Interim Results for 6 months to 30 September 2024

Kodal Minerals PLC
23 December 2024
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation.

 

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

 

23 December 2024

 

Kodal Minerals plc

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

 

Interim Results for the six months to 30 September 2024

 

Kodal Minerals, the mineral exploration and development company announces its unaudited interim results for the six months ended 30 September 2024.

 

Highlights

Operational

·      Principal operational activity for the period has been the construction of the Stage 1 Dense Media Separation ("DMS") processing plant at the Bougouni Lithium Project in southern Mali ("Bougouni" or the "Project"), within our associated undertaking Kodal Mining UK Limited ("KMUK").

·      Engineering and development work at Bougouni is close to completion with first production targeted for the first quarter ("Q1") of 2025.

·      Open pit mining is continuing ahead of schedule and a stockpile of ore is being built well in advance of the commissioning of the processing circuit.

·      Discussions with the Mali Government regarding the transfer of the Bougouni mining licence have concluded with the signing of a binding memorandum of understanding (the "MoU").

Financial

·      For the 6 months to 30 September 2024, the Company made a loss of £1,486,000 (6 months to 30 September 2023: £509,000), which includes the Company's share of KMUK's loss for the period of £832,000 due to the engineering and development work at Bougouni.

·      The carrying value of Kodal's investment in KMUK at 30 September 2024 was £28,207,000.

·      Cash balances at 30 September 2024 were £18.1 million (30 September 2023: £1.7 million) and cash as at 20 December 2024 was £17.5 million.

 

Bougouni Lithium Project - Plant Development

Engineering and development work at Bougouni is close to completion with first production targeted for Q1 2025.  The Project development timeline and commissioning of the processing plant was impacted by minor delays on site during the period under review, due to unusually heavy rainfall in the period and the availability of vessels to transport equipment and materials from China to West Africa. 

 

Following the end of the abnormally long wet season, construction progress is now accelerating, and structural steel erection work has progressed well with all major buildings taking shape, including the main DMS module, the crushing modules, the screening building and the filtration building.

 

The first two shipments from China carrying the critical long lead equipment items and structural steelwork for the buildings arrived at Abidjan Port, Côte d'Ivoire, in late August 2024 and a steady stream of deliveries ensued in priority order to support the sequence of the structural, mechanical, platework and piping ("SMPP") installation programme. The plant civil construction is now complete and the SMPP contractor, Bambara Resources SARL ("Bambara") together with its key subcontractor, Yantai Jinpeng Mining Machinery Company ("Jinpeng") from China, are progressing well with installation work.  The final shipments carrying the balance of imported materials, equipment and spares, including the power plant, associated transformers and switch gear, have arrived since the half year end and power plant installation and cabling will commence imminently. Commissioning of the first of two crushing circuits commenced this month with a brief successful test on waste rock. The second crusher module installation continues and is expected to be completed in the next few weeks. Ore processing is targeted to commence early in the first quarter of 2025.

 

Mining activities continues to progress well in preparation for commissioning and first production. The open pit mine is now focussed predominantly on mining hard rock ore and waste mining. The main Ngoualana ore body is well exposed with over 150,000 tonnes of ore mined, grading on average 1.17% Li2O, which is sufficient ore for the commissioning phase.

 

Bougouni Lithium Project - Mineral Resource Update

During the period under review, KMUK undertook an extensive drilling programme aimed at enhancing confidence in the existing resource estimates and to identify new areas of mineralisation. The diamond drilling programme at the Boumou prospect was concluded at the end of August 2024 with a total of 5,474m drilled in this programme. Early in September 2024, a new core cutting saw was mobilised to site to improve productivity of core cutting and sampling.

 

Most of the assays for the drilling programme have been received since the period end and, as has previously been reported, have confirmed the continuity and depth extension of the core pegmatite veins that mark the extension of the Boumou prospect. The drilling programme has also highlighted a fault zone that may control an offset of the pegmatite zone and highlight further exploration opportunities.

 

The next steps for the Boumou prospect include further infill and extension drilling prior to an updated mineral resource estimate and a phase of geotechnical and metallurgical drilling to allow the engineering assessment of the open pit potential of the Boumou prospect.

