Kodal Minerals, the mineral exploration and development company focused on lithium and gold assets in West Africa, is pleased to provide its final results for the year ended 31 March 2024.
The Company’s Annual Report and Accounts will be made available on the Company’s website www.kodalminerals.com shortly and will be posted to shareholders today. The Company’s annual general meeting (“AGM”) will be held at 11:00am on 26 September 2024 at Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London EC4R 3TT.
Operational Highlights:
Bougouni Lithium Project, Mali (“Bougouni” or the Project”)
· Kodal finalised the US$117.75 million funding package to develop the Bougouni Lithium Project Stage 1 (“Bougouni” or “the Project”) with our operating partner Hainan Mining Co. Limited (“Hainan”), a subsidiary of Fosun International Ltd (“Fosun”)
· Completed the transfer of the Project to Kodal Mining UK Limited (“KMUK”), , which is 51% owned by Hainan in return for US$100 million investment, with Kodal retaining a 49% stake
· Additional US$17.75m investment into Kodal Minerals plc by Hainan to fund the exploration of new investment opportunities
· Increased Bougouni’s JORC compliant Mineral Resource Estimate (“MRE”) by 40% to 31.9Mt at 1.06% Li2O, following reverse circulation (“RC”) drilling completed in the first half of 2023
· Construction of Bougouni Stage 1 using a dense media separation (“DMS”) approach now well underway, with the 2020 feasibility study capex estimate of US$65m confirmed following a full project review
§ Appointment of Bougouni mining contractor in early 2024 – a consortium consisting of Malian mining contractor EGTF Mining SARL (“EGTF”) and Auxin Mining Services Mali SARL (“Auxin”); earthwork and civil engineering works commenced and completed post period end
§ Long lead items of DMS units and dual stream crushing modules ordered and delivery to Port of Abidjan in Côte d’Ivoire received post period
§ Construction of all access roads to Bougouni site completed
· Appointed Lei (“David”) Teng as Non-Executive Director to the Board as Hainan’s representative
· Received approval for the updated Environmental and Social Impact Assessment (“ESIA”) for Bougouni Stage 1 DMS from Mali’s Department of the Environment including Kodal’s Community Development Plan
· Implementation of several targeted ESG community initiatives including: funding a full-time school teacher at Kola Sokoura village; donation of tractors to support agriculture; road upgrades; and installation of solar capacity at community water well
· Project on track to becoming the first London-listed lithium producer in West Africa with maiden production expected at the end of 2024.
Gold portfolio
o Strategic review of Group gold projects completed with the Fatou and Niéllé Gold Projects prioritised as core assets
o Development of an exploration targeting assessment by Kodal’s exploration geologists to finalise planning of exploration programmes at both projects
o Company is well funded to undertake the required exploration at Fatou and Niéllé prospects and advance projects towards maiden minerals resource estimates.
Financial & Corporate Highlights:
• Group operating loss of £3,344,000 after impairments and share based payments (2023: £1,461,000 loss)
• 7.9% decrease in exploration and evaluation expenditure of £2,971,000 (2023: £3,227,000)
• Sale of the Bougouni Lithium Project to KMUK reduced the carrying value of the lithium projects in Mali to £nil (2023: £11,216,000)
• 34.6% decrease in the value of gold projects in Mali and Cote d’Ivoire to £2,162,000 (2023: £3,306,000)
• 266% increase in Group net assets of £57,430,000 (2023: £15,683,000)
• Cash balance of £16,327,000 as at 31 March 2024 (2023: £545,000).
Commenting on the results, CEO Bernard Aylward said:
“The past 12 months have been truly transformational for Kodal as the Bougouni Lithium Project has advanced in Mali and transitions from developer to producer, with Stage 1 first production firmly on track for Q4 2024, which would make Bougouni the first London-listed lithium producer.
This will be no small achievement and is testament to the team’s strong capital discipline maintaining capex within the US$65m estimate from the 2020 feasibility study, strong community relations in Mali thanks to KMUK’s inclusive ESG programme and operational expertise onsite led by Operations Director Steve Zaninovich.
We are excited about the role Kodal lithium will play in the global EV revolution, providing feedstock to Hainan’s lithium hydroxide plant in China, which, in turn, is supplying Asian markets including Japanese and Korean car battery makers.
Additionally, we would like to thank Hainan for the huge support since becoming our operating partners and largest shareholder in November, in particular the invaluable experience our new Non-Executive Director David Teng has brought to Kodal. Together, we will develop Bougouni into a truly prolific lithium project in West Africa.
We are advancing the development of Bougouni firmly on schedule with the delivery of DMS units and equipment at the Port of Abidjan expected this week. I look forward to updating shareholders on progress in the months ahead and would like to express our utmost gratitude for your unrelenting support as we embark on the next crucial stage of our lithium mining journey.”
**ENDS**
For further information, please visit www.kodalminerals.com or contact the following:
Kodal Minerals plc
Bernard Aylward, CEO
Tel: +61 418 943 345
