The CEO of Savannah Resources PLC (L:SAVS), David Archer, joined Zak Mir and Mike Ingram on the Tip TV Finance Show to provide us with an update of the activities and the future developments planned for Savannah Resources, and their opinions on copper.
Commodity prices to rise?
Archer outlined that it is hard to see optimism in the current commodity environment, but bringing mines online now is a real opportunity with normalisation on the cards and commodity prices to rise.
Copper to recover with China
Archer commented that he expects an increase in global industrial production, but for now Copper remains a hostage of the China situation, with 40% of global copper production being directed to the country. He continued that he hoped China would continue to grow, along with increased consumption from India and the US.
Oman the focus for Savannah Resources
He noted that Oman has development potential, with good infrastructure, a history of copper success and an export port very close. Archer believed the low operating costs where Savannah Resources have saved around $10 million and 3 years of drilling, have reduced the time frame to 2 years before the first production of copper is achieved. He also added that both Oman, and their other project in Mozambique, have quality management teams and aim to deliver value in the current market.