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Why Kodal Minerals Shares Soared 106% in April on Crucial Milestones

Simon Mugo trader
Updated 20 Apr 2023

The Kodal Minerals PLC (LON: KOD) share price soared 105.9% in April after achieving multiple crucial milestones that brought it closer to starting production activities at its flagship Bouguoni lithium mine in Mali.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The mining company started the month with an update about the drilling, engineering development and financing of the Bouguoni mine. The firm had completed 41 reverse circulation (RC) and 18 diamond drill holes for 6,360m at Bouguoni. The firm also outlined some impressive results from the samples collected at the mine.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

Kodal also revealed that it had made decent progress advancing the DMS plant, including establishing a community consultation committee. The company also submitted application forms to the China National Development and Reform Commission (NDRC) and the Department of Commerce for approval. 

The second significant announcement from the company came on 13 April 2023 when it announced that its partner on the Bouguoni lithium project, Hainan Mining Co. Limited, had received all the necessary approvals from the Chinese Government authorities to allow it to complete its funding and investment as set out in the Hainan Funding Agreement.

The approvals from the Chinese government were a big deal, given that they paved the way for Hainan Mining to release the funds promised to Kodal Minerals to accelerate the construction of the DMS plant. 

The approvals received by Hainan include “Overseas Project Investment Filing Certificates” from the Hainan Province National Development and Reform Commission (“NDRC”) and Company Overseas Investment Certificate from the Department of Commerce of Hainan Province.

Lastly, yesterday Kodal revealed that it had completed the sale of the Bouguoni West Project for a cash consideration of £2.0 million, which had minimal impact on the company’s share price. The sale was also accompanied by news about further high-grade intersections at the Boumou Prospect located within Kodal’s Bougouni Lithium Project in Mali.

Kodal Minerals’ share price rally has been driven by the positive developments regarding the company’s Bouguoni lithium mine, which is now on track to start producing lithium concentrated on the agreed-upon timelines. 

*This is not investment advice. 

The Kodal Minerals' share price. 

The Kodal Minerals share price has soared 105.85% from its April low of 0.393p to its current price of 0.809p.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading