Final Results

RNS Number : 8145J

Kodal Minerals PLC

26 August 2021

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

26 August 2021

Kodal Minerals plc ('Kodal Minerals' or the 'Company')

Final Results

Kodal Minerals, the mineral exploration and development company focused on the Bougouni Lithium Project in Mali ("Bougouni") and its gold assets in West Africa, pleased to announce the Annual Report of Kodal Minerals plc ("Kodal" or the "Company" and together with its subsidiaries, the "Group") for the year ended 31 March 2021.

The Company's Annual Report and Accounts will be made available on the Company's website www.kodalminerals.com by 3 September 2021.

Chairman's Statement

I am pleased to present the Annual Report of Kodal Minerals plc ("Kodal" or the "Company" and together with its subsidiaries the "Group") for the year ended 31 March 2021.

This has been an extraordinary and, at times, difficult year with the worldwide impact of the Covid-19 pandemic as well as turbulence in financial markets and other operational pressures. Our Company was not immune from such challenges, however I am pleased to report that all Kodal staff, consultants and employees remain safe and healthy and the Company continues to prioritise the welfare and security of its personnel. We have also closely monitored the political situation in Mali and, following a period of political upheaval, we are pleased to note the commitment of the transitional government to undertaking new elections in February 2022.

Our focus for this coming year will be on the development of our Bougouni Lithium project in Mali. Our mining licence application is passing through its final approvals and we expect to receive our mining licence in the near future, which is the final approval needed for the project to be fully permitted for development. The Company will continue its development plans including the further optimisation and design of the proposed open pit mines, the refinement of the processing flowsheet to include updated metallurgical testwork and the potential scheduling of development.

In 2021 we have seen a resurgence of interest in the lithium sector driven by the focus of governments, industry and consumers on the future of energy usage and storage and on the implementation of infrastructure projects. The demand for lithium continues to exceed previous forecasts as the utilisation of lithium-ion batteries increases in the green energy solutions both on a large infrastructure scale as well as on the personal level through vehicles and personal devices. Kodal's advanced project is well positioned to take advantage of this supply shortfall and the strongly rising prices for the lithium spodumene concentrate will underpin our efforts to secure financing for the Bougouni project development.

Kodal has also expanded its portfolio of gold exploration projects during the year with the acquisition of the Fatou gold project located in southern Mali. This is an advanced exploration project where previous work has outlined the potential for the Company to delineate a mineral resource with targeted drilling which is scheduled to take place later this year. Kodal also regained management of and retained a 100% interest in the Nielle gold concession in northern Cote d'Ivoire following the termination of the joint venture with Resolute Mining Limited ("Resolute"). Previous exploration work had identified a new zone of gold mineralisation and our recently completed drilling campaign has returned very encouraging high-grade gold mineralisation that requires further follow-up. Kodal has developed and is implementing an exploration programme across its gold projects in Mali and Cote d'Ivoire with the aim of rapidly defining new mineral resources that will underpin the value of these highly prospective assets.

During the year, Kodal has successfully completed a number of fundraisings. These included a £0.5 million equity financing facility and a $1.5 million convertible loan note, both of which have been fully converted, with no further amounts outstanding to the Investors. In March 2021, we successfully completed an equity fundraising of £3.5 million (before expenses) that has resulted in Kodal moving into the new year in a strong financial position.

This coming year offers great opportunity for Kodal with the focus on our Bougouni lithium project in a very positive market as well as our exciting gold exploration and development projects. I look forward to reporting to you on our progress during this year.

Robert Wooldridge

Non-executive Chairman

25 August 2021

OPERATIONAL REVIEW

Kodal's operational focus during this year has been on progressing the mining licence application for the key Bougouni Lithium project that was initially lodged in January 2020. The approval of this application has been delayed due to the impact of the Covid-19 pandemic, however we have been very pleased with the progress of the application in the first half of 2021 with the final approval meetings being held in May 2021. We are confident that the process of obtaining the final permit is on-track and no further information or payment is required from the Company.

In addition to advancing the mining licence application, we have continued to review our proposed mining and processing operation for the Bougouni Lithium project. The focus of this work has been on defining improvements in the processing flow sheet to lead to an expected increase in the metallurgical recovery of the lithium bearing spodumene minerals. This has a significant impact on the profitability of the proposed operation and this review work continues to indicate a very robust project.

Kodal has also taken the opportunity to expand its gold portfolio through the acquisition of the Fatou project in southern Mali and we have taken back management of the Nielle and Tiebiessou concessions in Cote d'Ivoire following the termination of the Joint Venture with Resolute. Details of the gold projects and proposed exploration are summarised in the sections below.

Concession and Exploration Licence Review

Kodal maintains extensive tenure in Mali and Cote d'Ivoire. Kodal's management ensures that all government compliance, reporting and fees are kept up to date and all concessions are retained in good standing.

Kodal's Bougouni and Bougouni West lithium exploration projects are located in southern Mali, with the rights and concessions held by subsidiary company Future Minerals SARL ("Future Minerals"), a Malian registered company owned 100% by the Group. During the year, the Company agreed modifications to the Foulaboula, Sogola Nord and Fariedele concessions with the Direction Nationale de la Geologie et des Mines ("DNGM") of Mali in preparation for the granting of the mining licence. The new mining licence will be issued to replace the Foulaboula concession and the changes were agreed to ensure all areas of mineralisation and the proposed mining infrastructure and processing plant for Bougouni are included within the one licence area.

Kodal acquired the Fatou project in December 2020 consisting of the Fininko and Foutiere concessions located in southern Mali. These concessions are prospective for gold mineralisation, and details of the concessions are included in the table below.

Table of Concessions - All Kodal concessions in West Africa

Tenements	Country	Kodal Economic Ownership	Project	Validity
Dogobala	Mali	90% economic interest via direct ownership following completion of option payments	Bougouni Lithium Project	Licence valid and in good standing. Arrêté No. 2018-1115 granted on13 April 2018 for initial 3 year period, with option for 2 extensions of 2 years validity each. Application for first renewal has been lodged and all fees paid.
Foulaboula	Mali	90% economic interest via direct ownership following completion of option payments	Bougouni Lithium Project	Licence valid and in good standing. Arrêté No. 2018-1116 granted on 13 April 2018 for initial 3 year period, with option for 2 extensions of 2 years validity each. Licence subject to modification during 2020 to prepare for Mining Licence application. Granting of Mining Exploitation permit in progress.
Sogola Nord	Mali	90% economic interest. Concession replaces part Madina concession, which had reached time limit	Bougouni Lithium Project	Licence valid and in good standing. Arrete number 2020-0072 granted 22 January 2020 for an initial 3 year period, with option for 2 extensions of 2 years validity each. Licence area modified during 2020 to account for the future Foulaboula Exploitation permit.
Fariedele	Mali	90% economic interest. Concession replaces part Madina concession, which had reached time limit	Bougouni Lithium Project	Licence valid and in good standing. Arrete number 2020-0073 granted 22 January 2020 for an initial 3 year period, with option for 2 extensions of 2 years validity each. Licence area modified during 2020 to account for the future Foulaboula Exploitation permit.
Mafele Ouest	Mali	Held through Option to Purchase giving right to acquire 80% economic interest	Bougouni West Lithium	Licence valid and in good standing. Arrêté No. 2018-4537 granted on 31 December 2018 for initial 3 year period, with option for 2 extensions of 2 years validity each.
NKemene Ouest	Mali	Held through Option to Purchase giving right to acquire 80% economic interest	Bougouni West Lithium	Licence valid and in good standing. Arrêté No. 2018-4486 granted on 28 December 2018 for initial 3 year period, with option for 2 extensions of 2 years validity each.
Boundiali	Côte d'Ivoire	100% direct ownership (under application).	Gold Exploration	Licence application submitted and in process. Application updated during 2020 and application remains in good standing.
Korhogo	Côte d'Ivoire	100% direct ownership	Gold Exploration	Licence valid and in good standing. Renewal granted on 31 March 2020 for a 3 year term.
Dabakala	Côte d'Ivoire	100% direct ownership	Gold Exploration	Licence valid and in good standing. Renewal granted on 31 March 2020 for a 3 year term.
Niéllé	Côte d'Ivoire	100% direct ownership	Gold Exploration	Licence valid and in good standing. Initial licence expired on 7 January 2017, and Renewal decree received on the 28 February 2018 for a 3 year period. Second Renewal decree received 18 December 2020 for a 3 year period.
Tiebissou	Côte d'Ivoire	100% direct ownership	Gold Exploration	Licence valid and in good standing. Initial term expired 30 September 2018. An application for renewal has been lodged, fees paid and approved. Renewal decree is pending signature.
M'Bahiakro	Côte d'Ivoire	100% direct ownership	Gold Exploration	Licence application submitted and in process. Application updated during 2020 and application remains in good standing.
Djelibani Sud	Mali	100% direct ownership	Gold Exploration	Convention d'Etablissement granted on 21 December 2018. The Conventions allows for non-ground disturbing work and application has been made for the granting of an Arrete to allow more detailed exploration. Application for Arrêté made and all fees paid.
Nangalasso	Mali	100% direct ownership following completion of option payments	Nangalasso Project Gold Exploration	Nangalasso Arrêté completed second renewal on 4 February 2021. A new convention application covering the same permit has been lodged with the DNGM and is awaiting approval.
Sotian	Mali	Kodal completed Option agreement and is beneficial owner of concession.	Nangalasso Project Gold Exploration	Arrêté No. 2018-1925 granted on 12 June 2018 for initial 3 year period, with option for 2 extensions of 2 years validity each. Application for first renewal has been lodged and all fees paid.
Tiedougoubougou	Mali	Kodal completed Option agreement and is beneficial owner of concession	Nangalasso Project Gold Exploration	Arrêté No. 2018-3319 granted on 4 September 2018 for initial 3 year period, with option for 2 extensions of 2 years validity each. Application for the first renewal will be lodged imminently.
Fininko	Mali	Held through Option Agreement giving right to acquire 100% ownership	Fatou Project Gold Exploration	Arrêté No. 2018-0369 granted on 21 February 2018 for initial 3 year period, with option for 2 extensions of 2 years validity each. Application for first renewal has been lodged and all fees paid.
Foutiere	Mali	Held through Option Agreement giving right to acquire 100% ownership	Fatou Project Gold Exploration	Convention d'Etablissement granted on 18 December 2012. Application for Arrêté made and all fees paid.

Bougouni Lithium Project - Mining Licence Update and Feasibility Study Summary

Kodal's application for a mining licence for the Bougouni lithium project has made significant progress during 2021.

In May 2021, Kodal representatives attended a committee at the DNGM in Bamako to formally review the feasibility study and proposed mining development for Bougouni. At the meeting, the feasibility study and mining development plan were ratified and approved by the DNGM committee, subject to the Company making some minor corrections to bring the mining licence application in line with the new Mali Mining Code of 2019. These corrections have been completed and lodged with the DNGM. Following this lodgement, Kodal received formal notification of the acceptance of the application and a request to pay the Mining licence application fee, which the Company immediately paid.

The new Exploitation Decree (mining licence) has been drafted and verified by the Ministry of Mines, Energy and Water and forwarded to the Secretary General's office. From this point the licence application is prepared for presentation at the Conseil des Ministres of Mali and following agreement will be formally approved.

Summary of the Bougouni Project Feasibility Study

The Bougouni Lithium project feasibility study has demonstrated the potential for a robust mining operation with attractive economic fundamentals. Further studies continue with a particular focus on optimising the processing plant flow sheet to further improve lithium recovery and lower capital and operating costs.

The key highlights of the Bougouni Project Feasibility Study are:

· Robust project with pre-tax NPV7% of USD$300m

· Total life of mine production of 1.94Mt of concentrate and revenue exceeding US$1.4bn, with an initial assumed concentrate sale price of $680/t increasing 2% year-on-year;

· Minimum 8.5-year mine life, producing on average approximately 220,000 tonnes of ~6% spodumene concentrate per annum, at life of mine lithium average metallurgical recovery of 71%, based on laboratory metallurgical recoveries of 75%;

· Proposed 2Mtpa processing plant utilising a conventional flotation circuit to maximise spodumene recovery;

· Estimated C1* cash costs of US$431 per tonne of concentrate (US$466 including royalties and sustaining capital);

· Capital requirement for development estimated to be US$117M plus contingency; and

· Forecast payback period of 1.7 years and IRR of 58% (51% post tax).

*C1 is the net direct cash cost that represents the cash cost at each processing stage from mining through to recoverable metal as indicated in the Company's announcement on 27 January 2020.

Gold Exploration Projects and Exploration Programme

Kodal has expanded its gold exploration portfolio through the acquisition of the Fatou project as announced on 17 December 2020.

The Fatou project consists of two concessions, the Fininko (also known as Fatou) and Foutière concessions, located 280km south of Bamako, the capital city of Mali. The project forms a contiguous landholding exceeding 300km2 and has been acquired through agreements with local vendors.

The Fatou project is complementary to Kodal's existing activities in southern Mali being 100km to the south of the town of Bougouni and only 30km to the west of the Nangalasso gold project. The Fatou project is an advanced project with previous exploration defining preliminary mineral resource estimates and Kodal considers the project to have excellent exploration prospects that are drill ready and have potential to expand the defined zones of gold mineralisation. Historical exploration has been completed by AngloGold Ashanti and Rockridge Capital Corp, a Canadian listed company, which explored the project from 2010 to 2014 resulting in a preliminary mineral resource estimate exceeding 350,000 ounces of gold for the Fatou Main prospect.

Kodal has developed an exploration programme to test the defined geological structures and extensions. The geological field team has made reconnaissance visits to the project area to confirm areas of historical exploration, the location of artisanal mining and host rock of mineralisation, and to determine suitable access for exploration drilling.

Details of the acquisition terms and geological summary have been provided in the Company's announcement of 17 December 2020.

During the reporting year, Kodal regained management of, and retained a 100% interest in, the Nielle, Tiebissou and M'Bahiakro (application) gold concessions after termination of the joint venture with Resolute following the decision by Kodal to refuse an extension request.

The Company has reviewed its gold portfolio and defined priority targets based on the potential to define JORC compliant mineral resources quickly, as well as projects that have potential to host large scale gold mineralisation. The priority exploration targets for this exploration campaign are:

· Fatou project in Mali, with drilling commencing at Fatou Main prospect where historical exploration defined a NI43-101 Mineral Resource estimate exceeding 350,000oz gold. The drilling will aim to confirm and expand the known gold mineralisation and provide data to support data for a JORC compliant Mineral Resource estimate to be completed.

· Nielle project in Cote d'Ivoire, where exploration completed by Resolute has defined an extensive zone of gold mineralisation with positive initial drilling results. The mineralised zone remains open along strike and at depth and Kodal's initial programme is designed to confirm and extend the mineralised zone and provide confidence in the geological interpretation prior to undertaking a maiden mineral resource assessment.

· Dabakala project in Cote d'Ivoire, where exploration activity completed by Kodal continues to confirm a major surface geochemical anomaly with assay results up to 6.14g/t gold returned. This new anomaly has never been previously drill tested and Kodal will focus on infill geochemical sampling to define the key targets for reconnaissance drill testing.

Kodal has commenced this exploration campaign with exploration drilling completed at the Nielle concession in northern Cote d'Ivoire and additional surface geochemistry completed at Dabakala in central Cote d'Ivoire. The initial results from this exploration are very encouraging with high-grade gold mineralisation intersected in the new gold mineralised zone at Nielle, and the continued definition of the extensive surface geochemical anomaly at Dabakala has developed a new high priority exploration target.

I look forward to being able to report back on these exciting opportunities for the advancement of the Bougouni lithium project towards mine development and the results of our gold exploration campaign during the coming year.

Bernard Aylward

Chief Executive Officer

25 August 2021

Finance review

Results of operations

For the year ended 31 March 2021, the Group reported a loss before other comprehensive income for the year of £623,000 compared to a loss of £630,000 in the previous year. Operational activity has remained broadly in line with last year as the Group has completed the Feasibility Study work at Bougouni and has continued the running of offices in Mali and Côte d'Ivoire. Further information is provided in the Operational Review above.

During the year, the Group invested £542,000 (2020: £1,602,000) in exploration and evaluation expenditure on its various projects. As a result, the carrying value of the Group's capitalised exploration and evaluation expenditure increased from £8,643,000 to £8,964,000 after taking account of the effects of foreign exchange. At 31 March 2021, after taking account of the effects of foreign exchange, the carrying value of the gold projects in Mali and Cote d'Ivoire was £1,476,000 (2020: £1,179,000) and of the lithium projects in Mali was £7,488,000 (2020: £7,464,000).

Cash balances as at 31 March 2021 were £2,433,000, an increase of £2,400,000 on the previous year's level of £33,000, due to the receipt of £1.7 million from the successful £3.5m equity fundraising completed in March 2021, the final £1.8 million of which was received by the Company after the year end in April 2021. Net assets of the Group at the year-end were £12,636,000 (2020: £8,052,000).

Financing

During the year, the Group has successfully completed a number of fundraisings.

In April 2020 the Company entered into an equity financing facility with Riverfort Global Opportunities PCC and YA II PN Ltd (the 'Investors'), who subscribed for 1,428,571,429 ordinary shares at an average price of 0.04686 pence per share, raising £670,000 before expenses. These subscription proceeds were used immediately to satisfy the Company's obligation to pay £0.5 million to the Investors to enter into an Equity Sharing Agreement, under which the Investors undertook to make cash payments to the Company for a period of up to 12 months based on the performance of Kodal's share price. All obligations under the Equity Sharing Agreement were satisfied prior to the year end with the Company receiving over £650,000.

In July 2020, the Company entered into a Convertible Loan Note Agreement with the Investors for a total commitment of $1.5 million before expenses with the first tranche of $750,000 advanced at closing, and the second tranche drawn down in October 2020. Investors had fully exercised the option to convert outstanding principal and interest into new ordinary shares in the Company prior to the year end.

In December 2020, at the time of securing the acquisition of the Fatou project, the Company entered into a conditional term sheet with Riverfort Global Capital Limited ("Riverfort") in connection with a proposed $2.5 million funding facility. To secure exclusivity, Riverfort advanced an initial amount of $300,000 to the Company whichis to be repaid by the Company in October 2021 as the Company and Riverfort agreed not to go ahead with the funding facility.

In March 2021, Kodal announced that it had completed an equity fundraising of £3.5 million before expenses, for the purpose of supporting Kodal in undertaking exploration, drilling and development activities at its priority gold assets in Mali and Cote d'Ivoire, as well as advancing its flagship Bougouni Lithium Project.

