REG - Kodal Minerals PLC - Interim Results for 6 months to 30 September 2024
23/12/2024 07:00
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RNS Number : 0879R Kodal Minerals PLC 23 December 2024
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation.
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
23 December 2024
Kodal Minerals plc
('Kodal', 'Kodal Minerals' or the 'Company')
Interim Results for the six months to 30 September 2024
Kodal Minerals, the mineral exploration and development company announces its
unaudited interim results for the six months ended 30 September 2024.
Highlights
Operational
· Principal operational activity for the period has been the
construction of the Stage 1 Dense Media Separation ("DMS") processing plant at
the Bougouni Lithium Project in southern Mali ("Bougouni" or the "Project"),
within our associated undertaking Kodal Mining UK Limited ("KMUK").
· Engineering and development work at Bougouni is close to
completion with first production targeted for the first quarter ("Q1") of
2025.
· Open pit mining is continuing ahead of schedule and a stockpile
of ore is being built well in advance of the commissioning of the processing
circuit.
· Discussions with the Mali Government regarding the transfer of
the Bougouni mining licence have concluded with the signing of a binding
memorandum of understanding (the "MoU").
Financial
· For the 6 months to 30 September 2024, the Company made a loss of
£1,486,000 (6 months to 30 September 2023: £509,000), which includes the
Company's share of KMUK's loss for the period of £832,000 due to the
engineering and development work at Bougouni.
· The carrying value of Kodal's investment in KMUK at 30 September
2024 was £28,207,000.
· Cash balances at 30 September 2024 were £18.1 million (30
September 2023: £1.7 million) and cash as at 20 December 2024 was £17.5
million.
Bougouni Lithium Project - Plant Development
Engineering and development work at Bougouni is close to completion with first
production targeted for Q1 2025. The Project development timeline and
commissioning of the processing plant was impacted by minor delays on site
during the period under review, due to unusually heavy rainfall in the period
and the availability of vessels to transport equipment and materials from
China to West Africa.
Following the end of the abnormally long wet season, construction progress is
now accelerating, and structural steel erection work has progressed well with
all major buildings taking shape, including the main DMS module, the crushing
modules, the screening building and the filtration building.
The first two shipments from China carrying the critical long lead equipment
items and structural steelwork for the buildings arrived at Abidjan Port,
Côte d'Ivoire, in late August 2024 and a steady stream of deliveries ensued
in priority order to support the sequence of the structural, mechanical,
platework and piping ("SMPP") installation programme. The plant civil
construction is now complete and the SMPP contractor, Bambara Resources SARL
("Bambara") together with its key subcontractor, Yantai Jinpeng Mining
Machinery Company ("Jinpeng") from China, are progressing well with
installation work. The final shipments carrying the balance of imported
materials, equipment and spares, including the power plant, associated
transformers and switch gear, have arrived since the half year end and power
plant installation and cabling will commence imminently. Commissioning of the
first of two crushing circuits commenced this month with a brief successful
test on waste rock. The second crusher module installation continues and is
expected to be completed in the next few weeks. Ore processing is targeted to
commence early in the first quarter of 2025.
Mining activities continues to progress well in preparation for commissioning
and first production. The open pit mine is now focussed predominantly on
mining hard rock ore and waste mining. The main Ngoualana ore body is well
exposed with over 150,000 tonnes of ore mined, grading on average 1.17%
Li(2)O, which is sufficient ore for the commissioning phase.
Bougouni Lithium Project - Mineral Resource Update
During the period under review, KMUK undertook an extensive drilling programme
aimed at enhancing confidence in the existing resource estimates and to
identify new areas of mineralisation. The diamond drilling programme at the
Boumou prospect was concluded at the end of August 2024 with a total of
5,474m drilled in this programme. Early in September 2024, a new core cutting
saw was mobilised to site to improve productivity of core cutting and
sampling.
Most of the assays for the drilling programme have been received since the
period end and, as has previously been reported, have confirmed the continuity
and depth extension of the core pegmatite veins that mark the extension of the
Boumou prospect. The drilling programme has also highlighted a fault zone that
may control an offset of the pegmatite zone and highlight further exploration
opportunities.
