Skip to content

Why Kodal Minerals Shares Edged 4% Higher on Half-Year Results

Simon Mugo trader
Updated 23 Dec 2022

The Kodal Minerals PLC (LON: KOD) share price edged 3.86% higher after releasing its results for the six months that ended 30 September 2022. The lithium mining company is still reviewing opportunities to fast-track the development of the Bougouni Project.

new-recommended-broker-banner

YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The company wants to take advantage of the prevailing high lithium prices in the global markets, which is why it is moving forward with the proposed dense media separation (DMS) processing plant option, which has lower capital costs and can be constructed faster.

Top Broker Recommendation

YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

Kodal Minerals is working hard to secure funding for the DMS plant, which is expected to cost US$65 million, representing significant cost savings, compared to the initial plan of constructing a floatation plant that would have cost US$154 million.

The company will likely secure funding for the project given that the DMS plant is expected to generate revenues worth US$1.05 billion in four years, representing a healthy return compared to its construction and operation costs. 

Kodal expects to produce a 5.5% Li2O spodumene concentrate product, similar to what other miners in the same area produce. The company is currently finalising the engineering and environmental work related to the DMS plant option, which it will use in discussions to secure funding for the lithium project. 

The lithium mining company incurred a loss of £490,856 during the six-month period compared to the £373,000 loss recorded in a similar period last year. The firm will likely keep making losses until it can start producing and selling lithium spodumene concentrate from the Bouguoni mine. 

Kodal Minerals had £2,628,334 in cash as of 30 September 2022, but the figure had dropped to £1,821,000 as of 21 December 2022, which indicates that it may be forced to raise more capital next year to fund its operations. 

Kodal has a long history of working well with successive Malian governments, given the polcitical turmoil that has seen multiple governments being toppled by the military in the country. Therefore, we do not expect the company’s operations to be negatively affected by Mali’s politics or lack thereof. 

*This is not investment advice. 

Kodal Minerals share price.

The Kodal Minerals share price rose 3.86% to trade at 0.2285p, rising from Thursday’s closing price of 0.220p.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


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