 

Bougouni Mining Licence Transfer

In 2022, the State of Mali ("State") initiated an audit of the mining sector, including a review of existing mining conventions for existing mines. In August 2023, the State issued a new Mining Code (the "2023 Mining Code") and later in 2023 established a commission comprised of Malian Government advisors and representatives (the "Commission") which was tasked with negotiating certain aspects of existing mining conventions and clarifying the application of the 2023 Mining Code to both existing and new mining projects. In July 2024, the State finalised and issued the Implementation Decree for the 2023 Mining Code, which included certain details relating to economic parameters not previously included in the 2023 Mining Code.

 

Following a series of meetings with the Commission during the period under review, in November 2024 KMUK and the State entered into the binding MoU to finalise the transfer of the Bougouni mining licence to the established mining company Les Mines de Lithium de Bougouni SA ("LMLB"), a subsidiary of KMUK.  The MoU confirms the migration of the Project to the 2023 Mining Code while confirming rights relating to various customs and tax exemptions for the development.

 

The MoU with the State for the transfer of the Bougouni mining licence is the final legal step required as KMUK rapidly progresses the construction of the Project.  The MoU and the transfer of the mining licence to the mining company LMLB confirms the good standing of the Project and provides certainty of State support and ongoing stability of Bougouni. The strong partnership built between the Kodal management team and the State has allowed discussions to be accelerated, culminating with this landmark MoU.

 

The first half of the US$15m settlement payment under the MoU has been made by KMUK to the Mali Government following the half year end concerned and the licence transfer process is expected to be completed shortly.  Kodal and Hainan Mining Co., Ltd ("Hainan") are continuing discussions regarding which group entity will have ultimate responsibility for the settlement payment to the Mali Government. At the current time the Company cannot determine the outcome of the discussions, and hence the nature or amount of any payments or concessions that might be required, if any, and which may result in an economic outflow from the Company. 

 

Offtake Agreement

Negotiations progressed during the period concerned with Hainan regarding an offtake agreement for 100% of the spodumene production from the Stage 1 DMS processing plant.  The offtake agreement being negotiated between KMUK and Hainan will be based on market prices for spodumene, with a floor set to ensure that all costs are covered and will require express written approval from Kodal Minerals PLC as a shareholder of KMUK.  Offtake for Stage 2 production is outside of the scope of current negotiations with Hainan and remains available to KMUK for future commercial opportunities.

 

Bernard Aylward, CEO of Kodal Minerals, said: "The six month period ended 30 September 2024 has seen significant milestones in the development of the Bougouni Lithium Project by KMUK and the team has worked tirelessly to bring the Project to the cusp of commissioning.  The signing of the MoU with the Mali Government provides certainty of State support and will ensure the ongoing stability of Bougouni as we enter the critical production phase."

 

"Kodal remains in a strong financial position that will allow us to continue to explore our gold projects in Mali and Cote d'Ivoire as well as to review opportunities that offer further growth and expansion opportunities for the Company."

 

"The Bougouni Lithium Project remains a focus for Kodal as we work with our operating partner to complete construction and commence production over the next few months."

 

Chairman's Statement

 

I am very pleased to report on the status of our Company, following a six month period where we have witnessed a number of key milestones being passed in the commercialisation of the Bougouni Lithium Project.

 

The global push for electrification continues to drive demand for high-grade spodumene product, such as that expected from Bougouni.  Electric vehicle batteries are the fastest growing segment of the global lithium market and the key driver of demand growth. Bloomberg has reported that global electric vehicle sales are forecast to reach around 40 million units by 2030.  While spodumene prices have fallen from the highs of 2022, prices in recent months have been relatively stable and the current price for lithium spodumene concentrate is in line with the prices used in the Company's feasibility studies and underlines the robustness of the Project.

 

There is a growing emphasis on sustainable mining practices and responsible sourcing, as stakeholders demand environmentally and socially responsible production methods.  We continue to work closely with the team at Bougouni to ensure that the Project is delivered in a way that is both sustainable and plays a positive social role in the local community, minimising disruption, providing job opportunities and supporting local projects. 

 

The Board has continued to review additional investment opportunities and is well-placed to take advantage of any prospects that may arise.  In addition, we are continuing to work on a strategy to maximise the value of the Company's remaining gold assets in Cote d'Ivoire.

