Kodal Minerals Boosts Bougouni Lithium Resource, Eyeing 2024 Production Start

Kodal Minerals Boosts Bougouni Lithium Resource, Eyeing 2024 Production Start

Resource Expansion and Future Prospects

Kodal Minerals has reported a significant increase in the lithium resource of its Bougouni project in southern Mali. The updated estimate shows a 40% growth over the 2019 figures, now standing at 31.9 million tonnes, which includes both inferred and indicated resources. This enhancement results from successful drilling programs at the Ngoualana and Boumou deposits conducted earlier this year. Analysts view this development as a positive step towards de-risking the project and paving the way for its production commencement, expected next year.

Analyst Perspectives and Company Outlook

Analysts, including Canaccord Genuity’s Alex Bedwany, have expressed optimism regarding Kodal’s path to cash flow, highlighting the potential for an extended project lifespan and continued resource growth. Bedwany maintains a ‘speculative buy’ rating for the company, with an increased target price. Kodal plans further exploration in November to expand the resource area and support future mine planning.

Project Development and Government Regulations

Bougouni is poised to become Mali’s first lithium-producing project by late 2024, focusing on a dense media separation plant for initial production phases. A financing package with Hainan Mining supports this development, including an offtake agreement for the project’s output. Additionally, Kodal’s operations remain unaffected by Mali’s new mining legislation, ensuring the project’s progression under the current framework.

Market Performance

Kodal Minerals’ shares have shown positive trends in the market, reflecting investor confidence following these developments. With a market capitalization of £114 million ($24 million), the company continues to demonstrate significant growth potential in the lithium sector.

Check out more latest Metals News! icon

    Subscribe to the most timely news about the metals market

    Metals Wire's weekly digest for mining and processing industry professionals, investors, analysts, journalists.