The next steps for the Boumou prospect include further infill and extension
drilling prior to an updated mineral resource estimate and a phase of
geotechnical and metallurgical drilling to allow the engineering assessment of
the open pit potential of the Boumou prospect.
Bougouni Mining Licence Transfer
In 2022, the State of Mali ("State") initiated an audit of the mining sector,
including a review of existing mining conventions for existing mines.
In August 2023, the State issued a new Mining Code (the "2023 Mining
Code") and later in 2023 established a commission comprised of Malian
Government advisors and representatives (the "Commission") which was tasked
with negotiating certain aspects of existing mining conventions and clarifying
the application of the 2023 Mining Code to both existing and new mining
projects. In July 2024, the State finalised and issued the Implementation
Decree for the 2023 Mining Code, which included certain details relating to
economic parameters not previously included in the 2023 Mining Code.
Following a series of meetings with the Commission during the period under
review, in November 2024 KMUK and the State entered into the binding MoU to
finalise the transfer of the Bougouni mining licence to the established mining
company Les Mines de Lithium de Bougouni SA ("LMLB"), a subsidiary of KMUK.
The MoU confirms the migration of the Project to the 2023 Mining Code while
confirming rights relating to various customs and tax exemptions for the
development.
The MoU with the State for the transfer of the Bougouni mining licence is the
final legal step required as KMUK rapidly progresses the construction of the
Project. The MoU and the transfer of the mining licence to the mining
company LMLB confirms the good standing of the Project and provides certainty
of State support and ongoing stability of Bougouni. The strong partnership
built between the Kodal management team and the State has allowed discussions
to be accelerated, culminating with this landmark MoU.
The first half of the US$15m settlement payment under the MoU has been made
by KMUK to the Mali Government following the half year end concerned and the
licence transfer process is expected to be completed shortly. Kodal
and Hainan Mining Co., Ltd ("Hainan") are continuing discussions regarding
which group entity will have ultimate responsibility for the settlement
payment to the Mali Government. At the current time the Company cannot
determine the outcome of the discussions, and hence the nature or amount of
any payments or concessions that might be required, if any, and which may
result in an economic outflow from the Company.
Offtake Agreement
Negotiations progressed during the period concerned with Hainan regarding an
offtake agreement for 100% of the spodumene production from the Stage 1 DMS
processing plant. The offtake agreement being negotiated between KMUK
and Hainan will be based on market prices for spodumene, with a floor set to
ensure that all costs are covered and will require express written approval
from Kodal Minerals PLC as a shareholder of KMUK. Offtake for Stage 2
production is outside of the scope of current negotiations with Hainan and
remains available to KMUK for future commercial opportunities.
Bernard Aylward, CEO of Kodal Minerals, said: "The six month period ended 30
September 2024 has seen significant milestones in the development of the
Bougouni Lithium Project by KMUK and the team has worked tirelessly to bring
the Project to the cusp of commissioning. The signing of the MoU with the
Mali Government provides certainty of State support and will ensure the
ongoing stability of Bougouni as we enter the critical production phase."
"Kodal remains in a strong financial position that will allow us to continue
to explore our gold projects in Mali and Cote d'Ivoire as well as to review
opportunities that offer further growth and expansion opportunities for the
Company."
"The Bougouni Lithium Project remains a focus for Kodal as we work with our
operating partner to complete construction and commence production over the
next few months."
Chairman's Statement
I am very pleased to report on the status of our Company, following a six
month period where we have witnessed a number of key milestones being passed
in the commercialisation of the Bougouni Lithium Project.
The global push for electrification continues to drive demand for high-grade
spodumene product, such as that expected from Bougouni. Electric vehicle
batteries are the fastest growing segment of the global lithium market and the
key driver of demand growth. Bloomberg has reported that global electric
vehicle sales are forecast to reach around 40 million units by 2030. While
spodumene prices have fallen from the highs of 2022, prices in recent months
have been relatively stable and the current price for lithium spodumene
concentrate is in line with the prices used in the Company's feasibility
studies and underlines the robustness of the Project.
