Member Info for Paul2566

There is only one source for insiders selling or buying, but each to their own.

Its a traders stock at the moment, with some good short term profits to be made by those with the skill, nerve, and a reasonable sum to play with.

The investors time will come, just not quite yet.

CK8940

I'm not sure it's likely Hainan would be interested in taking over Kodal.

I suspect you may mean buying out Kodals interest in KMUK. Personally I don't think that will happen, Hainan have their fingers in a few pies and I think that probably suits them by spreading their risk through multiple assets and jurisdictions.

For arguements sake, if Hainan were to buy Kodals interest in KMUK I think the offer would have to be at least at fair value, and probably at a premium to fair value. If the market percieved that Hainan did anything underhand to aquire or disadvantage KMUK, I think that mineral exploration companies in general would be very wary of dealing with them in the future.

For Hainan it would I believe be a case of a short term gain and long term pain.

So to answer your question regarding the SP, one would have to determine a fair value, which for me at least is very difficult to do at the moment.

Everything is for sale at a price.

Onlyking

Thank you for taking the time to post accurate information.

Valued input as always.

ATB

Justicefarm

I suggest you look through the historical RNS releases for insider trades.

Whitebuffalo

Thanks for your reply, much appreciated

ATB

Whitebuffalo

You are correct, I am talking about Les Mines de Lithium de Bougouni, as this is where we will start to see real income, and that income will be shared among the 3 interested parties mentioned. This is KMUKs or will be their main income source. As such I'm considering how this may change the KOD SP over the next 12-18 months.

Surin

KOD share ownership of KMUK with the local government as well as Hainan so no longer will hold a 49% share.

I hope that there is no buyout as I think there would be quite a bit of value left on the table.

I was hoping for a financial end of year SP ASK of around 1p, I'm a little less convinced that will be reached in that timeframe, but still believe it will be somewhere North of 0.7p.

I see that KOD have stated their all in production costs (AISC) are projected to be $647 per metric tonne of Spodumene Concentrate. This is I believe consistent with previous statements.

BOUGOUNI is expected to produce 125,000 metric tonnes p.a.

Spodumene Concentrate prices are I think somewhere in the $740 per metric tonne ballpark.

What views do investors hold on the offtake prices KMUK are likely to achieve.

I believe that the tax payable upon licence transfer is no surprise, it hasn't just been pulled out of the air yesterday.

The $15m bill isn't new news to anyone.

The issue isn't who is doing what to who and why, the issue I have is the contract agreement signed regarding the partnership, if what has been stated by Hainan is correct, how was KOD not aware that they would be solely liable for the $15m tax bill. If KOD or Hainan didn't understand who was liable for the $15m, why not. The question of liability for a $15m tax bill should quite simply have never been a question in the first place.

This is what I am struggling to understand.

A contract of this complexity and nature must have had a legal team from both partners going through it in fine detail to protect their clients assets.

Either;

The board of KOD were aware of this and failed to make it clear to investors from the start. Personally I find this really hard to believe, and think it highly unlikely for a number of reasons.

The contract was not detailed in the liabilities of the partners regarding the $15m tax bill. Again I find this very hard to believe for a number of reasons. If constructed correctly legal documents are not written so they can be miss-interpreted.

Hainan have not understood the details of the partnership. Just a non-starter as theorys go, the Chinese are more savvy than that.

KOD have not understood the details of the partnership. Again in my view a non-starter theory.

Hainan are just simply bending the truth to get the SP down, which in my view is also a non-starter. It would taint their reputation and make it difficult to pen deals in the future, and that just looks like a 'short term gain, long time pain' strategy.

The KOD legal team missed something, and even if the Hainan legal team were aware of it if it worked for Hainan they wouldn't bring it to KODs attention. Personally I find it hard to believe that an army of legal advisors and accountants working for KOD could miss a $15m liability.

Hence I'm confused.

I've been out all day and come back to this.

I must confess to being more than a little confused.

How can a contract be so poorly constructed that all parties are not aware of its content and implications.

I would have thought that KODs legal team would have studied it prior to signing the deal and none of this should have come as a surprise at this stage of the game.

It just does not make sense.

George

Forget that I did exactly the same again.

I will stop now before the other foot goes in.

ATB

George

Although not an accurate statement on my part I think it comes down to pretty much the same thing, in that KOD shareholders are looking at 28.1775% of any profits generated from the Bougouni Lithium Project.

Laverda

Perhaps I worded it badley, what I was trying to get to was that of the shares in issue HNM own 15% of them, I suppose it is a pretty meaningless statement. They hold shares just like you and me, just a lot more of them.

Laverda

Absolutly, I think the KOD board would want to take some shares off the table to increase value, long before considering any dividend.

As I see it the lithium mine is the asset that should provide the first real income.

The lithium mine is owned (and I am happy to be corrected), by KMUK which in turn is owned by 3 parties.

Mali Government 35%

HNM 31.85%

KOD 33.15%

So KOD only get 33.15% of the potential profits from the impending lithium project.

As HNM have a 15% share of KOD that leaves KODs remaining shareholders 28.1775% of the aforementioned potential profits.

HNM will as a share holder also have a 15% interest in any pipeline projects including gold.

Don't get me wrong, I think Bernard has done an excellent job to get us where we are with no debt and cash in the bank, but I sometimes think investors get confused with holding KOD shares and what KMUK owns.

I'm not really sure what you are saying. At the moment KOD is a growth share, not an income share. I cannot see any near term likely dividend being paid, there are I think about 24,240,000,000 shares in issue and any dividend likely in the next few years would be so small it wouldn't be worth the admin. I suspect any profits will in the medium term (5+ years) be used for other projects/expansion of existing projects. I think value will come from an increase in MCAP. Realised profits will come from individual share holders exit strategies.

I had a rough exit point of 2p, but have reduced my expectations at the current prices of lithium, however it remains to be seen what value will be added by the gold and other unknowns. At last count I hold 13343475 of this stock and from this modest holding wouldn't expect a dividend that would do much to improve my finances.

Of course I hope I am very conservative and proven to be wildly incorrect to the upside.

ATB

DRWHO319 filtered.

My advice to others is.... Never wrestle with a pig, you get dirty and the pig will probably like it.

I doubt very much we will see the high prices again, however the demand for lithium is unlikely to vanish. I think in time the price of lithium will find a point where it is high enough to support demand. If there are sufficient mines that can meet the demand at 'X' price then that price will be sustained, and those miners will survive. As for the rest unfortunately they will close or find a way to reduce costs.

I am confident there will be no buy out, this will run its course.

Hainan won't force a buyout as no mining explorer/developer with a decent resourse would ever enter into any partnership with them ever again. Hainan just like every other big miner know this.

I cannot see another miner achieving a buyout, neither Hainan or KOD are likely to allow it.

I also suspect that the initial partnership contracr was water tight to protect both parties, and would have almost certainly covered the buyout scenario.

In any event I do not believe a 1p offer believable. Berenie would probably pass out laughing.

I'm sticking with my origional guess (because at the moment thats all it can be), of 1p ASK by the new year and somewhere around 1p to 1.5p ASK in the 2025 tax year. If of course the price of lithium rises, all bets are off.