REG - Kodal Minerals PLC - Bougouni Lithium Project Quarterly Update

Kodal MineralsAnnouncement

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RNS Number : 3581A  Kodal Minerals PLC  14 April 2026

 

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

 

14 April 2026

 

Kodal Minerals plc

("Kodal Minerals", "Kodal" or the "Company")

 

Bougouni Lithium Project Quarterly Update for the three months ended 31 March
2026

 

Kodal Minerals (AIM: KOD), the West African lithium producer, mineral
exploration and development company, provides an update on mining, processing,
export and development activities at the Bougouni Lithium Project ("Bougouni"
or the "Project") for the three months ended 31 March 2026 (the "quarter").

 

Kodal maintains its involvement and interest in Bougouni via its 49 per cent.
shareholding in Kodal Mining UK Limited ("KMUK") in partnership with Hainan
Mining Co. Ltd ("Hainan"), which as the 51 per cent. shareholder has ultimate
control.  KMUK holds a 65 per cent. shareholding of the subsidiary mining
company Les Mines de Lithium de Bougouni SA ("LMLB"), which owns the Project
in partnership with the Mali Government, and KMUK provides the management
oversight and operational control of mining activities at Bougouni.

 

Quarter highlights:

·    Quarterly production of 26,981 tonnes spodumene concentrate grading
5.28% Li(2)O.

·    March production exceeded 10,900 tonnes at 5.28% Li(2)O and is the
highest monthly production recorded to date at Bougouni.

·  Following the completion of two shipments to Hainan, Bougouni has
exported a total of approximately 49,000 tonnes of spodumene concentrate.

·    Revenue received by LMLB to date exceeded US$51 million with the
final balancing payment for the second shipment pending.

·    Ngoualana open pit performing to budget and site team focussed on
continued improvement with additional mining equipment mobilised to site.

·    Bougouni operation continues to focus on Health, Safety and
Environment ("HSE") with no Lost Time Incidents ("LTI") or Medically Treated
Incidents ("MTI") reported during the quarter.

 

Post-quarter highlights:

·    Third shipment of approximately 20,000 tonnes spodumene concentrate
departed the port of San Pedro, Côte d'Ivoire on 12 April.

o  LMLB to issue interim invoice for 95% of the value of the cargo as agreed
in the offtake agreement, and finalisation of full payment for the shipment to
be completed following completion of transport to Hainan and verification.

 

Bernard Aylward, CEO of Kodal Minerals, commented: "The March production of
over 10,900 tonnes of spodumene concentrate and the recent loading and
departure of the third export shipment to Hainan highlights the continued
improvement and consistent delivery at the Bougouni operation.  This third
shipment increases total export to approximately 69,000 tonnes of spodumene
concentrate since November 2025 and the operation continues to benefit from
the increasing market price performance of lithium.

 

"The Bougouni team continues to focus on improving operations with maintenance
and modifications to the dense media separation ("DMS") processing plant and
crushing circuit aimed at improved availability and utilisation of the plant
and increased throughput.  The open pit mine has also continued to improve
blasting performance and access to broken ore stocks. During the quarter, the
mining team continued to move waste material to provide ongoing access to the
Ngoualana orebody.  The open pit mine plan is focussed on preparing for the
wet season with a build-up of the run-of-mine ("ROM") pad ore stocks as well
as preparation of additional pit de-watering sumps, boreholes and access
roads.

 

"The Bougouni operation is working to update the Feasibility study for the
Phase Two Floatation plant and initial work is focussed on engineering review,
metallurgical testing, geotechnical assessment and environmental planning. The
work programme is expected to be completed by the end of 2026, and thereafter
allowing for an investment decision of Phase Two to be reviewed."

 

Further Details:

 

Mining:

 

Open pit mining continues at the Ngoualana open pit mine and statistics for
the quarter are tabled below:

 Quarter ended 31 March 2026 Mining    Quarter    Year to Date
 Total Tonnes Mined                    1,980,784  1,980,784
 Total Ore Tonnes Mined                274,227    274,227
 Total Ore Grade %                     1.15       1.15
 Strip Ratio                           6:22       6:22

 

Operations at the Ngoualana open pit were behind plan for January and February
2026 and were impacted by low productivity drill and blast activity, and to a
lesser extent, the availability of machinery. The site team has taken measures
with the mining contractors to potentially improve performance with additional
drilling rigs mobilised to assist the blasting programme and additional
diggers mobilised to improve productivity.