Impact of the Covid-19 pandemic

During the year to 31 March 2021, the pandemic resulted in lockdowns and the imposition of travel bans in many countries, including in West Africa. As a result, field exploration operations ceased for most of 2020, but limited activities recommenced in early 2021 with sampling work in Dabakala, and other site visits to the Fatou and Nielle projects undertaken. Further drilling work has been taking place on the gold assets with further drilling work planned later in the year as operations increasingly return to normal.

After the substantial disruption to global equity markets in early 2020, markets rebounded strongly during the year. This specifically included the mining sector, and particularly for gold, which has always been regarded as a safe haven in times of economic turbulence. The market for lithium also improved with the increasing focus on the need to reduce carbon emissions and the anticipated demand for batteries in electric vehicles.

The Company was able to take advantage of this improving environment for financing and entered into a convertible loan note agreement for $1.5 million in July 2020, which provided important funds to sustain the Group's continued development. With the loan note fully converted in March 2021 the Company completed an over-subscribed placing of ordinary shares to raise £3.5 million (before expenses) for further exploration and development activities.

Although vaccine roll outs still have some way to go, particularly in West Africa, we anticipate that, with the appropriate health precautions, field activities and the ability to travel will increasingly return to normal during the rest of the year.

Going concern and funding

The Group has not earned revenue during the year to 31 March 2021 as it is still in the exploration and development phases of its business. The operations of the Group are currently being financed from funds which the Company has raised from the issue of new ordinary shares and other equity linked instruments.

At 31 March 2021, the Group held cash balances of £2,433,000 (2020: £33,000). As noted above an equity placement for £3.5 million took place in late March 2021, with £1.8 million of the proceeds only being received after the year-end in April 2021. The Group's cash balances at 20 August 2021 were £3,248,876.

The Directors have prepared cash flow forecasts for the period ending 30 September 2022. The forecasts include payments for the Bougouni mining licence and second stage concession payments for the Fatou project, repayment of the $300,000 advance from Riverfort, further development of the Bougouni Feasibility Study, additional exploration activity for both gold and lithium, as well as covering ongoing overheads.

Further funding will be required in due course, but the forecasts show that the Group has sufficient cash resources available to allow it to continue as a going concern and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements without the need to raise further financing. Accordingly, the financial statements have been prepared on a going concern basis.

Utilising key performance indicators ("KPIs")

The following KPIs are used by the Group to assist it in monitoring its cash position and assessing costs and exploration and development activities:

KPI	31 March 2021	31 March 2020
Cash and cash equivalents (a)	£2,433,000	£33,000
Administrative expense (b)	£513,000	£590,000
Exploration and evaluation expenditure (c)	£542,000	£1,602,000

The directors have provided more information on the state of the Group's financing and operational activity above.

'Cash and cash equivalents' is used to measure the Group's financial liquidity. Cash and cash equivalents have increased by £2.4 million in the year.

'Administrative expenses' is used to measure the Group's administrative costs and operating results. Administrative expenses for the year were £513,000 compared to £590,000 in the previous year.

'Exploration and evaluation expenditure' is used to measure expenditure on the Group's gold and lithium projects. Exploration and evaluation expenditure in the year was £1.1 million lower than prior year as Kodal's operational focus has been on progressing our application for the mining licence for its key Bougouni Lithium project.

Financial risk management objectives and policies

The Group's principal financial instruments comprise cash and trade and other payables. It is, and has been throughout the year under review, the Group's policy that no trading in financial instruments shall be undertaken. The main risks arising from the Group's financial instruments are liquidity risk, price risk and foreign exchange risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash reserves to fund the Group's exploration and operating activities. Management prepares and monitors forecasts of the Group's cash flows and cash balances monthly and ensures that the Group maintains sufficient liquid funds to meet its expected future liabilities. The Group intends to raise funds in discrete tranches to provide sufficient cash resources to manage the activities through to revenue generation.

Price risk

The Group is exposed to fluctuating prices of commodities, including gold and lithium, and the existence and quality of these commodities within the licence and project areas. The Directors will continue to review the prices of relevant commodities as development of the projects continues and will consider how this risk can be mitigated closer to the commencement of mining.

Foreign exchange risk

The Group operates in a number of overseas jurisdictions and carries out transactions in a number of currencies including Sterling, CFA Franc, US dollars and Australian dollars. The Group does not have a policy of using hedging instruments but will continue to keep this under review. The Group operates foreign currency bank accounts to help mitigate the foreign currency risk.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021

	Note	Year ended 31 March 2021	Year ended 31 March 2020
		£	£
Continuing operations
Revenue		-	-

Administrative expenses		(512,885)	(590,389)
Share based payments	5	(77,979)	(39,226)

OPERATING LOSS		(590,864)	(629,615)

Finance charge		(32,506)	-
Finance income		-	111

LOSS BEFORE TAX	2	(623,370)	(629,504)

Taxation	6	-	-

LOSS FOR THE YEAR FROM CONTINUING OPERATIONS		(623,370)	(629,504)

OTHER COMPREHENSIVE INCOME

Items that may be subsequently reclassified to profit or loss

Currency translation (loss) / gain		(223,635)	148,618

TOTAL COMPREHENSIVE INCOME FOR THE YEAR		(847,005)	(480,886)

Loss per share
Basic and diluted (pence)	4	(0.0054)	(0.0072)

CONSOLIDATED AND PARENT COMPANY STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021

		Group 31 March 2021	Group 31 March 2020	Company 31 March 2021	Company 31 March 2020
	Note	£	£	£	£
NON-CURRENT ASSETS
Intangible assets	7	8,964,089	8,642,568	-	-
Property, plant and equipment	8	8,677	14,549	-	-
Amounts due from subsidiary undertakings	9	-	-	7,916,150	7,104,085
Investments in subsidiary undertakings	9	-	-	512,373	512,373

		8,972,766	8,657,117	8,428,523	7,616,458
CURRENT ASSETS
Other receivables	10	1,854,908	19,978	1,854,908	19,978
Cash and cash equivalents		2,432,807	33,221	2,376,329	28,147

		4,287,715	53,199	4,231,237	48,125

TOTAL ASSETS		13,260,481	8,710,316	12,659,760	7,664,583

CURRENT LIABILITIES
Trade and other payables	11	(624,616)	(658,713)	(321,851)	(239,230)

TOTAL LIABILITIES		(624,616)	(658,713)	(321,851)	(239,230)

NET ASSETS		12,635,865	8,051,603	12,337,909	7,425,353

EQUITY
Attributable to owners of the parent:
Share capital	12	4,916,364	2,889,606	4,916,364	2,889,606
Share premium account	12	15,841,134	12,514,604	15,841,134	12,514,604
Share based payment reserve		807,802	729,823	807,802	729,823
Translation reserve		(210,460)	13,175	-	-
Retained deficit		(8,718,975)	(8,095,605)	(9,227,391)	(8,708,680)

TOTAL EQUITY		12,635,865	8,051,603	12,337,909	7,425,353

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2021

	Share capital	Share premium account	Share based payment reserve	Translation reserve	Retained deficit	Total equity
Group	£	£	£	£	£	£
At 31 March 2019	2,566,418	12,147,792	690,597	(135,443)	(7,466,101)	7,803,263

Comprehensive income
Loss for the year	-	-	-	-	(629,504)	(629,504)
Other comprehensive income
Currency translation gain	-	-	-	148,618	-	148,618
Total comprehensive income for the year	-	-	-	148,618	(629,504)	(480,886)

Transactions with owners
Share based payment	-	-	39,226	-	-	39,226
Proceeds from shares issued	323,188	366,812	-	-	-	690,000

At 31 March 2020	2,889,606	12,514,604	729,823	13,175	(8,095,605)	8,051,603
Comprehensive income
Loss for the year	-	-	-	-	(623,370)	(623,370)
Other comprehensive income
Currency translation (loss)	-	-	-	(223,635)	-	(223,635)
Total comprehensive income for the year	-	-	-	(223,635)	(623,370)	(847,005)

Transactions with owners
Share based payment	-	-	77,979	-	-	77,979
Proceeds from shares issued	2,026,758	3,548,315	-	-	-	5,575,073
Share issue expenses	-	(221,785)	-	-	-	(221,785)
At 31 March 2021	4,916,364	15,841,134	807,802	(210,460)	(8,718,975)	12,635,865

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2021

		Share capital	Share premium account	Share based payment reserve		Retained deficit	Total equity
Company		£	£	£		£	£
At 31 March 2019		2,566,418	12,147,792	690,597		(7,254,514)	8,150,293

Comprehensive income
Loss for the year		-	-	-		(1,454,166)	(1,454,166)

Total comprehensive income for the year		-	-	-		(1,454,166)	(1,454,166)

Transactions with owners
Share based payment		-	-	39,226		-	39,226
Proceeds from shares issued		323,188	366,812	-		-	690,000
At 31 March 2020		2,889,606	12,514,604	729,823		(8,708,680)	7,425,353
Comprehensive income
Loss for the year	-		-	-	(518,711)		(518,711)
Total comprehensive income for the year	-		-	-	(518,711)		(518,711)

Transactions with owners
Share based payment	-		-	77,979	-		77,979
Proceeds from shares issued	2,026,758		3,548,315	-	-		5,575,073
Share issue expenses	-		(221,785)	-	-		(221,785)
At 31 March 2021	4,916,364		15,841,134	807,802	(9,227,391)		12,337,909

CONSOLIDATED AND PARENT COMPANY STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

