Shares of Kodal Minerals PLC (LON: KOD) are up 288% this year after pulling back from its recent high of 0.488p, which has turned into a crucial resistance level.
Many expect the company’s shares to keep rising after being granted a mining license for its Boighuni lithium project in Mali. However, I think we might see a further pullback as the stock cools off as the company starts production activities at the mine.
Kodal Minerals has other projects such as the Dabakala Concession, which has demonstrated high-grade geochemical anomalies with the latest assay results showing up to 1.97g/t gold, extending for over 11km with a surface width of up to 3km.
The West Africa-focused mining company also has the Fatou gold project, where it has found up to Up to 213g/t of gold and confirmed the existence of up to 350,000 ounces of gold.
The project could be worth millions more than the $2 million Kodal paid to acquire the project from Rockridge in 2020.
Still, all eyes are on the Boughuni lithium project, given the high global demand for lithium driven by the increasing adoption of electric cars and other consumer products such as smartphones that use lithium-ion batteries.
Kodal’s CEO, Bernard Aylward, has been touring the company’s projects and the company’s geologist Demba Diallo and country manager Mohamed Niare while holding meetings with various stakeholders.
Bernard recently held meetings with the new Minister of Mines, Energy and Water ~ His Excellency M. Lamine Seydou Traore. They discussed the production plan for the Boughuni mine once the mining license is granted.
Kodal also held meetings with its project partner Sinohydro, committed to buying the lithium produced at the Boighuni mine due to the high demand for the metal among Chinese manufacturers.
While Kodal’s prospects are up-and-coming, I think we will get some sideways trading or a further pullback before the next rally phase begins.
*This is not investment advice.
Kodal Minerals share price.
Kodal Minerals shares are up 288% in 2021 and have recently pulled back from a crucial resistance level.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading