Kodal Minerals

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

Kodal is focused on the development of the Bougouni Lithium Project in Mali with construction now well advanced and production scheduled to commence in 1st quarter of 2025. Kodal’s objective is to become the first UK listed producer of lithium concentrate.

The Mali Government has granted both the environmental and mining licences for Bougouni. Kodal has secured full funding for the project development through the Fosun Group in China, via it’s mining focused subsidiary Hainan Mining. The funding will cover the full cost of constructing a conventional DMS facility, capable of producing 130,000 tpa of concentrate. The capital cost is modest at US$65M, generating a pre-tax NPV of $557M based on average product price of $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. The project will generate over US$2.0bn of revenue over the life of mine.

Cash: GBP£20M
Debt: NIL

Major Shareholders:
Xinmao Investments UK – 14.51%
Suay Chin International Pte Ltd – 11.84%
Bernard Aylward – 1.59%
Robert Wooldridge – 0.92%
Charles Joseland – 0.18%
Management Ownership – 2.86%

Financials

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 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 shareholder with lithium production in sight and fully funded.

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

26-Sep-24: Bougouni Lithium Project Update

25-Sep-24: Post-AGM Webcast and Q&A Session

What are your key goals in 3 months, 6 months, 12 months?

3 Months:
Complete construction and commissioning of the Bougouni Lithium Project in Mali.

6 Months:
Start production of lithium concentrate at the Bougouni Mine and generate revenue.

12 Months:
From start of production in 1Q25, produce over 125,000 tonnes of lithium concentrate.

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 and startup of the Bougouni Lithium Project in Mali.

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 first quarter 2025 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, 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 progressing towards lithium production in Mali.