		Group Year ended	Group Year ended	Company Year ended	Company Year ended
		31 March 2021	31 March 2020	31 March 2021	31 March 2020
	Note	£	£	£	£
Cash flows from operating activities
Loss before tax		(623,370)	(629,504)	(518,711)	(1,454,166)
Adjustments for non-cash items:
Share based payments		77,979	39,226	77,979	39,226
Operating cash flow before movements in working capital		(545,391)	(590,278)	(440,732)	(1,414,940)

Movement in working capital
Decrease in receivables		3,965	1,033	3,965	1,033
(Decrease) / increase in payables		(34,097)	61,463	82,621	44,828
Net movements in working capital		(30,132)	62,496	86,586	45,861

Net cash outflow from operating activities		(575,523)	(527,782)	(354,146)	(1,369,079)

Cash flows from investing activities
Purchase of intangible assets	7	(535,947)	(1,554,353)	-	-
Loans to subsidiary undertakings		-	-	(812,065)	(592,171)
Net cash outflow from investing activities		(535,947)	(1,554,353)	(812,065)	(592,171)

Cash flow from financing activities
Net proceeds from share issues	12	2,419,241	690,000	2,419,241	690,000
Net proceeds from convertible loan notes		1,095,152	-	1,095,152	-

Net cash inflow from financing activities		3,514,393	690,000	3,514,393	690,000

Increase / (decrease) in cash and cash equivalents		2,402,923	(1,392,135)	2,348,182	(1,271,250)
Cash and cash equivalents at beginning of the year		33,221	1,408,393	28,147	1,299,397
Exchange (loss) / gain on cash		(3,337)	16,963	-	-

Cash and cash equivalents at end of the year		2,432,807	33,221	2,376,329	28,147

THE PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2021

The Group has adopted the accounting policies set out below in the preparation of the financial statements. All of these policies have been applied consistently throughout the period unless otherwise stated.

Financial Information

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2021 or 2020 but is derived from those accounts. Statutory accounts for 2020 have been delivered to the registrar of companies, and those for 2021 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Annual Report and Accounts and Annual General Meeting

The 2021 Annual Report and Accounts and Notice of the Annual General Meeting will be posted to shareholders and published on the Group's website at www.kodalminerals.com shortly. The Annual General Meeting is to be held on 28 September 2021.

Basis of preparation

The consolidated financial statements of Kodal Minerals Plc are prepared in accordance with the historical cost convention and in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006. The Company's ordinary shares are quoted on AIM, a market operated by the London Stock Exchange.

Going concern

At 31 March 2021, the Group held cash balances of £2,433,000 (2020: £33,000). An equity placement for £3.5 million took place in late March, but £1.8m of the proceeds were only received after the year-end in April. The Group's cash balances at 20 August 2021 were £3,248,876.

The Directors have prepared cash flow forecasts for the period ending 30 September 2022. The forecasts include payments for the Bougouni mining licence and second stage concession payments for the Fatou project, repayment of the $300,000 advance from the Riverfort Investors, further development of the Feasibility Study, additional exploration activity for both gold and lithium, as well as covering ongoing overheads.

Basis of consolidation

The Group financial statements consolidate those of the Company and all of its subsidiary undertakings drawn up to the statement of financial position date. Subsidiary undertakings are entities over which the Group has the power to control the financial and operating policies so as to obtain benefits from their activities. The Group obtains and exercises control through voting rights.

Unrealised gains on transactions between the Company and its subsidiaries are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

Foreign currency translation

Items included in the Group's consolidated financial statements are measured using the currency of the primary economic environment in which the Group operates ("the functional currency"). The financial statements are presented in pounds sterling ("£"), which is the functional and presentational currency of the Parent Company and the presentational currency of the Group. End of year balances in the Group's West African subsidiary undertakings were converted using an end of year rate of XOF 1 : £0.00130 (2020: XOF 1 : £0.00135).

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the reporting date and the gains or losses on translation are included in profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the original transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation, which is included in administrative expenses, is charged so as to write off the costs of assets down to their residual value, over their estimated useful lives, using the straight-line method, on the following basis:

Plant and machinery 4 years

Motor vehicles 4 years

Fixtures, fittings and equipment 4 years

Where property, plant and equipment are used in exploration and evaluation activities, the depreciation of the assets is capitalised as part of the cost of exploration and evaluation assets. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Investments in subsidiaries

Investments in subsidiaries are stated at cost less any provision for impairment. Where the recoverable amount of the investment is less than the carrying amount, an impairment is recognised.

Exploration and evaluation expenditure

In accordance with IFRS 6 (Exploration for and Evaluation of Mineral Resources), exploration and evaluation costs incurred before the Group obtains legal rights to explore in a specific area (a "project area") are taken to profit or loss.

Upon obtaining legal rights to explore in a project area, the fair value of the consideration paid for acquiring those rights and subsequent exploration and evaluation costs are capitalised as exploration and evaluation assets. The costs of exploring for and evaluating mineral resources are accumulated with reference to appropriate cost centres being project areas or groups of project areas.

Upon the technical feasibility and commercial viability of extracting the relevant mineral resources becoming demonstrable, the Group ceases further capitalisation of costs under IFRS 6.

Exploration and evaluation assets are not amortised prior to the conclusion of appraisal activities, but are carried at cost less impairment, where the impairment tests are detailed below.

Exploration and evaluation assets are carried forward until the existence (or otherwise) of commercial reserves is determined:

where commercial reserves have been discovered, the carrying value of the exploration and evaluation assets are reclassified as development and production assets and amortised on an expected unit of production basis; or

where a project area is abandoned, or a decision is made to perform no further work, the exploration and evaluation assets are written off in full to profit or loss.

Exploration and evaluation assets - impairment

Project areas, or groups of project areas, are determined to be cash generating units for the purposes of assessment of impairment.

With reference to a project area or group of project areas, the exploration and evaluation assets (along with associated production and development assets) are assessed for impairment when such facts and circumstances suggest that the carrying amount of the assets may exceed the recoverable amount.

Such indicators include, but are not limited to, those situations outlined in paragraph 20 of IFRS 6 and include the point at which a determination is made as to whether or not commercial reserves exist.

The aggregate carrying value is compared against the expected recoverable amount, generally by reference to the present value of the future net cash flows expected to be derived from production of the commercial reserves. Where the carrying amount exceeds the recoverable amount, an impairment is recognised in profit or loss.

Intangible assets and impairment

Externally acquired intangible assets are initially recognised at cost and subsequently amortised over their useful economic lives. Amortisation, which is included in administrative expenses, is charged so as to write off the costs of intangible assets, over their estimated useful lives, using the straight-line method, on the following basis:

Software 3 years

Deferred taxation

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred tax is realised, or the deferred liability is settled.

Deferred tax assets are recognised to the extent that it is probable that the future taxable profit will be available against which the temporary differences can be utilised.

Financial instruments

Financial assets and financial liabilities are recognised on the Statement of Financial Position when the Group becomes a party to the contractual provisions of the instrument.

IFRS 7 (Financial Instruments: Disclosures) requires information to be disclosed about the impact of financial instruments on the Group's risk profile, how the risks arising from financial instruments might affect the entity's performance, and how these risks are being managed. The required disclosures have been made in Note 14 to the financial statements.

The Group's policies include that no trading in derivative financial instruments shall be undertaken.

Cash and cash equivalents

Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and in hand.

Other receivables

Other receivables are carried at amortised cost less provision made for impairment of these receivables. A provision for impairment of receivables is established when there is an expected credit loss on amounts due according to the original terms of the receivables. The amount of the provision is the difference between the assets' carrying amount and the recoverable amount. Provisions for impairment of receivables are included in profit or loss.

Trade and other payables

Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. These amounts are carried at amortised cost. The amounts are unsecured and are usually paid within 30 days of recognition.

Provisions

A provision is recognised when a present obligation (legal or constructive) has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation.

When the effect of discounting is material, the amount recognised for a provision is the present value at the end of the reporting period of the future expenditures expected to be required to settle the obligation. The increase in the discounted present value amount arising from the passage of time is included in profit or loss.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds.

Equity settled transactions (Share based payments)

The Group has issued shares as consideration for services received. Equity settled share-based payments are measured at fair value at the date of issue.

The Group has also granted equity settled options and warrants. The cost of equity settled transactions is measured by reference to the fair value at the date on which they were granted and is recognised as an expense over the vesting period, which ends on the date the recipient becomes fully entitled to the award. Fair value is determined by using the Black-Scholes option pricing model.

In valuing equity settled transactions, no account is taken of any service and performance conditions (vesting conditions), other than performance conditions linked to the price of the shares of the Company (market conditions). Any other conditions which are required to be met in order for the recipients to become fully entitled to an award are considered to be non-vesting conditions. Market performance conditions and non-vesting conditions are taken into account in determining the grant value.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market or non-vesting condition, which are vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance or service conditions are satisfied.

At each reporting date before vesting, the cumulative expense is calculated; representing the extent to which the vesting period has expired and management's best estimate of the number of equity instruments that will ultimately vest. The movement in the cumulative expense since the previous reporting date is recognised in profit and loss, with a corresponding entry in equity.

Where the terms of the equity-settled award are modified, or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if the difference is negative.

Where an equity-based award is cancelled (including when a non-vesting condition within the control of the entity or employee is not met), it is treated as if it had vested on the date of the cancellation, and the cost not yet recognised in profit and loss for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over fair value being treated as an expense.

Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors, which has been identified as the Chief Operating Decision Maker. The Board of Directors is responsible for allocating resources and assessing performance of the operating segments in line with the strategic direction of the Company.

Critical accounting judgements and estimates

The preparation of these consolidated financial statements in accordance with International Financial Reporting Standards requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results ultimately may differ from those estimates. IFRS also require management to exercise its judgement in the process of applying the Group's accounting policies.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

Exploration and evaluation expenditure

In accordance with the Group's accounting policy for exploration and evaluation expenditure, after obtaining licences giving legal rights to explore in the project area, all exploration and evaluation costs for each project are capitalised as exploration and evaluation assets.

The exploration and evaluation assets for each project are assessed for impairment when such facts and circumstances suggest that the carrying value of the assets may exceed the recoverable amount.

The directors have assessed the Group's gold Projects in Mali and Côte d'Ivoire that are not part of the joint venture agreements and determined that they remain prospective. Accordingly, the directors have determined to continue to maintain these licences and explore ways for the Group to advance these prospective areas most effectively. Accordingly, no impairment review has been conducted on these assets.

The directors have assessed the Group's Bougouni Lithium project in Mali, taking into account the Preliminary Feasibility Study published during the year. This project continues to be evaluated and has not yet entered into development; there is no indication of impairment. Accordingly, no impairment review has been conducted on these assets.

The Group's exploration activities and future development opportunities are dependent upon maintaining the necessary licences and permits to operate, which typically require periodic renewal or extension. In Mali and Côte d'Ivoire, the process of renewal or extension of a licence can only be initiated on expiry of the previous term and takes time to be processed by the relevant government authority. Until formal notification is received there is a risk that renewal or extension will not be granted.

As detailed in the Operational Review, at the date of these financial statements, the Group's key exploration licences are current. As detailed in note 7, the total carrying value of the exploration and evaluation assets at 31 March 2021 was £9.0 million (2020: 8.6 million). The Group complies with the prevailing laws and regulations relating to these licences and ensures that the regulatory reporting and government compliance requirements for each licence are met.

Valuation of warrants and share options

In accordance with the Group's accounting policy for equity settled transactions, all equity settled share-based payments are measured at fair value at the date of issue. Fair value is determined by using the Black-Scholes option pricing model based on the terms of the options and warrants, the Company's share price at the time and assumptions for volatility and exercise date. The assumptions used to value the options and warrants are detailed in note 5.

For options awarded to the directors, the award has been considered to be in relation to their overall contribution to the Group and, accordingly, the charge has been included within operating costs in the Consolidated Statement of Comprehensive Income rather than treated as an exploration and evaluation cost and capitalised against specific projects. For the award of warrants associated with the raising of funds through the issue of new shares, the charge has been treated as a share issue expense and offset against the share premium account.

Recoverability of Intercompany Balances to Subsidiary Undertakings

The Company has outstanding intercompany balances from its directly held subsidiaries resulting from the primary method of financing the activity of those subsidiaries. The balances are shown in the Company Statement of Financial Position. However, there is a risk that the subsidiaries will not commence sufficient revenue generating activities and that the carrying amount of the intercompany balances will, therefore, exceed the recoverable amount. Under the requirements of IFRS 9 management has run various scenarios on the expected credit loss of the Company's intercompany balances, including entering production, project/asset sales, and insolvency. Management has updated its calculations reflecting additional amounts advanced to its subsidiaries for work on its lithium and gold projects during the year, and also slightly reduced the risk of credit loss given improvements since last year in the financial, lithium and gold markets. At 31 March 2021 a credit loss provision of £877,000 is held against amounts due from subsidiaries (2020: £877,000).

Adoption of New and Revised Standards

The Group has adopted all of the new or amended Accounting Standards and interpretations issued by the International Accounting Standards Board ("IASB") that are mandatory and relevant to the Group's activities for the current reporting period.

New standards and interpretations not applied

At the date of authorisation of these consolidated financial statements, certain new standards, amendments and interpretations to existing standards have been published but are not yet effective and have not been adopted early by the Group. These are listed below. The Board anticipates that all of the pronouncements will be adopted in the Group's accounting policies for the first period beginning after the effective date of the pronouncement. The amendments to the standards noted below are not expected to have a material impact on the Group's consolidated financial statements.

Standard

Details of amendment / New Standards and Interpretations

Annual periods beginning on or after

IAS 1 Presentation of Financial Statements

Amendments to IAS 1 Presentation of Financial Statements to specify the requirements for classifying liabilities as current or non-current.

1 January 2023

IAS 1 Presentation of Financial Statements

Amendments to IAS 1 Presentation of Financial Statements to specify the requirements for disclosure of accounting policies.

1 January 2023

There are other standards in issue but not yet effective, which are not likely to be relevant to the Group which have therefo re not been listed.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. SEGMENTAL REPORTING

The operations and assets of the Group in the year ended 31 March 2021 are focused in the United Kingdom and West Africa and comprise one class of business: the exploration and evaluation of mineral resources. Management have determined that the Group had three operating segments being the West African Gold Projects, the West African Lithium Projects and the UK administration operations. The Parent Company acts as a holding company. At 31 March 2021, the Group had not commenced commercial production from its exploration sites and therefore had no revenue for the year.

Year ended 31 March 2021	UK	West Africa	West Africa	Total

		Gold	Lithium
	£	£	£	£
Administrative expenses	(512,349)	(409)	(127)	(512,885)
Share based payments	(77,979)	-	-	(77,979)
Finance charge	(32,506)	-	-	(32,506)
Loss for the year	(622,834)	(409)	(127)	(623,370)

At 31 March 2021
Other receivables	1,854,908	-	-	1,854,908
Cash and cash equivalents	2,377,831	30,846	24,130	2,432,807
Trade and other payables	(321,851)	-	(302,765)	(624,616)
Intangible assets - exploration and evaluation expenditure	-	1,491,269	7,472,820	8,964,089
Property, plant and equipment	-	-	8,677	8,677
Net assets at 31 March 2021	3,910,888	1,522,115	7,202,862	12,635,865

Year ended 31 March 2020	UK	West Africa	West Africa	Total
		Gold	Lithium
	£	£	£	£
Administrative expenses	(589,806)	(500)	(83)	(590,389)
Share based payments	(39,226)	-	-	(39,226)
Finance income	111	-	-	111
Loss for the year	(628,921)	(500)	(83)	(629,504)

At 31 March 2020
Other receivables	19,978	-	-	19,978
Cash and cash equivalents	29,516	3,536	169	33,221
Trade and other payables	(239,230)	(1,488)	(417,995)	(658,713)
Intangible assets - exploration and evaluation expenditure	-	1,178,567	7,464,001	8,642,568
Property, plant and equipment	-	-	14,549	14,549
Net (liabilities) / assets at 31 March 2020	(189,736)	1,180,615	7,060,724	8,051,603

2. LOSS BEFORE TAX

	Group Year ended 31 March 2021	Group Year ended 31 March 2020
	£	£
Fees payable to the Company's auditor	35,000	30,000
Share based payments (note 5)	77,979	39,226
Directors' salaries and fees	127,265	164,939
Employer's National Insurance	5,672	1,956

Amounts payable to RSM UK Audit LLP and its associates in respect of both audit and non-audit services are as follows;

	Group Year ended 31 March 2021	Group Year ended 31 March 2020
	£	£
Audit services
- statutory audit of parent and consolidated accounts	35,000	30,000

3. EMPLOYEES' AND DIRECTORS' REMUNERATION

The average number of people employed in the Company and the Group is as follows:

Group

31 March 2021

Group

31 March 2020

Company

31 March 2021

Company

31 March 2020

Number

Average number of employees (including directors):

The remuneration expense for directors of the Company is as follows:

	Year ended 31 March 2021	Year ended 31 March 2020
	£	£
Directors' remuneration	115,014	164,939
Directors' social security costs	5,673	1,956
Total	120,687	166,895

In addition to the amounts included above, £62,496 (2020: £67,300) of the directors' remuneration cost has been treated as Exploration and Evaluation expenditure.

	Directors' salary and fees year ended 31 March 2021	Share based payments year ended 31 March 2021 (see note 5)	Total year ended 31 March 2021
	£	£	£
Bernard Aylward (a)	96,510	-	96,510
Charles Joseland (b)	35,000	-	35,000
Robert Wooldridge	27,250	-	27,250
Qingtao Zeng (c)	18,750	-	18,750
	177,510	-	177,510

	Directors' salary and fees year ended 31 March 2020	Share based payments year ended 31 March 2020 (see note 5)	Total year ended 31 March 2020
	£	£	£
Bernard Aylward (a)	111,763	1,776	113,539
Luke Bryan	5,385	1,776	7,161
Charles Joseland (b)	33,430	9,564	42,994
Mark Pensabene	11,661	2,294	13,955
Robert Wooldridge	45,000	888	45,888
Qingtao Zeng (c)	25,000	1,321	26,321
	232,239	17,619	249,858

Matlock Geological Services Pty Ltd ("Matlock") a company wholly owned by Bernard Aylward, provided consultancy services to the Group during the year ended 31 March 2021 and received fees of £76,094 (2020 £76,764). These fees are included within the remuneration figure shown for Bernard Aylward.

In addition to the amounts included above, Carolus Consulting Ltd, a company wholly owned by Charles Joseland, provided consultancy services to the Group during the year and received fees of £nil (2020: £1,500).

