Kodal Minerals (KOD) H2 2025 earnings summary

Executive summary

• Transitioned from explorer to producer with first lithium spodumene concentrate at Bougouni in February 2025, following completion of the stage 1 DMS plant within the $65m capex budget.

• Secured a four-year offtake agreement for 100% of Bougouni's spodumene concentrate with Hainan, supporting supply to a 20ktpa lithium hydroxide plant in China.

• Mining licence successfully transferred to local subsidiary under Mali's 2023 Mining Code, with all regulatory and financial obligations fulfilled.

• Strong ESG focus with community initiatives, local employment (94% Malian workforce), and environmental stewardship at Bougouni.

Financial highlights

• Group operating loss of £2.45m (2024: £3.34m), including £0.64m impairment of exploration assets and £0.22m share-based payments.

• Share of loss from associate (KMUK) was £9.0m, reflecting a one-off $15m payment to the State of Mali.

• Cash balances increased to £16.89m (2024: £16.33m); net assets at year-end were £45.58m (2024: £57.43m).

• Interest income rose to £247k (2024: £28k); currency translation loss of £1.08m (2024: £3k gain).

Outlook and guidance

• Targeting commercial production at Bougouni with consistent delivery of 10,000t/month spodumene concentrate.

• Aiming to expand Bougouni's resource to 50Mt Li₂O and advance stage 2 flotation plant studies for 2026.

• Well-funded for ongoing gold exploration at Fatou and further lithium opportunities in West Africa.