Kodal Minerals plc (AIM: KOD) reported continued production and export momentum from the Bougouni Lithium Project in Mali during the three months to 30 September 2026.
The Stage 1 DMS plant produced 27,234 dry metric tonnes of spodumene concentrate grading 5.29% Li2O during the quarter, taking year-to-date production to 80,429 tonnes.
Kodal maintained full-year guidance of 105,000 to 115,000 tonnes, implying 24,600-34,600 tonnes will need to be produced during the final quarter to reach the target range. Expected unit production costs remain US$600-US$610 per tonne, including mining, processing, transport to port, depreciation and amortisation.
The fourth shipment of 24,200 tonnes arrived at Hainan port in August and generated US$47 million for project operator LMLB, based on a weighted SC6 price of US$2,330 per tonne. Across the first four completed shipments, Bougouni has exported 93,322 tonnes, generating approximately US$142.8 million of revenue.
A fifth shipment of around 17,400 tonnes departed San Pedro in Côte d’Ivoire during the quarter. It is not included in the 93,322-tonne completed-shipment figure. Importantly, these revenues are generated at the Bougouni project level rather than being wholly attributable to Kodal.
Kodal owns 49% of KMUK, which in turn owns 65% of project operator LMLB alongside the Malian government. Kodal therefore has an approximate 32% ultimate economic interest in Bougouni. Operational cash flow at LMLB also enabled KMUK to repay and terminate its external Hainan loan facility, removing that debt from the project vehicle.
Mining continued throughout the wet season, although volumes were below management’s budget because of equipment availability and weather disruption. Heavy rainfall in late September caused around one week of lost access to the Ngoualana pit floor, before de-watering restored normal operations.
During Q3, approximately 2.08 million tonnes were mined, including 288,181 tonnes of ore grading 1.14% Li2O, with a strip ratio of 6.21. Additional mining equipment has been mobilised and a second contractor appointed to improve mining rates and maintain sufficient ore stockpiles for the processing plant.
Kodal is also progressing the proposed Stage 2 flotation expansion, with metallurgical testwork, an updated Environmental and Social Impact Assessment and feasibility work advancing towards a final investment decision.
Bernard Aylward, CEO of Kodal Minerals, commented: “Q3 has seen continued operational and commercial momentum at Bougouni, with strong market demand and spodumene concentrate prices driving robust cash flow generation at the project level. Maintaining a reliable export cadence via the port of San Pedro, Côte d’Ivoire, underlines the operational capability of our venture and our position as an active West African lithium producer.
“Importantly, operational cash flows at LMLB enabled KMUK to complete the repayment and termination of the external Hainan loan facility. Fully clearing this debt represents a major financial de-risking milestone for our venture, leaving us with a strong, debt-free project vehicle to support future organic growth.
“Our focus for the remainder of the year remains on driving operational efficiencies at the Stage 1 DMS processing plant while systematically advancing planning for our Stage 2 flotation expansion project. With metallurgical testwork, ESIA updates and feasibility engineering progressing well, Kodal is on a clear pathway to scale Bougouni’s production profile, backed by a de-risked balance sheet, strong commercial partnerships and significant resource upside.”
For investors, the key positives are continued concentrate production, regular exports, strong realised pricing and the removal of external project debt.
The near-term execution test is whether Bougouni can deliver at least roughly 24,600 tonnes in Q4 to reach the bottom end of guidance, while Stage 2 studies determine the scope and economics of the next production expansion.
