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0:41 all licenses have now been transferred to KOD`s new subsidiary (KMUK), that tips the needle for me. I think there will be no extension as things now stand.
Glad for the positive news over the last few days, at times the last 6 months have felt like 60.
"Kodal will be hosting several senior executives from the Hainan and Fosun groups in Mali during September as we work towards finalising our agreed work programme."
SEO`s from our partners controlling company coming to take a look. Its not often people like this get on planes and head to the middle of nowhere. I read into this that there will hopefully be some pieces of paper requiring wet signatures to be added to them. At the very least it provides face to face talks which are always better than when done virtually. Oh and suspiciously the rainy season also ends around the 30 September making it much easier to implement the physical plans which have progressed behind the scenes.
Good Morning
Laverda- I have a level of personal experience in North Africa, many people there can be described as proud but poor. My assumption is this is also the case in West Africa. I have said before on the BB that it does make sense for Mali and its people to also gain from anything done in their country. Respect is a very big deal.
Also as a side note I dug back to 2014/15 in the RNS`s there is mention of Copper, Iron and Zinc in Norway (Grimeli Project) but in the final results for 2015 it states
"The extraction licences at Kodal do not expire until July 2023 and the Company may be able to renew them for a further 10 years. The Company will continue to monitor both iron ore and phosphate prices and will recommence development of the Kodal Project once conditions support that decision. In the meantime, the Company believes the Kodal Project remains one of the most significant and technically advanced phosphate resources in Europe."
I cannot find/have missed any further updates to this, does anyone know if we sought to renew the license? If so could someone point me in the right direction.
Laverda- I take your point on the gold, I hadn't thought of it from that angle. I am happy with Bernard`s approach and the company as a whole I did not mean for my post to come across to the contrary. You are right BA is understated, a positive in my book. Time spent on hot air balloons is time you will not get back.
Horult- haha yes same here I have to have at least 2 coffees before digging into most paperwork
Mercedesman- Absolutely I hope they will too, I remember you talking about the need for this last year. Hopefully now they can hit the ground running with updates, not only for lithium but also for the the gold which I do feel has been pushed to far (although understandable) down the list of jobs in the last year.
Hi Horult,
The 3.5m is being taken out of the 7m deposit funds but this amount will be moved back (so yes 7m would still be the total deposit amount) from the share buying amount 17.75m which would become 14.25m bought and the 3.5m they are handing over today. Its still all the same total amounts its just moving them around so cash is available now instead of after the deals completion.
"Under the Prepayment Agreement dated 2 August 2023, the Hainan Group has agreed to make a prepayment of US$3,500,000 (the "Prepayment Amount"), to be released from the Deposit, in respect of the US$17,750,000 subscription amount (the "Subscription Amount") payable under the subscription agreement entered into between Xinmao and the Company dated 19 January 2023 (the "Subscription Agreement") as part of the Funding Package. Accordingly, on completion of the Subscription Agreement ("Completion"), the Subscription Amount due from the Hainan Group shall be reduced to reflect receipt of the Prepayment Amount. No new ordinary shares in Kodal will be issued to Hainan Group in respect of the Prepayment prior to Completion and no interest is charged on the Prepayment save as set out below. The Company is entitled to apply the proceeds of the Prepayment Amount at its sole discretion, including for general working capital purposes."
The 100m is going to KMUK ( cerca 65m construction with production within 12 months) with any remaining funds used for exploration and increase to resources. The 17.75m goes to Kodal to expand our gold interests in west africa. The 7m is deposited with us on 01/02/23.
From 19.01.23 RNS:
"· US$100 million committed to Kodal's newly incorporated UK subsidiary, Kodal Mining UK Limited ("KMUK"), by the Hainan Group to, inter alia, acquire 51% of KMUK to finance the construction of the mine at the Bougouni Lithium Project.
· US$17.75 million equity subscription by Hainan Group into Kodal at a price of 0.5p per share, being a premium of approximately 100% to the previous 10-days' VWAP (the "Subscription").
· KMUK would be fully funded for the US$65 million capital cost of the Dense Media Separation ("DMS") development scenario at Bougouni and is targeting delivery of first production within 12 months of receipt of funds.
· The additional funds received by KMUK beyond the DMS funding will be directed to expansion activities to increase the Bougouni Project JORC compliant resource inventory currently at 21Mt @1.11% Li2O and extend production beyond the initial four-year mine life.
· The US$17.75 million raised from the Subscription will be used to advance the Company's portfolio of gold exploration assets in Mali and Cote d'Ivoire, as well as the assessment of new exploration and development opportunities in West Africa.
With regard to today's RNS, Kodal can now access 50% (3.5m) of the ring fenced 7m deposit currently in escrow. If the funding package is abandoned Kodal will receive the remaining 3.5m from the deposited funds. The negative of this is potentially if the deal falls through we would in effect only retain 3.5m not 7m as the additional funds would be needed to settle any outstanding debt.
Sale of Bougouni West 1.6m fund held as essentially a re-assurance deposit to protect Xinmao otherwise the deal would only involve them giving Kodal money which could ultimately just be repaid using more of their own money. This seems to me at least totally understandable.
Lastly Kodal financial statments due in September and this is positive news for the balance sheet of the company. Overall a positive RNS for LTH`s, bad for get rich quick schemers which makes me happy.
