REG - Kodal Minerals PLC - Kodal Minerals Interim Results to 30 Sept 2023
22/12/2023 07:00
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RNS Number : 6950X Kodal Minerals PLC 22 December 2023
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR"). With the publication of this announcement via a
Regulatory Information Service, this inside information is now considered to
be in the public domain.
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
22 December 2023
Kodal Minerals plc ('Kodal', 'Kodal Minerals' or the 'Company')
Interim Results for the six months to 30 September 2023
Kodal Minerals Plc, the mineral exploration and development company focused on
lithium and gold assets in West Africa, announces its unaudited interim
results for the six months ended 30 September 2023.
Highlights
Operational
· Funding transaction completed in November 2023 with Hainan Mining
Company ("Hainan" or "Hainan Mining") to provide
o $100m investment in to the Bougouni Lithium Project in Mali ("Bougouni" or
the "Project") to fully finance the development of the mine, with Hainan
acquiring a 51% stake in the Project;
o $17.75m subscription for shares in Kodal Minerals, giving Hainan a 14.7%
holding in the Company.
· New Mineral Resource estimate for Bougouni announced in November 2023
of 31.9 million tonnes (Mt) at 1.06% Lithium Oxide (Li2O), an increase of over
40% from the previous Mineral Resource estimate.
· Engineering and development work at Bougouni continued including work
on construction of a new access road for the mine
· Relationships with the local community in Bougouni remain strong with
ongoing discussions to prioritise an extensive community development programme
Financial
· For the 6 months to 30 September 2023, the Company made a loss of
£509,000 (6 months to 30 September 2022: £491,000).
· Total investments in lithium and gold assets increased to £17.0
million from £14.5 million as at 31 March 2023
· Cash balances at 30 September 2023 were £1.7 million (30 September
2022: £0.6 million) and following the closing of the Funding Transaction now
stand at £11.2 million.
Overview:
The Company has continued to focus on the fast-track development of the
Bougouni Lithium mine and to that end the Company announced in January 2023 a
major funding transaction for US$117.75 million (the "Funding Transaction"),
paving the way for the opportunity for Kodal to be the first London-quoted
lithium producer. The Funding Transaction was completed on 15 November 2023
with all funds received.
The Funding Transaction was agreed with Hainan Mining Co. Limited ("Hainan" or
"Hainan Mining") and its wholly owned UK-incorporated subsidiary Xinmao
Investment Co. Limited ("Xinmao" and together the "Hainan Group"), and
provides full funding for the development and commencement of production at
the Bougouni Lithium Project in Mali ("Bougouni" or the "Project"), as well
as supporting ongoing exploration and development programmes designed to
continue the expansion of the Project.
The Funding Transaction consists of a US$17.75 million equity subscription by
the Hainan Group into Kodal, with these new ordinary shares admitted to
trading on AIM. As a result, the Hainan Group now holds 14.72% of the issued
share capital of the Company. The Funding Transaction also includes a US$100
million investment into Kodal's UK subsidiary company, Kodal Mining UK Limited
("KMUK"), by the Hainan Group, primarily to provide the financing to construct
the Bougouni lithium production operation. Following the transaction, KMUK
is 49% owned by Kodal and 51% by the Hainan Group.
Bougouni Lithium Project - Mineral Resource Update
In November 2023 Kodal announced a new JORC Mineral Resource estimate (MRE)
for the Bougouni Lithium Project of 31.9 million tonnes (Mt) at 1.06% Lithium
Oxide (Li(2)O), an increase of over 40% from the previous Mineral Resource
completed in 2019. The significant increase relates to the Ngoualana and
Boumou deposits following the drilling programmes completed in early 2023.
The updated Mineral Resource estimate has been prepared as part of the
development plans for Bougouni. As previously announced, the Company plans for
a two-stage development strategy: Stage 1 involves processing ore from the
Ngoualana deposit through a dense media separation ("DMS") process plant; and
Stage 2 processing ore from the Boumou and Sogola-Baoulé deposits through a
flotation plant.
Highlights of the Mineral Resource estimate include:
· The 40% increase in Bougouni's spodumene resource adds 10.6Mt to
bring the overall MRE to 31.9Mt at 1.06% Li(2)O following 3,230 metres of
RC/diamond drilling during 2023.