 

In the six month period ended 30 September 2024, the Group has recorded a loss of £1,486,000 compared to losses of £509,000 for the 6 months to 30 September 2023 and a profit of £27,186,000 for the year to 31 March 2024.  The loss for this period includes the Company's share of KMUK's loss for the corresponding period of £832,000, based on unaudited management accounts, due to the engineering and development work at Bougouni.

 

Cash balances as at 30 September 2024 were £18,108,000 compared to £1,706,000 at 30 September 2023 and £16,327,000 at 31 March 2024.  Cash as at 20 December 2024 was £17,537,000.

 

We have a very exciting period ahead of us as construction reaches completion at Bougouni and the production phase starts.  I look forward to reporting on our progress as KMUK moves into commissioning and production during the first quarter of 2025.

 

Robert Wooldridge

Non-Executive Chairman

 

Contact details:

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 / Vivek Bhardwaj

 

 

Tel: 020 3328 5656

SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker

John Mackay / Adam Cowl

 

 

Tel: 020 3470 0470

 

Canaccord Genuity Limited, Joint Broker

James Asensio / Charlie Hammond

 

 

Tel: 0207 523 4680

Burson Buchanan, Financial PR

Bobby Morse / Oonagh Reidy

 

Tel: 020 7466 5000

kodal@buchanancomms.co.uk

 


KODAL MINERALS PLC

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

 


 

 

Unaudited

6 months to

30 September

2024

 

Unaudited

6 months to

30 September

2023


Audited

Year ended

31 March

2024

 

 

 

£

 

£


£

Continuing operations

 

 

 

 




Revenue

 

 

-

 

-


-

Other operating income

 

 

-

 

158,138


-


 

 

 

 




Impairment of exploration and evaluation assets

6

 

-

 

-


(1,572,302)

Administrative expenses

 

 

(566,623)

 

(511,978)


(1,530,114)

Share based payments

 

 

(276,331)

 

(154,899)


(241,888)


 

 

 

 




OPERATING LOSS

 

 

(842,954)

 

(508,739)


(3,344,304)


 

 

 

 




Finance income

 

 

188,798

 

-


92,693

Revaluation gain on sale of subsidiary undertaking

 

 

-

 

-


30,521,645

Share of loss of an associate

 

 

(831,819)

 

-


(83,610)


 

 

 

 




 LOSS BEFORE TAX

 

 

(1,485,975)

 

(508,739)


27,186,424


 

 

 

 




Taxation

 

 

-

 

-


-


 


 

 




LOSS FOR THE PERIOD/YEAR

 

 

(1,485,975)

 

(508,739)


27,186,424

 

 

 

 

 




OTHER COMPREHENSIVE INCOME

 

 

 

 





 

 

 

 




Items that may be subsequently reclassified to profit and loss



 

 




 

 

 

 

 




Currency translation (loss)/gain

 

 

(2,365,348)

 

(54,725)


3,230


 

 

 

 




TOTAL COMPREHENSIVE INCOME FOR THE PERIOD/YEAR

 

 

(3,851,323)

 

(563,464)


27,189,654

 

 

 

 

 




Profit / (loss) per share from continuing operations

 

 

 

 




Basic - pence per share

3

 

(0.0074)

 

(0.0030)


0.1491

Diluted - pence per share

 

 

(0.0071)

 

(0.0030)


0.1431

 

KODAL MINERALS PLC

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2024

 



 

 

Unaudited

 as at

30 September

2024

 

Unaudited

as at

30 September

2023


Audited

as at

31 March

2024


Note

 

 

£

 

£


£

NON-CURRENT ASSETS

 

 

 

 

 




Intangible assets

6

 

 

2,259,711

 

17,000,095


2,162,452

Property, plant and equipment

7

 

 

55,471

 

76,992


664

Investment in associated undertaking

9

 

 

28,206,561

 

-


31,260,186

Amounts due from associated undertaking

 

 

 

4,312,785

 

-


4,312,785


 

 

 

 

 





 

 

 

 

 




 

 



34,834,528


17,077,087


37,736,087

CURRENT ASSETS

 



 





Trade and other receivables

 



1,059,141


17,793


3,427,357

Cash and cash equivalents

 



18,108,383


1,705,534


16,326,507

Non-current assets classified as held for sale

 



-


267,991


79,606


 



19,167,524


1,991,318


19,833,470


 



 





CURRENT LIABILITIES

 



 





Trade and other payables

 



(93,122)


(4,348,457)


(139,301)


 



 






 



 





NET ASSETS




53,908,930


14,719,948


57,430,256





 





EQUITY




 





Attributable to owners of the parent:

 



 





Share capital

10



6,327,302


5,319,525


6,325,349

Share premium account

10



32,645,868


18,808,801


32,624,071

Share based payment reserve




1,453,911


1,849,685


1,147,664

Translation reserve




(2,349,486)


(42,093)


15,862

Retained deficit




15,831,335


(11,215,970)


17,317,310

 




 





TOTAL EQUITY




53,908,930


14,719,948


57,430,256

 

 


KODAL MINERALS PLC

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024


Share capital

 

Share premium account

 

 

Share based payments reserve

 

 

Translation

reserve

 

Retained deficit

 

Total equity

 

£

 

£

 

£

 

 

 

£

 

£

 

 

 

 

 

 

 

 

 

 

 

 

At 31 March 2023 (audited)

5,315,619

 

18,765,206

 

1,537,779

 

12,632

 

(10,748,312)

 

14,882,924

 












 

Comprehensive income












Loss for the period

-


-


-


-


(508,739)


(508,739)

Currency translation (loss)

-


-


-


(54,725)


-


(54,725)

Total comprehensive income for the period

-


-


-


(54,725)


(508,739)


(563,464)

 












Transactions with owners












Proceeds from exercise of share options

3,906


43,595


-


-


-


47,501

Reserves movement for exercised / lapsed share options

-


-


(41,081)


-


41,081


-

Share based payment

-

 

-

 

352,987

 

-

 

-

 

352,987

At 30 September 2023 (unaudited)

5,319,525

 

18,808,801

 

1,849,685

 

(42,093)

 

(11,215,970)

 

14,719,948

 












 

Comprehensive income












Profit for the period

-


-


-


-


27,695,163


27,695,163

Currency translation gain

-


-


-


57,955


-


57,955

Total comprehensive income for the period

-


-


-


57,955


27,695,163


27,753,118

 












Transactions with owners












Proceeds from shares issued

918,063


13,251,199


-


-


-


14,169,262

Proceeds from exercise of share options

87,761


564,071


-


-


-


651,832

Reserves movement for exercised / lapsed share options

-


-


(838,117)


-


838,117


-

Share based payment

-

 

-

 

136,096

 

-

 

-

 

136,096

At 31 March 2024 (audited)

6,325,349

 

32,624,071

 

1,147,664

 

15,862

 

17,317,310

 

57,430,256

 












 

Comprehensive income












Loss for the period

-


-


-


-


(1,485,975)


(1,485,975)

Currency translation (loss)

-


-


-


(2,365,348)


-


(2,365,348)

Total comprehensive income for the period

-


-


-


(2,365,348)


(1,485,975)


(3,851,323)

 












Transactions with owners












Proceeds from exercise of share options

1,953


21,797


-


-


-


23,750

Share based payment

-

 

-

 

306,247

 

-

 

-

 

306,247

At 30 September 2024 (unaudited)

6,327,302

 

32,645,868

 

1,453,911

 

(2,349,486)

 

15,831,335

 

53,908,930

 












 













KODAL MINERALS PLC

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

 

 

 

Unaudited

6 months to

30 September

2024

 

Unaudited

6 months to

30 September

2023

 

Audited

Year ended 31 March

2024


 

 

£

 

£


£

Cash flows from operating activities

 


 





Loss before tax

 


(1,485,975)


(508,739)


27,186,424

Adjustments for non-cash items:

 


 





Revaluation gain on sale of subsidiary undertaking

 


-


-


(30,521,645)

Impairment of exploration and evaluation assets

 


-


-


1,572,302

Profit on sale of exploration and evaluation assets

 


-


(158,138)


-

Share of loss from associate

 


831,819


-


83,610

Interest income

 


(188,799)


-


(92,694)

