Kodal Minerals (LSE:KOD) continued to expand production and exports from its Bougouni Lithium Project in Mali during the second quarter of 2026, while using stronger cash generation to begin repaying project debt, highlighting the operation’s growing contribution to the global battery materials supply chain.
For the three months ended 30 June 2026, the Bougouni project produced 26,174 dry metric tonnes of spodumene concentrate at an average grade of 5.34% Li₂O. This lifted total production for the year to date to 53,195 tonnes. Output was temporarily affected by crushing circuit equipment failures during May, but maintenance work completed in June restored processing capacity, while additional mining equipment improved productivity at the Ngoualana open pit.
Commercial performance also continued to strengthen. More than 69,000 tonnes of spodumene concentrate have now been exported from Bougouni, with the third shipment achieving an implied SC6 benchmark price of US$2,304 per tonne. A fourth shipment of approximately 24,200 tonnes departed Côte d’Ivoire shortly after the end of the reporting period.
Strong operating margins enabled project operator Les Mines de Lithium de Bougouni SA (LMLB) to make an initial US$13 million loan repayment to Kodal Mining UK Limited (KMUK). The repayment allowed KMUK to reduce the majority of its outstanding interest-bearing debt owed to project partner Hainan Mining, strengthening the project’s financial position.
Management said Bougouni remains on track to maintain its regular export programme, with shipments of between 15,000 and 20,000 tonnes expected every six to eight weeks. Preparations are also underway to support operations through the rainy season and maintain stable production and cash flow. The company reported no lost-time injuries during the quarter and continued environmental and community engagement work linked to the planned Phase Two flotation plant and the proposed expansion of the Boumou prospect.
Although Kodal continues to advance operationally, its broader financial outlook remains constrained by the absence of reported revenue, ongoing operating losses and negative free cash flow. However, the company maintains a debt-free balance sheet at the corporate level with substantial equity, providing financial stability as Bougouni continues ramping up production.
More about Kodal Minerals
Kodal Minerals is an AIM-listed mining company focused on lithium production and mineral exploration across West Africa. Its flagship Bougouni Lithium Project in southern Mali produces spodumene concentrate for export to Hainan Mining in China, supporting demand from the global electric vehicle and battery materials industries.
The company holds a 49% interest in Kodal Mining UK Limited, which owns 65% of Les Mines de Lithium de Bougouni SA, the operator of the Bougouni project. Through this structure, Kodal oversees mining and processing activities while Hainan Mining provides strategic funding support and serves as the project’s principal offtake partner.
Operations currently centre on the Ngoualana open pit and the Stage One Dense Media Separation processing plant. The company is also progressing plans for a second-phase flotation plant to increase production capacity while continuing environmental studies and community consultation programmes to support future expansion.
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