Kodal Minerals

Financials:

Primary ticker: AIM:KOD
Stage of development: Exploration, Development
Primary minerals: Lithium, Gold
Project to promote: Bougouni Lithium, Fatou Gold, Nielle Gold
Project location: Mali and Ivory Coast
Website: kodalminerals.com

Kodal is focused on the development of the Bougouni Lithium Project in Mali. Kodal’s objective is to become the first lithium producer in Mali. The Mali Government has granted both the environmental and mining licences for Bougouni.  Kodal has secured funding for the project development through the Fosun Group in China, via it’s mining focussed subsidiary Hainan Mining. The funding will support construction of a conventional DMS facility, capable of producing 130,000 tpa of concentrate to generate US$1.05bn of revenue in less than 4 years. The capital cost is modest at $65M, generating a pre-tax NPV of $557M based on average product price of US$2,080/t. This will be followed by a larger flotation plant to exploit another 10 years of production at Bougouni, fully funded by Hainan and project cash flows.

Cash: GBP$100,000,000
Debt: NIL

Major Shareholders: 
Xinmao Investments UK – 14.8%
Suay Chin International Pte Ltd – 12.0%
Bernard Aylward – 1.40%
Robert Wooldridge – 0.97%
Charles Joseland – 0.04%
Management Ownership – 2.45%

Management Profile

Bernard Aylward – CEO
Bernard Aylward CEO is a geologist with over 25 years’ experience as a manager and exploration geologist in the mining industry in a variety of commodities. Bernard’s experience includes as Managing Director of Taruga Gold Limited from its listing on the ASX, COO of International Goldfields Ltd, GM of Azumah Resources Ltd (Ghana), and Exploration Manager for Croesus Mining NL. Bernard has experience operating in Europe, Siberia, South America and extensively throughout West Africa.

Steven Zaninovich – Operations Director
Steven Zaninovich, Operations Director, is an engineer with over 25 years’ experience in project development, construction, commissioning and operations predominantly in West Africa. Steve served as COO with Gryphon Minerals prior to their takeover by Teranga where he assumed the role of VP-Major Projects and completed the BFS and licencing over the Wahgnion Gold Project, now mine, in Burkina Faso. Steve has been involved in feasibility studies, design, construction and operations of various projects in West Africa and Australia, including: Bibiani Gold Mine, Tarkwa Phase IV Gold Project, Akyem Gold Mine, Ewoyaa Lithium Project and the Bald Hill Lithium Mine. 

What is your rationale for taking part in 121 Mining Investment?

Updating investors and potential investors on project development timeline and the upside of being a Kodal investor with lithium production in sight and fully funded.

What recent news would you like to highlight to investors attending?

27-Oct-23: Kodal and Hainan Funding Package Completion
22-Sep-23: Update on Project Development Preparations

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Commence construction at the Bougouni Lithium Project.

6 Months:
Receive major equipment for the process plant on site and mobilise the Mining Contractor.

12 Months:
Commence commissioning of the Bougouni Lithium project, then progressing toward operational handover and thereafter into steady state production.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Execution risk relating to the development of the Bougouni Project.

What do you think makes your company such a compelling investment?

– Top 10 lithium hard rock spodumene resource in the world.
– Mining licence granted over the project providing the foundation for becoming the first lithium concentrate producer in West Africa. 
– Fully funded to production of lithium by year end 2024 from Bougouni with a fast-track low capex phase 1 DMS operation.
– Massive exploration potential with target established to increase mineral resource by 50%.
– Phase 2 flotation operation to increase production by a factor of three by 2026/7 that will be funded from cash flow and additional capital injection from project partner Hainan Mining. 
– Kodal holds a positive outlook on EV demand and energy storage systems is set to continue and out perform.

What are the top 3 key investor takeaways?

Fully permitted, fully funded and well advanced lithium project in Mali.