The open pit operation remained unaffected by both fuel supply issues and
explosives availability during the quarter, and in March the mining operations
performed at the planned levels of production.

The open pit mining team have focussed on the expansion of the open pit with
waste removal to expose more of the pegmatite orebody and are preparing for
additional mining of ore to build up the ROM pad stocks.

 

Spodumene Production:

 

The DMS processing plant and crushing circuit operated throughout the quarter
and statistics are tabled below:

 

 Quarter ended 31 March 2026                         Quarter  Year to Date

 Bougouni Processing Plant
 ROM feed to processing plant (Tonnes)               314,060  314,060
 Average Feed Grade %Li(2)O                          1.00     1.00
 Spodumene Concentrate produced (dry metric tonnes)  26,981   26,981
 DMS Recovery Rate %                                 62%      62%
 Overall Recovery Rate %                             49%      49%
 Average Concentrate Grade %Li(2)O                   5.28     5.28

 

During the quarter the DMS processing plant and crushing circuit were impacted
by downtime in the crushing circuit and availability of the DMS circuit
resulting in below plan production of spodumene concentrate in January and
February.

 

The site team has undertaken maintenance and replacement of all conveyor belts
in the crushing circuit to improve availability of running hours and reduction
of lost time due to breakdown and site maintenance.

 

The production of over 10,900 tonnes of spodumene concentrate in March was
above plan and demonstrates the impact of improvements following maintenance
and repair activities.  Initial review of April 2026 performance indicates
that production is on track.

 

Spodumene export and revenue for LMLB:

 

During the quarter two export shipments were completed - the first shipment
departed the port of San Pedro in late November 2025 and arrived in Hainan in
early January 2026, and the second shipment departed in early February 2026
and arrived in Hainan in late March 2026.  Following these two shipments, a
total of approximately 49,000 tonnes spodumene concentrate has been
transported to Hainan to date.

 

Post-quarter end, a third export shipment was loaded and departed the port of
San Pedro on 12 April 2026 with a further approximately 20,000 tonnes of
spodumene concentrate, and is expected to arrive in Hainan in June 2026.

 

To date, the Bougouni operation has received revenue of approximately US$51.3
million, comprising the full payment for the first export shipment and
approximately US$24 million as the 95% interim payment for the second
shipment.  In accordance with the off-take agreement, the final 5% payment
for the second shipment is pending confirmation of grade analysis, moisture
content and final weight with the final invoice to be submitted once the
amount is agreed.

 

The calculation of the price per tonne of spodumene concentrate is controlled
by the offtake agreement with Hainan, announced by the Company on 30 June
2025.  The agreement references the market price published by Shanghai Metal
Markets ("SMM") and utilises a blend of the CIF China 6% spodumene concentrate
("SC6") index and the African SC6 CIF index. The agreement allows for a longer
averaging period to calculate a sales price for LMLB that covers the period
from when the ore was mined at Bougouni through to processing, transportation
and final delivery to Hainan. The final price is determined following arrival
in Hainan and verification, however, the agreement provides for an interim
payment equivalent to approximately 95% of the value of the cargo on departure
from the port of San Pedro.

 

The final price that the Bougouni operation receives is adjusted to account
for the grade of the concentrate, and as the site has exported concentrate of
around 5.3%, the price is reduced from the SC6 price in a straight calculation
to the product grade.  Further price adjustments occur to account for
shipping and insurance costs to reflect a change from the CIF China price to
an agreed FOB San Pedro price.

 

The Bougouni operation monitors the price calculation closely and confirms
that all shipments have been paid in line with the offtake agreement.  It is
noted that the extended averaging period in the price calculation may result
in a "lag effect" in a rising lithium price environment that is currently
occurring. However, in a falling market the operation is protected by the
calculation and will ensure suitable pricing to support operational decisions.

 

 HSE and community engagement:

 

The Bougouni operation had zero reported LTI and MTI incidents during the
quarter.

