Kodal Minerals (AIM: KOD) has received an initial US$13 million repayment from the operator of its Bougouni Lithium Project in Mali, as strong spodumene prices continue to support the operation.
The payment from Les Mines de Lithium de Bougouni to Kodal Mining UK represents the first repayment of loans advanced to fund capital expenditure at the mine.
Kodal holds a 49% stake in KMUK alongside majority partner Hainan Mining. The funds have been used to pay down the majority of KMUK’s Hainan loan facility.
Bougouni produced 26,174 dry metric tonnes of spodumene concentrate grading 5.34% Li₂O in the three months to 30 June, taking year-to-date production to 53,195 tonnes.
Production was below management budget after maintenance and breakdown issues in the crushing circuit reduced feed to the dense media separation plant in May.
Kodal said maintenance has since been completed, with throughput returning to normal levels in June. Additional equipment at the Ngoualana open pit has also improved mining rates.
The third shipment of around 20,400 tonnes of concentrate arrived at Hainan port on 27 June, taking completed exports to more than 69,000 tonnes.
The price for the third shipment was calculated at US$2,304 per tonne, with an interim payment of US$34.4 million already received.
A fourth shipment of approximately 24,200 tonnes departed San Pedro in Côte d’Ivoire on 11 July and is expected to arrive in Hainan in late August.
Chief executive Bernard Aylward said the strong spodumene price environment is enabling the operation to generate “very positive returns”, with regular repayments to KMUK expected to continue.
He added that exports are expected to continue on a six-week to two-month schedule, while preparations have been made for the wet season to support steady production.
