Source - LSE Regulatory
RNS Number : 6837K
Kodal Minerals PLC
23 December 2022
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").  With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

 

 

23 December 2022

 

Kodal Minerals plc ('Kodal', 'Kodal Minerals' or the 'Company')

 

Interim Results

 

Kodal Minerals plc, the mineral development and exploration company focused on its Bougouni Lithium Project ('Bougouni', the 'Bougouni Project' or the 'Project') in southern Mali, announces its unaudited interim results for the six months ended 30 September 2022.

 

Overview:

Bougouni Lithium Project

The Company has continued to look for and review opportunities to accelerate the development of the Bougouni Project so that it can take advantage of the near-term high price environment in the lithium market.

 

To this end, the Company is proposing the development of the Project through a faster and lower capital cost dense media separation ("DMS") processing plant option, with lithium ore sourced from the Ngoualana deposit which, due to its coarse grain properties, delivers high DMS recoveries.

 

Once financing is secured, the Kodal team will progress to construction and commissioning of the plant.  The expected capital cost of the DMS plant of US$65 million compares favourably to the previously published Feasibility Study update in June 2022 which showed a capital cost of over US$154 million for operations based on a flotation plant.

 

The DMS strategy allows the Company to commence production more quickly once sufficient funding is secured, exploiting the near-term advantage of high lithium concentrate prices, to generate positive cash flows which can be used to fund a downstream flotation plant in the future.

 

Highlights of the DMS option include:

·    Capital development cost for the DMS plant and all associated infrastructure and commencement of mining is estimated at US$65 million, generating an estimated NPV7% of approximately US$557 million (US$420 million post-tax) and, based on full equity funding, a short payback of 2 months from commencement of operations.

·    The DMS option is based on:

processing material from the Ngoualana deposit feeding 1Mtpa of lithium ore to a DMS processing plant

utilising a conventional circuit to maximise spodumene recovery of over 130,000 tonnes per annum of spodumene concentrate

an initial 4 year mine life.

·    DMS operation revenue forecast to exceed US$1.05 billion in less than 4 years, based on prevailing broker consensus pricing averaging US$2,080 per tonne (FOB basis).

·    The DMS operation targets production of a 5.5% Li2O spodumene concentrate product which is consistent with other producers currently active in the market.

·    Future expansion of the Project is expected to continue with the construction and commissioning of a down-stream flotation plant expected to be supported by utilising the DMS plant cash flows in order to exploit the resources at Sogola-Baoulé and Boumou, as well as longer term exploration prospects.

 

The Company is finalising the engineering and environmental work in connection with the DMS option to support discussions to secure the funding for the development of the Bougouni lithium project.  This work will be incorporated in the formal notice to be submitted to the Mali Government for a variation of commencement of mining ("Change Notification") to be submitted in early 2023 to formally update the Government on the changes associated with the DMS option.  The Company has completed the DMS plant designs, has completed the tailing storage and concept designs and is finalising the environmental studies for the variation documents.

 

The Company is currently undertaking metallurgical testing at the Nagrom testwork laboratory in Perth, Western Australia, with a programme of confirmatory testwork to provide additional data related to the ore characteristics and DMS recovery from the Ngoualana deposit.

 

Forward Plan

Kodal will progress the formulation of the Change Notification for submission to the Mali authorities in the coming weeks. It is anticipated that the Change Notification will be submitted to the Direction Nationale de la Geologies et des Mines (DNGM) early in the new year.

 

The exploration upside at Bougouni is positive, with a number of drill ready targets providing opportunity to expand on both the DMS material and flotation material. Post period, Kodal announced the appointment of Mr George Michaelides as Exploration Manager in Mali, to lead the pre-development site activities, with a focus on investigating opportunities for increasing the Company's lithium resources. George led the exploration activities which discovered the lithium resources at Bougouni, and after three-years at Kinross, has returned to Kodal.

 

The Ngoualana, Sogola-Baoulé and Boumou pegmatite veins comprise the current Mineral Resources at Bougouni but represent only three of the ten lithium spodumene prospects identified to date and highlights the opportunity for the Company to expand lithium resources across the Company's 350 sq. km project area.

 

Company Concessions

The Company is the 100% owner of the Bougouni Project in Mali consisting of granted concessions.  The concessions include the Mining Licence granted under the 2019 Mining Code and extending over 97.2 sq. km covering the proposed open-pit mining and processing operation at Bougouni (as announced on 8 November 2021). The Mining Code has provision for a notification of change which will be required for obtaining approval for the DMS option. Kodal has conducted initial discussions with the DNGM to seek their endorsement for the change and has commenced formulating the notification.

 

On 28 November 2022, the Mali Ministry of Mines announced that it has suspended the allocation of new mining titles.  This does not impact the Company as all mining licences have been granted and are in good standing.  The Company is free to continue with its development activities unencumbered.

 

Kodal has maintained the tenure of all other gold project in Mali and Cote d'Ivoire in good standing and continues to evaluate exploration programmes to advance these projects.

 

Bernard Aylward, CEO of Kodal Minerals, said: "Kodal has continued to undertake studies and engineering work to optimise the development of the Bougouni project and provide the Company with the opportunity to take advantage of the high demand, high price lithium market currently prevailing.  By opting for the construction of the DMS plant as the starting plant, we are increasing our chances of achieving our goal of becoming the first operational lithium mine in Mali. In addition, the reduced capital, and operating costs of the DMS development option provides Kodal with a near-term solution to take full advantage of the continuing buoyant lithium market once sufficient funding is secured."