Share based payments

 


276,331


154,899


241,888

Operating cash flow before movements in working capital

 


(566,624)


(511,978)


(1,530,115)

 

 


 





Movement in working capital

 


 





(Increase)/decrease in receivables

 


(536,868)


(6,618)


(343,785)

Increase/(decrease) in payables

 


(67,753)


802,706


(660,702)

Net movements in working capital

 


(604,621)


796,088


(1,004,487)


 


 





Net cash inflow / (outflow) from operating activities

 


(1,171,245)


284,110


(2,534,602)

 

 


 





Cash flows from investing activities

 


 





Purchase of tangible assets

 


(55,471)


-


-

Purchase of exploration and evaluation assets

 


(101,727)


(2,473,559)


(2,736,084)

Disposal of exploration and evaluation assets

 


76,905


400,000


400,000

Loan repayments from associated undertaking

 


2,901,581


-


5,807,937

Net cash outflow from investing activities



2,821,288


(2,073,559)


3,471,853

 

 


 





Cash flow from financing activities

 


 





Interest income

 


107,492


-


28,258

Prepayment on share subscription



-


2,745,744


-

Net proceeds from share issues

 


-


-


14,169,262

Net proceeds from exercise of share options

 


23,751


47,501


699,333


 


 





Net cash inflow from financing activities

 


131,243


2,793,245


14,896,853


 


 





Increase/(decrease) in cash and cash equivalents

 


1,781,286


1,003,796


15,834,104

Cash and cash equivalents at beginning of the period

 

 

 

16,326,507


544,988


544,988

Exchange gain / (loss) on cash



590


156,750


(52,585)

 

Cash and cash equivalents at end of the period

 

 


 

18,108,383


 

1,705,534


 

16,326,507


 







 

 

 

KODAL MINERALS PLC

 

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

 

General information

 

Kodal Minerals plc is a public limited company incorporated and domiciled in England & Wales. The Company's shares are publicly traded on the AIM market of the London stock exchange. Kodal Minerals Plc and its subsidiaries are involved in the exploration and evaluation of mineral resources in West Africa.

 

Basis of preparation

 

These unaudited condensed consolidated interim financial statements for the six months ended 30 September 2024 were approved by the board and authorised for issue on 19 December 2024.

 

The basis of preparation and accounting policies set out in the Annual Report and Accounts for the year ended 31 March 2024 have been applied in the preparation of these condensed consolidated interim financial statements. These interim financial statements have been 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 that are expected to be applicable to the consolidated financial statements for the year ending 31 March 2025 and on the basis of the accounting policies expected to be used in those financial statements.

 

The figures for the six months ended 30 September 2024 and 30 September 2023 are unaudited and do not constitute full accounts.  The figures for the associated undertaking have been extracted from unaudited management accounts which have been provided to us by the associated undertaking and which we have not verified. The comparative figures for the year ended 31 March 2024 are taken from the 2024 audited accounts, which are available on the Group's website, and have been delivered to the Registrar of Companies, and do not constitute full accounts.

 

The Group has not earned revenue during the period to 30 September 2024 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 shares.

 

The directors have prepared cash flow forecasts for the next 12 months. The forecast includes the costs of targeted exploration of some of the company's gold assets, and the ongoing overheads of the Group. The forecast shows 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 12 months from the date of the approval of these interim results. Accordingly, the interims have been prepared on a going concern basis. 

 

KODAL MINERALS PLC

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024

 

1.         SEGMENTAL REPORTING

 

The operations and assets of the Group are focused in the United Kingdom and West Africa and comprise one class of business: the exploration and evaluation of mineral resources. The parent Company acts as a holding company.  At 30 September 2024, the Group had not commenced commercial production from its exploration sites and therefore had no revenue for the period.

 

Six months to 30 September 2024 (Unaudited)

West African Gold

West African Lithium

UK

Total


£

£

£

£

Administration expenses

(56,495)

-

(510,128)

(566,623)

Share based payments

-

-

(276,331)

(276,331)

Finance income

-

81,307

107,491

188,798

Share of loss of an associate

-

(831,819)

-

(831,819)

Loss for the period

(56,495)

(750,512)

(678,968)

(1,485,975)






At 30 September 2024





Intangible assets - exploration and evaluation expenditure

2,259,711

-

-

2,259,711

Property plant and equipment

55,471

-

-

55,471

Investment in associated undertaking

-

28,206,561

-

28,206,561

Amount due from associated undertaking

-

4,312,785

-

4,312,785

Trade and other receivables

-

1,059,141

-

1,059,141

Cash and cash equivalents

86,672

-

18,021,711

18,108,383

Trade and other payables

-

-

(93,122)

(93,122)

Net assets

2,401,854

33,578,487

17,928,589

53,908,930

 

Six months to 30 September 2023 (Unaudited)

West African Gold

West African Lithium

UK

Total


£

£

£

£

Other operating income

-

158,138

-

158,138

Administration expenses

(1,815)

(19,832)

(490,331)

(511,978)

Share based payments

-

-

(154,899)

(154,899)

Loss for the period

(1,815)

138,306

(645,230)

(508,739)

 

 





At 30 September 2023





Intangible assets - exploration and evaluation expenditure

3,515,208

13,484,887

-

17,000,095

Property plant and equipment

846

76,146

-

76,992

Trade and other receivables

-

-

17,793

17,793

Cash and cash equivalents

18,929

6,205

1,680,400

1,705,534

Assets held for resale

-

267,991

-

267,991

Trade and other payables

-

(1,402,138)

(2,946,289)

(4,348,457)

Net assets

3,534,983

12,433,091

(1,250,096)

14,719,948

 

 

 

Year to 31 March 2024 (Audited)

West African Gold

West African Lithium

UK

Total


£

£

£

£

Impairment of exploration and evaluation assets

(1,572,302)

-

-

(1,572,302)

Administration expenses

(80,926)

(41,486)

(1,407,702)

(1,530,114)

Finance income

-

-

92,693

92,693

Share based payments

-

-

(241,888)

(241,888)

Revaluation gain on sale of subsidiary undertaking

-

30,521,645

-

30,521,645

Share of loss from associate

-

(83,610)

-

(83,610)

Loss for the year

(1,653,228)

30,396,549

(1,556,897)

27,186,424






 

At 31 March 2024 (Audited)





Intangible assets - exploration and evaluation expenditure

2,162,452

 

-

-

2,162,452

Tangible assets

664

-

-

664

Investment in associated undertaking

-

 

-

31,260,186

31,260,186

Trade and other receivables

-

7,721,537

18,605

7,740,142

Cash and cash equivalents

42,279

-

16,284,228

16,326,507

Assets held for resale

79,606

-

-

79,606

Trade and other payables

-

-

(139,301)

(139,301)

Net assets

2,285,001

38,981,723

16,163,532

57,430,256

 

2.         OPERATING LOSS

 

The operating loss before tax is stated after charging:

 



Unaudited

6 months to

30 September

2024

 

Unaudited

6 months to

30 September

2023


Audited

Year ended

31 March

2024



£

 

£


£

Impairment of exploration and evaluation assets


-

 

-


1,572,302

Audit services


-


-


100,000

Share based payment

 

276,331


154,899


241,888

Directors' salaries and fees

 

165,499


97,883


471,840

Employer's National Insurance

 

3,881


-


33,476

 

3.         LOSS PER SHARE

 

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

 

The following reflects the loss and share data used in the basic EPS computations:

 


Profit / (loss)

Weighted average number of shares

Diluted weighted average number of shares

Basic profit / (loss) per share (pence)

Diluted profit / (loss) per share (pence)


£





Six months to 30 September 2024

(1,485,975)

20,025,859,562

20,791,692,896

(0.0074)

(0.0071)

Six months to 30 September 2023

(508,739)

17,019,270,573

17,019,270,573

(0.0030)

(0.0030)

Year ended 31 March 2024

27,186,424

18,228,192,472

19,000,275,806

0.1491

0.1431

 

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 period 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 earnings per share as the Group is currently loss making.   Diluted loss per share is therefore the same as the basic loss per share.

 

4.         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.

 



Unaudited

6 months to

30 September

2024

 

Unaudited

6 months to

30 September

2023

 

Audited

Year ended

31 March

2024

Share options outstanding


 

 


 

 

Opening balance


352,500,000


582,500,000


582,500,000

Lapsed in the period


(12,500,000)


-


(43,333,333)

Issued in the period


-


-


-

Exercised in the period



(12,500,000)


(186,666,667)

 

Closing balance


339,999,999

 


 

570,000,000


 

352,500,000

 



Unaudited

6 months to

30 September

2024

 

Unaudited

6 months to

30 September

2023

 

Audited

Year ended

31 March

2024

Performance share rights outstanding


 

 


 

 

Opening balance


160,000,000


240,000,000


240,000,000

Issued in the period


-


-


-

Exercised in the period



-


(80,000,000)

 

Closing balance


 

160,000,000


 

240,000,000


 

160,000,000

 

 



Unaudited

6 months to

30 September

2024

 

Unaudited

6 months to

30 September

2023

 

Audited

Year ended

31 March

2024

Share warrants outstanding


 

 


 

 

Opening balance


299,583,334


326,250,000


326,250,000

Lapsed in the period


-


-


-

Issued in the period


-


-


-

Exercised in the period


(6,250,000)


-


(26,666,666)

 

Closing balance


 

293,333,334


 

326,250,000


 

299,583,334

 

5.         TAXATION

 

There is no taxation charge for the period to 30 September 2024 (6 months to 30 September 2023: £nil, year to 31 March 2024: £nil) as the group continues to incur losses.

 

No deferred tax asset has been recognised in respect of losses as the timing of their utilisation is uncertain at this stage.

 

6.         INTANGIBLE ASSETS




Exploration and evaluation


 

 

 

£

 

COST





 

At 31 March 2023



14,521,888


Additions in the period



2,684,613


Effects of foreign exchange



(206,406)


 

At 30 September 2023

 

 

17,000,095


Additions in the period



286,470


Disposals in the period



(13,488,010)


Classified as held for sale



(79,606)


Licences written off



(1,572,302)


Effects of foreign exchange



15,805


 

At 31 March 2024

 

 

2,162,452

 

Additions in the period



139,667


Effects of foreign exchange



(42,408)


 

At 30 September 2024

 

 

2,259,711

 

 

 

 

 

 

AMORTISATION





 

At 31 March 2023 and 30 September 2023 and 31 March 2024 and 30 September 2024

 

 

-

 

 





NET BOOK VALUES





 


 

 

 

At 30 September 2024 (Unaudited)


 

2,259,711

 

 


 

 

 

At 30 September 2023 (Unaudited)



17,000,095







At 31 March 2024 (Audited)


 

2,162,453


 



Unaudited

30 September

2024

 

Unaudited

30 September

2023

 

Audited

31 March

2024



£

 

£

 

£

Non-current assets classified as held for sale


 

-


 

267,991


 

79,606

 

7.         PROPERTY, PLANT AND EQUIPMENT



Plant and machinery


 

 

£

 

COST




 

At 31 March 2023


131,403


Additions in the period


-


Effects of foreign exchange


(1,813)


 

At 30 September 2023


129,590

 

Disposals in the period


(101,148)


Effects of foreign exchange


(889)


At 31 March 2024


27,555


Additions in the period


62,848


Effects of foreign exchange


(19)


At 30 September 2024


90,384






 

 

 




DEPRECIATION




At 31 March 2023


39,632


Charge for the period


12,966


 

At 30 September 2023


52,598


Disposals in the period


(25,883)


Charge for the period


174


 

At 31 March 2024


26,889


Charge in the period


8,024


At 30 September 2024


34,913


 




NET BOOK VALUES


 

 

 


 

 

At 30 September 2024 (Unaudited)


55,471

 

 


 

 

At 30 September 2023 (Unaudited)


76,992






At 31 March 2024 (Audited)


664


 




8.         SUBSIDIARY ENTITIES

 

The consolidated financial statements include the following subsidiary companies:

 

 

Company

 

