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Shares of Kodal Minerals PLC (LON: KOD) fell 10.7%, extending its two-day losing streak after Mali’s coup leader Col. Assimi Goita regained control of the country’s government by deposing the President and Prime Minister.
Col. Goita overthrew Mali’s last democratically elected president in August last year. The United Nations has decried his latest move, which effectively returns Mali to military rule and casts doubt on whether the country shall hold democratic elections in 2022.
Kodal Minerals shares fell 16.5% yesterday and extended their losing streak today as investors panicked and sold its shares, given its significant exposure to Mali.
The company’s top project, the Boughuni lithium mining project located in Mali and Kodal, has recently reported positive progress in acquiring a mining license for the project, which has significant lithium resources.
However, Kodal Minerals is no stranger to the political upheavals in Mali, given that it lived through last year’s coup and has worked well with Mali’s transitional government, including Col. Goita.
While the recent coup is cause for concern given that governments have veto power on mining projects in their country, Kodal Minerals has the right skills to keep negotiating with Mali’s leaders going forward to secure its mining license.
Traders who are long-term bullish on Kodal Minerals are currently scooping up shares at a discount as they wait for the political situation to be resolved and for the company to resume operations.
Conservative traders could be best served to wait for the political situation to calm down before jumping back in. Still, they might have to buy the shares at higher prices once everything is back to normal.
*This is not investment advice.
Kodal Minerals share price.
Kodal Minerals shares plunged 10.69% to trade at 0.192p, falling from Tuesday’s closing price of 0.215p.
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