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It is possible that Shangdong Mingrui was looking for Lithium opportunities in the region before Kodal but they were certainly not present before Kodal Minerals at what we now know as the 4 licenses of Kodal Minerals' Bougouni Lithium project.

DYOR

GLA

Laverda

Suay Chin participated in the capital increase of May 2022. So up until then they still fully believed in the Bougouni project.

In June 2022 it became known that Kanglongda owned 51% of Suay Chin but later it became clear that Kanglongda did not want to invest more than US$50 million in Bougouni Project.

This was not enough (not even for DMS) and then in the fall of 2022 the talks with Hainan Mining started for investment in DMS.

Sounds different than "Chikened out"

Kanglongda also considered their 51% in Suay Chin as only a right to 51% of the 80% offtake that Suay Chin could acquire through the ROFR and this is also one of the reasons why they did not want to invest more than US$50 million.

I see this more as powerlessness of Kanglongda and overpowered by Chinese colleagues / competitors.

But Suay Chin now benefits from a nice bonus

(this year already 14 Million$ to not do 80% offtake DMS production SC for 3 years and who knows how much more in the future?)

A nice extra for someone who due to circumstances is considered by some as "Chickened out"

DYOR

GLA

@ Laverda

please, can you help me to understand this?

"Suay Chin chickened out of developing Bougouni before Bernard was on the scene."

Bernard became CEO off Kodal Minerals in May 2016

Kodal Minerals bought Bougouni Lithium Exploration licences in Aug and Sep 2016

Suay Chin was registered in Jan 2017 after Shangdong Mingrui (one of the companies that founded Suay Chin in Jan 2017) failed to buy Goulamina from Birimian (Now Firefinch)

Agreement Kodal Minerals - Suay Chin was published in RNS from 10 March 2017

Suay Chin helped in exploring Bougouni Lithium Project (2017 - 2022) and getting it ready before Hainan Mining came on the scene. (First steps Hainan Mining to see if Kodal Minerals could be an interesting Lithium project for them were in summer 2022)

And still Suay Chin have rights to 80% production DMS (after three years of DMS production) and 80% production SC from flotation (When??)

So, "Chikened out of developing Bougouni before Bernard was on the scene" help me to understand it?

DYOR

GLA

From latest annual report

Pg 12

As at 27 August 2024 the Group has cash at bank amounting to £18,477,000

DYOR

GLA

Also from the RNS 19 Jan 2023

Loan Agreement

Xinmao and KMUK have entered into a loan agreement pursuant to which Xinmao has agreed to make a loan of US$5,660,000 to KMUK on completion of the KMUK Funding Transaction. The KMUK Loan shall bear interest at a rate of 4% per annum, which shall accrue from the date of draw down but only be payable following the commencement of commercial production from Bougouni. The KMUK Loan is repayable on demand. KMUK may use the proceeds of the KMUK Loan to partially repay to Kodal the historic expenditure incurred by the Company in relation to Bougouni.

Important here is "partially repay"

The 4.6M£ is not the historical cost that Kodal spent on Bougouni till 19 Jan 2023, only a part.

Total spent is more

How much?

I think over 10M£ surely on Bougouni project

DYOR

GLA

Malian government participation and Malian investors participation will be in LMLB, not in KMUK

DYOR

GLA

Yes, this is correct because the AGM is not broadcast, but the presentation and the Q&A afterwards are

DYOR

GLA

Suay Chin International Pte Ltd

2,397,614,425

11.84%

As we all notice there is often a difference between what BA says and what is written in reports or RNS.

This makes it even harder to know or find out the real truth and therefore very confusing.

But we also know that they can't/may not tell everything and so rumors, ideas of conspiracy, things behind the scenes, brown envelopes fantasies (or realities) arise.

That's why

DYOR and try to check from more than one source

Sorry, my mistake => Future Minerals is now subsidiary from KMUK

Situation Licence:

Annual report Pg 16

The Group is impacted by the delay of the transfer of the Bougouni

Mining concession to the newly established mining company

Les Mines de Lithium de Bougouni, a 100% owned subsidiary of

KMUK. This transfer is a legally required transfer to allow the Mali

Government to participate in the Project. The licence was awarded

to the KMUK’s exploration subsidiary in Mali, Future Minerals SARL,

and remains in good standing.

Also: (from Annual report pg63)

The Company and KMUK have continued to be in discussion with the Ministry of Mines and the Ministry of Economy and Finance in Mali in

the context of the mining licence transfer from Future Minerals to Les Mines de Lithium de Bougouni (a subsidiary undertaking of KMUK). In recent communications the ministries have sought information on various aspects of the Hainan funding transaction and the development and future operation of the Bougouni Lithium Project. There has been no challenge to the validity of the licence or to its transfer to LMLB.

