Kodal Minerals PLC · LSE:KOD
Kodal Minerals — Investor Presentation (May 2024)
38 slides from Kodal Minerals's investor presentation, May 2024
Slide 1: London's first Lithium producer in West Africa
London’s first Lithium producer in West Africa Analyst Presentation – May 2024
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) and the presentation made to you verbally has been prepared by Company’s results of operations, performance, financial condition, prospects, growth, strategies and the industry in which the Kodal Minerals PLC (the “Company”). Kod
Slide 3: Contents
Contents About Kodal 4 Bougouni Lithium Project 12 Upside Exploration 22 Lithium Fundamentals 25 Sustainability 28 Summary 32 Appendices 34 3
Slide 4: About Kodal
4’ Minerals About Kodal
Slide 5: Leadership
Leadership Strong senior team with African mining development and operational experience BERNARD AYLWARD STEVEN ZANINOVICH ROBERT WOOLRIDGE CHARLES JOSELAND DAVID TENG CHIEF EXECUTIVE OFFICER OPERATIONS DIRECTOR NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR • Geologist with 20
Slide 6: Investment Case
Investment Case About Kodal Minerals plc • Fully permitted and financed Bougouni Lithium Project Kodal Minerals plc is a London Stock • Highly experienced development and operational management team with Exchange AIM-quoted mineral exploration and development company +10 years’ experience operating
Slide 7: London's first Lithium producer in West Africa
London’s first Lithium producer in West Africa Bougouni Lithium Project, Mali Strong Free Cash Flow Post Q4/24 Significant Exploration Upside Solid JV partnership with Hainan / Fosun Stage 1: Low capex DMS Plant, low AISC, highly Stage 2: 10+ years on current MRE with limited profitable Lithium prod
Slide 8: Bougouni Location in Southern Mali
Bougouni Location in Southern Mali A highly productive region Kodal's Bougouni Lithium Project is located in Southern Mali - 180km south of the capital, Bamako, adjacent to the main highway and easily accessible. The region is home to numerous established mining operations including: ▪ Hummingbird's
Slide 9: Bougouni JV Partner – Hainan Group
Bougouni JV Partner – Hainan Group 100% offtake secured with JV partner Hainan Mining is a subsidiary Invested US$100M for a 51% Hainan acquired 14.7% Bougouni will supply feedstock of Fosun International stake in Bougouni asset of Kodal Minerals plc to Hainan’s Lithium Hydroxide via US$17.75m Plant
Slide 10: Project Team in Mali
Project Team in Mali PAUL REEVES MOHAMMED NIARÉ YUSHEN CAI JERRY GAO CHIEF FINANCIAL OFFICER MALI COUNTRY MANAGER GENERAL MANAGER OF OPERATIONS HAINAN VP OPERATIONS • Qualified Chartered Accountant with • Malian national with over 25 years’ • Engineer with 25+ years’ experience in • Metallurgist wit
Slide 11: Bougouni Licence Under Mali Mining Code 2019
Bougouni Licence Under Mali Mining Code 2019 ▪ 12-year mining licence with option to increase in 10-year phases until end of LOM ▪ All permitting completed: environmental, production, construction and mining permits ▪ Permits granted under Mali Mining Code 2019 for entire Bougouni licence concession
Slide 12: Bougouni Lithium Project
Bougouni Lithium Project In Production by Q4’24
Slide 13: Bougouni Project: 2-Stage Development (2024-36)
Bougouni Project: 2-Stage Development (2024-36) Staged development strategy to maximise potential Stage 1 – DMS (2024-28) • c.125ktpa production from Ngoualana Pit • Initial 4-yr LOM • Low capex c.$65M • Simple process Stage 2 - Flotation Plant (2026-36) • 230Ktpa output from Boumou & Sogola- Baoulé
Slide 14: Bougouni Lithium Project Mineral Resource Update
Bougouni Lithium Project Mineral Resource Update – 14 November 2023 • Updated JORC mineral resource estimate of 31.9Mt at 1.06% Li2O; adds 10.6Mt vs MRE in 2019 • 3,230 metres of RC/diamond drilling campaign in Boumou and Ngoualana prospects • Significant upside potential from Sogola-Baoulé, Boumou
Slide 15: Bougouni Stage 1 DMS
Bougouni Stage 1 DMS DECEMBER 2024-28 Direct Media Separation BOUGOUNI LITHIUM DMS c.125,000 tpa 2,500 800 700 2,000 CAPEX c.$65M 600 1,500 500 $647/t of concentrate 400 OPEX AISC produced 1,000 300 200 500 IRR 274% / <3month payback 100 0 0 FREE CASHFLOW $712M (pre-tax) Capit al Int ensit y (US$/t
Slide 16: 2024 Construction Schedule
2024 Construction Schedule 16
Slide 17: Bougouni Lithium Project: 2024 Construction Progress
Bougouni Lithium Project: 2024 Construction Progress ✓ JV team reviewed and approved project development plan for DMS Stage 1 ✓ Capital expenditure Stage 1 of US$65m - in line with forecasts ✓ Long Lead Items ordered - DMS units and dual stream crushing modules; manufacturing nearing completion in r
Slide 18: Project Images
Project Images Kodal Team safety briefing Equipment on site Top soil stripping Plant Site Bridge opening ceremony 18
Slide 19: Project Images
