Kodal Minerals PLC – KOD – Final Results

Kodal Minerals PLC – KOD – Final Results

Kodal Minerals plc, the mineral exploration and development company, is pleased to announce its audited final results for the year ended 31 March 2020.

To view the press release with illustrative maps, images and diagrams, please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6856T_1-2020-7-21.pdf

 

CHAIRMAN'S STATEMENT

 

I am pleased to present the Annual Report of Kodal Minerals plc ('Kodal' or the 'Company' and together with its subsidiaries, the 'Group') for the year ended 31 March 2020.

 

This year has again marked major developments for Kodal and our focus on the flagship Bougouni Lithium project (the 'Project').  We have received an Environmental Permit following approval of our Environmental and Social Impact assessment ('ESIA') and have completed a Feasibility Study on the project.  This study demonstrates a robust Open Pit mining and processing operation with an initial 8.5-year mine life, and a production profile of 220,000 tonnes of 6% spodumene concentrate per annum.  The capital costs for the development are estimated to be US$117m (plus contingencies) with a payback period of 1.7 years.  This positive Feasibility Study underpinned the Company's Mining Licence application lodged with the Mali Government in January 2020.

 

The outbreak of the Covid-19 pandemic at the beginning of 2020 caused significant disruption to global equity markets and impacted on our ability to readily raise funding for our ongoing development and exploration programmes at a crucial juncture. In April 2020 during these uncertain market conditions, the Company was able to secure funding through a Financing Facility, comprising a share subscription for £0.5 million and linked equity sharing agreement, such that the funding will be received over the next 12 months, but the net amount received will vary according to our share price performance. As a result, we have sought to minimise the Group's overheads and outgoings in order to preserve working capital, by reducing operational activity, agreeing salary and fee reductions for directors, management and staff, and reaching agreements with key suppliers on reduced charges and extending payment timings. 

 

On 14 July 2020 the Company entered into a Convertible Loan Note Agreement for a total commitment of $1.5 million, with a first tranche of $750,000 advanced at closing and a second tranche at a date of mutual agreement, bearing interest at 9.85% per annum. These additional funds will enable us to finance our plans to further develop our Bougouni Lithium project , pay for the mining licence, fund additional exploration activity of our gold assets and explore new investment opportunities identified by the Company in the gold space.

 

The Company is maintaining close contact with the Mali Government with respect to its Mining Licence application, and while timing remains unclear, we understand it continues to progress well through the government agencies and is awaiting only final documentary sign off.

 

The year ahead promises to be a challenging and exciting one for Kodal as we expect to achieve full permitting of the Bougouni Lithium project and embark on the next stage of development, including final engineering design and financing negotiations for construction. 

 

We thank all our shareholders for their continued support and hope that you keep safe and well.

 

Robert Wooldridge

Non-executive Chairman

21 July 2020

 

OPERATIONAL REVIEW

 

Summary

 

Kodal continued with the fast tracking of the flagship Bougouni Lithium project (the 'Project') during this reporting year.  Following the approval of the Company's ESIA in November 2019 and receipt of an Environmental Permit for the Project, the Company completed a feasibility study and lodged a Mining Licence application in January 2020. Following receipt of approval of the Mining licence application the Company will have a fully permitted project ready to move to development.

 

The Feasibility Study for the Project proposes a contract mining operation and conventional "Milling and Flotation" processing facility, capable of treating 2 Mtpa of ore, complete with associated infrastructure, to mine and process approximately 16Mt of pegmatite ore over an initial 8.5 year Life of Mine ('LOM').

 

Kodal Minerals, and its Mali subsidiary Future Minerals SARL ('Future Minerals'), coordinated and managed the Study with various industry expert consulting firms engaged to contribute in the areas of geology, resources, geo-technical, mining, metallurgy, engineering, tailings, cost estimating, project implementation, operational readiness, risk identification, and health, safety, environmental and social aspects.  The Project will consist of open-pit mines, a lithium concentrate processing plant, a tailings dam, waste rock dumps, a water storage dam, stores, a camp including administrative and living quarters and associated infrastructure.

 

In May 2020, Kodal received results of the processing of its bulk sample, with over 800 tons of pegmatite hosted lithium mineralisation collected from the Ngoualana prospect within the Bougouni Lithium project.  The testwork has returned very encouraging results confirming a high-grade, low impurity spodumene concentrate from the mineralised sample.  The results of the testwork demonstrate a metallurgical recovery of up to 83% for a 5.5 % to 6.0% Li2O spodumene product. This recovery is significantly higher than the 71% recovery used in the initial Feasibility Study and indicates upside on the Project's economics. 

 

The Group carried out further exploratory work on its gold assets in Cote d'Ivoire during the year.  It also maintained good title to its lithium and gold assets in Mali and Cote d'Ivoire.