· New JORC Mineral Resource estimates have been prepared for the Boumou
and Ngoualana prospects:
o Boumou: 13.1Mt at 1.04% Li(2)O, an increase of 236% from the
2019 estimate
(Boumou Resource reported using a 0.75% Li(2)O lower cut-off, no top cut-off)
o Ngoualana: 6.7Mt at 1.00% Li(2)O, an increase of 9% from the 2019
estimate
(Ngoualana MRE reported using 0.5% Li(2)O lower cut-off, no top cut applied)
The MRE update also improves Kodal management's confidence in the previously
defined resource at the Ngoualana prospect ahead of the proposed DMS mining
development.
· Sogola-Baoulé prospect has a resource of 12.2Mt at 1.1% Li(2)O,
which is unchanged from the 2019 resource estimate, and the next phase of
drilling will include additional metres with potential to expand
Sogola-Baoulé.
· Boumou prospect remains open along strike and drilling is planned to
target an additional 750m strike length.
· Ngoualana resource is undergoing open pit optimisation and the mine
design is being updated to capture the increased resources, and to support the
final planning of the Ngoualana prospect's DMS development.
The next drilling campaign will commence imminently, focussing on further
resource definition, infill and exploration drilling at Boumou and
Sogola-Baoulé prospects, as well as those not included in the MRE to date,
including Kola and Bougouni South, all located within the current Bougouni
mining licence.
Bougouni Lithium Project - Engineering Development
Bougouni Lithium project is an advanced lithium project which has a mining
permit for an initial twelve-year period, renewable in ten-year blocks until
all resources are mined, covering 97 km² of highly prospective lithium
deposits, which to date has a JORC Mineral Resource Estimate of 31.9Mt of
Li(2)O at 1.06%.
The Stage 1 development, for the DMS plant, is progressing well, with the
access road upgrade and construction nearing completion and clearance of site
for the proposed processing plant development commencing.
The Engineering design of the DMS modular units is complete and engineering
representatives from Hainan and Kodal recently visited the Johannesburg
offices of our engineering consultant DRA Global to review the proposed units.
Engineering works are continuing with the commencement of the procurement of
long lead items and in Mali, our development team is building our internal
capacity for the construction phase and future operations of the Bougouni
Lithium project.
Environmental and Social Governance
Kodal was granted an Environmental Permit over the Project in November 2019.
Supplemental studies have been ongoing in 2023, including dust and noise
monitoring, surface water and hydrogeological assessments, and waste rock
geochemistry analysis.
The Company has finalised the upgrade of local access roads following the end
of the rainy season (October 2023), utilising Malian contractors. This upgrade
of existing roads in the project area has improved conditions for the local
community as they approach the harvest season as well as benefiting the
Company in upgrading access to the Ngoualana deposit for the site development
activities.
The Company is continuing to work with the local community to prioritise a
community development programme, which involves direct consultation with the
local communities, in order to document a programme that will jointly
establish priority community development projects and identify how the Company
can provide support for these initiatives.
Bernard Aylward, CEO of Kodal Minerals, said: "This year has been
transformational for Kodal as we move towards the development and commencement
of production from the Bougouni Lithium mine with our new partner, the Hainan
Group. During this year we have completed the major Funding package that
ensures the development of the Bougouni Lithium mine as well as supplies
additional funding for further exploration and development. We have increased
our JORC compliant Mineral Resource estimate by over 40% and have identified
advance targets to continue that resource growth and have fast tracked our
project development with continued detailed engineering and commencement of
site works."
"Kodal ends the year 2023 in a strong financial position with a cash balance
exceeding £11,236,000 that will allow us to continue to explore our 100%
owned projects in Mali and Côte d'Ivoire as well as review opportunities that
offer further growth and expansion opportunities for the Company. Kodal has
demonstrated an expertise in the acquisition, exploration and development of
Lithium and Battery Mineral Projects and the Company will continue to explore
these opportunities that will utilise our successful team."
"The Bougouni Lithium project remains a focus for the Company as we work with
our development partner to complete construction and commence production
during 2024. Kodal will continue the exploration and mineral resource
development of the Bougouni Lithium project with an extensive drilling
programme commencing at the Boumou prospect and continuing to test additional
high priority pegmatite targets to support the future development of a
Flotation Processing plant to significantly expand the production of spodumene
concentrate from the project."
Chairman's Statement
I am very pleased to report on the status of our Company following a
remarkable 2023 year. The Company enters the 2024 calendar year in a very
strong financial position, having secured full funding for the development of
our flagship Bougouni Lithium project through the partnership with the Hainan
Group.
The development of the Bougouni Lithium project will ensure Kodal plays a role
in the future energy transition away from fossil fuels as our lithium
spodumene concentrate product provides the key base material for battery
production. This year has seen the lithium price retreat from the recent
highs noted in 2022 that marked, at that time, a 10-fold increase in price
over a two year timeframe. The current price for lithium spodumene
concentrate is in line with the Company's prices used in its feasibility
studies and underlines the robustness of our project.
Kodal continues to review the lithium sector and notes that the
decarbonisation and the energy transition are expected to fuel sustained
commodity demand growth and notes that a report published by the International
Energy Agency has estimated that global battery and minerals supply chains
need to expand ten-fold to meet projected critical minerals needs by 2030.
The demand for lithium is supported by the increasing primary markets for
lithium that include electric vehicle ("EV") batteries, other batteries,
ceramics and glass. EV batteries are the fastest growing segment and the key
driver of demand growth. The take-up of electric vehicles is predicted to
continue to strongly grow over the next decade as Government policies,
population demand and increased vehicle choice drive the market.
In addition to the Bougouni Project, Kodal is now also well-funded to
undertake further work on its range of 100% owned exploration projects in Mali
and Côte d'Ivoire. The Company has advanced gold exploration projects with
potential for near term resource definition and we are working on a strategy
to maximise the value of these assets.
In the 6-month period ended 30 September 2023, the Group has recorded a loss
of £509,000 compared to losses of £491,000 for the 6 months to 30 September
2022 and £1,461,000 for the year to 31 March 2023.
Cash balances as at 30 September 2023 were £1,706,000 compared to £2,628,000
at 30 September 2022 and £545,000 at 31 March 2023. Cash as at 21 December
2023 was £11,236,000.
We have a very exciting period ahead of us as we move into the construction
and production phase at the Bougouni Lithium project in partnership with the
Hainan Group. We look forward to reporting on our progress during 2024.
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 & Broker
John Mackay / Laura Harrison Tel: 020 3470 0470
Canaccord Genuity Limited, Joint Broker
James Asensio/Gordon Hamilton Tel: 0207 523 4680
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 2023
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2023 2022 2023
£ £ £
Continuing operations
Revenue - - -
Other operating income 6 158,138 - -
Administrative expenses (511,978) (368,850) (944,473)
Share based payments (154,899) (122,006) (516,581)
OPERATING LOSS (508,739) (490,856) (1,461,054)
Finance costs - - -
LOSS BEFORE TAX (508,739) (490,856) (1,461,054)
Taxation - - -
LOSS FOR THE PERIOD/YEAR (508,739) (490,856) (1,461,054)
OTHER COMPREHENSIVE INCOME
Items that may be subsequently reclassified to profit and loss
Currency translation (loss)/gain (54,725) 259,162 331,259
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD/YEAR (563,464) (231,694) (1,129,795)
Loss per share
Basic and diluted - loss per share on total earnings - pence per share 3 (0.0030) (0.0029) (0.0087)
KODAL MINERALS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
Unaudited Unaudited Audited
as at as at as at
30 September 30 September 31 March
2023 2022 2023
Note £ £ £
NON-CURRENT ASSETS
Intangible assets 6 17,000,095 12,788,905 14,521,888
Property, plant and equipment 7 76,992 1,356 91,771
17,077,087 12,790,261 14,613,659
CURRENT ASSETS
Other receivables 17,793 18,700 11,175
Cash and cash equivalents 1,705,534 2,628,334 544,988
1,723,327 2,647,034 556,163
Non-current assets classified as held for sale 267,991 - 513,109
CURRENT LIABILITIES
Trade and other payables (4,348,457) (598,543) (800,007)
NET CURRENT (LIABILITIES) / ASSETS (2,357,139) 2,048,491 269,265
NET ASSETS 14,719,948 14,838,752 14,882,924
EQUITY
Attributable to owners of the parent:
Share capital 10 5,319,525 5,282,416 5,315,619
Share premium account 10 18,808,801 18,456,035 18,765,206
Share based payment reserve 1,849,685 1,272,684 1,537,779
Translation reserve (42,093) (59,466) 12,632
Retained deficit (11,215,970) (10,112,917) (10,748,312)
TOTAL EQUITY 14,719,948 14, 838,752 14,882,924
KODAL MINERALS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Share capital Share premium account Retained deficit Total equity
Share based payments reserve Translation
reserve
£ £ £ £ £
At 31 March 2022 (audited) 4,947,595 15,933,071 1,150,678 (318,627) (9,622,062) 12,090,655
Comprehensive income
Loss for the period - - - - (490,855) (490,855)
Currency translation gain - - - 259,161 - 259,161
Total comprehensive income for the period - - - 259,161 (490,855) (231,694)
Transactions with owners
Proceeds from shares issued 334,821 2,522,964 - - - 2,857,785
Share based payment - - 122,006 - - 122,006
At 30 September 2022 (unaudited) 5,282,416 18,456,035 1,272,684 (59,466) (10,112,917) 14,838,752
Comprehensive income
Loss for the period - - - - (970,199) (970,199)
Currency translation gain - - - 72,098 - 72,098
Total comprehensive income for the period - - - 72,098 (970,199) (898,101)
Transactions with owners
Proceeds from exercise of share options 33,203 309,171 - - - 342,374
Lapse of share options - - (334,804) - 334,804 -
Share based payment - - 599,899 - - 599,899
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
Lapse of 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 (42,500) (11,215,970) 14,719,948
KODAL MINERALS PLC
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Unaudited Unaudited Audited
6 months to 6 months to Year ended 31 March
30 September 30 September 2023
2023 2022
£ £ £
Cash flows from operating activities
Loss before tax (508,739) (490,856) (1,461,054)
Adjustments for non-cash items:
Profit on sale of exploration and evaluation assets (158,138)
Share based payments 154,899 122,006 516,581
Operating cash flow before movements in working capital (511,978) (368,850) (944,473)
Movement in working capital
(Increase)/decrease in receivables (6,618) (12,931) (5,406)
Increase/(decrease) in payables 802,706 192,202 393,666
Net movements in working capital 796,088 179,271 388,260
Net cash inflow / (outflow) from operating activities 284,110 (189,579) (556,213)
Cash flows from investing activities
Purchase of tangible assets - - (103,633)
Purchase of exploration and evaluation assets (2,473,559) (1,045,662) (3,006,324)
Disposal of exploration and evaluation assets 400,000 - -
Net cash outflow from investing activities (2,073,559) (1,045,662) (3,109,957)
Cash flow from financing activities
Prepayment on share subscription 2,745,744 - -
Net proceeds from share issues - 2,857,785 2,857,785
Net proceeds from exercise of share options 47,501 - 342,374
Net cash inflow from financing activities 2,793,245 2,857,785 3,200,159
Increase/(decrease) in cash and cash equivalents 1,003,796 1,622,544 (466,011)
Cash and cash equivalents at beginning of the period 544,988 1,045,515 1,045,515
Exchange gain / (loss) on cash 156,750 (39,725) (34,516)
Cash and cash equivalents at end of the period 1,705,534 2,628,334 544,988
KODAL MINERALS PLC
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
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 2023 were approved by the board and authorised
for issue on 21 December 2023.
The basis of preparation and accounting policies set out in the Annual Report
and Accounts for the year ended 31 March 2023 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 2024 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 2023 and 30 September 2022
are unaudited and do not constitute full accounts. The comparative figures
for the year ended 31 March 2023 are taken from the 2023 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 2023 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 proceeds from the shares issued as part of the Funding
Transaction with Hainan, 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 2023
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 2023, the Group had not commenced commercial production from its
exploration sites and therefore had no revenue for the period.
