Kodal Minerals (KOD) Status Update summary

Operational update and project progress

• Bougouni lithium mine in Mali has achieved first production, with over 20,000 tonnes produced and ready for export; ramp-up and plant optimization are ongoing, targeting over 10,000 tonnes per month.

• Dense media separation (DMS) plant is fully commissioned, with low CapEx ($65 million) and all-in sustaining costs (AISC) targeted at $647/tonne; recoveries are over 55% and concentrate grades are around 5.5% to 6%.

• Stage two flotation plant is planned to increase annual concentrate production to over 350,000 tonnes, with funding from operations and partners.

• Logistics are established, with concentrate exported via Abidjan or San Pedro ports in Côte d'Ivoire using established trucking routes; transport and clearance contracts are finalized.

• Official opening of the mine is expected soon, with strong community impact and over 350 local employees.

Financial and commercial position

• Strong cash balance of over £17 million; free cash flow expected this year from Bougouni operations.

• 100% offtake agreement for stage one product with Hainan Mining, benchmarked to Shanghai Metal Market prices; payments structured on delivery and arrival.

• Hainan Mining invested $100 million for a 51% stake at asset level and about $18 million for a 15% company stake, fully funding stage one development.

• Mali government holds a 30% stake in the project under the 2023 code, impacting fund flows but not project financing for stage two.

• Plant construction was under budget, and a stockpile of over 20,000 tonnes is ready for export.

Resource and production outlook

• Current JORC mineral resource estimate is 31.9Mt at 1.06% Li₂O, with 10.6Mt added in 2024; targeting 50Mt by end of 2025.

• Stage 1 DMS plant has a capacity of ~125,000 tpa, with mining production forecast targeting 250,000 tonnes of spodumene concentrate by end of 2026.

• Exploration at Boumou and other deposits aims to extend mine life by 10+ years.