Hi Sash, although I think Basher is overstating the importance/threat wager pose to investment in Mali. I agree with him that at our current state of development Kodal should be seen as a high risk investment. I encourage everyone to split their portfolio across investments and sectors.
Personally because of my age I am more focused on high risk investments as I can afford to take a hit if one or more fails, still this is only 40% at most of the total. Kod then makes up part of this percentage along with other shares I hope will show high growth in the medium term (5-15 years). Basher will have a maximum amount they are prepared to invest based on their level of risk/reward.
HI Roger, I agree with you that wagner's presence in any country is a negative. The most recent article I read from the BBC estimated their combined strength in Mali to be 1000 fighters. With their forces being operational in the North of the country. For context the UN (MINUSMA) forces are approximately 15,000 military/civilian personnel, with this force due to withdraw in 6 months time by 31/12/23.
Recently Mali`s military has undergone significant change and now ranks as the 3rd most deployment capable force in West Africa. I am not worried by the wagner presence in the broader context , TIA after all.
I do not believe Hainan is stalling, this has never been evidenced in any official news releases either by themselves or Kodal. Also Hainan have deposited 7 million USD which they would lose if they triggered a withdrawal for the agreement.
As far as prices declining I guess it all depends on what type of investment each person views Kodal as, and why they invested in the first place. For myself I invested with a view to receiving dividends within a 10 year window and have invested in other small exploritor/ junior miners with the small aim in mind as part of a wider portfolio strategy.
Hi Horult sorry for the later reply 9.95 fore first 4 trades then 1.50 after per month is with AJ Bell, I also have trading 212 and agree the tracking and charts are really good.
@Deckchair ,if people use 0% commission sites like Trading212 they pay no fees per trade (i think they do pay FX charges)
The only real downside I see with 0% is if you are buying larger quantities as you dont get a held quote to buy before you decide, instead to pay the current buy/sell price at each auction point which could be higher or lower than the price on screen. So an uptick in price results in you buying fewer shares of course this also works the other way if the price goes down.
Im happy paying £9.95 on the first 4 trades each month and £1.50 on the others.
Hi everyone, I hope I can get in sub 50p this morning. WJG is undervalued with Price to Book around 0.7 and I agree with others that it should see a return to prices of 60p+ very soon.
To be fair spilling coffee is a pretty serious offence ;)
I try to keep this thought in my head for all my mining stocks - I am very lucky to be sat in my dressing gown drinking a coffee, rather than down a hole digging out whatever valuable resource is there.
Personally I have no issue (to a point) with making sure the country where my investment is making money is also benefiting. I certainly don't work for free and wont expect anyone else to either. Taking in good faith what the government has said so far I would have to assume that they want to make changes before the elections next February so that they can show voters what they have done to improve their country.
*Correction* Kodal Minerals (KOD) is listed on UK AIM, Kodal Mining UK Ltd (KMUK) is a private limited company and does not trade its share publicly.
I feel this would have been a more accurate heading.
Source: https://www.listcorp.com/asx/lll/leo-lithium-limited/news/trading-halt-2898791.html?ref=trending_news_home
In case anyone was unsure LLL is a listed company on the Australian stock exchange, the Malianian Government has no ability to suspend the trading of stock , this suspension is at the request of Leo lithium and as granted by ASX today.
Kodal Minerals (KOD) and KMUK are both listed companies on the UK AIM exchange.
Thanks Daz that was an interesting read. I thought there was also a good indication on timescale aswell,
"December 2022,Hainan Mining Lithium Hydroxide Project started in Danzhou Yangpu New Material Industrial Park.As Hainan Mining in"Iron ore + oil and gas"The third track to build,The project plans to build a battery-grade lithium hydroxide production line with an annual output of 20,000 tons,Provide core raw materials for power batteries of new energy vehicles.
The project covers an area of about 200 acres,Total investment 1.056 billion yuan,Investment, construction and operation will be implemented by Hainan Xingzhihai New Material Co., Ltd., a wholly-owned subsidiary of Hainan Mining,It is expected to be completed and put into operation in the first half of 2024."
I would suggest from this that they really want the mine producing by summer next year, this has been an exciting year so far already but it looks like 2024 will be even more exciting.
MCap can be a good indicator of potential value, when comparing companies it becomes more useful the more similar the two companies are.
E.g KOD is about 6 times smaller in value than LLL at the moment. Do investors believe that in the future KOD can reach/exceed the current resource holdings/net profit of LLL. If the do then how long will it take for KOD to reach that position? This could then be used as a basis for investing X into KOD with an eye to value growth.
Hi Bonkers
Leo has 1.2B shares outstanding, intraday trading at 1.12 AUD (0.58 GBP) so Mcap of 1.344B AUD (700,138,617 GBP)
https://finance.yahoo.com/quote/LLL.AX/key-statistics?p=LLL.AX
Kodal has 17.02B shares outstanding, intraday trading at 0.006 GBP (0.012 AUD) so Mcap of 102M GBP (195,725,676 AUD)
https://finance.yahoo.com/quote/KOD.L/key-statistics?p=KOD.L
*Exchange rate of 1 GBP to 1.92 AUD
Hope this is helpful.
I would love to see us get past 0.71 and stay above it by the end of the week. The sp was cheap as soon as it went below 0.58.