Member Info for Bridgedogg1

About time you lot had a chance ed day, all this blue must have been getting annoying. Still gutted I missed my 2.5p buy in

Kodal shareholders have to agree to the contract. It will be at market price. Hainan will basically be paying themselves for 60% of the Spod prodded through 52% JV and 17% Kodal ownership so I’m sure the price won’t be as important to them as keeping the costs low and the plant running efficiently and on time. In the meantime they have to source Spod from other providers which they don’t mostly own. They will be keen to get this in production asap. Full takeover will be on the cards for Hainan for sure but they won’t pay over the odds, and I don’t think it would be at a level kodal shareholders would accept I.e. > £250m

That’s the investor update from Hainan.

11. What are the costs of development, transportation and lithium hydroxide products of Bougouni lithium mine?

According to KOD public data, according to the current Bougouni lithium mine development plan, the company estimates that the complete cost of lithium concentrate to the Chinese port will not exceed US$650/ton, including production costs including mining and mineral processing, and African inland and sea freight. The company's 20,000-ton lithium hydroxide project plans to be put into production in July 2024, and the processing cost is expected to be basically the same as the industry average. The company will actively take advantage of the controllable upstream resources and the preferential tax policies of Hainan Free Trade Port to ensure the company's lithium hydroxide products

Securities code: 601969

Securities abbreviation: Hainan Mining

cost competitiveness and market competitiveness.

12. What are the downstream target customers of the company’s lithium hydroxide products?

The company's 20,000-ton lithium hydroxide project (Phase I) is under construction. The product is battery-grade lithium hydroxide monohydrate. The product is positioned as high-end and its main target customers are high-nickel ternary lithium battery companies in Japan and South Korea. The company has been in close communication with potential downstream customers, but since the production line is still under construction, no finished product has yet been produced. The lithium hydroxide product still needs to obtain relevant certifications from downstream battery companies before proceeding to the next step. The company is actively maintaining contact with potential customers, opening up information communication channels, and continuing to follow up on demand.

10. What is the mining and sales model of Bougouni lithium mine?

The Bougouni lithium mine is open-pit mining with good mining conditions and has obtained environmental approval and a mining license.

The lithium concentrate products produced by Bougouni Lithium Mine are planned to be all underwritten to the company or its designated subsidiaries, and will mainly be used for processing at the company's 20,000-ton lithium hydroxide project in Yangpu, Hainan, and ultimately produce battery-grade lithium hydroxide products. Make sales.

11. What are the costs of Bougouni lithium mine development, transportation and lithium hydroxide products?

According to KOD public data, according to the current Bougouni lithium mine development plan, the company estimates that the complete cost of lithium concentrate to the Chinese port will not exceed US$650/ton, including production costs including mining and mineral processing, and African inland and sea freight. The company's 20,000-ton lithium hydroxide project plans to be put into production in July 2024, and the processing cost is expected to be basically the same as the industry average. The company will actively take advantage of the controllable upstream resources and the preferential tax policies of Hainan Free Trade Port to ensure the company's lithium hydroxide products

100%

5. What are the company’s main capital expenditure arrangements and financing plans for 2024?

The company's main capital expenditure arrangements for the iron ore, oil and gas and new energy tracks in 2024 are as follows: 1) Shilu Iron Mine-120m~-360m middle section mining engineering construction project: the total planned investment is 543 million yuan, as of December 31, 2023 The daily investment amount is 103 million yuan, and the funding sources mainly include raised funds and self-owned funds. 2) Shilu Iron Ore Suspension Magnetization Roasting Technology Transformation Project: The total planned investment is 511 million yuan, and as of December 31, 2023, an amount of 2.88 yuan has been invested. The funding sources mainly include raised funds, self-owned funds and special government support funds. 3) 20,000 tons lithium hydroxide project (Phase I): The total planned investment is 1.056 billion yuan. As of December 31, 2023, an amount of 177 million yuan has been invested. The funding sources mainly include special loans and self-owned funds. The project has obtained Hainan Agriculture 700 million yuan loan from credit unions. 4) Bougouni Lithium Mine: The US$94.34 million the company invested in KMUK when it acquired the Bougouni Mine is planned to be used entirely for the construction of the lithium mine. 5) ROC Petroleum Exploration and Development: ROC Petroleum's own operating cash flow is in good condition and can cover the development expenditures of Australia's 10-3W oil field and other capital expenditures required for daily exploration and development.

The company will also further expand debt financing channels, adopt diversified financing models, and use project loans or mergers and acquisitions based on the actual situation of the project to improve the efficiency of the use of funds. And on the basis of stabilizing the scale of credit, we will continue to optimize financing costs; in addition, the company will also rely on the advantages of the listed company platform to select opportunities for equity financing to fully prepare for the company's continued business development and investment and mergers and acquisitions.

2 of 4

Securities code: 601969

part.

Securities abbreviation: Hainan Mining

2. What are the measures to reduce costs and increase efficiency in electricity at Bougouni Lithium Mine? Is it considering using solar power to generate electricity?

The electricity currently used by Bougouni Lithium Mine is mainly diesel power generation. The company has considered using new energy power generation methods, and has also discussed solar power generation with potential suppliers, but the main consideration for selecting power generation methods is the highest overall economic efficiency.

3. After the 20,000-ton lithium hydroxide project is put into operation, what is the source of supply at the mine end before the Bougouni lithium mine is put into operation?

Judging from the respective start-up times of the Bougouni lithium mine and lithium hydroxide processing, the start-up of the upstream lithium concentrate is about 6 months later than the completion time of the lithium hydroxide processing production line. The company will purchase mineral resources through its own trading channels, market procurement, auctions, long-term cooperative and trader procurement and other channels to meet the raw materials required in the early stage of downstream lithium salt processing. It is currently communicating and negotiating with potential suppliers.

Translation of Hainan document:

Number:2024-01

Guangfa Fund, Danshuiquan Investment, Banking Asset Management, Yingda Insurance Asset Management, Cathay Fund, Qianhai Life Insurance, Pacific Asset Management, Xinjiang Qianhai United Fund, Pioneer Fund, China Post Financial Management, Jiutai Fund, ICBC Credit Suisse Fund, Bank of Communications, Donghai Fund, Xinyuan Fund, Changsheng Fund, National Council for Social Security Fund, China Future Capital, Ningbo Sandeng Investment, Fujian Zeyuan Asset Management, Tibet Hezhong Yisheng Investment, Shanghai Niuhu Asset Management, Shanghai Institutional investors such as Xishirun Investment, Shanghai Cybernaut Investment, Hongyun Private Equity (Hainan), Xuanyuan Private Equity, and Shaanxi Dunmin Investment

Participating units

Analysts from SDIC Securities, CITIC Securities, Caitong Securities, GF Securities, Galaxy Securities, Haitong Securities, Debon Securities, Soochow Securities, Guosen Securities, Huafu Securities, Guojin Securities, Northeast Securities, etc. (in no particular order)

time

March 26, 2024 15:30-16:30 2023 Annual Report Performance Exchange Meeting

Location/method of communication

Online meetings/introduction to finance

Vice Chairman, President

Xi Lei

Listed company participants

Vice President, Secretary of the Board of Directors

He Jing

Vice President, Financial Director

Zhu Tong

Introduction to the main contents of investor relations activities

Main questions and answers exchanged:

What is the expected output of lithium mines this year? 10,000-20,000 tons of lithium hydroxide project and Bougouni

The company's 20,000-ton lithium hydroxide project (Phase I) is under construction and is expected to be completed and put into operation in July 2024. The ramp-up period is about 3-6 months, and the production and sales level after reaching production is about 18,000-20,000 tons/year. Taking into account system debugging optimization and reasonable production ramp-up time, it is expected that the production volume this year will be relatively small, with a planned volume of about 3,000 tons.

The first phase of the Bougouni lithium mine's gravity separation plant will produce 100,000-120,000 tons of lithium concentrate with a grade of more than 5.5% per year after reaching capacity. It is expected to be completed and put into operation in November 2024. If it can be put into production on schedule, the output is planned to be 2,000 tons in 2024. At present, the core management and human resources, administrative and financial teams have been basically formed, the engineering design and mining contractors have been basically determined, the civil engineering installation, energy and power supply contracts have been signed, the mineral processing contract and equipment have been basically confirmed, and the project is about to enter construction.

No nothing about flow rates, just chances talking it down due to a nothing resolution which is just a reissue of a rolling 3 year authority. I think the sell off is due to the impatience around the expected flow rates today. People can’t wait 1 more trading day. Think I might buy in, surely there’s some protection with the second drill.

Looks to me like the rig is available. Good chance for an RNS Tuesday.

Wow, did I miss a duster RNS?

Funny that traders think ‘end of the week’ with a bank holiday is the same for stock market as it is for oilmen in the middle of the Alaskan tundra.

Just checked out my window and I think I saw a flare in the distance…

Great example, AMTE restored trading shortly after that announcement.

AMTE didn’t have a cash berating business or client book.

AMTE didn’t have highly valued IP.

AMTE had sizeable debt it couldn’t service.

Basically Hainan are buying out Suay’s 80% off take, Hainan want the full 100% shipped directly to their own plant. Good for us. The JV have to pay $14m for the termination before 31 October. I assume there is a deal whereby Hainan will cover this unless it was part of the original funding package.

The question is what will Suay do with their 5% shareholding? Have they already sold? Will they just hold on to it? Will Hainan buy it directly? Will Hainan just offer us £250m for our share of the JV?

News to come,

Production progress, exploration drilling, resource expansion

I'd say this is almost certainly an issue around forward selling by the book runner. The wording of the suspension highlights the required consent of shareholders. If shareholder approval isn't received then the forward sold shares would not be settled. Worth looking at New World Oil and Gas for a very rare example of this happening. Forward selling is technically banned but everyone knows it always happens with placings on AIM. I'm not sure why the LSE would be especially monitoring this one. If I'm right then suspension may remain in force until the vote is passed. For me that would be the best outcome for shareholders because the suspension is lifted once we have the cash to continue operating. Despite all the conspiracy theories on here I'm sure the vote will pass without a problem.

AMTE suspended at the request of the Company pending clarification of the Company's financial position.

This is nothing like that. Pretty much completely the opposite.

Hopefully the presentation is not too good or this will surely fall another 10%.

Annoyingly I will be having an MRI at the time of the presentation so I will have to pick it up afterwards. If someone could post a brief summary on here that would be much appreciated.

People forgetting this was priced as a growth technology company. The margins didn’t matter as long as revenue was growing at over 20% year in year. Much emphasis was placed on duplicating the growth of WPP, it’s still in the sign off of every RNS. Now it’s not growing or producing income so there’s no investment rationale other than as a macro recovery play which is some way off.