Announcement • Apr 15
Kodal Minerals Provides Update on Mining, Processing, Export and Development Activities At Bougouni Lithium Project for Three Months Ended 31 March 2026
Kodal Minerals provided an update on mining, processing, export and development activities at the Bougouni Lithium Project for the three months ended 31 March 2026. Kodal maintains its involvement and interest in Bougouni via its 49%. shareholding in Kodal Mining UK Limited in partnership with Hainan Mining Co. Ltd, which as the 51%. shareholder has ultimate control. KMUK holds a 65%. shareholding of the subsidiary mining company Les Mines de Lithium de Bougouni SA, which owns the Project in partnership with the Mali Government, and KMUK provides the management oversight and operational control of mining activities at Bougouni. Quarter highlights: Quarterly production of 26,981 tonnes spodumene concentrate grading 5.28% Li2O; March production exceeded 10,900 tonnes at 5.28% Li2O and is the highest monthly production recorded to date at Bougouni; Following the completion of two shipments to Hainan, Bougouni has exported a total of approximately 49,000 tonnes of spodumene concentrate; Revenue received by LMLB to date exceeded USD 51 million with the final balancing payment for the second shipment pending; Ngoualana open pit performing to budget and site team focussed on continued improvement with additional mining equipment mobilised to site; Bougouni operation continues to focus on Health, Safety and Environment ("HSE") with no Lost Time Incidents ("LTI") or Medically Treated Incidents ("MTI") reported during the quarter. Post-quarter highlights: Third shipment of approximately 20,000 tonnes spodumene concentrate departed the port of San Pedro, Côte d'Ivoire on 12 April; LMLB to issue interim invoice for 95% of the value of the cargo as agreed in the offtake agreement, and finalisation of full payment for the shipment to be completed following completion of transport to Hainan and verification. Open pit mining continues at the Ngoualana open pit mine and statistics for the quarter and year-to-date figures ended 31 March 2026, total tonnes mined amounted to 1,980,784, total ore tonnes mined during the period were 274,227, the total ore grade stood at 1.15% and the strip ratio was recorded at 6:22. Operations at the Ngoualana open pit were behind plan for January and February 2026 and were impacted by low productivity drill and blast activity, and to a lesser extent, the availability of machinery. The site team has taken measures with the mining contractors to potentially improve performance with additional drilling rigs mobilised to assist the blasting programme and additional diggers mobilised to improve productivity. The open pit operation remained unaffected by both fuel supply issues and explosives availability during the quarter, and in March the mining operations performed at the planned levels of production. The open pit mining team have focussed on the expansion of the open pit with waste removal to expose more of the pegmatite orebody and are preparing for additional mining of ore to build up the ROM pad stocks. The DMS processing plant and crushing circuit operated throughout for the quarter and year-to-date ended 31 March 2026, the Bougouni Processing Plant processed 314,060 tonnes of ROM feed, with an average feed grade of 1.00% Li2O. Spodumene concentrate production totaled 26,981 dry metric tonnes, while the DMS recovery rate was 62% and the overall recovery rate stood at 49%. The average concentrate grade was recorded at 5.28% Li2O. During the quarter the DMS processing plant and crushing circuit were impacted by downtime in the crushing circuit and availability of the DMS circuit resulting in below plan production of spodumene concentrate in January and February. The site team has undertaken maintenance and replacement of all conveyor belts in the crushing circuit to improve availability of running hours and reduction of lost time due to breakdown and site maintenance. The production of over 10,900 tonnes of spodumene concentrate in March was above plan and demonstrates the impact of improvements following maintenance and repair activities. Initial review of April 2026 performance indicates that production is on track. During the quarter two export shipments were completed - the first shipment departed the port of San Pedro in late November 2025 and arrived in Hainan in early January 2026, and the second shipment departed in early February 2026 and arrived in Hainan in late March 2026. Following these two shipments, a total of approximately 49,000 tonnes spodumene concentrate has been transported to Hainan to date. Post-quarter end, a third export shipment was loaded and departed the port of San Pedro on 12 April 2026 with a further approximately 20,000 tonnes of spodumene concentrate, and is expected to arrive in Hainan in June 2026. To date, the Bougouni operation has received revenue of approximately USD U51.3 million, comprising the full payment for the first export shipment and approximately USD 24 million as the 95% interim payment for the second shipment. In accordance with the off-take agreement, the final 5% payment for the second shipment is pending confirmation of grade analysis, moisture content and final weight with the final invoice to be submitted once the amount is agreed. The calculation of the price per tonne of spodumene concentrate is controlled by the offtake agreement with Hainan, announced by the Company on 30 June 2025. The agreement references the market price published by Shanghai Metal Markets ("SMM") and utilises a blend of the CIF China 6% spodumene concentrate ("SC6") index and the African SC6 CIF index. The agreement allows for a longer averaging period to calculate a sales price for LMLB that covers the period from when the ore was mined at Bougouni through to processing, transportation and final delivery to Hainan. The final price is determined following arrival in Hainan and verification, however, the agreement provides for an interim payment equivalent to approximately 95% of the value of the cargo on departure from the port of San Pedro. The final price that the Bougouni operation receives is adjusted to account for the grade of the concentrate, and as the site has exported concentrate of around 5.3%, the price is reduced from the SC6 price in a straight calculation to the product grade. Further price adjustments occur to account for shipping and insurance costs to reflect a change from the CIF China price to an agreed FOB San Pedro price.