Kodal Minerals plc, the mineral exploration and development company, is pleased to announce its audited final results for the year ended 31 March 2020.

To view the press release with illustrative maps, images and diagrams, please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6856T_1-2020-7-21.pdf

 

CHAIRMAN'S STATEMENT

 

I am pleased to present the Annual Report of Kodal Minerals plc ('Kodal' or the 'Company' and together with its subsidiaries, the 'Group') for the year ended 31 March 2020.

 

This year has again marked major developments for Kodal and our focus on the flagship Bougouni Lithium project (the 'Project').  We have received an Environmental Permit following approval of our Environmental and Social Impact assessment ('ESIA') and have completed a Feasibility Study on the project.  This study demonstrates a robust Open Pit mining and processing operation with an initial 8.5-year mine life, and a production profile of 220,000 tonnes of 6% spodumene concentrate per annum.  The capital costs for the development are estimated to be US$117m (plus contingencies) with a payback period of 1.7 years.  This positive Feasibility Study underpinned the Company's Mining Licence application lodged with the Mali Government in January 2020.

 

The outbreak of the Covid-19 pandemic at the beginning of 2020 caused significant disruption to global equity markets and impacted on our ability to readily raise funding for our ongoing development and exploration programmes at a crucial juncture. In April 2020 during these uncertain market conditions, the Company was able to secure funding through a Financing Facility, comprising a share subscription for £0.5 million and linked equity sharing agreement, such that the funding will be received over the next 12 months, but the net amount received will vary according to our share price performance. As a result, we have sought to minimise the Group's overheads and outgoings in order to preserve working capital, by reducing operational activity, agreeing salary and fee reductions for directors, management and staff, and reaching agreements with key suppliers on reduced charges and extending payment timings. 

 

On 14 July 2020 the Company entered into a Convertible Loan Note Agreement for a total commitment of $1.5 million, with a first tranche of $750,000 advanced at closing and a second tranche at a date of mutual agreement, bearing interest at 9.85% per annum. These additional funds will enable us to finance our plans to further develop our Bougouni Lithium project , pay for the mining licence, fund additional exploration activity of our gold assets and explore new investment opportunities identified by the Company in the gold space.

 

The Company is maintaining close contact with the Mali Government with respect to its Mining Licence application, and while timing remains unclear, we understand it continues to progress well through the government agencies and is awaiting only final documentary sign off.

 

The year ahead promises to be a challenging and exciting one for Kodal as we expect to achieve full permitting of the Bougouni Lithium project and embark on the next stage of development, including final engineering design and financing negotiations for construction. 

 

We thank all our shareholders for their continued support and hope that you keep safe and well.

 

Robert Wooldridge

Non-executive Chairman

21 July 2020

 

OPERATIONAL REVIEW

 

Summary

 

Kodal continued with the fast tracking of the flagship Bougouni Lithium project (the 'Project') during this reporting year.  Following the approval of the Company's ESIA in November 2019 and receipt of an Environmental Permit for the Project, the Company completed a feasibility study and lodged a Mining Licence application in January 2020. Following receipt of approval of the Mining licence application the Company will have a fully permitted project ready to move to development.

 

The Feasibility Study for the Project proposes a contract mining operation and conventional "Milling and Flotation" processing facility, capable of treating 2 Mtpa of ore, complete with associated infrastructure, to mine and process approximately 16Mt of pegmatite ore over an initial 8.5 year Life of Mine ('LOM').

 

Kodal Minerals, and its Mali subsidiary Future Minerals SARL ('Future Minerals'), coordinated and managed the Study with various industry expert consulting firms engaged to contribute in the areas of geology, resources, geo-technical, mining, metallurgy, engineering, tailings, cost estimating, project implementation, operational readiness, risk identification, and health, safety, environmental and social aspects.  The Project will consist of open-pit mines, a lithium concentrate processing plant, a tailings dam, waste rock dumps, a water storage dam, stores, a camp including administrative and living quarters and associated infrastructure.

 

In May 2020, Kodal received results of the processing of its bulk sample, with over 800 tons of pegmatite hosted lithium mineralisation collected from the Ngoualana prospect within the Bougouni Lithium project.  The testwork has returned very encouraging results confirming a high-grade, low impurity spodumene concentrate from the mineralised sample.  The results of the testwork demonstrate a metallurgical recovery of up to 83% for a 5.5 % to 6.0% Li2O spodumene product. This recovery is significantly higher than the 71% recovery used in the initial Feasibility Study and indicates upside on the Project's economics. 

 

The Group carried out further exploratory work on its gold assets in Cote d'Ivoire during the year.  It also maintained good title to its lithium and gold assets in Mali and Cote d'Ivoire.

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