 

The operation reported minor malaria cases, two small fire incidents and minor
first aid treatment incidents. The site continues to monitor closely the
health and safety of the workforce, and all incidents are reviewed at the site
safety meetings.

 

A property damage incident occurred involving a contractor vehicle accident,
however, no occupants were injured.  The incident is under investigation to
determine cause and ensure no similar incidents occur in the future.

 

Bougouni development plan:

 

The Bougouni operation is planning an extensive work programme for the
proposed Phase Two Floatation Plant development. The site team has started the
process for updating the Environmental and Social Impact Assessment ("ESIA").
This revised ESIA is required due to the expanded footprint of the Boumou
prospect and the potential expansion of the proposed Phase Two Floatation
Plant.

 

Technical work is also required to complete the updated feasibility
assessment, and this is expected to include additional infill and extension
drilling, geotechnical drilling and assessment to assist in the open pit
optimisation and design, as well as metallurgical testing required for final
processing plant design.  This work will be ongoing through the year, and
updates will be provided in these quarterly reports.

 

As announced by Kodal on 25 March 2026, Hainan referenced significant growth
in the resource at the Boumou prospect in its annual report, claiming an
additional 15.47 million tonnes of mineral resource.  This estimate is
Hainan's internal estimate based on previously announced drill results.  This
resource estimate has not been reviewed by Kodal, nor has it has been subject
to an independent audit and validation to confirm JORC compliance.  The work
programme planned for the Phase Two assessment is expected to provide
information to support a JORC compliant resource update and any such update
will be announced by the Company through the London Stock Exchange's
Regulatory News Service ("RNS") as soon as work is completed.

 

**ENDS**

 

For further information, please visit www.kodalminerals.com
(http://www.kodalminerals.com) or contact the following:

 

 Kodal Minerals plc

 Bernard Aylward, CEO                                                  via Burson Buchanan
 Allenby Capital Limited, AIM Nominated Adviser

 Jeremy Porter/Vivek Bhardwaj                                          Tel: 020 3328 5656
 SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker

 Stuart Gledhill/Adam Cowl                                             Tel: 020 3470 0470
 Canaccord Genuity Limited, Joint Broker

 James Asensio/Charlie Hammond                                         Tel: 020 7523 4680
 Peel Hunt LLP, Joint Broker

 Ross Allister/David McKeown/Georgia Langoulant                        Tel: 0207 418 8900
 Burson Buchanan, Financial PR

 Bobby Morse/ Abigail Gilchrist                                        Tel: +44 (0)20 7466 5000

                                                                       kodal@buchanancomms.co.uk

 

About Kodal Minerals

 

Kodal Minerals plc, the AIM-quoted West African lithium explorer, developer
and producer, is the co-developer of its flagship Bougouni Lithium Project in
Southern Mali alongside joint venture partner Hainan Mining, a subsidiary of
Hong Kong-listed Fosun International.

 

The Bougouni Lithium Project covers 350km² in the world-class Birimian
terrain of West Africa, located approximately 180km south of Mali's capital
Bamako. The Stage 1 Dense Media Separation ('DMS') processing plant, which
achieved first spodumene concentrate production in February 2025, has a target
output of 125ktpa Li₂O spodumene concentrate. Stage 2 Floatation plant is
expected to commence operations in 2028 with a forecast output of 230ktpa
Li₂O.

 

Bougouni is operated by Les Mines de Lithium de Bougouni SA ('LMLB'), a
subsidiary of Kodal Mining UK Limited ('KMUK') which owns the project and in
which Kodal has a 49 per cent shareholding. The company also has a number of
highly prospective gold assets in its diverse portfolio located in West
Africa.

 

For more information on Kodal, please visit kodalminerals.com
(https://kodalminerals.com/)

 

The exploration results and activity reported in this announcement have been
reviewed by Mr Bernard Aylward who is a Member of the Australasian Institute
of Mining and Metallurgy. Mr Aylward has sufficient experience that is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Qualified
Person as defined in the AIM Note for Mining and Oil & Gas Companies dated
June 2009. Mr Aylward consents to the inclusion in this announcement of the
matters based on his information in the form and context in which it appears.

 

 

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