SP Angel sees nearly 200% upside to Savannah Resources' (AIM:SAV) current share price as the small-cap mine developer is now advancing to key project milestones, including a Definitive Feasibility Study that's due next month.
In a note, following a site visit to Savannah's flagship Barroso lithium project in Portugal, the broker repeated a Buy rating and an 18.5p price target.
Analyst Grant Barker argues the site visit reinforces conviction in the project, with the Definitive Feasibility Study on track for July and the RECAPE environmental compliance submission confirmed for the fourth quarter of 2026, which would trigger a 50-business-day statutory review and place the environmental licence completion in the first quarter of 2027; the broker notes that no project that has cleared the prior DIA stage has yet failed at RECAPE.
Europe's largest spodumene deposit
Savannah is progressing Europe's largest spodumene deposit toward planned construction in 2027, backed by a non-reimbursable Portuguese state grant of up to €110 million.
SP Angel highlights that the Baroso project's conventional flowsheet, existing infrastructure and AMG strategic partnership are important supporting fundamentals for the venture, as is a local investor base holding just over 25% of the company's share register.
Grant Barker, meanwhile, notes that acquisition talks with the Covas do Barroso Baldios community is the one area where discussions remain challenging.
SP Angel identifies RECAPE approval as "the long-awaited major re-rating event," with the July DFS set to tighten project economics and advance financing discussions ahead of the targeted 2028 first production.