There is a growing emphasis on sustainable mining practices and responsible
sourcing, as stakeholders demand environmentally and socially responsible
production methods. We continue to work closely with the team at Bougouni to
ensure that the Project is delivered in a way that is both sustainable and
plays a positive social role in the local community, minimising disruption,
providing job opportunities and supporting local projects.
The Board has continued to review additional investment opportunities and is
well-placed to take advantage of any prospects that may arise. In addition,
we are continuing to work on a strategy to maximise the value of the Company's
remaining gold assets in Cote d'Ivoire.
In the six month period ended 30 September 2024, the Group has recorded a loss
of £1,486,000 compared to losses of £509,000 for the 6 months to 30
September 2023 and a profit of £27,186,000 for the year to 31 March 2024.
The loss for this period includes the Company's share of KMUK's loss for the
corresponding period of £832,000, based on unaudited management accounts, due
to the engineering and development work at Bougouni.
Cash balances as at 30 September 2024 were £18,108,000 compared to
£1,706,000 at 30 September 2023 and £16,327,000 at 31 March 2024. Cash as
at 20 December 2024 was £17,537,000.
We have a very exciting period ahead of us as construction reaches completion
at Bougouni and the production phase starts. I look forward to reporting on
our progress as KMUK moves into commissioning and production during the first
quarter of 2025.
Robert Wooldridge
Non-Executive Chairman
Contact details:
For further information, please visit www.kodalminerals.com or contact the
following:
Kodal Minerals plc
Bernard Aylward, CEO Tel: +61 418 943 345
Allenby Capital Limited, Nominated Adviser
Jeremy Porter / Vivek Bhardwaj Tel: 020 3328 5656
SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker
John Mackay / Adam Cowl Tel: 020 3470 0470
Canaccord Genuity Limited, Joint Broker
James Asensio / Charlie Hammond Tel: 0207 523 4680
Burson Buchanan, Financial PR Tel: 020 7466 5000
Bobby Morse / Oonagh Reidy kodal@buchanancomms.co.uk (mailto:kodal@buchanancomms.co.uk)
KODAL MINERALS PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2024 2023 2024
£ £ £
Continuing operations
Revenue - - -
Other operating income - 158,138 -
Impairment of exploration and evaluation assets 6 - - (1,572,302)
Administrative expenses (566,623) (511,978) (1,530,114)
Share based payments (276,331) (154,899) (241,888)
OPERATING LOSS (842,954) (508,739) (3,344,304)
Finance income 188,798 - 92,693
Revaluation gain on sale of subsidiary undertaking - - 30,521,645
Share of loss of an associate (831,819) - (83,610)
LOSS BEFORE TAX (1,485,975) (508,739) 27,186,424
Taxation - - -
LOSS FOR THE PERIOD/YEAR (1,485,975) (508,739) 27,186,424
OTHER COMPREHENSIVE INCOME
Items that may be subsequently reclassified to profit and loss
Currency translation (loss)/gain (2,365,348) (54,725) 3,230
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD/YEAR (3,851,323) (563,464) 27,189,654
Profit / (loss) per share from continuing operations
Basic - pence per share 3 (0.0074) (0.0030) 0.1491
Diluted - pence per share (0.0071) (0.0030) 0.1431
KODAL MINERALS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
Unaudited Unaudited Audited
as at as at as at
30 September 30 September 31 March
2024 2023 2024
Note £ £ £
NON-CURRENT ASSETS
Intangible assets 6 2,259,711 17,000,095 2,162,452
Property, plant and equipment 7 55,471 76,992 664
Investment in associated undertaking 9 28,206,561 - 31,260,186
Amounts due from associated undertaking 4,312,785 - 4,312,785
34,834,528 17,077,087 37,736,087
CURRENT ASSETS
Trade and other receivables 1,059,141 17,793 3,427,357
Cash and cash equivalents 18,108,383 1,705,534 16,326,507
Non-current assets classified as held for sale - 267,991 79,606
19,167,524 1,991,318 19,833,470
CURRENT LIABILITIES
Trade and other payables (93,122) (4,348,457) (139,301)
NET ASSETS 53,908,930 14,719,948 57,430,256
EQUITY
Attributable to owners of the parent:
Share capital 10 6,327,302 5,319,525 6,325,349
Share premium account 10 32,645,868 18,808,801 32,624,071
Share based payment reserve 1,453,911 1,849,685 1,147,664
Translation reserve (2,349,486) (42,093) 15,862
