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part 2
Duties include Mali export clearance at €3.00/t and border crossing at €3.50/t all of which are included in the transport cost estimate.
Funding: Discussions are ongoing with Kodal’s Chinese partner who have expressed interest in working with Kodal on the plant and other items…
Lithium price assumption: Kodal used US$680/t for the Feasibility study following a review of operating companies, other proposals and industry review.
We agree current price for Spodumene concentrate of $480-550/t for 5-6% Li2O min should improve though it is normal for Feasibility Studies to be run at prevailing price levels with scenario valuations at differing prices.
Conclusion: Combining the two lithium projects should create a new centre for lithium mine production and could offer potential for further processing and value addition in Mali. Trucking spodumene concentrate to the port of San Pedro should create early cash flow to get the mine’s stated while stakeholders consider the potential for further processing in Mali or in the Ivory Coast.
*SP Angel acts as Financial Adviser and broker to Kodal Minerals A partner at SP Angel acts as Chairman to the company.
didnt post properly
its from Vox Markets
Kodal Minerals* (KOD LN) 0.065p, Mkt Cap £6m – MOU signed with Mali Lithium to explore synergies of Bougouni Lithium project
In a rare case of common sense Kodal Minerals reports it has signed an MOU with Mali lithium to explore synergies of the Bougouni Lithium project in Mali.
A tie-up between the two companies makes great sense due to cost and time savings in the phased and sequenced development of both projects and the sharing of transport and other logistics.
The two companies are looking at:
Sharing of facilities in the town of Bougouni pre-development to support exploration and fieldwork;
Establishing common workshops for servicing, storage and catering (a mine marches on its stomach);
Creating common supply chains for spares, reagents, fuel and other consumables;
A joint strategy for transport and shipping which are critical and could lead to very substantial savings not to mention the avoidance of logistical problems
A joint approach to community development which will again save on costs and probably be more effective overall than two separate community programs.
The two companies also intend to negotiate an access agreement for the Bougouni West Project currently owned by Kodal Minerals through the Bamabara option agreement.
Questioning of Kodal Minerals Feasibility Study reveals the involvement of DRA, Standing Wave (Red Star Construction), Orelogy, Knight Piésold, and Kodal’s Steven Zaninovich
DRA providing oversight and the overall estimate review function for the Feasibility Study.
Kodal Minerals Feasibility Study estimates are based on similar projects completed in the region and the experience of Kodal’s Steven Zaninovich
Metallurgy, recovery rates and concentrate quality was reviewed by DRA who have experience the design and commissioning of the two Pilgangoora lithium project in Australia run by Altura and Pilbara Minerals.
Feasibility Study costs were estimated in Q4 2019 in US dollars and developed on the basis of a mining contractor operation with quotes from AMS Ausdrill, BCM and ETASI, a local Mali contractor. They include:
Contract mining costs.
Contract grade control costs.
Capital works relating to establishing mining operations.
Owners mining costs.
The timetable for initial concentrate in 2021 looks tight and is dependent on funding solution.
Permits: Kodal has an Environmental permit and Community development plan approval which has been submitted with Mining License application.
The company will also need licenses for Water abstraction from the Baoulé river, camp construction and more routine items like: radio licence, fuel storage, solid waste management, land fill, explosives, chemical storage, power production, etc.
Consultants are to be used for the permitting of trucking through Mali and the Ivory Coast. We expect the company to review the road route from a safety perspective due to the very large tonnage to be hauled to the San Pedro port.
I could be totally misunderstanding this (and probably am) but if SC were to buy us out, they would have to make an offer at the highest SP in the past 12 months? Whether this can be higher I dont know, but the highest was 0.2 in mid March. From that point the price slowly drops and will continue to drop if no one buys. The longer this stays where it is the closer we get to the buy out price being at the current SP. this is worsened with more people selling. In my opinion we need the heard to cause a spike. And I know of only one way of getting the heard...
From a ramper!
Personally I don’t think hitting deadlines on its own is going to make this move. KOD has notoriously missed deadlines but has nevertheless delivered, but not always. Since I have been in this, it has only had a significant rise once in 2017. A lot sold. Since then it’s been in decline. No one will really know what made people buy at the time of the rise. We can only speculate, but since there is no audit on every individuals motive for buying we will never know, it just rose. I personally choose to call this the result of the heard. But what do I know. If the news ( the missed deadlines but news nevertheless) was catastrophic since that point, ie pick and mix instead of lithium in the JORC, I would have thought this would have plummeted but instead it’s been a slow erosion since early 2017. Good news (when I say good I mean we have lithium not pick and mix) doesn’t seem to move this. I doubt hitting deadlines will move this either. But hey that’s just my opinion.
https://www.theguardian.com/environment/2019/dec/25/2020-set-to-be-year-of-the-electric-car-say-industry-analysts
I know this is w general article on electric vehicles but I hope this generates interest in KOD.