CaixaBank BPI published a research note on Savannah Resources, promoter of the Barroso Lithium Project, described as Europe's largest lithium spodumene deposit and listed on the London Stock Exchange. The bank assigns the stock a valuation range between 9.4 and 19.9 pence, compared to the current 6.05 pence, equivalent to a potential appreciation between 55% and 229%.
The company achieved significant milestones throughout the current year, preparing to advance with construction of the project in 2027 and start lithium concentrate production at the end of 2028. The Definitive Feasibility Study, completed in July, confirmed the project as a future strategically relevant European lithium producer, with capacity to annually supply enough lithium for approximately half a million electric vehicle batteries during an initial 14-year operation phase.
The investment bank's analysis highlights that the project presents robust financial prospects, with estimated generation exceeding €2.5 billion in EBITDA, approximately €1.7 billion in after-tax cash flow, and a payback period under two years. The document also references advantages for nearby communities, including a new A24 road connection, local recruitment, and a comprehensive environmental rehabilitation initiative.
With this new coverage, CaixaBank BPI becomes the fifth financial institution to evaluate Savannah Resources, joining Alantra in Spain, CaixaBI in Portugal, and the UK firms Canaccord Genuity and SP Angel. The valuations currently assigned by analysts range between 8 and 19.9 pence per share.