Retained deficit 15,831,335 (11,215,970) 17,317,310
TOTAL EQUITY 53,908,930 14,719,948 57,430,256
KODAL MINERALS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Share capital Share premium account Retained deficit Total equity
Share based payments reserve Translation
reserve
£ £ £ £ £
At 31 March 2023 (audited) 5,315,619 18,765,206 1,537,779 12,632 (10,748,312) 14,882,924
Comprehensive income
Loss for the period - - - - (508,739) (508,739)
Currency translation (loss) - - - (54,725) - (54,725)
Total comprehensive income for the period - - - (54,725) (508,739) (563,464)
Transactions with owners
Proceeds from exercise of share options 3,906 43,595 - - - 47,501
Reserves movement for exercised / lapsed share options - - (41,081) - 41,081 -
Share based payment - - 352,987 - - 352,987
At 30 September 2023 (unaudited) 5,319,525 18,808,801 1,849,685 (42,093) (11,215,970) 14,719,948
Comprehensive income
Profit for the period - - - - 27,695,163 27,695,163
Currency translation gain - - - 57,955 - 57,955
Total comprehensive income for the period - - - 57,955 27,695,163 27,753,118
Transactions with owners
Proceeds from shares issued 918,063 13,251,199 - - - 14,169,262
Proceeds from exercise of share options 87,761 564,071 - - - 651,832
Reserves movement for exercised / lapsed share options - - (838,117) - 838,117 -
Share based payment - - 136,096 - - 136,096
At 31 March 2024 (audited) 6,325,349 32,624,071 1,147,664 15,862 17,317,310 57,430,256
Comprehensive income
Loss for the period - - - - (1,485,975) (1,485,975)
Currency translation (loss) - - - (2,365,348) - (2,365,348)
Total comprehensive income for the period - - - (2,365,348) (1,485,975) (3,851,323)
Transactions with owners
Proceeds from exercise of share options 1,953 21,797 - - - 23,750
Share based payment - - 306,247 - - 306,247
At 30 September 2024 (unaudited) 6,327,302 32,645,868 1,453,911 (2,349,486) 15,831,335 53,908,930
KODAL MINERALS PLC
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Unaudited Unaudited Audited
6 months to 6 months to Year ended 31 March
30 September 30 September 2024
2024 2023
£ £ £
Cash flows from operating activities
Loss before tax (1,485,975) (508,739) 27,186,424
Adjustments for non-cash items:
Revaluation gain on sale of subsidiary undertaking - - (30,521,645)
Impairment of exploration and evaluation assets - - 1,572,302
Profit on sale of exploration and evaluation assets - (158,138) -
Share of loss from associate 831,819 - 83,610
Interest income (188,799) - (92,694)
Share based payments 276,331 154,899 241,888
Operating cash flow before movements in working capital (566,624) (511,978) (1,530,115)
Movement in working capital
(Increase)/decrease in receivables (536,868) (6,618) (343,785)
Increase/(decrease) in payables (67,753) 802,706 (660,702)
Net movements in working capital (604,621) 796,088 (1,004,487)
Net cash inflow / (outflow) from operating activities (1,171,245) 284,110 (2,534,602)
Cash flows from investing activities
Purchase of tangible assets (55,471) - -
Purchase of exploration and evaluation assets (101,727) (2,473,559) (2,736,084)
Disposal of exploration and evaluation assets 76,905 400,000 400,000
Loan repayments from associated undertaking 2,901,581 - 5,807,937
Net cash outflow from investing activities 2,821,288 (2,073,559) 3,471,853
Cash flow from financing activities
Interest income 107,492 - 28,258
Prepayment on share subscription - 2,745,744 -
Net proceeds from share issues - - 14,169,262
Net proceeds from exercise of share options 23,751 47,501 699,333
Net cash inflow from financing activities 131,243 2,793,245 14,896,853
Increase/(decrease) in cash and cash equivalents 1,781,286 1,003,796 15,834,104
Cash and cash equivalents at beginning of the period 16,326,507 544,988 544,988
Exchange gain / (loss) on cash 590 156,750 (52,585)
Cash and cash equivalents at end of the period 18,108,383 1,705,534 16,326,507
KODAL MINERALS PLC
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
General information
Kodal Minerals plc is a public limited company incorporated and domiciled in
England & Wales. The Company's shares are publicly traded on the AIM
market of the London stock exchange. Kodal Minerals Plc and its subsidiaries
are involved in the exploration and evaluation of mineral resources in West
Africa.