Project Images Bridge opening ribbon cutting ceremony Plant Site area prepared, ready for civils Solar powered bore pump installation Kodal Mining team on site 19
Slide 20: Logistics – Exporting Lithium Product
Logistics – Exporting Lithium Product Bougouni to Port of San Pedro, Côte d’Ivoire M A LI Kodal Minerals • San Pedro is preferred port of export for lithium concentrate product Sikasso Bo b o - Dio ulasso • Route survey conducted by experienced logistics consultant BURK IN A FA SO • 884km total dist
Slide 21: Offtake Agreement
Offtake Agreement 100% offtake of Bougouni Lithium to Hainan Group for Stage 1 • High quality/low impurity spodumene concentrate of 5.5-6% converts to high-grade carbonate product; ideal for EV batteries • Offtake for first 3 years of Stage 1 production (DMS) - 100% Hainan Group • Priced on Shanghai
Slide 22: Exploration Upside
7» Kodal ¢’ Minerals Exploration Upside
Slide 23: Exploration
Exploration 2024 Drilling Campaign at Bougouni • 2024 drilling campaign targeting to increase Bougouni mineral resource (MRE) by 51% to 50Mt; commenced in Q1 • Exploration budget of $2.5M allocated to drilling at Boumou, Kola and Sogola-Baoulé • Resource definition, infill and exploration drilling a
Slide 24: Exploration
Exploration Boumou Priority Target • Reverse Circulation drilling 18 holes for 3,234m drilled. All assay results pending • Diamond Core drilling continuing; 3 drill holes for 601m completed • Drilling has confirmed a strike length of over 970m and intersected multiple pegmatite veins confirming geol
Slide 25: Lithium Fundamentals
4’ Minerals Lithium Fundamentals
Slide 26: Why Lithium?
Why Lithium? Addressing increased global demand Fast-growing Lithium demand to reach 4,500 Global lithium demand could reach 4,500 gigawatt-hours by 2030 gigawatt-hours by 2030 (fig. 1) • 2030 Li demand for batteries to reach 95% of total market vs 30% in 2015¹ • EVs main demand driver - EV sales fo
Slide 27: Why Lithium?
Why Lithium? Addressing accelerated global demand for ‘white gold’ Electric Vehicle sales to reach c.40 Million by 2030 Top 10 countries with largest lithium reserves, million metric tons Number of battery electric vehicles sold (millions, left) and % of total global auto sales (right) 2016-30e Fig.
Slide 28: Sustainability
Sustainability
Slide 29: Sustainability Strategy
Sustainability Strategy Responsibly addressing the global energy transition whilst delivering positive socio- economic outcomes for the people of Mali Bougouni presents an opportunity to mine and Kodal is mindful of its responsibilities as a Kodal has ensured that value creation is focused Kodal’s i
Slide 30: Community Consultation
Community Consultation ESIA approved and Community Development Program Established ✓ Mali’s Minister for Environment endorsed Stage 1 DMS Project development program and development of DMS processing site ✓ Updated ESIA for Bougouni Project Phase 1 DMS approved ✓ Community consultation committee est
Slide 31: Community Projects 2023/24
Community Projects 2023/24 Support for schools for the 2023-24 school year The opening of the local school with the introduction of a new teacher and supplies donated by Kodal was attended by the communal authorities of Kola, the school administration of Bougouni (CAP) and the people of Kola-Sokoura
Slide 32: Summary
y» Kodal f’ Minerals Summary
Slide 33: Kodal Fundamentals
Kodal Fundamentals ▪ Fully funded and licenced Lithium project in Mali ▪ Strong partnership with JV partner / offtaker Hainan/Fosun ▪ Strong team with technical proficiency and track record of building and developing Lithium mines including Bald Hill DMS Mine (Western Australia) ▪ Highly cash genera
Slide 34: Appendices
. Kodal Minerals Appendices
Slide 35: Company Structure
Company Structure Kodal Mining UK Limited (KMUK) • KMUK, the fully incorporated UK subsidiary, was incorporated to be the developer of the Bougouni Lithium mine through its Malian subsidiary mining company, Les Mines de Lithium de Bougouni (LMLB) • The Hainan Group acquired 51% of KMUK for US$100M,
Slide 36: Bougouni Stage 1 – Ngoualana / DMS
Bougouni Stage 1 – Ngoualana / DMS Degrit Stockpile Substation Fines Stockpile Power Stn DMS Processing Distributor Product Stockpile Crushed Ore Feed 36
Slide 37: Recent Transactions in Lithium Sector
Recent Transactions in Lithium Sector Target Acquirer Deal Value Date announced Deal Type Allkem-Livent N/A $10.6bn May 2023 Merger Sigma Lithium Tesla $3.0bn February 2023 Acquisition Sociedad Quimica y Minera de Chile Azure Minerals $1.0bn October 2023 Acquisition (SQM) Kathleen Valley Albemarle $
Slide 38: Bernard Aylward, Chief Executive Officer; Allenby Capital
BERNARD AYLWARD ALLENBY CAPITAL LTD CANACCORD GENUITY Chief Executive Officer Nominated Adviser Joint Broker [email protected] [email protected] [email protected] BUCHANAN SP ANGEL Financial PR & IR Financial Adviser & Joint Broker [email protected] [email protected]