RE: The one-year price target for Kodal Minerals of 1.50p disappeared, why?24 Sep 2023 17:22
canacord old opinion
kodal minerals (kod-aim | 0.75p, mkt cap £136m | spec buy, tp 1.50p
(from 1.30p) | alex bedwany)
kodal announced a us$118m funding package in january which fully funds the
bougouni spodumene project in mali, with an initial ~4-year dms development
producing 130ktpa sc5.5 (~120ktpa sc6 eq.), and operating cash flows to finance a
238ktpa sc6 flotation-based expansion. the funding package is expected to complete
by 31 may 2023. see our recent initiation for more detail.
the company is currently drilling to expand the ~21 mt @ 1.11% li2o resource, and
recently announced promising results from the boumou deposit, including 51m @
1.08% li2o from 78m, 36m @ 1.29% li2o from 93m, and 31m @ 1.23% from 42m.
further results are expected from co****-grained targets which could extend the life
of the dms development. we estimate that one-year of dms life extension would
increase our npv/share by ~6%, and a one-year life extension of the flotation plant
would increase it by ~4%.
the updated price deck has resulted in an increase in our npv/share to 1.50p (from
1.31p), and we therefore raise our target price to 1.5p (from 1.3p), based on 1x
p/npv (rounded to the nearest 0.05p). we maintain our speculative buy rating.