Basis of preparation
These unaudited condensed consolidated interim financial statements for the
six months ended 30 September 2024 were approved by the board and authorised
for issue on 19 December 2024.
The basis of preparation and accounting policies set out in the Annual Report
and Accounts for the year ended 31 March 2024 have been applied in the
preparation of these condensed consolidated interim financial statements.
These interim financial statements have been prepared in accordance with the
historical cost convention and in accordance with International Accounting
Standards in conformity with the requirements of the Companies Act 2006 that
are expected to be applicable to the consolidated financial statements for the
year ending 31 March 2025 and on the basis of the accounting policies expected
to be used in those financial statements.
The figures for the six months ended 30 September 2024 and 30 September 2023
are unaudited and do not constitute full accounts. The figures for the
associated undertaking have been extracted from unaudited management accounts
which have been provided to us by the associated undertaking and which we have
not verified. The comparative figures for the year ended 31 March 2024 are
taken from the 2024 audited accounts, which are available on the Group's
website, and have been delivered to the Registrar of Companies, and do not
constitute full accounts.
The Group has not earned revenue during the period to 30 September 2024 as it
is still in the exploration and development phases of its business. The
operations of the Group are currently being financed from funds which the
Company has raised from the issue of new shares.
The directors have prepared cash flow forecasts for the next 12 months. The
forecast includes the costs of targeted exploration of some of the company's
gold assets, and the ongoing overheads of the Group. The forecast shows that
the Group has sufficient cash resources available to allow it to continue as a
going concern and meet its liabilities as they fall due for a period of at
least 12 months from the date of the approval of these interim results.
Accordingly, the interims have been prepared on a going concern basis.
KODAL MINERALS PLC
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
1. SEGMENTAL REPORTING
The operations and assets of the Group are focused in the United Kingdom and
West Africa and comprise one class of business: the exploration and evaluation
of mineral resources. The parent Company acts as a holding company. At 30
September 2024, the Group had not commenced commercial production from its
exploration sites and therefore had no revenue for the period.
Six months to 30 September 2024 (Unaudited) West African Gold West African Lithium UK Total
£ £ £ £
Administration expenses (56,495) - (510,128) (566,623)
Share based payments - - (276,331) (276,331)
Finance income - 81,307 107,491 188,798
Share of loss of an associate - (831,819) - (831,819)
Loss for the period (56,495) (750,512) (678,968) (1,485,975)
At 30 September 2024
Intangible assets - exploration and evaluation expenditure 2,259,711 - - 2,259,711
Property plant and equipment 55,471 - - 55,471
Investment in associated undertaking - 28,206,561 - 28,206,561
Amount due from associated undertaking - 4,312,785 - 4,312,785
Trade and other receivables - 1,059,141 - 1,059,141
Cash and cash equivalents 86,672 - 18,021,711 18,108,383
Trade and other payables - - (93,122) (93,122)
Net assets 2,401,854 33,578,487 17,928,589 53,908,930
Six months to 30 September 2023 (Unaudited) West African Gold West African Lithium UK Total
£ £ £ £
Other operating income - 158,138 - 158,138
Administration expenses (1,815) (19,832) (490,331) (511,978)
Share based payments - - (154,899) (154,899)
Loss for the period (1,815) 138,306 (645,230) (508,739)
At 30 September 2023
Intangible assets - exploration and evaluation expenditure 3,515,208 13,484,887 - 17,000,095
Property plant and equipment 846 76,146 - 76,992
Trade and other receivables - - 17,793 17,793
Cash and cash equivalents 18,929 6,205 1,680,400 1,705,534
