REG - Kodal Minerals PLC - Bougouni Lithium Project – Operations Update

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RNS Number : 8596R  Kodal Minerals PLC  05 February 2026

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")

 

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

 

5 February 2026

 

Kodal Minerals plc

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

 

Bougouni Lithium Project - Operations Update

 

Kodal Minerals (AIM: KOD), the West African lithium producer, mineral
exploration and development company, is pleased to provide an update on the
mining, processing and export operations at the Bougouni Lithium Project
("Bougouni" or the "Project") in Southern Mali, which is owned and operated by
Kodal Mining UK Limited ("KMUK") in which Kodal has a 49% shareholding.

 

Highlights:

·    Full payment of US$27.25 million for first spodumene concentrate
shipment of 28,735 dry metric tonnes ("DMT") received by KMUK's operating
subsidiary, Les Mines de Lithium de Bougouni SA, ("LMLB") following arrival of
the vessel in Hainan, China.

 

·    Realised shipment price was US$989.50 per tonne Cost Insurance and
Freight ("CIF"), equivalent to US$1,148 per tonne CIF for spodumene
concentrate at a grade of 6% Li(2)O ("SC6").

 

·    Second shipment of 20,000 tonnes of spodumene concentrate is
currently being loaded at the Port of San Pedro, Côte D'Ivoire, and the
initial payment of 95% of the value of the cargo is expected following
departure from the port in line with the offtake agreement with Hainan Mining
Co. Limited ("Hainan").

 

·    Production of spodumene concentrate continues at Bougouni, with total
production for January 2026 of 9,141 DMT at an average grade of 5.26% Li(2)O.

 

·    Mining continues at the Ngoualana open pit mine with total tonnes
mined of 643,829 tonnes, with pegmatite ore tonnes of 86,691 mined at a grade
of 1.21% Li(2)O.

 

·    Dense Media Separation ("DMS") processing continued throughout
January 2026 with the run-of-mine ("ROM") feed to the DMS processing plant of
121,330 tonnes at a feed grade of 1.18% Li(2)O.

 

·    Following the first export of spodumene concentrate in December 2025,
a survey of remaining spodumene concentrate indicated that the previous
production totals were overcalled.  The final full year production for
calendar year 2025 totalled 41,916 DMT (previously stated as over 45,000
tonnes), at an average grade of 5.33% Li(2)O (previously 5.39% Li(2)O), and
remedial actions have been taken to prevent this occurring in the future.
Further details are set out further below.

 

·    Transport of spodumene concentrate to the Port of San Pedro is
ongoing and the Bougouni operation is targeting regular shipments of 15,000
DMT to 20,000 DMT spodumene concentrate, with a third shipment expected in
April 2026.

 

·    The Bougouni Engineering and Geology team have begun work on near
mine opportunities for additional ore at the Ngoualana open pit; preparation
of a final feasibility study of the Phase 2 Floatation Plant will be
undertaken during 2026.

 

·    Bougouni operations reported zero safety incidents (Medically Treated
Injury, Lost Time Injury or fatality) for January 2026, with the site
recording a single malaria case and two first aid treated incidents. Safety
and environmental management remain a core focus for management.

 

Bernard Aylward, CEO of Kodal Minerals, remarked:

"The Project is now starting to run at the expected mining, processing and
production rate that was anticipated from the development studies. The ongoing
engineering modifications to the processing plant and crushing system continue
to strengthen the reliability of the plant, resulting in greater operating
availability.  The Ngoualana open pit mining continues to perform well with
the pegmatite mineralisation confirming the initial mineral resource
modelling. During January 2026, we noted improvements in the blasting results
and this is expected to lead to greater movement of ore grade material to the
ROM pad and feed into the processing plant."

 

"We received the final 5% payment for the first spodumene concentrate shipment
in January 2026 following the vessel's arrival in Hainan, China. This marks a
huge milestone with the full receipt of first revenues totalling US$27.25
million received by LMLB, reflecting the recent upsurge in prices for
spodumene concentrate.  This rising spodumene concentrate price is hugely
positive for the Bougouni operation as we continue to ramp up production in
2026 and plan more frequent shipments to our offtake partner, Hainan.  A
review of spodumene concentrate prices highlights a 270% increase in the
quoted SC6 Index since July 2025 with prices recently exceeding the US$2000/t
mark.

 

"Elsewhere, the Bougouni Engineering and Geology team started to focus on near
mine opportunities for additional ore at the Ngoualana open pit and the
preparation of a final feasibility study of the Phase 2 Floatation Plant.
This study is expected to be conducted throughout the 2026 calendar year and
will include further definition and extension drilling at the Boumou and
Sogola-Baoule prospects; geotechnical assessment for open pit mine planning;
and metallurgical studies and engineering design of the processing plant. In
addition, the Bougouni operation will complete an environmental study of the
expanded Boumou prospect resource area to anticipate future mining approvals.
Updates on progress of the study will be provided later in the year."

