Kodal Minerals (AIM: KOD) reported a £3.50 million profit for the six months ended 30 June 2026, compared with a £3.66 million loss in the same period last year, as its Bougouni lithium operation in Mali completed its first full period of commercial production.
Bougouni produced 53,195 dry metric tonnes of spodumene concentrate grading 5.34% Li₂O during the half.
Completed exports exceeded 69,000 tonnes, generating approximately US$93 million of revenue for project company LMLB. The third shipment of around 20,400 tonnes arrived in Hainan on 27 June and generated US$39.05 million of proceeds.
Production was nevertheless below budget, mainly because maintenance and breakdown issues in the crushing circuit restricted feed to the DMS plant. Mining at the Ngoualana open pit was also initially behind plan because of equipment availability and blasting efficiency.
Kodal said additional mining equipment was mobilised and crushing-circuit maintenance completed, with operations returning to expected performance levels by the end of the period.
Strong lithium pricing and operating margins allowed LMLB to begin repaying loans to Kodal’s 49%-owned joint venture vehicle, KMUK.
An initial US$13 million was repaid during the half, with repayments subsequently reaching US$33 million. This enabled KMUK to repay the Hainan loan facility in full and terminate the financing agreement.
Kodal’s share of KMUK’s profit was £4.59 million, compared with a £2.41 million loss a year earlier, while the carrying value of its KMUK investment increased to £25.57 million from £20.60 million at the end of December.
Kodal held £13.39 million of cash at 30 June, with cash standing at £12.96 million on 29 September.
Post period-end, a fourth spodumene shipment departed Côte d’Ivoire and KMUK secured a new export permit covering a further 125,000 tonnes of concentrate, supporting continued shipments through the Port of San Pedro.
Work is also continuing on the proposed Phase 2 flotation plant, including engineering design, capital expenditure reviews and updates to the Environmental and Social Impact Assessment.
Chairman and CEO Statements
Robert Wooldridge, Non-Executive Chairman of Kodal Minerals, commented:
“We are pleased to present these unaudited interim accounts for the six months ended 30 June 2026, marking a pivotal transition into profitability for Kodal with a Group profit of approximately £3.5 million. Kodal is in a strong financial position, supported by robust operating returns at Bougouni and high market demand for our spodumene concentrate.
“Crucially, operational cash flows at LMLB enabled US$33 million in loan repayments post-Period end, allowing the holding company KMUK to fully repay and terminate its external loan facility with Hainan. Clearing this debt represents a major financial de-risking milestone for our joint venture, leaving Kodal with zero group debt, a de-risked operating platform, and a healthy cash balance of approximately £13.4 million at the end of the Period.”
Bernard Aylward, Chief Executive Officer of Kodal Minerals, commented:
“Operationally, the first half of 2026 was a period of solid progress as Bougouni delivered its first full period of commercial production. Following the resolution of initial crushing circuit maintenance and mining fleet constraints, site throughput was restored to expected levels by period end. Our focus for the second half remains on continuous operational improvement at the Ngoualana open pit and the DMS processing plant, alongside strict cost control to maintain strong operating margins.
“Looking ahead, we are systematically advancing planning for our Phase 2 flotation processing plant to unlock the broader resource potential at the Boumou and Sogola-Baoulé prospects. Engineering design, capital expenditure reviews, and ESIA updates are all progressing well.
“Supported by a solid financial platform, Kodal continues to evaluate new West African mining opportunities that leverage our strong cash balance and deep regional development experience.”
For investors, the key change is that Bougouni has moved beyond development into cash-generating commercial production, allowing external project debt to be cleared. The next test is whether Kodal can maintain production closer to budget while progressing Phase 2 without undermining the strong operating margins achieved so far.
