Kodal Minerals Plc · LSE:KOD
Kodal Minerals — Investor Presentation (February 2024)
36 slides from Kodal Minerals's investor presentation, February 2024
Slide 1: Africa's Next Lithium Producer
Africa’s Next Lithium Producer Investor Presentation – February 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 13 Upside Exploration 21 Lithium Fundamentals 6 23 Sustainability 26 Summary 30 Appendices 32 3
Slide 4: About Kodal
,> Kodal 4’ Minerals About Kodal
Slide 5: Investment Case
Investment Case Kodal Minerals plc • Fully permitted & financed lithium project Kodal Minerals plc is the • Highly experienced development and operational management team London Stock Exchange-quoted mineral exploration and • Fully funded to first production in late 2024 development company focusing
Slide 6: Africa's Next Lithium Producer
Africa’s Next Lithium Producer Bougouni Lithium Project, Mali Strong Free Cash Flow Post Q4/24 Significant Upside Solid JV partnership with Hainan/ Fosun Stage 1: Low capex, low AISC, highly profitable Stage 2: 10+ years on current MRE with limited Lithium production from Dec 2024-28 - even at drill
Slide 7: Bougouni Location in Southern Mali
Bougouni Location in Southern Mali A highly productive region Kodal's Bougouni Lithium Project is located in Southern Mali - 170km south of the capital, Bamako with strong road and power logistics. The region is home to numerous established mining operations including: ▪ Hummingbird's Yanfolila Mine
Slide 8: 2024 Roadmap – value catalysts ahead of production
2024 Roadmap – value catalysts ahead of production 8
Slide 9: Leadership
Leadership Strong senior team with African mining development and operational experience BERNARD AYLWARD STEVEN ZANINOVICH ROBERT WOOLRIDGE CHARLES JOSELAND CHIEF EXECUTIVE OFFICER OPERATIONS DIRECTOR NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR • Geologist with 20+ years' experience • 30+ years' e
Slide 10: 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% of Bougouni to supply feedstocks to of Fosun International stake in Bougouni asset Kodal Minerals plc via Hainan’s Lithium Hydroxide Plant in US$17.7
Slide 11: 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 • Malian national with over 25 years’ Engineer with 25+ years’ experience in • Metallurgist with 20 ye
Slide 12: 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 13: Bougouni Lithium Mine
Bougouni Lithium Mine In Production by Q4’24
Slide 14: Bougouni 2-Stage Development (2024-36)
Bougouni 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.$60-70M • Simple process Stage 2 - Flotation Plant (2026-36) • 230Ktpa output from Boumou & Sogola- Baoulé depos
Slide 15: 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 16: Bougouni Stage 1 DMS
Bougouni Stage 1 DMS DECEMBER 2024 –28 Direct Media Separation BOUGOUNI LITHIUM DMS c.125,000tpa CAPEX c.$65M 2,500 800 OPEX AISC $647/t of concentrate produced 700 2,000 600 IRR 274% / <3month payback 500 1,500 400 FREE CASHFLOW $712M (pre-tax) 1,000 300 200 500 NPV7 $420M (after 4-year LOM) 100 0
Slide 17: Project Construction Update
Project Construction Update Development of Bougouni Project advancing in Q1’24 ▪ Site preparations underway; ordering of LLI underway ▪ Site Access Road clearance completed by local contractors; negotiations with mining/earth works contractors ongoing ▪ Stage 1 DMS processing plant design complete ▪
Slide 18: Project Images
Project Images Kodal ) M
Slide 19: Logistics – Exporting Lithium Product
Logistics – Exporting Lithium Product Bougouni to Port of San Pedro, Côte d’Ivoire MALI Kodal Minerals • San Pedro is preferred port of export for lithium concentrate product Sikasso Bobo-Dioulasso • Route survey conducted by experienced Logistics Consultant BURKINA FASO • 884km total distance from
Slide 20: Offtake Agreement
Offtake Agreement 100% offtake of Bougouni Lithium to ROFR & Fosun for Stage 1 • High quality/low impurities 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 only) - 80% Suay Chin International (R
Slide 21: Upside Exploration
y> Kodal “Minerals Upside Exploration
Slide 22: Exploration
Exploration 2024 Drilling Campaign at Bougouni • 2024 drilling campaign targeting to increase Bougouni mineral resource (MRE) by 51% to 50Mt • Exploration budget of $1.7m allocated to drilling at Boumou, Kola and Sogola-Baoulé • Resource definition, infill and exploration drilling at Boumou, Sogola-
Slide 23: Lithium Fundamentals
,> Kodal 4’ Minerals Lithium Fundamentals
Slide 24: Why Lithium?
Why Lithium? Addressing increased global demand Fast-growing Lithium demand to reach 4,500Gw/h- Global lithium demand could reach 4,500 gigawatt-hours by 2030 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 foreca
Slide 25: Why Lithium?
Why Lithium? Addressing increased global demand Electric Vehicle Sales Will Reach Roughly 40 Million by Top 10 countries with largest lithium reserves, million metric tons 2030 Number of battery electric vehicles sold (millions, left) and % of total global auto sales (right) 2016-30e Fig.2 Fig.3 25
Slide 26: Sustainability
_/>» Kodal “Minerals Sustainability
Slide 27: 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 28: Community Projects 2023
Community Projects 2023 Support for schools for the 2023-24 school year The handover ceremony was attended by the communal authorities of Kola, the school administration of Bougouni (CAP) and the people of Kola-Sokoura. On the sidelines of the launch, 105 seedlings were planted in and around the sch
Slide 29: Community Consultation
Community Consultation ESIA approved and community consultation committee working well ▪ Kodal’s full time Malian ESR Manager boasts 25+ years in Mali, including 3 years on the Bougouni Project. ▪ Construction of Mine Access Road completed incl. upgrade of existing road to N'gouanala Village - a maj
Slide 30: Summary
y> Kodal 4’ Minerals Summary
Slide 31: Kodal Fundamentals
Kodal Fundamentals ▪ Fully funded, 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 generative
Slide 32: Appendices
7» Kodal “’ Minerals Appendices
Slide 33: 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, t
Slide 34: Bougouni Stage 1 – Ngoualana / DMS
Bougouni Stage 1 – Ngoualana / DMS Degrit Stockpile Substation Fines Stockpile Power Stn 2 x DMS Modules Distributor Product Stockpile Crushed Ore Feed 34
Slide 35: 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 36: Contact details
BERNARD AYLWARD CANACCORD GENUITY BUCHANAN SP ANGEL Chief Executive Officer Joint Broker Financial PR & IR Financial Adviser & Joint Broker E: bernard@kodalminerals.com E: jasensio@cgf.com E: kodal@buchanancomms.co.uk E: richard.parlons@spangel.co.uk
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