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
Six months to 30 September 2022 (Unaudited) West African Gold West African Lithium UK Total
£ £ £ £
Administration expenses (293) (9,986) (358,570) (368,849)
Share based payments - - (122,006) (122,006)
Loss for the period (293) (9,986) (480,576) (490,855)
At 30 September 2022
Intangible assets - exploration and evaluation expenditure 3,068,268 9,720,637 - 12,788,905
Property plant and equipment 338 1,018 - 1,356
Trade and other receivables 17,088 806 806 18,700
Cash and cash equivalents 23,049 311 2,604,974 2,628,334
Trade and other payables (4,645) (481,624) (112,274) (598,543)
Net assets 3,104,098 9,241,148 2,493,506 14,838,752
Year to 31 March 2023 (Audited) West African Gold West African Lithium UK Total
£ £ £ £
Administration expenses 4,288 27,795 912,390 944,473
Share based payments - - 516,581 516,581
Loss for the year 4,288 27,795 1,428,971 1,461,054
At 31 March 2023 (Audited)
Intangible assets - exploration and evaluation expenditure 3,305,948 - 14,521,888
11,215,940
Tangible assets 1,042 90,729 - 91,771
Trade and other receivables - - 11,175 11,175
Cash and cash equivalents 90,426 28,858 425,704 544,988
Assets held for resale - 513,109 - 513,109
Trade and other payables - (670,675) (129,332) (800,007)
Net assets 3,397,416 11,177,961 307,547 14,882,924
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
2023 2022 2023
£ £ £
Audit services - - 53,000
Share based payment 154,899 122,006 516,581
Directors' salaries and fees 97,883 80,530 182,247
Employer's National Insurance - - 10,598
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:
Loss Weighted average number of shares Basic loss per share (pence)
£
Six months to 30 September 2023 508,739 17,019,270,573 0.0030
Six months to 30 September 2022 490,855 16,715,347,911 0.0029
Year ended 31 March 2023 1,461,054 16,812,417,355 0.0087
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
2023 2022 2023
Share options outstanding
Opening balance 582,500,000 250,000,000 250,000,000
Lapsed in the period - (72,500,000) (77,500,000)
Issued in the period - 640,000,000 470,000,000
Exercised in the period (12,500,000) - (60,000,000)
Closing balance 570,000,000 817,500,000 582,500,000
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2023 2022 2023
Performance share rights outstanding
Opening balance 240,000,000 175,000,000 175,000,000
Issued in the period - 75,000,000 75,000,000
Exercised in the period - - (10,000,000)
Closing balance 240,000,000 250,000,000 240,000,000
Unaudited Unaudited Audited
6 months to 6 months to Year ended
30 September 30 September 31 March
2023 2022 2023
Share warrants outstanding
Opening balance 326,250,000 205,000,000 205,000,000
Lapsed in the period - (12,500,000) (12,500,000)
Issued in the period - - 170,000,000)
Exercised in the period - - (38,250,000)
Closing balance 326,250,000 192,500,000 326,250,000
5. TAXATION
There is no taxation charge for the period to 30 September 2023 (6 months to
30 September 2022: £nil, year to 31 March 2023: £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
11,442,403
At 31 March 2022
Additions in the period 1,047,742
Effects of foreign exchange 298,760
12,788,905
At 30 September 2022
Additions in the period 2,179,214
Classified as held for sale (513,109)
Effects of foreign exchange 66,878
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
AMORTISATION
-
At 31 March 2022 and 30 September 2022 and 31 March 2023 and 30 September 2023
NET BOOK VALUES
At 30 September 2023 (Unaudited) 17,000,095
At 30 September 2022 (Unaudited) 12,788,905
At 31 March 2023 (Audited) 14,521,888
Assets held for resale
£
COST
513,109
At 31 March 2023
Disposals in the period (241,862)
Effects of foreign exchange (3,256)
At 30 September 2023 267,991
On 18 April 2023, the Company announced the sale of the Bougouni West
project. This was held as an asset for resale at 31 March 2023 and 30
September 2023. During the period, sale of one of the Bougouni West licences
completed, resulting in other operating income for the Group of £158,138.