 

Further details

 

Spodumene Concentrate Export

 

The first 28,735 DMT shipment of spodumene concentrate arrived at the Hainan
Port on 7 January 2026. Following confirmation of grade, tonnage and moisture
content, the final payment for the shipment was paid by Hainan to the
operating mining company, LMLB, in line with the terms of the Bougouni offtake
agreement. The price received for the spodumene concentrate was a calculated
SC6 price of US$1,148.30/t CIF, and following adjustments for the grade of the
concentrate delivered, the Bougouni operation received a price of US$989.50/t
CIF of spodumene concentrate. The final full payment received by LMLB was
US$27.25 million after shipping and handling costs.

 

A second shipment of 20,000 DMT spodumene concentrate is currently being
loaded at the Port of San Pedro, Côte D'Ivoire, with the vessel expected to
commence shipment to Hainan following completion of loading. LMLB will issue
an invoice for 95% of the value of the cargo with the price to be calculated
using a 10-day average prior to the vessel being loaded and adjusted for grade
and moisture content.  The invoice will be paid in line with the terms of the
offtake agreement.

 

The Bougouni operation expects to maintain regular transport of spodumene
concentrate to the port and is planning regular shipments of between 15,000
DMT and 20,000 DMT in 2026.  A third shipment is currently planned for April
2026.

 

The budget for the Bougouni operation in 2026 is being finalised. However,
Kodal management is currently working with the forecast to total spodumene
concentrate production of 118,000 DMT and sales of 125,000 DMT for the
calendar year.

 

Ngoualana Open Pit Mining Activities

 

Open pit mining continues at the Ngoualana open pit mine and statistics for
January 2026 are tabled below:

 January 2026 Mining         Actual
 Total Tonne Mined           643,829
 Total Ore Tonne Mined       86,691
 Total Ore Grade %           1.21
 STRIP RATIO                 6.43
 Feed Tonne to processing    121,330
 Feed Grade to processing %  1.18

Note: the table shows production for January 2026 only; quarterly production
figures will be presented in future.

 

The total tonnes mined are lower than that planned for the month. This is due
to the reduced availability of mining equipment and haulage trucks. This is
expected to improve in February 2026 as the mining contractors have committed
to mobilising additional haulage trucks and equipment to increase the movement
of mining tonnes.

 

The focus on de-watering of the pit has allowed full access to the base of the
pit and the newly completed sumps and bore holes are operating well.

 

The blasting operation has improved over the last few months with the
contractor improving the preparation of the blast holes and blasting pattern.
The improvement in blasting is expected to result in increased volumes of
broken ore tonnes available for hauling to the ROM pad prior to processing.
 The blasting contractor continues to be able to secure supply of explosive
material to ensure a steady state operation.

 

Bougouni Processing Plant Activities

 

The Bougouni processing plant operated consistently throughout January 2026.
The plant's maintenance checks, engineering improvements and
'de-bottlenecking' activities completed in late 2025 have resulted in improved
plant availability and operation.  A summary of the plant operations for
January 2026 is provided below:

 

 Bougouni Processing Plant              January 2026
 Operation days                         31
 ROM feed to processing plant (Tonnes)  121,330
 Feed Grade %Li(2)O                     1.18
 Spodumene Concentrate produced (DMT)   9,141
 Average Daily production (DMT          295
 Concentrate Grade %Li(2)O              5.26

Note: the table shows processing plant operation for January 2026 only;
quarterly production figures will be presented in future.

 

Following the first shipment, a survey and reconciliation of claimed spodumene
production revealed an overcall in production.  An investigation into this
has indicated that excessive water was used to clean material off the
spodumene conveyor belt. This had resulted in water and fine material adhering
to the belt, ultimately resulting in a cumulative error. In addition, the
conveyor belt weightometer had calibration issues during operations. Both of
these issued have now been addressed, with the cleaning of the conveyor belts
now utilising fixed brush mechanisms. This reduces the need for water
cleaning.  An additional weightometer has been installed at the spodumene
concentrate collection point to provide a check on the conveyor belt
weightometer and to improve confidence in the site production statistics.

 

The full year production reported for the 2025 calendar year totalled 41,916
DMT spodumene concentrate (previously stated as over 45,000 tonnes) with an
average grade of 5.33% Li(2)O (previously 5.39% Li(2)O).

 

The availability of the crushing circuit and processing plant has improved in
January 2026, and the operation expects to achieve the 10,000 DMT spodumene
concentrate production per month target, outlined in the 2026 budget.

 

**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

 Ros Allister/David McKeown/Georgia Langoulant                         Tel: 020 7418 8900

 Burson Buchanan, Financial PR

 Bobby Morse/Oonagh Reidy/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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