Member Info for Laverda

Onlyking, there is no loss, they have to purchase everything above 10% at a fair market value.

So the 10% remains the same.

If you read the 2019 mining code there is a lot of local conditions which need to be met, these look as if they are being replaced in the 2023 mining code with a 5% charge.

If everything in the 2019 mining code is read carefully the 2023 changes are perfectly logical. Anything circumvented from the 2019 code by moving ore has been blocked in the 2023 code and so on.

There is nothing surprising if the old code is read thoroughly.

Leo appear to have been complete numpties. In the UK if there is a tax break, Freeport or whatever, before you bring in the goods, even if you were previously told there would be no or less import duty you make sure the goods qualify, the correct paperwork is completed and have the ok from the relevant tax office - Leo Lithium just brought 10s of millions of dollars of equipment and petroleum in and said they had not received notification of any changes - they would be paying the taxes here in the UK, they would not be let off.

They have not set up the government's 10% yet, but were planning to ship ore for cash - crazy behaviour.

Even worse they cover this in their own RNS.

Leo Lithium's issues have no correlation to Kodal.

The tax breaks Leo received were closed in Kodals time, so no tax issue either.

10% spread?

Like others I don't have a great lot of interest in day to day share price fluctuations.

However in this case a new broker approached Kodal as they had interested investors. Bernard thought it significant enough to explain in an earlier video.

At some point some of the new broker's investors may be seen, is this the start?

PS regarding bringing the equipment in, they assumed that they had a window that was tax free for three years.

They said that they had no communication to the contrary.

Everyone who deals with tax offices knows that you request confirmation before taking an action so as a minimum you have a document to show anyone who may question your action, even in the UK you do that on anything slightly different from the norm.

Whether something is classed as parts or manufactured outside a country can completely change the handling by a tax office, country of origin as far as trade agreements go etc.

If Leo get away without paying all of that tax they will have been lucky.

That is why Honda cars were assembled in the UK, Honda is leaving the UK because they got their own free trade agreement with the EU and can ship them directly from Japan. Before they would have import duty.

No wonder Leo shares dropped so much.

Hbomb5, you are right Kodal has no plan and never did, to ship ore.

Kodal was not under the 2012 mining code, therefore the changes for Kodal from the 2019 to 2023 (if applied to Kodal) are minimal.

Leo Lithium as part of Firefinch got out of a problem goldmine in Mali leaving liabilities it appears, with Mali companies. Kodal obviously was not connected.

Leo Lithium has brought loads of equipment into Mali assuming that they will not have to pay taxes from countries outside of any free trade agreement - absolutely stupid, some EU taxes are as high as 80%, the UK Pacific deal removes an 80% tax for Scottish Whiskey, real international trade basics.

Kodal has not started construction, but the 2019 mining code did not include those tax breaks anyhow.

Leo think they will get out of paying all of the tax...

So many differences.

Elcobble, but who would have thought they would make those rookie errors at Leo Lithium?

Who is over confident and ramshackle enough to make what appears to be such stupid mistakes? Ganfeng?

If reported correctly, most of it in their own RNS nobody would expect that from such a big project.

It is not surprising some people's reaction, I have read up on it about six times and still don't believe what I am seeing.

Makes you value the Kodal team and Bernard so much more when you look at the position they have got themselves into.

I think it will just be traders surfing the rise, investors will read everything slowly around Leo, look back at the two mining codes, think about the timeline and creep back in, a lot of leo investors will have cash in the bank and be wondering whether to go back into Leo 50% down or buy into Kodal.

Traders mass moving in or out trigger auto sells.

They will be hoping to hear Hainan are in Mali before they meet the government. With security protocol in all African countries, they may not.

Here is quite a good overview of the 2019 Mali mining code which applies to us, rather than 2012 which applied to Leo Lithium, the 2023 changes make sense after reading the 2019 code:

https://www.nortonrosefulbright.com/en/inside-africa/blog/2019/12/mali-entry-into-force-of-the-new-mining-code

Motley for all their faults do cover the Leo situation quite well and it can be seen that they are very much Leo Lithium issues and no impact on Kodal.

If they are correct the way the government's 10% is summarised then in my opinion that was just plain incompetence, but remember this is Motley...

https://www.fool.com.au/2023/09/04/why-is-the-leo-lithium-share-price-crashing-48-today/

Creaser, Leo Lithium's NPV is around 2bn dollars They started off with similar figures as us.

From December to June next year we should have an idea of our value trajectory, at present we have a lot more land than them, excluding West Bougouni in our total.

I think we will be around the same after they purchase West Bougouni from us.

Elcobble, agree I remember him highlighting the Africa experience of his team and how important he felt that was early in the journey and Steve's African experience.

Cheers Acker - hopefully September turns a corner for you too.

Stephen, Leo money to Kodal?

Terrible start for Leo Lithium and their relationship with the Mali government.

Ore which would avoid government royalty and I believe some production tax.

Trying to move equipment into the country under 2012 tax legislation, I rarely hear of any new taxation which is not applied either from the moment it is released or the start of the following tax year.

Plus it does not appear that Leo created a company structure similar to ours and Hainan's structure, it looks as if they continued as per 2012 rules, ie the way they brought money into their company from China.

The big four accounting companies in the UK make much of their living by understanding these changes and restructuring procedures or companies so they do not fall foul of these rules.

This is why the transfer of assets etc has to be done so carefully and all valuations accurate and independent.

Also why we have Kodal Minerals, UK Mining, Xinmao etc to ensure we move monies correctly.

Again a big lesson in going slow and doing everything properly. Reduce or eliminate errors.

Sash, the reality and investors thoughts/actions are two different things.

We had a delay in 2020 where we updated to the 2019 mining code. So we are not far away from the current code.

Leo Lithium state they are under the 2012 code, that is a lot different to the current code.

The only thing I noticed was a different structure for moving money, but we already have that with Xinmao etc so it could be a 2012/2019 mining code difference, rather than a 2012/2023 difference.

Sash it looks like Firefinch has pushed the limits with the government, firstly on the gold mine, secondly on shipping ore without the government set up for their 10%, but it appears that now ore is a no. They wanted to close the door on gold ore shipped with no government payments, it appears that the lithium ore was going to be moved under this loophole.

Their approvals tax breaks etc are based on the 2012 mining code.

Really a lot more detail is required to fully understand their situation.

Bernard is no wide boy, he plays with a straight bat, Leo will be under constant watch by the government.

PD any further percentage taken by the government has to be purchased at fair market value, which once onto mining construction phase is higher than the current value.

So in short they buy that percentage off us. It is not lost.

Also you appear to be muddled, we are going into production, a production plant is designed to run at lowest overheads and can operate 24/7, with only minimal shut down for servicing.

You are using a pilot plant to fund the exploration of a large epo site. If successful you can set up a production plant to mine that exploration area once a mining licence is granted.

This may be lucrative but it is many years down the road. You are comparing with the wrong company, try ATM or similar.

Pd, looking at your headline at least your sense of humour has not left you.

The difference is 85,000 to 90,000 tonnes per year. Kodals share 57,330 tonnes per year from the first production plant, 123,500 tonnes plus per year when the second one kicks in.

Your first target 1,000 tonnes per month.

You are comparing with the wrong company.

Toptiger, September - this month

Comeonbernie, Bernard said he hoped before the end of the year.

I wonder if they are getting signatures for something when in Mali.