Assets held for resale - 267,991 - 267,991
Trade and other payables - (1,402,138) (2,946,289) (4,348,457)
Net assets 3,534,983 12,433,091 (1,250,096) 14,719,948
Year to 31 March 2024 (Audited) West African Gold West African Lithium UK Total
£ £ £ £
Impairment of exploration and evaluation assets (1,572,302) - - (1,572,302)
Administration expenses (80,926) (41,486) (1,407,702) (1,530,114)
Finance income - - 92,693 92,693
Share based payments - - (241,888) (241,888)
Revaluation gain on sale of subsidiary undertaking - 30,521,645 - 30,521,645
Share of loss from associate - (83,610) - (83,610)
Loss for the year (1,653,228) 30,396,549 (1,556,897) 27,186,424
At 31 March 2024 (Audited)
Intangible assets - exploration and evaluation expenditure 2,162,452 - 2,162,452
-
Tangible assets 664 - - 664
Investment in associated undertaking - 31,260,186 31,260,186
-
Trade and other receivables - 7,721,537 18,605 7,740,142
Cash and cash equivalents 42,279 - 16,284,228 16,326,507
Assets held for resale 79,606 - - 79,606
Trade and other payables - - (139,301) (139,301)
Net assets 2,285,001 38,981,723 16,163,532 57,430,256
2. OPERATING LOSS
The operating loss before tax is stated after charging:
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2024 2023 2024
£ £ £
Impairment of exploration and evaluation assets - - 1,572,302
Audit services - - 100,000
Share based payment 276,331 154,899 241,888
Directors' salaries and fees 165,499 97,883 471,840
Employer's National Insurance 3,881 - 33,476
3. LOSS PER SHARE
Basic loss per share is calculated by dividing the loss for the period
attributable to ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the period.
The following reflects the loss and share data used in the basic EPS
computations:
Profit / (loss) Weighted average number of shares Diluted weighted average number of shares Basic profit / (loss) per share (pence) Diluted profit / (loss) per share (pence)
£
Six months to 30 September 2024 (1,485,975) 20,025,859,562 20,791,692,896 (0.0074) (0.0071)
Six months to 30 September 2023 (508,739) 17,019,270,573 17,019,270,573 (0.0030) (0.0030)
Year ended 31 March 2024 27,186,424 18,228,192,472 19,000,275,806 0.1491 0.1431
Diluted loss per share is calculated by dividing the loss attributable to
ordinary equity holders of the parent by the weighted average number of
ordinary shares outstanding during the period plus the weighted average number
of ordinary shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares. Options in issue are not
considered diluting to the earnings per share as the Group is currently loss
making. Diluted loss per share is therefore the same as the basic loss per
share.
4. SHARE BASED PAYMENTS
The share-based payment reserve is used to recognise the value of
equity-settled share-based payments provided to employees, including key
management personnel, as part of their remuneration.
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2024 2023 2024
Share options outstanding
Opening balance 352,500,000 582,500,000 582,500,000
Lapsed in the period (12,500,000) - (43,333,333)
Issued in the period - - -
Exercised in the period - (12,500,000) (186,666,667)
339,999,999
Closing balance 570,000,000 352,500,000
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2024 2023 2024
Performance share rights outstanding
Opening balance 160,000,000 240,000,000 240,000,000
Issued in the period - - -
Exercised in the period - - (80,000,000)
Closing balance 160,000,000 240,000,000 160,000,000
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2024 2023 2024
Share warrants outstanding
Opening balance 299,583,334 326,250,000 326,250,000
Lapsed in the period - - -
Issued in the period - - -
Exercised in the period (6,250,000) - (26,666,666)
Closing balance 293,333,334 326,250,000 299,583,334
5. TAXATION
There is no taxation charge for the period to 30 September 2024 (6 months to
30 September 2023: £nil, year to 31 March 2024: £nil) as the group continues
to incur losses.
No deferred tax asset has been recognised in respect of losses as the timing
of their utilisation is uncertain at this stage.
