Key points:
- Kodal Minerals shares barely moved after releasing its annual report.
- Investors were already familiar with much of what was in the report.
- So, should you buy Kodal shares? Read on to find out.
The Kodal Minerals PLC (LON: KOD) share price edged 3.4% higher despite the mining and exploration company releasing its final results for the year ended 31 March 2022. The lithium miner revealed that its group loss without including other comprehensive income was £903,000 compared to £623,000 in 2021.
The company further explained that its exploration expenses surged to £2,547,000 compared to £542,000 in 2021 as it accelerated activities in preparation for mining activities at its Boughuoni lithium mine in Mali.
Also read: The Best Lithium And Lithium Mining Stocks To Buy.
Investors barely reacted to today’s announcement because the annual report is a compilation of everything that happened to the company over the past year. Investors who follow Kodal Minerals’ developments daily are familiar with what has happened. Hence, they will not rush to buy Kodal shares due to an annual report.
A ke highlight of the report was that the value of the Boughuoni mine had risen to £9,031,000 versus £7,488,000 in 2021. The company was granted the mining license for the Boughuoni project and is gearing up to start production at the site.
The lithium mine is expected to generate up to $2.145 billion in revenues for Kodal Minerals over its 8.5-year lifetime based on a price of $1,060 per tonne (FOB basis). The mine is expected to produce 2,024,000 tonnes, with its annual production pegged at 238,000 tonnes.
Interestingly, Kodal Minerals continues to make progress at its Bouguoni lithium mine and its Fatou, Nielle, and Dabakala gold mines despite the political turmoil going on in Mali. The country has had multiple coups and is currently ruled by a military junta that most Western countries have criticised.
The country had turned towards Russia as its global partner, with western countries accusing the Malian government of using Russian mercenaries to remain in power forcefully. However, Kodal Minerals has been operating in the country for several years, and its progress is admirable.
So, should you buy Kodal shares? Kodal shares look attractive at current prices since they are trading above a long-term support level. However, buyers should consider the political risk associated with operating in Mali.
*This is not investment advice. Always do your due diligence before making investment decisions.
Kodal Minerals share price.
The Kodal Minerals share price edged 3.4% higher to trade at 0.243p, rising from Monday’s closing price of 0.235p.