Kodal Minerals Secures 13 Million Loan Repayment from Bougouni Lithium Operation

Kodal Minerals PLC, the West African lithium producer listed on AIM, has confirmed receipt of an initial 13 million US dollars in loan repayments from the operator of its Bougouni project in Mali. The payment reflects the continued strength of spodumene pricing in international markets and marks the first instalment towards capital expenditure loans previously advanced to the mining operation.

The funds were transferred from Les Mines de Lithium de Bougouni (LMLB) to Kodal Mining UK (KMUK), the joint venture entity in which Kodal maintains a 49 per cent interest alongside majority partner Hainan Mining. KMUK has deployed the proceeds to reduce the outstanding balance on its Hainan loan facility substantially.

Chief executive Bernard Aylward noted that the favourable pricing environment is delivering robust returns for LMLB, with further regular repayments anticipated to flow to KMUK in the coming quarters.

Production data for the three months ended 30 June revealed output of 26,174 dry metric tonnes of spodumene concentrate at a grade of 5.34 per cent lithium oxide. This brought year-to-date production to 53,195 tonnes, though the quarterly figure fell short of management targets primarily due to maintenance issues and equipment breakdowns affecting the crushing circuit. These disruptions constrained feed volumes to the dense media separation processing plant during May.

Operations have since stabilised following completion of maintenance work, with throughput returning to normal levels in June. The deployment of additional mining equipment to the Ngoualana open pit has also enhanced mining rates at the site.

Export activity continues to progress according to schedule. A third shipment totalling approximately 20,400 tonnes of concentrate arrived at Hainan port on 27 June, taking cumulative exports beyond 69,000 tonnes. The shipment was priced at 2,304 US dollars per tonne, calculated using the agreed weighting of Shanghai Metal Market Chinese and African CIF indices for six per cent concentrate. An interim payment of 34.4 million US dollars has already been received for this consignment.

A fourth shipment of roughly 24,200 tonnes departed from San Pedro in Côte d’Ivoire on 11 July and is expected to reach Hainan in late August. Management confirmed that exports will continue on a cycle of between six weeks and two months, with revenues from both the third and fourth shipments anticipated during the current quarter.

Aylward stated that preparations for the forthcoming wet season have been completed to ensure production continuity. The operational team remains focused on meeting budgetary targets whilst maintaining disciplined cash management practices throughout the period ahead.