Shares of Kodal Minerals PLC (LON: KOD) rallied 17.8% despite the lack of significant announcements from the mining and exploration company driven by investor optimism about the political situation in Mali.
The mining company’s shares rally was solely driven by investor sentiment amid hopes about the formation of an interim government in Mali, where its flagship project, the Boughuoni lithium mine, is located.
Investors were also optimistic about the higher global demand for lithium as more car manufacturers set deadlines by which they will be producing electric-powered vehicles only in the future.
Global car manufacturers have promised to stop producing internal combustion engine (ICE) cars over the next ten years, with Jaguar Land Rover promising to produce electric cars only by 2025 and Volvo going full-electric by 2030.
The shift towards electric cars is set to fuel massive demand for lithium, which is used to manufacture electric batteries used in most electric cars.
Investors are looking forward to the approval of the Kodal Minerals’ license application for its Boughuoni lithium mine, allowing the company to start mining operations, hence, unlocking one of the world’s premier lithium deposits.
Kodal Minerals has partnered with Sinohydro, a global Chinese conglomerate, to help it develop and operationalise the mine, which almost guarantees its future success given Sinohydro’s significant experience developing and running mining operations in Africa.
The company’s shares are likely to rally much higher once the Malian government issues Kodal with the final mining license, which was at the final stages of approval before the latest coup deposed the previous government.
Kodal Minerals share price.
Kodal Minerals shares surged 17.78% higher to trade at 0.265p, rising from Friday’s closing price of 0.225p.
Should you invest in Kodal Minerals shares?
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