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Good to see. And lovely big Tonkas! Lots of them too, no.s 125/126 in shot, the other 124 must be busy in the trees, it is a big resource and hopefully getting bigger as we speak. GLA
Hopefully they can stay on track before the rain season starts, which is usually June. Not sure how much will get done between then and September, but they have that considered with their timelines. If it's a mild one, could get them ahead of schedule...
Good way to get a snake on your head carrying bush in that dump truck, straight above your head when you get out.
Huge CAT machines arrived!
About to get serious.
https://twitter.com/KodalMinerals/status/1788474708301582486?t=51euHM0KqXCBCEdN7AsnUw&s=19
Pictures of tonkas!
Rory, I think everything is quite straightforward. I read three mining code releases and all of the explanations around them and thought their rules and purpose was extremely well laid out and made perfect sense. After reading the rules and explanations it is down to individual companies how they move forward. With the gold companies some were arrogant and that has created so much work with this latest 2023 mining code and its practical application. It seems they have modelled some of their mines on the workaround fiddle of taxes and it is costly to undo what they have done.
With Lithium's mining code of 2012 it was a good time if you wanted to start mining lithium the tax breaks offered to encourage new mines were amazing. Furthermore in Mali providing you don't trigger change, normally the old mining code rules remain, each mine does not have to apply the changes, unless it is to close a loophole - for example the movement of (gold) ore. Leo Lithium could simply have just continued with their original plans with no issues and retained all of the tax breaks.
The notion that someone at the mining office said everything was ok, so they just continued with a changed plan with no official documentation covered in an RNS is beyond belief.
Who here would ask your planning officer if an extension on your house would be ok, describe it, then if they think the design is ok just build it, only the occasional lunatic does that and often they are bulldozed. Mining is very similar, submit and approve - officially.
So to get involved with ore at the time that the Mali government and many other governments had a problem was high risk, especially when the audit in Mali raised it as a way mining companies were avoiding taxation.
Then the Morila mine. For the CEO of Leo Lithium to be wanting it to go to global court is ridiculous. The Mali companies are constructed so companies cannot leave a mess and evade responsibility as best as this can be covered in company law. Clearly because of the escrow account there remains a connection between FFX and Leo Lithium - therefore any government would persue an investigation and would look at the details of the release of the escrow account and any other conditions which may create a legal connection. It just appeared a little bit smart and unnecessarily complicated which always gives legal experts the possibility of finding a weakness in the legal armour.
Everything I see points to a company pushing their luck far too much. I have worked in regulated environments of one type or another, you look at the rules, you look at what they are trying to achieve and a common phrase in these environments is take the rules in the spirit they were intended and apply change in the business. The only time to tip into risk is if the entire business survival dictates you go into a grey area. They were doing so well it was a stupid space to step into.
The first RNS yesterday still displays arrogance in m
I know Motley fool aren't the best source of info but they sort of sussed it up here https://www.fool.com.au/2024/05/08/asx-lithium-stock-suspended-for-8-months-gearing-up-to-resume-trading/ and a response from the boss.
I think there are 2 explanations for what has happened to Leo; punishment for several faux pas over the years (including Morila through Firefinch), and extortion/appropriation (enabling Ganfeng to buy the entire project on the cheap).
I think it’s probably somewhere in the middle… but given that Ganfeng have paid a not insignificant sum for Leo’s share of the project, when they could have waited until the license was revoked and paid much, much less, I think this sways more towards the punishment explanation.
There is a considerable risk that this empowers the Malian govt, and they’re happy to repeat what they’ve done for other projects, however. Bernie needs to continue to keep things squeaky clean.
Bridgedog, I agree what Leo Lithium did and how some of the goldmines did to try and bypass the rules was not positive, a bit insulting to a country with a well established and global mining industry.
Fortunately though we have Mali experienced people on our board who respect the rules and don't try to cut corners or be smart.
As other so called brilliant investment opportunities fall by the wayside one by one, Bernard and his conservative team are looking better by the minute.
Bridgedogg1; What are you taking about? What happened to Leo has absolutely zero bearing on Kod. Leo decided to ignore their licence agreement conditions with Mali government and started shipping DSO ore. They were not entitled to do that.
We aren’t doing that.
I’m surprised Kod holders can’t accept that what has happened to Leo is not a positive development for miners in Mali.
*50mt resource
Erm based on the 65m sale for 5% previous to that, ~$300m?
And in a few weeks soon to be over 50mt bridgenob
Bridgedog, your shares have mainly taken large dives today.
I would work on your own maths and your own research a little before suggesting what others should or should not do.
You could write to Hainan and explain the error of their arithmetic if you are convinced the figures are incorrect.
Plus I would be interested to know how you calculated the total of all of our Goldfields.
A PREM disrupter on the board.
But if you want to be a xxxx about it - if Leo Lithium's 40% of 211mt @ 1.5% Li20 is worth $342.7m how much is KOD's 49% of 31mt @1.1% Li2O worth? I'll give you a clue - its less than the current £87m mcap. And will the Mali gov now be taking 30%? So on reflection, yes my suggestion is to sell.
Bridgedog, no police here.
Just pointing out one of your investments has similar, possibly even closer ties to Wagner group.
It definitely does as one regular poster here made the same error.
Never checked all of your investments, there could be more.
I dont believe it is, I didn't call anyone stupid or encourage anyone to sell up. Just pointing out the realities on the ground. Is that not allowed?
No answer Bridgedog?
Because your investment is in a country with Wagner connections too - so better sell up.
Bridgedog, so in conclusion would you tell anyone investing in a country with any connection to the Wagner group that they are stupid should not invest and if they hold shares there cash them in at once? Just for clarity?
Rory, you are correct, so I think from memory that affects some more tax breaks during production. I would have to look back under the old code.
The fine is actually quite soft, like I said it is close to 50m dollars in duty that they did not have to pay under the tax breaks now being repaid because they broke the agreement and just 12m effectively in a fine which is light - all things considered.
The question is, with all those tax breaks already under your belt, why take the chance? Just continue as per the submission.
leo lith has made an **** of the interaction with the mali government, i would say underestimated them. gangfeng have moved the australian element out to build relations with the mali government and to maximize profit from the 211mt of lithium.
Lav
In the most I agree.
Leo situation is different entirely. I don't see the depth of community work kodal has done. Kodal also hasnt left a trashed mine and trying to bribe their way into production quickly is exactly what leo smells off.
Considering the ex mining minister is wanted and was in power when leo fast tracked their approvals.
Leo have taken a low ball offer and bullied off by mali and ganfeng due to THEIR own failed agenda.
Dazaliam squirming all over HC.
I can see the Malian govt trying to move all newly issued and changed permits to the 2023 code, that will give them the ability to take a much greater stake (including free carry) in the project.