In addition to the amounts included above, Geosmart Consulting Pty Ltd, a company wholly owned by Qingtao Zeng, provided consultancy services to the Group during the year and received fees of £10,595 (2020: £13,480).

4. LOSS PER SHARE

Basic loss per share is calculated by dividing the loss for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

The following reflects the result and share data used in the computations:

	Loss	Weighted average number of shares	Basic loss per share (pence)
	£
Year ended 31 March 2021	(623,370)	11,529,513,459	0.0054
Year ended 31 March 2020	(629,504)	8,786,936,058	0.0072

Diluted loss per share is calculated by dividing the loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. Options in issue are not considered diluting to the loss per share as the Group is currently loss making. Diluted loss per share is therefore the same as the basic loss per share.

5. SHARE BASED PAYMENTS

The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.

	Year ended 31 March 2021	Year ended 31 March 2020
Share options outstanding	Number	Number
Opening balance	205,000,000	195,000,000
Issued in the year	-	20,000,000
Lapsed in the year	-	(10,000,000)
Closing balance	205,000,000	205,000,000

	Year ended 31 March 2021	Year ended 31 March 2020
Warrants outstanding	Number	Number
Opening balance	205,000,000	205,000,000
Issued in the year	389,282,755	-
Exercised in the year	(308,927,092)	-
Closing balance	285,355,663	205,000,000

Options outstanding for each of the directors at the year-end are outlined below:

Exercisable between	Bernard Aylward	Robert Wooldridge	Qingtao Zeng	Charles Joseland

8 May 2017 - 8 May 2022	25,000,000	12,500,000	-	-
8 May 2018 - 8 May 2023	12,500,000	6,250,000	-	-
8 May 2019 - 8 May 2024	12,500,000	6,250,000	-	-
20 Nov 2017 - 20 Nov 2022	-	-	5,000,000	-
20 Nov 2018 - 20 Nov 2023	-	-	2,500,000	-
20 Nov 2019 - 20 Nov 2024	-	-	2,500,000	-
18 April 2019 - 18 April 2024	-	-	-	3,333,334
18 April 2020 - 18 April 2025	-	-	-	3,333,333
18 April 2021 - 18 April 2026	-	-	-	3,333,333


Closing balance	50,000,000	25,000,000	10,000,000	10,000,000

The total value of options and warrants granted in the year was £29,912 (2020: £39,226). Included within operating losses is a charge for issuing share options and making share-based payments of £77,979 (2020: £39,226).

Details of share options and warrants outstanding at 31 March 2021:

Date of grant Number of options Option price Exercisable between

20 December 2013 13,333,333 0.7 pence 30 Dec 2014 - 30 Dec 2024

20 December 2013 13,333,333 0.7 pence 30 Dec 2015 - 30 Dec 2025

20 December 2013 13,333,333 0.7 pence 30 Dec 2016 - 30 Dec 2026

8 May 2017 72,500,000 0.38 pence 8 May 2017 - 8 May 2022

8 May 2017 36,250,000 0.38 pence 8 May 2018 - 8 May 2023

8 May 2017 36,250,000 0.38 pence 8 May 2019 - 8 May 2024

22 May 2017 12,500,000 0.38 pence 22 May 2017 - 22 May 2022

22 May 2017 6,250,000 0.38 pence 22 May 2018 - 22 May 2023

22 May 2017 6,250,000 0.38 pence 22 May 2019 - 22 May 2024

20 November 2017 5,000,000 0.38 pence 20 Nov 2017 - 20 Nov 2022

20 November 2017 2,500,000 0.38 pence 20 Nov 2018 - 20 Nov 2023

20 November 2017 2,500,000 0.38 pence 20 Nov 2019 - 20 Nov 2024

23 November 2018 39,999,999 0.14-0.38 pence 1 March 2019 - 1 March 2024

23 November 2018 50,000,001 0.14-0.38 pence To be determined at a future date

23 November 2018 90,000,000 0.14-0.38 pence To be determined at a future date

18 April 2019 3,333,334 0.14-0.25 pence 18 April 2020 - 18 April 2025

18 April 2019 3,333,333 0.14-0.25 pence 18 April 2021 - 18 April 2026

18 April 2019 3,333,333 0.14-0.25 pence 18 April 2022 - 18 April 2027

15 July 2020 48,790,008 0.061 pence 15 July 2023

27 October 2020 31,565,656 0.09 pence 27 October 2023

Additional disclosure information:

Weighted average exercise price of share options and warrants:

outstanding at the beginning of the period 0.41 pence

granted during the period 0.06 pence

outstanding at the end of the period 0.35 pence

exercisable at the end of the period 0.33 pence

Weighted average remaining contractual life of

share options outstanding at the end of the period 3.2 years

Warrants issued in the year to 31 March 2021

The Company entered into option agreements dated 7 April 2020, 15 July 2020 and 27 October 2020 with Riverfort Global Opportunities PCC Limited and YA II PN Ltd under which the following warrants were issued:

Date	Warrants issued	Exercise price
7 April 2020	228,571,428	0.04375 pence
15 July 2020	97,580,016	0.061 pence
27 October 2020	63,131,311	0.09 pence

The warrants are all exercisable for a period of 36 months from the date of grant. Of the total warrants issued in the year, 308,927,092 had been exercised prior to the year end.

The fair values of the options and warrants granted were calculated using the Black-Scholes valuation model. The inputs into the model were:

	7 April 2020	15 July 2020	27 October 2020

Strike price	0.04375p	0.061p	0.09p
Share price	0.0294p	0.0294p	0.0294p
Volatility	75%	75%	75%
Expiry date	7 April 2020 - 7 April 2023	15 July 2020 - 15 July 2023	27 October 2020 - 27 October 2023
Risk free rate	0.28%	0.28%	0.28%
Dividend yield	0.0%	0.0%	0.0%

Share options issued in the year to 31 March 2020

The Company entered into option agreements dated 18 April 2019 with Charles Joseland and dated 8 May 2019 with Mark Pensabene under which up to 10 million share options may be issued to each of Mr Joseland and Mr Pensabene in three tranches as follows:

Exercise price per share	Tranche 1	Tranche 2	Tranche 3	Total
0.14p	1,666,667	1,666,667	1,666,666	5,000,000
0.25p	1,666,667	1,666,666	1,666,667	5,000,000
Total	3,333,334	3,333,333	3,333,333	10,000,000

All the options have a life of 5 years from vesting. 34 per cent. of the options vest in one year, with a further 33 per cent. vesting in two years and the remaining 33 per cent. vesting in three years' time. The options issued to Mr Pensabene lapsed on 31 October 2019 when Mr Pensabene resigned before the options had vested.

The fair values of the options and warrants granted were calculated using the Black-Scholes valuation model. The inputs into the model were:

	18 April 2019	8 May 2019

Strike price	0.14p - 0.25p	0.14p - 0.25p
Share price	0.08p - 0.11p	0.07p - 0.09p
Volatility	69%	69%
Expiry date	18 April 2020 - 18 April 2027	8 May 2020 - 8 May 2027
Risk free rate	0.11% - 0.19%	0.12% - 0.20%
Dividend yield	0.0%	0.0%

6. TAXATION

	Group Year ended 31 March 2021	Group Year ended 31 March 2020
	£	£
Taxation charge for the year	-	-

Factors affecting the tax charge for the year
Loss from continuing operations before income tax	(623,370)	(629,504)

Tax at 19% (2019: 19%)	(118,440)	(119,606)

Expenses not deductible	-	606
Losses carried forward not deductible	103,624	111,547
Deferred tax differences	14,816	7,453
Income tax expense	-	-

The Group has tax losses and other potential deferred tax assets totalling £2,425,000 (2020: £2,258,000) which will be able to be offset against future income. No deferred tax asset has been recognised in respect of these losses as the timing of their utilisation is uncertain at this stage.

7. INTANGIBLE ASSETS

			Exploration and evaluation
GROUP			£
COST
At 1 April 2019			6,951,209
Additions in the year			1,601,526
Effects of foreign exchange			89,833
At 1 April 2020			8,642,568
Additions in the year			541,772
Effects of foreign exchange			(220,251)

At 31 March 2021			8,964,089

AMORTISATION
At 1 April 2019 and 1 April 2020 and 31 March 2021			-

NET BOOK VALUES
At 31 March 2021			8,964,089

At 31 March 2020			8,642,568

At 31 March 2019			6,951,209

The Company did not have any Intangible Assets as at 31 March 2019, 2020 and 2021.

8. PROPERTY, PLANT AND EQUIPMENT

			Plant and machinery
GROUP			£
COST
1 April 2019			26,447
Additions in the year			-
Effects of foreign exchange			577

At 1 April 2020			27,024
Additions in the year			526
Effects of foreign exchange			(1,471)

At 31 March 2021			26,079

DEPRECIATION
At 1 April 2019			6,546
Depreciation charge			5,929

At 1 April 2020			12,475
Depreciation charge			5,825
Effects of foreign exchange			(898)

At 31 March 2021			17,402

NET BOOK VALUES
At 31 March 2021			8,677

At 31 March 2020			14,549

At 31 March 2019			19,901

All tangible assets are wholly associated with exploration and development projects and therefore the amounts charged in respect of depreciation are capitalised as evaluation and exploration assets within intangible assets.

The Company did not have any Property, Plant and Equipment as at 31 March 2019, 2020 and 2021.

