Kodal Minerals (LSE:KOD) has announced continued operational progress at its Bougouni Lithium Project in Mali, as production ramps up toward planned capacity. The company confirmed receipt of full payment totalling US$27.25 million for its first shipment of 28,735 dry metric tonnes (DMT) of spodumene concentrate delivered to Hainan, China, achieving a realised price of US$989.50 per tonne on a CIF basis. A second shipment of approximately 20,000 tonnes is currently being loaded in Côte d’Ivoire as the operation moves toward establishing regular exports of between 15,000 and 20,000 DMT throughout 2026.
During January, the project produced 9,141 DMT of concentrate grading 5.26% Li₂O. Mining activities at the Ngoualana open pit delivered more than 643,000 tonnes of material, despite earlier operational constraints linked to equipment availability. Kodal expects Bougouni to produce around 118,000 DMT of concentrate in 2026 as operations continue to stabilise and expand.
The company is also addressing a previously identified overstatement in its 2025 production figures, while progressing development work for a planned Phase 2 flotation plant and evaluating opportunities to expand mineral resources near the existing mine site. Management highlighted the project’s strong safety performance and increasing cash generation, supported by significantly higher spodumene market prices, as factors strengthening Bougouni’s long-term value proposition.
From a financial perspective, Kodal Minerals remains in an early-stage growth phase, with performance constrained by its pre-revenue history, ongoing losses and negative free cash flow, although its debt-free balance sheet provides some financial flexibility. Market technical indicators offer a more positive outlook, with the share price trading above key moving averages and supported by favourable momentum trends. Valuation metrics remain under pressure due to negative earnings and the absence of dividend payments.
More about Kodal Minerals
Kodal Minerals plc is an AIM-listed lithium producer and exploration company focused on West Africa. Its principal asset is the Bougouni Lithium Project in southern Mali, where the company produces and exports spodumene concentrate under an offtake agreement with Hainan Mining, positioning Kodal within the expanding global lithium supply chain.
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