Subsidiary of

Country of

incorporation

Equity holding

Nature of

Business

Kodal Norway (UK) Limited

Kodal Minerals Plc

United Kingdom

100%

Dormant company

International Goldfields (Bermuda) Limited

Kodal Minerals Plc

Bermuda

100%

Holding company

International Goldfields Mali SARL

International Goldfields (Bermuda) Limited

Mali

100%

Mining exploration

International Goldfields Cȏte d'Ivoire SARL

International Goldfields (Bermuda) Limited

Cȏte d'Ivoire

100%

Mining exploration

Jigsaw Resources CIV Limited

International Goldfields (Bermuda) Limited

Bermuda

100%

Holding company

Corvette CIV SARL

Jigsaw Resources CIV Limited

Cȏte d'Ivoire

100%

Mining exploration

 

9.         ASSOCIATED UNDERTAKING

 

                Since 15 November 2023, Kodal has held a 49% interest in KMUK, which operates the Bougouni Lithium Project in southern Mali.  Summarised financial information of KMUK, based on management accounts for the corresponding period, and reconciliation with the carrying amount of the investment, are set out below:

 


Unaudited

30 September 2024


Audited

31 March 2024


£


£

Assets




Cash and cash equivalents

40,098,565


70,813,016

Other debtors

1,846,728


43,003

Property, plant and equipment

356,709


357,588

Intangible assets - Exploration and Evaluation

33,245,168


18,937,151

Accounts receivable

-


-





Liabilities




Trade and other payables

(18,037,134)


(26,408,836)





Net Assets

57,510,036


63,741,923

 




Group's share in equity - 49%

28,179,918

 

31,233,543

 

 

 

 

Goodwill

26,643


26,643

 

 

 

 

Group's carrying value of the investment

28,206,561

 

31,260,185

 

 

Carrying value of the investment at the start of the period

31,260,185


31,343,795

Group's share of loss for the period

(831,819)


(83,610)

Foreign exchange loss on opening reserves

(2,221,805)


-





Carrying value of the investment at the end of the period

28,206,561

 

31,260,185

 

KMUK contributed a loss of £831,819 (year to 31 March 2024 from the date of acquisition: £83,610 loss) to the loss before tax from continuing operations of the Group for the period:

 


Unaudited

Period to 30 September 2024


Audited

Period to 31 March 2024

 




Loss before tax

(1,697,590)


(170,633)

 

 

 

 

Group's 49% share of loss for the period

(831,819)

 

(83,610)

 

At 30 September 2024, KMUK had capital commitments of approximately £23.5 million (31 March 2024: £nil) relating to the engineering and development work at Bougouni.

 

10.       ORDINARY SHARES

 

Allotted, issued and fully paid:

 

 

 

Note

Nominal Value

Number of Ordinary Shares

Share Capital

£

Share Premium

£

At 30 September 2023

 

 

17,022,480,956

5,319,525

18,808,801







November 2023



2,937,801,971

918,064

13,251,198

November 2023



280,833,333

87,760

564,073







At 31 March 2024



20,241,116,260

6,325,349

32,624,071

 



 

 

 

May 2024



6,250,000

1,953

21,797







At 30 September 2024

 

 

20,247,366,260

6,327,302

32,645,868

 

Share issue costs have been allocated against the Share Premium account.

 

Notes:

a)    On 13 May 2024, a total of 6,250,000 shares were issued pursuant to the exercise of warrants by an adviser to the Company. The shares were issued at 0.38 pence per share.

 

11.       RELATED PARTY TRANSACTIONS

 

Transactions with related parties

 

 

12.       CONTROL

 

No one party is identified as controlling the Group.

 

13.       EVENTS AFTER THE REPORTING PERIOD

§ The participation of the State and national private investor interest will be a total of 35% of the equity in the mining company LMLB, with the balance of 65% held by KMUK.

§ The mining licence will transfer with an initial 10-year term and the State undertakes to renew the licence as required with the conditions laid down in the mining code in force on the date of such renewal.

§ The MoU confirms the continuation of the customs and duties exemptions during the construction phase as well as confirming that the State will grant all necessary permits for operation including export permits for the spodumene product.

§ The parties have agreed to a US$15 million cash payment to the State, payable in two equal instalments by KMUK, with the first following signing of the MoU and the final prior to 31 March 2025.

§ Upon completion of transfer of the mining licence the MoU confirms that the Bougouni mining licence will be in full compliance with all legal requirements and in good standing.

 

14.       CAPITAL COMMITMENTS AND CONTINGENCIES

 

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