DYOR

GLA

As Future Minerals is the subsidiary of Kodal for Exploration in Mali, they received the license for exploitation but basicly they can not mine/export. They need to transfer the exploitation licence to LMLB (In which Mali gov will participate 10% free and another part against payment)The Mali Gov can not participate in Future Minerals.

We do not know what agreement KMUK has with the Mali Gov so that BA can say that they can mine and export without worries but I hope for his sake that it is clearly on paper.

Worst case is that they are allowed to do a lot but are not allowed to sell anything but I think Hainan Mining will not let it get that far.

The transfer will happen but when? And under which mining code?

Just look at LEO Lithium how strange things can go. I do not know of any possible reasons why KMUK (and therefore also Kodal) has to follow a similar scenario but we are operational in a country where strange things often happen for this kind of money

DYOR

GLA

Whatever construction you come up with, no matter who is the owner of KMUK, there will always have to be a transfer of the license from Future Minerals to LMLB.

=> described in Mining code 2019

DYOR

GLA

Not even a chance that this would happen and certainly not have the consequences (license transfer not needed) as you suggest.

And surely no win for all because KODAL PLC would be controlled by the Chinese

Read the mining code 2019 (or even the mining code 2023)

DYORGLA

Article in the in the Lloydsbank link is original from 15 June 2022

https://www.sharecast.com/news/aim-bulletin/kodal-updates-feasibility-study-for-bougouni-project--10011986.html

Article was based on the Kodal RNS from 15 June 2022

https://polaris.brighterir.com/public/kodal_minerals/news/rns/story/xz0157r

DYOR

GLA

Just to remember, I've not seen an RNS, nor a tweet or other message from LLL about arriving ships with plant parts or arriving trucks to the Goulamina site with the plant parts.

Only AGL did a tweet and published news on their website about the transport but only after it arrived at Goulamina. Also a few articles in African newspapers about the transport but nothing more.

https://www.aglgroup.com/en/agl-mali-carries-out-a-special-convoy-over-1000-km-to-the-goulamina-mine/

AGL has a Mining Project Coordinator Mining Project Coordinator from Africa Global Logistics · Full-time who:

Manage and coordinate logistics and operations for Lithium du Mali SA (LMSA), Leo Lithium Project Goulamina Mali.

Remember the MOU with Mali Lithium Limited ("MLL")

https://polaris.brighterir.com/public/kodal_minerals/news/rns/story/x2ok9nr

DYOR

GLA

Https://www.linkedin.com/posts/cheick-oumar-diarra-4174392b4_egtf-mining-bougouni-activity-7230483504730374147-j9lV?utm_source=share&utm_medium=member_android

DYOR

GLA

Hopefully tomorrow satellite image update

=> but they might be all gone to Abidjan to welcome the boats and to help loading the trucks and maintaining pressure on those tyres.

DYOR

GLA

Valuing a project is not easy and will always lead to discussions. There are so many factors that play a role and that can sometimes change in the short term. A new valuation for a project is usually only determined when concrete steps are taken between the parties involved to reach a new agreement (sale/investment/expansion/...)

Kodal is currently at a point with production close by and hopefully some questions that we have will be clarified. The price of SC is also a factor that we hope has almost or completely reached the bottom. This price largely determines the value of a project when it is economically viable.

Here is a document that does not go into depth about what the title says but has enough information to work on further:

GUIDELINES TO EVALUATE LITHIUM INVESTMENT PROJECTS

https://www.linkedin.com/pulse/guidelines-evaluate-lithium-investment-projects-karen-loomis-u89hc/

DYOR

GLA

When Spodumene SC prices were clearly higher in 2022, Hainan valued the Bougouni Lithium (21.3Mt) project at +/- $190M. They now own 51% of that project after investing +/- $100M directly into the project and SC prices are currently much lower than in 2022. How much would they be willing to offer now for the remaining 49% of the JV?

If we look at the buyout of LLL by Ganfeng and the new acquisition of LRS by PLS, and then look at valuations of the known and even short-term expected resources at the acquired party, I do not see a Hainan bid coming now of +$150M for the remaining 49% of KMUK with a MRE 31.9Mt (possible update coming to 50Mt)

Hopefully I am wrong but time will tell.

Therefore it is certainly to be hoped that there will be no bid now. Better for Kodal (and shareholders)to receive a bid from Hainan only when the SC price is higher, the MRE has been upgraded several times and we are in production.

But Hainan Mining surely is big enough to buy us out.

DYOR

GLA

I follow Kodal and Hainan's progress on site via satellite and all other possible sources. (Also news sites in China and also via Baidu).

But remember, for us this is big, but in China this is just another project like many others.

DYOR

GLA