6. INTANGIBLE ASSETS
Exploration and evaluation
£
COST
14,521,888
At 31 March 2023
Additions in the period 2,684,613
Effects of foreign exchange (206,406)
17,000,095
At 30 September 2023
Additions in the period 286,470
Disposals in the period (13,488,010)
Classified as held for sale (79,606)
Licences written off (1,572,302)
Effects of foreign exchange 15,805
2,162,452
At 31 March 2024
Additions in the period 139,667
Effects of foreign exchange (42,408)
2,259,711
At 30 September 2024
AMORTISATION
-
At 31 March 2023 and 30 September 2023 and 31 March 2024 and 30 September 2024
NET BOOK VALUES
At 30 September 2024 (Unaudited) 2,259,711
At 30 September 2023 (Unaudited) 17,000,095
At 31 March 2024 (Audited) 2,162,453
Unaudited Unaudited Audited
30 September 30 September 31 March
2024 2023 2024
£ £ £
Non-current assets classified as held for sale
- 267,991 79,606
7. PROPERTY, PLANT AND EQUIPMENT
Plant and machinery
£
COST
131,403
At 31 March 2023
Additions in the period -
Effects of foreign exchange (1,813)
129,590
At 30 September 2023
Disposals in the period (101,148)
Effects of foreign exchange (889)
At 31 March 2024 27,555
Additions in the period 62,848
Effects of foreign exchange (19)
At 30 September 2024 90,384
DEPRECIATION
At 31 March 2023 39,632
Charge for the period 12,966
52,598
At 30 September 2023
Disposals in the period (25,883)
Charge for the period 174
26,889
At 31 March 2024
Charge in the period 8,024
At 30 September 2024 34,913
NET BOOK VALUES
At 30 September 2024 (Unaudited) 55,471
At 30 September 2023 (Unaudited) 76,992
At 31 March 2024 (Audited) 664
8. SUBSIDIARY ENTITIES
The consolidated financial statements include the following subsidiary
companies:
Country of Equity holding Nature of
Company Subsidiary of incorporation Business
Kodal Norway (UK) Limited Kodal Minerals Plc United Kingdom 100% Dormant company
International Goldfields (Bermuda) Limited Kodal Minerals Plc Bermuda 100% Holding company
International Goldfields Mali SARL International Goldfields (Bermuda) Limited Mali 100% Mining exploration
International Goldfields Cȏte d'Ivoire SARL International Goldfields (Bermuda) Limited Cȏte d'Ivoire 100% Mining exploration
Jigsaw Resources CIV Limited International Goldfields (Bermuda) Limited Bermuda 100% Holding company
Corvette CIV SARL Jigsaw Resources CIV Limited Cȏte d'Ivoire 100% Mining exploration
9. ASSOCIATED UNDERTAKING
Since 15 November 2023, Kodal has held a 49%
interest in KMUK, which operates the Bougouni Lithium Project in southern
Mali. Summarised financial information of KMUK, based on management accounts
for the corresponding period, and reconciliation with the carrying amount of
the investment, are set out below:
Unaudited Audited
30 September 2024 31 March 2024
£ £
Assets
Cash and cash equivalents 40,098,565 70,813,016
Other debtors 1,846,728 43,003
Property, plant and equipment 356,709 357,588
Intangible assets - Exploration and Evaluation 33,245,168 18,937,151
Accounts receivable - -
Liabilities
Trade and other payables (18,037,134) (26,408,836)
Net Assets 57,510,036 63,741,923
Group's share in equity - 49% 28,179,918 31,233,543
Goodwill 26,643 26,643
Group's carrying value of the investment 28,206,561 31,260,185
Carrying value of the investment at the start of the period 31,260,185 31,343,795
Group's share of loss for the period (831,819) (83,610)
Foreign exchange loss on opening reserves (2,221,805) -
Carrying value of the investment at the end of the period 28,206,561 31,260,185
KMUK contributed a loss of £831,819 (year to 31 March 2024 from the date of
acquisition: £83,610 loss) to the loss before tax from continuing operations
of the Group for the period:
Unaudited Audited
Period to 30 September 2024 Period to 31 March 2024
Loss before tax (1,697,590) (170,633)
Group's 49% share of loss for the period (831,819) (83,610)
At 30 September 2024, KMUK had capital commitments of approximately £23.5
million (31 March 2024: £nil) relating to the engineering and development
work at Bougouni.
