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BiB, just for you:
"Mark is taking up a new full-time position which does not allow him to continue in his role with Kodal."
I see a relatively new Director has jumped ship....wonder why?
To give some context to my posts - I'm talking about reserves and not resource. Inferred adds little if no value. The worry for me is that SC, if they reckon it is worth it, obtain this cash strapped company for a few million and put it into production, thus keep 100% of production....
Sxxswe, I'm not sure that you come to the conclusion that KOD have more upside than MLL. Don't MLL have a much larger resorce than KOD which is better quality?
Apologies if it's been posted already
"For the expert, it will be towards the end of 2020 when the market is likely to see strong demand growth as battery producers begin to ramp up their supply chains for new battery capacity expansions."
Sensible promise you have,
I have no regrets it's been a blast.
Will get the train up in Dec so a few pints then for sure and I will tel you all about the day you missed at the races in the owners enclosure.
Should be a lot of news coming in November here so not long now.
My losses on SXX in comparison to here are 5 fold, I have made an agreement with myself that if ever these are at break even SXX, KOD, SOU and BMN I am out for good and will never invest in AIM again..
I am planning on taking Dec off so should be free for a pint or two
Spending time accumulating in danaman land,like here flip of a coin punt now but so far in pointless departing.
Hope your well,all being well see you at York agm......
Decent post sxx though this part concerns me:
"Furthermore, Kodal minerals has a cornerstone investor and partner in the form of Shandong Ruifu who is intending to offtake 80-100% of the product."
So once again this news has been factored in - still to bolster mll sp (300m soi)
CRK22 I agree, this is not being managed to such an extent that its being held back, everyone who was anyone (apart from us die hards) sold out long ago in the .2s and left us holding on for dear life (I had my out and brought back in) 5 trades today no volume, no cash and no news (yet)
I don't buy into the sp manipulation stuff particularly. Its just not being traded in volume IMO, recent chatter regarding Li prices recovering coincided with a bump in BCN and KOD sp and we seem to have retained most of it while BCN have slipped back. Comparative volumes on PREM and VAST in the hundreds of millions indicate to me a flurry of interest but I think that may die down in the absence of news over there. Here we wait for ESIA and MLA and as funding talks approach we may be fortunate enough to see similar. Anyone who thinks there's rampers and derampers here should take a wander over there for a gander.
PS,someone is determined to keep this at 0.07 for some strange reason,
Any idea why anyone?
Some great points raised there Sxxwe ,thank you,almost convinced another top up on the strength of that analysis but still hanging fire.
No doubt the men in black will be out when the sun goes down to try and pick it apart now you have compared it to another local project.....
Gla serious holders,holding and believing will pay off Imo.
Some interesting points in there. Its a different strategy to MLL to be sure. I look foward to seeing how this is received when we look to obtain funding.
To continue my competitor analysis I cast my eyes at a glance a bit closer, to Mali Lithium (ASX:MLL)
Mali Lithium main benefit is they have a significantly higher overall resource size than Kodal. However rather than focus on a massive maiden JORC, Kodal Minerals chose to drill at a better spacing for confidence for their Feasibility study and only focussed on 3 target areas - Ngoualana, Boumou and Sogola Baole. This is the driving factor requiring MLL to do their recent fundraise to continue drilling and progress with a DFS. In contrast, the indication from Kodal is that the feasibility study to be lodged together with a license application is in depth enough to attract investment.
Mali Lithiums presentations at this stage all indicate that to process their resource to a suitable grade, floatation is required. Kodal minerals however have ore in Ngoualana which is able to be processed through DMS only. Although floatation is eventually required for the rest of the resource, and thus capex requirements over time can be assumed the same, Kodal minerals has the distinct advantage that they can split their funding requirements into 2 phases with the second phase being introduced when in production and with revenue to bank debt against, and at a point when the Lithium price is forecast to rise, rather than need to find substantial capital in one go.
Furthermore, Kodal minerals has a cornerstone investor and partner in the form of Shandong Ruifu who is intending to offtake 80-100% of the product. As SR have been a key part of the metallurgy tests, and will shortly be processing the bulk sample - they have 1st hand knowledge of the quality of Kodals product. Since investing in Kodal, they have also indicated a willingness to support Kodal in funding the future development (this is however yet to be confirmed in writing). MLL on the otherhand, although talks have been held with various parties do not have an offtake partner or significant investor in the same way as Kodal.
Kodal have also indicated they intend to immediatley upon recieveing a mining license seek funding and begin mine construction swiftly, which shows confidence in the project viability whereas MLL have deferred any investment decision to H2 2020 therefore risking falling behind Kodal in development despite currently sitting ahead with a mining license already in hand.
Lastly, Kodals MCap currently sits at <£6.5m whereas MLL is at £14m. As niether is currently a Lithium producer and therefore risk prevails with both - Kodal minerals has more potential upside if purchasing at current share prices.
Thanks for the post, that's a more rounded picture of the risk. The view on funding over the whole LOM (10 yr+) would need to be clear at the outset of the initial DMS funding i.e. SC IMO will only fund their portion of stage 1 if they're clear on stage 2, the complexity will be in whether there is sufficient confidence for II and PI investment community to carry it forward.
I'm in a wait and see (hold) sort of place on this but understand that for some this may mean they look to exit the shares they hold if they hit an acceptable exit SP.
Your point is taken regarding point of view of stage 1 funding round however
+ that's assuming sc forward pay funding debt free
I believe the point bib is making is that capex for dms = $90m ish for 2-3 yr lom (spoken for with minimal return - pbp), after that further funding for flotation will be required. bib is correct imo. If sc walk after 3 yrs then who foots the extra = not viable as things stand for shareholders ie the good stuff will be taken by sc during payback period with about $30m ish profit over 3 yrs = minimal return for holders after 3y running costs
I make it 2-3 years DMS followed by 6-7 as Joe says, it'd be pessimistic in the extreme to project the entire LOM as only being the DMS only related ore.
Mid November I can't see personally based on reasonably sluggish deadline performances to date but hey ho I wait patiently open minded.
Joking aside.... I think the Brazilian presentation gives some good information. Wouldnt it be good to have something similar by say mid november?
Im guessing their pilot plant probably paid for itself 10 times over in supporting their FS and current shareprice.... even sounds better saying "pilot plant trials " instead of "lab based testing".
2 years life of mine..... you do make me laugh sometimes BiB....
We should have it in black and white shortly..... at the very least, with such a negative slant on what we have been told so far, you should be pleasantly surprised.
Me I'm expecting a 9 to 10 year INITIAL life of mine based upon 2 to 3 years of DFS followed by 6 to 7 with a flotation circuit added..... I think there is scope for me getting what im expecting and you being over the moon.......
good find sxx, how many soi?
A couple of weeks ago I posted a link to Sigma Lithiums DFS results for their Xuxa project which seems to have similar numbers to Kodals Bougouni project and highlighted the fact that they forward sold some product to an offtale parter with substantially less commitment than SC/SR
As a follow up here is an in depth Investor Presentation they released on the back of it:
Useful info at a glance:
-Suggested funding is $30m from forward selling, $70m through Senior Secured Credit and $10m through equity
-Timeline suggests plant build will take <1 year after funding etc is all sorted, with it coming online Q420 or Q121
-Their market cap is £78m, and they are only slightly ahead of KOD in terms of the overall project. Shows how much growth potential there is for KOD current sitting at less than 10% of this.