7. PROPERTY, PLANT AND EQUIPMENT
Plant and machinery
£
COST
27,633
At 31 March 2022
Additions in the period -
Effects of foreign exchange (127)
27,761
At 30 September 2022
Additions in the period 103,633
Effects of foreign exchange 264
At 31 March 2023 131,403
Additions in the period -
Effects of foreign exchange (1,813)
At 30 September 2023 129,590
DEPRECIATION
At 31 March 2022 24,324
Charge for the period 2,081
26,405
At 30 September 2022
Charge for the period 13,227
39,632
At 31 March 2023
Charge in the period 12,966
At 30 September 2023 52,598
NET BOOK VALUES
At 30 September 2023 (Unaudited) 76,992
At 30 September 2022 (Unaudited) 1,356
At 31 March 2023 (Audited) 91,771
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
Future Minerals Limited International Goldfields (Bermuda) Limited Mali 100% Mining exploration
Kodal Mining UK Limited Kodal Minerals Plc United Kingdom 100% Holding company
9. ORDINARY SHARES
Allotted, issued and fully paid:
Nominal Value Number of Ordinary Shares Share Capital Share Premium
£ £
Note
At 30 September 2022 16,903,730,956 5,282,416 18,456,035
March 2023 a 106,250,000 33,203 309,171
At 31 March 2023 17,009,980,956 5,315,619 18,765,206
May 2023 b 12,500,000 3,906 43,595
At 30 September 2023 17,022,480,956 5,319,525 18,808,801
Share issue costs have been allocated against the Share Premium account.
Notes:
a) On 20 March 2023, a total of 106,250,000 shares were issued pursuant
to the exercise of options, warrants and Performance Share Rights from certain
directors, senior management and consultants of the Company. The shares were
issued at between 0.14 and 0.38 pence per share.
b) On 12 May 2023, a total of 12,500,000 shares were issued pursuant to
the exercise of options. The shares were issued at 0.38 pence per share.
10. 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 2023, SP Angel received fees of £15,000
(6 months to 30 September 2022: £157,005, year to 31 March 2023:
£173,605). The balance due to SP Angel at 30 September 2023 was £nil (30
September 2022: £nil, 31 March 2023: £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 2023 and received fees of £112,500 (6 months
to 30 September 2022: £61,754, year to 31 March 2023: £139,514). The
balance due to Matlock at 30 September 2023 was £88,690 (30 September 2022:
£13,270, 31 March 2023: £nil).
Geosmart Consulting Pty Ltd ("Geosmart"), a company wholly owned by Qingtao
Zeng, a former Director, provided consultancy services to the Group during the
six months to 30 September 2023 and received fees of £nil (6 months to 30
September 2022: £18,948, year to 31 March 2023: £24,627). The balance
due to Geosmart at 30 September 2023 was £nil (30 September 2022: £nil, 31
March 2023: £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 2023 and received fees of £105,000 (period to 30 September 2022:
£37,370, year to 31 March 2023: £140,000). The balance due to Zivvo at
30 September 2023 was £nil (30 September 2022: £37,370, 31 March 2023:
£nil).
11. CONTROL
No one party is identified as controlling the Group.
12. EVENTS AFTER THE REPORTING PERIOD
On 27 October 2023, the Company announced that it, Kodal Mining UK
Limited, Hainan Mining Co. Limited, and Hainan's wholly owned UK-incorporated
subsidiary Xinmao Investment Co, Limited had agreed terms to complete the
funding package announced on 19 January 2023. The agreement for completion
of the transaction follows from the waiving of certain conditions precedent
relating to the reorganisation of Kodal's Mali lithium assets.
On 14 November 2023, the Company announced that it had received US$17.75
million (approximately £14.5 million) from Xinmao Investment Co, Limited in
consideration for the issue of 2,937,801,971 new ordinary shares at a price
of 0.4912 pence per share. The Subscription proceeds include
the US$3.5m previously advanced by the Hainan Group as announced on 3
August 2023.
On 15 November 2023, the Company announced the completion of the funding
transaction for US$117.75 million originally announced on 19 January
2023. The Funding Transaction consists of the US$17.75 million equity
subscription into Kodal, noted above, and also includes a US$100
million investment into Kodal's UK subsidiary company, Kodal Mining UK
Limited by the Hainan Group, primarily to provide the financing to construct
the Bougouni lithium production operation.
On 16 November 2023, the Company announced that it had received notices of
exercise for options, warrants and Performance Share Rights from certain
directors, former directors, senior management and consultants of the Company
to subscribe for a total of 280,833,333 new ordinary shares. Total
subscription proceeds for the Company from these exercises was £651,833.
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