10. ORDINARY SHARES
Allotted, issued and fully paid:
Nominal Value Number of Ordinary Shares Share Capital Share Premium
£ £
Note
At 30 September 2023 17,022,480,956 5,319,525 18,808,801
November 2023 2,937,801,971 918,064 13,251,198
November 2023 280,833,333 87,760 564,073
At 31 March 2024 20,241,116,260 6,325,349 32,624,071
May 2024 6,250,000 1,953 21,797
At 30 September 2024 20,247,366,260 6,327,302 32,645,868
Share issue costs have been allocated against the Share Premium account.
Notes:
a) On 13 May 2024, a total of 6,250,000 shares were issued pursuant to
the exercise of warrants by an adviser to the Company. The shares were issued
at 0.38 pence per share.
11. RELATED PARTY TRANSACTIONS
Transactions with related parties
Robert Wooldridge, a Director, is a member of SP Angel Corporate Finance LLP
("SP Angel") which acts as financial advisor and broker to the Company.
During the six months to 30 September 2024, SP Angel received fees of £20,000
(6 months to 30 September 2023: £15,000, year to 31 March 2024:
£32,500). The balance due to SP Angel at 30 September 2024 was £nil (30
September 2023: £nil, 31 March 2024: £nil).
Matlock Geological Services Pty Ltd ("Matlock"), a company wholly owned by
Bernard Aylward, a Director, provided consultancy services to the Group during
the six months to 30 September 2024 and received fees of £112,500 (6 months
to 30 September 2023: £112,500, year to 31 March 2024: £224,694). The
balance due to Matlock at 30 September 2024 was £nil (30 September 2023:
£88,690, 31 March 2024: £nil).
Zivvo Pty Ltd ("Zivvo"), a company wholly owned by Steven Zaninovich, a
Director, provided consultancy services to the Group during the six months to
30 September 2024 and received fees of £105,000 (period to 30 September 2023:
£105,000, year to 31 March 2024: £210,000). The balance due to Zivvo at
30 September 2024 was £nil (30 September 2023: £nil, 31 March 2024:
£nil).
12. CONTROL
No one party is identified as controlling the Group.
13. EVENTS AFTER THE REPORTING PERIOD
The Company announced on 1 November 2024 the
signing of a binding memorandum of understanding ("MoU") between KMUK and the
State of Mali to finalise the transfer of the Project mining licence to the
established mining company LMLB.
The MoU confirms that the mining licence will migrate to the 2023 Mining Code
of Mali with the following key terms:
§ The participation of the State and national private investor interest will
be a total of 35% of the equity in the mining company LMLB, with the balance
of 65% held by KMUK.
§ The mining licence will transfer with an initial 10-year term and the State
undertakes to renew the licence as required with the conditions laid down in
the mining code in force on the date of such renewal.
§ The MoU confirms the continuation of the customs and duties exemptions
during the construction phase as well as confirming that the State will grant
all necessary permits for operation including export permits for the spodumene
product.
§ The parties have agreed to a US$15 million cash payment to the State,
payable in two equal instalments by KMUK, with the first following signing of
the MoU and the final prior to 31 March 2025.
§ Upon completion of transfer of the mining licence the MoU confirms that the
Bougouni mining licence will be in full compliance with all legal requirements
and in good standing.
14. CAPITAL COMMITMENTS AND CONTINGENCIES
The Group had capital commitments to exploration and evaluation expenditure of
£nil (30 September 2023: £nil, 31 March 2024: £nil).
Kodal and Hainan are continuing discussions regarding the US$15 million
settlement payment under the MoU with the Mali Government and will work
together to reach an agreement. At the current time the Company cannot
determine the outcome of the discussions, and hence the nature or amount of
any payments or concessions that might be required, if any, and which may
result in an economic outflow from the Company.
With respect to the sale of Bougouni West as agreed with Leo Lithium in April
2023, one of the licences, N'kemene Ouest, has not yet been renewed by the
Mali mining authorities (a sale condition), pending the completion of the new
mining code and related regulations, and the moratorium on the renewal and
transfer of mining concessions. Accordingly, the Company has not yet
recognised the income from the sale proceeds of £1.5 million. The licence
is considered to be of good standing and the renewal is expected to occur, but
no timing of finalisation can be provided.
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