offset due to strong momentum and price strength versus key moving averages, though overbought RSI adds risk. Valuation contributes little support because the negative P/E reflects ongoing losses and no dividend yield is available.

To see Spark’s full report on SAV stock, click here.

More about Savannah Resources

Savannah Resources is an AIM-listed mineral developer focused on lithium, with its flagship Barroso Lithium Project in northern Portugal. The project is Europe’s largest spodumene lithium deposit and has been designated a Strategic Project under the European Critical Raw Materials Act, positioning Savannah as a key potential supplier to the continent’s battery and electric vehicle industries.

Average Trading Volume: 5,825,786

Technical Sentiment Signal: Buy

Current Market Cap: £136.4M

For an in-depth examination of SAV stock, go to TipRanks’ Overview page.