Kodal Minerals Achieves Maiden Lithium Export and Reports Narrowed H1 Loss

Kodal Minerals ships first Bougouni lithium and narrows H1 loss – what you need to know

Kodal Minerals has crossed a big milestone at Bougouni in Mali. The company secured its export permit, produced saleable product, and post period end completed its maiden shipment of spodumene concentrate to China – with US$21.3 million received for the first tranche. Financially, the interim loss narrowed and cash remains robust as operations transition towards steady-state exports in 2026.

Below I break down the operational progress, the numbers that matter, and the key risks to keep on your radar.

Operations at Bougouni: from commissioning to first export

Stage 1 DMS plant now producing saleable concentrate

The focus in H1 2025 was mining and producing spodumene concentrate via the Stage 1 DMS plant at Bougouni. Dense Media Separation (DMS) is a relatively simple, low-capex process that upgrades ore by density difference. Kodal mined ore grading 1.17% Li2O on average, in line with its preliminary feasibility study, and produced approximately 45,000 tonnes of concentrate at an average grade of 5.39% Li2O during the period.

The wet season limited pit access from July to September, so Kodal used the downtime to de-bottleneck the plant, carry out maintenance, and upgrade haul roads. The plant re-started in late September on lower grade, transitional ore to test improvements, then paused while the team prioritised moving the growing stockpile to port.

Export permit granted and first shipment underway

In September, Kodal received an export permit for an initial 125,000 tonnes of concentrate – crucial for unlocking revenue. Post period end, the first shipment of 28,950 tonnes left the port of San Pedro, Côte d’Ivoire, in November and Les Mines de Lithium de Bougouni SA (LMLB) received US$21.3 million from Hainan Mining for the maiden export.

The plan is to complete the full 125,000-tonne export over the next 12 months, with regular shipments supported by the company’s relationship with the Mali government. Kodal expects the export permit to be renewed as required.

Government engagement and security context

Stage 1 of Bougouni was officially opened in November by Mali’s President, General Assimi Goïta, underlining strong state support. That visibility matters in the current environment. Mali’s security situation has deteriorated in the north and centre, with violence edging south. Kodal disclosed a site security incident in August and has worked with authorities to increase military presence in the Bougouni area and on site. Safety of staff remains the stated priority.

Exploration upside and Stage 2 flotation

All assays from the 2025 diamond drilling at the Boumou prospect are now in and confirm wide, high-grade pegmatite mineralisation with multiple pegmatite bodies. A further drilling campaign is planned for early 2026. This supports the company’s ambition to advance the Stage 2 flotation plant in 2026, which would target higher recoveries and potentially broaden the product slate. Flotation is a processing step that separates fine particles by surface chemistry, typically improving recovery beyond DMS.

Financial results: narrowed loss, strong cash, first sales post period end

Kodal reported a total comprehensive loss of £1.131 million for H1 2025, driven by a currency translation loss. The loss for the period was £355,019, a marked improvement on H1 2024 (£1.486 million). Cash at 30 September 2025 stood at £15.6 million, and £15.0 million as at 17 December 2025.

Kodal owns 49% of Kodal Mining UK Limited (KMUK), which operates Bougouni. The company’s share of KMUK’s profit for the period was £218,000, which included a £4.395 million foreign exchange gain. The carrying value of the KMUK investment was £20.895 million at 30 September 2025.

Metric	H1 2025 / Latest	Comparative
Loss for the period	£355,019	H1 2024: £1,485,975
Total comprehensive loss	£1,130,979	H1 2024: £3,851,323
Cash balance	£15.6 million (30 Sep 2025)	£18.1 million (30 Sep 2024)
Cash (latest update)	£15.0 million (17 Dec 2025)	Not applicable
Share of KMUK profit	£218,000	H1 2024: £(831,819)
Investment in KMUK	£20.895 million	H1 2024: £28.207 million
Concentrate produced	~45,000 tonnes at 5.39% Li2O	Not disclosed
Export permit	125,000 tonnes approved	Not applicable
First shipment	28,950 tonnes (Nov 2025)	Not applicable
Initial payment received	US$21.3 million (post period end)	Not applicable

Cash flow and balance sheet colour

Operating cash outflow was £1.378 million in the half, reflecting corporate overheads while Bougouni ramped. There was a modest net inflow from investing activities and £65,000 from warrant exercises. Net assets were £44.58 million at period end.

Importantly, Kodal states it has sufficient cash resources to meet liabilities for at least 12 months from the approval of these interims. The company has also changed its financial year end to 31 December, with audited accounts for the nine months to 31 December 2025 due by 30 June 2026.

Strategic notes: gold portfolio, M&A and contingencies

The board is pursuing targeted M&A across critical minerals and precious metals in West Africa. Work on Kodal’s gold assets is delayed due to licence renewal uncertainty. Proceeds of £1.5 million from the agreed sale of Bougouni West remain unrecognised pending the renewal of the N’kemene Ouest licence.

Kodal and Hainan continue discussions on responsibility for a US$15 million settlement payment under an MoU with the State. Based on legal advice, the directors judge a successful claim against Kodal by Hainan to be unlikely, but the outcome and any potential outflow are currently not determinable.

Why this update matters for investors

• De-risking milestone: The export permit and first shipment move Bougouni from development into monetisation. The US$21.3 million initial payment is tangible validation of product and logistics.
• Operational cadence: With haul roads ready, de-bottlenecking done, and a mining schedule to deliver 100,000+ tonnes of ore to the ROM pad monthly, 2026 should see steadier throughput. ROM pad means the run-of-mine stockpile that feeds the plant.
• Financial trajectory: The statutory loss narrowed to £355,019. While the total comprehensive loss reflects FX swings, shipments in 2026 should support a shift to a revenue-generating profile.
• Growth optionality: Boumou assay results support the case for resource growth and the planned Stage 2 flotation plant in 2026.
• Risks in view: Mali’s evolving security landscape, permit renewals, export logistics, FX volatility, and the Hainan settlement discussion remain watchpoints.

My take: momentum is building, with eyes wide open on risk

This is a solid step-change half for Kodal. The DMS plant has produced saleable concentrate, the export permit is in hand, and cash from the first shipment has landed post period end. Those are the markers investors needed to see to believe Bougouni’s transition from project to operation.

Near term, expect numbers to be noisy as exports ramp and FX moves bite. The security backdrop in Mali is a genuine risk, and management’s increased on-site protection is prudent. On balance, though, the combination of operational progress, supportive government relations, and exploration upside puts Kodal in a stronger position heading into 2026. If the team can execute the 125,000-tonne export plan over the next year and advance Stage 2, the valuation debate shifts from promise to production.

Quick jargon check

• DMS (Dense Media Separation): A gravity-based process that upgrades ore by separating heavier minerals (like spodumene) from lighter waste.
• Spodumene concentrate: The lithium-bearing product sold to converters, typically around 5-6% Li2O.
• ROM pad: Run-of-mine stockpile area feeding the processing plant.
• PFS (Preliminary Feasibility Study): An engineering and economic study that sets mine plan assumptions and guides development decisions.