9. SUBSIDIARY UNDERTAKINGS

a. AMOUNTS DUE FROM SUBSIDIARY UNDERTAKINGS

	Company 31 March 2021	Company 31 March 2020
	£	£
Amounts due from subsidiary undertakings	7,916,150	7,104,085
	7,916,150	7,104,085

Under the requirements of IFRS 9 management has run various scenarios on the expected credit loss of the Company's intercompany balances, including entering production, project/asset sales, and insolvency. Management has updated its calculations reflecting additional amounts advanced to its subsidiaries for work on its lithium and gold projects during the year, and also slightly reduced the risk of credit loss given improvements since last year in the financial, lithium and gold markets. At 31 March 2021 a credit loss provision of £877,000 is held against amounts due from subsidiaries (2020: £877,000).

b. INVESTMENTS IN SUBSIDIARY UNDERTAKINGS

The consolidated financial statements include the following subsidiary companies:

Company	Subsidiary of	Country of incorporation	Registered office	Equity holding	Nature of business
Kodal Norway (UK) Ltd	Kodal Minerals Plc	United Kingdom	Prince Frederick House, 35-39 Maddox Street, London W1S 2PP	100%	Operating company
International Goldfields (Bermuda) Limited	Kodal Minerals Plc	Bermuda	MQ Services Ltd Victoria Place, 31 Victoria Street, Hamilton HM 10 Bermuda	100%	Holding company
International Goldfields Côte d'Ivoire SARL	International Goldfields (Bermuda) Limited	Côte d'Ivoire	Abidjan Cocody Les Deux Plateaux 7eme Tranche BP Abidjan Côte d'Ivoire	100%	Mining exploration
International Goldfields Mali SARL	International Goldfields (Bermuda) Limited	Mali	Bamako, Faladi, Mali Univers, Rue 886 B, Porte 487 Mali	100%	Mining exploration
Jigsaw Resources CIV Ltd	International Goldfields (Bermuda) Limited	Bermuda	MQ Services Ltd Victoria Place, 31 Victoria Street, Hamilton HM 10 Bermuda	100%	Mining exploration
Corvette CIV SARL	Jigsaw Resources CIV Ltd	Côte d'Ivoire	Abidjan Cocody Les Deux Plateaux 7eme Tranche BP Abidjan Côte d'Ivoire	100%	Mining exploration
Future Minerals SARL	International Goldfields (Bermuda) Limited	Mali	Bamako, Faladi, Mali Univers, Rue 886 B, Porte 487 Mali	100%	Mining exploration

Kodal Minerals plc has issued a guarantee under section 479C to its subsidiary, Kodal Norway (UK) Ltd ("Kodal Norway", company number 08491224) in respect of its activities for the year ended 31 March 2021 to allow Kodal Norway to take advantage of the exemption under s479A of the Companies Act 2006 from the requirements of the Act relating to audit of its individual accounts for the year ended 31 March 2021.

Carrying value of investment in subsidiaries	Year ended 31 March 2021	Year ended 31 March 2020
	£	£
Opening balance	512,373	512,373
Impairment in the year	-	-
Closing balance	512,373	512,373

10. OTHER RECEIVABLES

	Group 31 March 2021	Group 31 March 2020	Company 31 March 2021	Company 31 March 2020
	£	£	£	£
Share issue proceeds receivable	1,838,895	-	1,838,895	-
Other receivables	16,013	19,978	16,013	19,978
	1,854,908	19,978	1,854,908	19,978

All receivables at each reporting date are current. No receivables are past due. The Directors consider that the carrying amount of the other receivables approximates their fair value and there are no expected credit losses.

11. TRADE AND OTHER PAYABLES

	Group 31 March 2021	Group 31 March 2020	Company 31 March 2021	Company 31 March 2020
	£	£	£	£
Trade payables	357,514	456,847	55,401	147,438
Other payables	267,102	201,866	266,451	91,792
	624,616	658,713	321,852	239,230

All trade and other payables at each reporting date are current. The Directors consider that the carrying amount of the trade and other payables approximates their fair value.

12. SHARE CAPITAL

GROUP AND COMPANY

Allotted, issued and fully paid:

	Note	Nominal Value	Number of Ordinary Shares	Share Capital £	Share Premium £

At 31 March 2019			8,212,539,503	2,566,418	12,147,792


July 2019	a	£0.0003125	718,750,000	224,609	228,516
July 2019 - Treasury shares held		£0.0003125	(250,000,000)	(78,125)	-
August 2019	b	£0.0003125	65,451,616	20,454	44,546
October 2019	c	£0.0003125	250,000,000	78,125	93,750
October 2019 - Treasury shares sold		£0.0003125	250,000,000	78,125	-

At 31 March 2020			9,246,741,119	2,889,606	12,514,604
April 2020	d	£0.0003125	1,428,571,429	446,429	202,102
April 2020	e	£0.0003125	378,323,379	118,226	14,187
June 2020	f	£0.0003125	56,987,211	17,809	2,137
September 2020	g	£0.0003125	228,571,428	71,429	28,571
October 2020	h	£0.0003125	125,034,486	39,073	40,199
November 2020	i	£0.0003125	85,063,264	26,582	27,348
December 2020	j	£0.0003125	118,600,205	37,063	38,130
January 2021	k	£0.0003125	176,190,315	55,059	56,645
January 2021	l	£0.0003125	347,078,879	108,462	111,586
February 2021	m	£0.0003125	153,379,428	47,931	74,314
March 2021	n	£0.0003125	128,080,136	40,025	68,131
March 2021	o	£0.0003125	210,896,619	65,905	114,538
March 2021	p	£0.0003125	168,489,949	52,653	91,507
March 2021	q	£0.0003125	2,800,000,000	875,000	2,424,075
March 2021	r	£0.0003125	48,790,008	15,247	14,515
March 2021	s	£0.0003125	31,565,656	9,864	18,545
At 31 March 2021			15,732,363,511	4,916,364	15,841,134

a) On 29 July 2019, a total of 718,750,000 shares were issued in a placing at an issue price of 0.08 pence per share. Of these placing shares, 250,000,000 shares were allotted to SVS Securities plc which entered administration on 5 August 2019 and did not complete its placing participation. These shares were held as treasury shares at 30 September 2019 and were then placed on 28 October 2019.

b) On 2 August 2019, a total of 65,451,616 shares were issued to Bambara Resources SARL at an issue price of 0.099 pence per share.

c) On 28 October 2019, a total of 250,000,000 shares were issued in a placing and subscription at a price of 0.05 pence per share. In addition, the Company placed the 250,000,000 shares allotted to SVS Securities plc in July 2019 at the same price.

d) On 7 April 2020, a total of 1,428,571,429 shares were issued to Riverfort Global Opportunities PCC Limited and YA II PN Ltd (the "Investors") in connection with the Equity Sharing Agreement ("ESA"). The shares issued under the ESA were issued at an average price of 0.04686 pence per share. Share issue expenses of £20,860 were offset against the share premium account.

e) On 7 April 2020, a total of 378,323,379 shares were issued at an issue price of 0.035 pence per share to a number of Directors and senior management as payment for salaries or fees owed.

f) On 29 May 2020, a total of 56,987,211 shares were issued at a price of 0.035 pence per share to satisfy payment of certain third party professional fees.

g) On 7 September 2020, a total of 228,571,428 shares were issued to the Investors at a price of 0.04375 pence per share in connection with the exercise of warrants issued in connection with the ESA.

h) On 15 October 2020, the Investors elected to convert a total amount of $102,352.31 (equivalent to £79,271.86), made up of a principal amount of US$100,004.40 and accrued interest of $2,347.91, into 125,034,486 ordinary shares at a price of 0.06340 pence per share.

i) On 2 November 2020, the Investors elected to convert a total amount of $70,358.92 (equivalent to £53,930.11), made up of a principal amount of $70,000.00 and accrued interest of $358.92, into 85,063,264 ordinary shares at a price of 0.06340 pence per share.

j) On 15 December 2020, the Investors elected to convert a total amount of $101,160.41 (equivalent to £75,192.53), made up of a principal amount of $100,000.00 and accrued interest of $1,160.41, into 118,600,205 ordinary shares at a price of 0.06340 pence per share.

k) On 5 January 2021, the Investors elected to convert a total amount of $150,809.59 (equivalent to £111,704.66), made up of a principal amount of $150,000.00 and accrued interest of $809.59, into 176,190,315 ordinary shares at a price of 0.06340 pence per share.

l) On 8 January 2021, the Investors elected to convert a total amount of $300,242.88 (equivalent to £220,048.01), made up of a principal amount of $300,000.00 and accrued interest of $242.88, into 347,078,879 ordinary shares at a price of 0.06340 pence per share.

m) On 19 February 2021, the Investors elected to convert a total amount of $169,384.70 (equivalent to £122,244.94), made up of a principal amount of $150,000.00 and accrued interest of $19,384.70, into 153,379,428 ordinary shares at a price of 0.079701 pence per share.

n) On 17 March 2021, the Investors elected to convert a total amount of $150,971.51 (equivalent to £108,155.99), made up of a principal amount of $150,000 and accrued interest of $971.51, into 128,080,136 ordinary shares at a price of 0.084444 pence per share.

o) On 22 March 2021, the Investors elected to convert a total amount of $250,337.33 (equivalent to £180,443.15), made up of a principal amount of $250,000 and accrued interest of $337.33, into 210,896,619 ordinary shares at a price of 0.08556 pence per share.

p) On 22 March 2021, the Investors elected to convert a total amount of US$200,000 (equivalent to £144,160), made up of a principal amount of US$200,000 and no accrued interest, into 168,489,949 ordinary shares at a price of 0.08556 pence per share.

q) On 25 March 2021, a total of 2,800,000,000 shares were issued in a placing at a price of 0.125 pence per share. Share issue expenses of £200,925 were offset against the share premium account.

r) On 25 March 2021, a total of 48,790,008 shares were issued to the Investors at a price of 0.061 pence per share in connection with the exercise of warrants.

s) On 25 March 2021, a total of 31,565,656 shares were issued to the Investors at a price of 0.09 pence per share in connection with the exercise of warrants.

13. RESERVES

Reserve	Description and purpose
Share premium	Amount subscribed for share capital in excess of nominal value.
Share based payment reserve	Cumulative fair value of options and share rights recognised as an expense. Upon exercise of options or share rights, any proceeds received are credited to share capital. The share-based payment reserve remains as a separate component of equity.
Translation reserve	Gains/losses arising on re-translating the net assets of overseas operations into sterling.
Retained earnings	Cumulative net gains and losses recognised in the consolidated statement of financial position.

14. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

The Group's principal financial instruments comprise cash and cash equivalents, other receivables and trade and other payables.

The main purpose of cash and cash equivalents is to finance the Group's operations. The Group's other financial assets and liabilities such as other receivables and trade and other payables, arise directly from its operations.

It has been the Group's policy, throughout the periods presented in the consolidated financial statements, that no trading in financial instruments was to be undertaken, and no such instruments were entered in to.

The main risk arising from the Group's financial instruments is market risk. The Directors consider other risks to be more minor, and these are summarised below. The Board reviews and agrees policies for managing each of these risks.

Market risk

Market risk is the risk that changes in market prices, and market factors such as foreign exchange rates and interest rates will affect the Group's results or the value of its assets and liabilities.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return.

Interest rate risk

The Group does not have any borrowings and does not pay interest.

The Group's exposure to the risks of changes in market interest rates relates primarily to the Group's cash and cash equivalents with a floating interest rate. These financial assets with variable rates expose the Group to interest rate risk. All other financial assets and liabilities in the form of receivables and payables are non-interest bearing.

In regard to its interest rate risk, the Group periodically analyses its exposure. Within this analysis consideration is given to alternative investments and the mix of fixed and variable interest rates. The Group does not engage in any hedging or derivative transactions to manage interest rate risk.

The Group in the year to 31 March 2021 earned interest of £nil (2020: £111). Due to the Group's relatively low level of interest-bearing assets and the very low interest rates available in the market the Group is not exposed to any significant interest rate risk.

Credit risk

Credit risk refers to the risk that a counterparty could default on its contractual obligations resulting in financial loss to the Group. The Group's principal financial assets are cash balances and other receivables.

The Group has adopted a policy of only dealing with what it believes to be creditworthy counterparties and would consider obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group's exposure to and the credit ratings of its counterparties are continuously monitored. An allowance for impairment is made where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables concerned.

Other receivables consist primarily of prepayments and other sundry receivables and none of the amounts included therein are past due or impaired.

Financial instruments by category - Group

	Loans and receivables	Other financial liabilities at amortised cost	Total
31 March 2021
Assets
Other receivables	1,854,908	-	1,854,908
Cash and cash equivalents	2,432,807	-	2,432,807
Total	4,287,715	-	4,287,715

Liabilities
Trade and other payables	-	(624,616)	(624,616)
Total	-	(624,616)	(624,616)

31 March 2020	£	£	£
Assets
Other receivables	19,978	-	19,978
Cash and cash equivalents	33,221	-	33,221
Total	53,199	-	53,199

Liabilities
Trade and other payables	-	(658,713)	(658,713)
Total	-	(658,713)	(658,713)

Foreign exchange risk

Throughout the periods presented in the consolidated financial statements, the functional currency for the Group's West African subsidiaries has been the CFA Franc.

The Group incurs certain exploration costs in the CFA Franc, US Dollars and Australian Dollars and has exposure to foreign exchange rates prevailing at the dates when Sterling funds are translated into other currencies. The CFA Franc has a fixed exchange rate to the Euro and the Group therefore has exposure to movements in the Sterling : Euro exchange rate. The Group has not hedged against this foreign exchange risk as the Directors do not consider that the level of exposure poses a significant risk.

The Group continues to keep the matter under review as further exploration and evaluation work is performed in West Africa and other countries and will develop currency risk mitigation procedures if the significance of this risk materially increases.

The Group's consolidated financial statements have a low sensitivity to changes in exchange due to the low value of assets and liabilities (principally cash balances) maintained in foreign currencies. Once any project moves into the development phase a greater proportion of expenditure is expected to be denominated in foreign currencies which may increase the foreign exchange risk.

Financial instruments by currency - Group

	GBP	USD	NOK	AUD	XOF	Total
31 March 2021
Assets
Other receivables	1,854,908	-	-	-	-	1,854,908
Cash and cash equivalents	2,202,748	173,586	1,497	-	54,976	2,432,807

Total	4,057,656	173,586	1,497	-	54,976	4,287,715

Liabilities
Trade and other payables	(83,714)	(539,503)	-	(749)	(650)	(624,616)

	GBP	USD	NOK	AUD	XOF	Total
31 March 2020
Assets
Other receivables	19,978	-	-	-	-	19,978
Cash and cash equivalents	28,147	-	1,370	-	3,704	33,221

Total	48,125	-	1,370	-	3,704	53,199

Liabilities
Trade and other payables	(179,506)	(314,468)	-	(54,665)	(110,074)	(658,713)

Liquidity risk

Liquidity risk is the risk that the entity will not be able to meet its financial obligations as they fall due.

The objective of managing liquidity risk is to ensure, as far as possible, that the Group will always have sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions.

The Group has established policies and processes to manage liquidity risk. These include:

Monitoring the maturity profiles of financial assets and liabilities in order to match inflows and outflows;

Monitoring liquidity ratios (working capital); and

Capital management procedures, as defined below.

Capital management

The Group's objective when managing capital is to ensure that adequate funding and resources are obtained to enable it to develop its projects through to profitable production, whilst in the meantime safeguarding the Group's ability to continue as a going concern. This is to enable the Group, once projects become commercially and technically viable, to provide appropriate returns for shareholders and benefits for other stakeholders.

The Group has historically relied on equity to finance its growth and exploration activity, raised through the issue of shares. In the future, the Board will utilise financing sources, be that debt or equity, that best suits the Group's working capital requirements and taking into account the prevailing market conditions.

Fair value

The fair value of the financial assets and financial liabilities of the Group, at each reporting date, approximates to their carrying amount as disclosed in the Statement of Financial Position and in the related notes.

The fair values of the financial assets and liabilities are included at the amounts at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The cash and cash equivalents, other receivables, trade payables and other current liabilities approximate their carrying value amounts largely due to the short-term maturities of these instruments.

Disclosure of financial instruments and financial risk management for the Company has not been performed as they are not significantly different from the Group's position described above.

15. RELATED PARTY TRANSACTIONS

The Directors represent the key management personnel of the Group and details of their remuneration are provided in note 3.

Robert Wooldridge, a Director, is a member of SP Angel Corporate Finance LLP ("SP Angel") which acts as financial adviser and broker to the Company. During the year ended 31 March 2021, the Company paid fees to SP Angel of £240,381 (2020: £58,323). The balance due to SP Angel at 31 March 2021 was £nil (2020: £7,979).

Matlock Geological Services Pty Ltd ("Matlock") a company wholly owned by Bernard Aylward, a Director, provided consultancy services to the Group during the year ended 31 March 2021 and received fees of £76,094 (2019 £76,764). These fees are included within the remuneration figure shown for Bernard Aylward in note 3. The balance due to Matlock at 31 March 2021 was £nil (2020: £21,626).

Geosmart Consulting Pty Ltd ("Geosmart"), a company wholly owned by Qingtao Zeng, a Director, provided consultancy services to the Group during the year ended 31 March 2021 and received fees of £10,595 (2020: £13,480). The balance due to Geosmart at 31 March 2021 was £nil (2020: £2,502).

Carolus Consulting Ltd ("Carolus"), a company wholly owned by Charles Joseland, a Director, provided consultancy services to the Group during the year ended 31 March 2021 and received fees of £nil (2020: £1,500). The balance due to Carolus at 31 March 2021 was £nil (2020: £nil).

16. CONTROL

No one party is identified as controlling the Group.

17. CAPITAL COMMITMENTS

The Group had capital commitments to exploration and evaluation expenditure of £nil (2020: £130,000).

18. EVENTS AFTER THE REPORTING PERIOD

On 21 May 2021, a total of 80,355,664 shares were issued to the Investors in connection with the exercise of warrants. 48,790,008 warrants were issued in July 2020 with an exercise price of 0.061 pence per share and 31,565,656 warrants were issued in October 2020 with an exercise price of 0.09 pence per share.

**ENDS**

For further information, please visit www.kodalminerals.com or contact the following:

Kodal Minerals plc

Bernard Aylward, CEO

Tel: +61 418 943 345

Allenby Capital Limited, Nominated Adviser

Jeremy Porter/Nick Harriss/Liz Kirchner

Tel: 020 3328 5656

SP Angel Corporate Finance LLP, Financial Adviser & Broker

John Mackay, Adam Cowl

Tel: 020 3470 0470

St Brides Partners Ltd, Financial PR

Susie Geliher/Isabelle Morris

Tel: 020 7236 1177

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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