Kodal Minerals PLC (AIM: KOD) has generated more than US$89 million in revenue from the first three shipments of spodumene concentrate from its Bougouni Lithium Project in Mali, reflecting a strengthening market for the critical battery metal.
"The receipt of payments for the second and third shipments highlights the strengthening spodumene concentrate price and the growing demand from the lithium market,” Bernard Aylward, Chief Executive of Kodal Minerals, said in a statement.
The company confirmed its joint venture, Les Mines de Lithium de Bougouni SA, received a final payment for its second shipment to partner Hainan Mining, bringing that cargo's total proceeds to US$27.6 million. This shipment consisted of 19,738 dry metric tonnes, achieving a calculated SC6-equivalent average price of US$1,681.3 per tonne. A third shipment of 20,480 dry metric tonnes departed the port of San Pedro, Côte d'Ivoire, on April 12, for which an interim payment of US$34.4 million has already been received.
The successful shipments and revenue generation provide a strong foundation for Kodal as it ramps up production, with the third cargo expected to arrive in Hainan in July. The project's progress is significant in a market where lithium prices, according to Benchmark Minerals, have shown volatility but are seeing renewed strength, positioning Kodal favorably among other West African lithium developers like Leo Lithium and Atlantic Lithium.
Kodal Minerals confirmed that mining and processing operations at the Bougouni project remain unaffected by recent security incidents in other regions of Mali. The company continues to transport concentrate to the port of San Pedro in Côte d'Ivoire, ensuring a steady logistical chain for future shipments.
The pricing for the second shipment provides a tangible benchmark for the company's product value. After adjustments for grade, tonnage, and moisture content, the final price underscores the high-quality nature of the Bougouni concentrate. The third shipment's final value will be calculated upon its arrival and subsequent analysis in July, which could further bolster revenues if current price trends hold.
This consistent production and export schedule is crucial for establishing Kodal Minerals as a reliable supplier in the global lithium supply chain. The company's effective 49% interest in the project means these revenues provide a substantial source of non-dilutive funding for its ongoing operations and future expansion plans.
This article is for informational purposes only and does not constitute investment advice.