 

"To support the Company's fast track development timeline, Kodal has commenced building the team that will drive the development and has re-appointed experienced Exploration Manager George Michaelides.  George was responsible for the Company's initial exploration and drilling programmes at Bougouni, from which our 21.3Mt Resource was defined. George will be tasked with expanding our resource base with the objective of extending the life of mine.

 

"The lithium market remains strong and our Bougouni Project continues to attract considerable interest. The DMS development option has been well received by the wider market, and Kodal is progressing discussions with market operators and potential financing partners. The Company will provide further updates as discussions progress." 

 

 

 

Chairman's Statement

I am pleased to report that Kodal is in a very strong position as it continues its strategy for the fast-track development of the flagship Bougouni Project.  The Company has demonstrated an extremely attractive economic outcome with the proposed DMS development of the Bougouni Project and is continuing with negotiations for financing and ongoing support of the development.  The Company is very well placed to become a significant producer of high demand lithium spodumene concentrate as the Bougouni Project has all necessary permits in place and the Company has maintained the continued support of the Mali Government and regional officials for the mine's development.

 

The very strong lithium market has continued throughout 2022 with the current broker consensus for the sale price of spodumene concentrate at above US$5,000 per tonne. This compares favourably with the life of mine average concentrate price used in the assessment of the fast track DMS proposal of US$2,080/t for spodumene concentrate.  The Company has always maintained a conservative approach in its studies to ensure that the proposed development is viable and provide confidence in meeting and potentially exceeding our economic targets.

 

In the 6-month period ended 30 September 2022, the Group has recorded a loss of £490,856 compared to losses of £373,000 for the 6 months to 30 September 2020 and £903,000 for the year to 31 March 2022.

 

Cash balances as at 30 September 2022 were £2,628,334 compared to £3,085,000 at 30 September 2021 and £1,046,000 at 31 March 2022.  Cash as at 21 December 2022 was £1,821,000.

 

Kodal continues to monitor the lithium market and we note the strong increase in demand for our proposed product that is underpinned by a supply deficit as well as a major increase in the battery market and in particular the uptake of electric vehicles ("EVs").  The consensus view is that this supply gap will remain for the next few years and Kodal is well positioned to enter the market in a very positive phase.

 

I look forward to reporting on our progress in the Company's Annual Report for the year ending 31 March 2023.

 

Robert Wooldridge

Non-Executive Chairman



 

 

 

Contact details:

For further information, please visit www.kodalminerals.com or contact the following:

 

Kodal Minerals plc

Bernard Aylward, CEO

 

 

Tel: +61 418 943 345

 

Allenby Capital Limited, Nominated Adviser

Jeremy Porter / Nick Harriss / Vivek Bhardwaj

 

 

Tel: 020 3328 5656

SP Angel Corporate Finance LLP, Financial Adviser & Joint Broker

John Mackay / Laura Harrison

 

 

Tel: 020 3470 0470

 

Canaccord Genuity UK Limited, Joint Broker

James Asensio/Gordon Hamilton

 

 

Tel: 0207 523 4680

St Brides Partners Ltd, Financial PR

Susie Geliher / Ana Ribeiro

Tel: 020 7236 1177

 

 

KODAL MINERALS PLC

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

 


 

 

Unaudited

6 months to

30 September

2022

 

Unaudited

6 months to

30 September

2021


Audited

Year ended

31 March

2022

 

 

 

£

 

£


£

Continuing operations

 

 

 

 




Revenue

 

 

-

 

-


-


 

 

 

 




Administrative expenses

 

 

(368,850)

 

(226,153)


(540,655)

Share based payments

 

 

(122,006)

 

(124,781)


(342,876)


 

 

 

 




OPERATING LOSS

 

 

(490,856)

 

(350,934)


(883,531)


 

 

 

 




Finance costs

 

 

-

 

(22,330)


(19,556)


 

 

 

 




 LOSS BEFORE TAX

 

 

(490,856)

 

(373,264)


(903,087)


 

 

 

 




Taxation

 

 

-

 

-


-


 


 

 




LOSS FOR THE PERIOD/YEAR

 

 

(490,856)

 

(373,264)


(903,087)

 

 

 

 

 




 

 

 

 

 




OTHER COMPREHENSIVE INCOME

 

 

 

 





 

 

 

 




Items that may be subsequently reclassified to profit and loss



 

 




 

 

 

 

 




Currency translation (loss)/gain

 

 

259,162

 

61,298


(108,167)


 

 

 

 




TOTAL COMPREHENSIVE INCOME FOR THE PERIOD/YEAR

 

 

(231,694)

 

(311,966)


(1,011,254)

 

 

 

 

 




Loss per share

 

 

 

 




Basic and diluted - loss per share on total earnings - pence per share

3

 

(0.0029)

 

(0.0024)


(0.0057)

 

KODAL MINERALS PLC

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2022

 



 

 

Unaudited

 as at

30 September

2022

 

Unaudited

as at

30 September

2021


Audited

as at

31 March

2022


Note

 

 

£

 

£


£

NON-CURRENT ASSETS

 

 

 

 

 




Intangible assets

6

 

 

12,788,905

 

9,994,766


11,442,403

 

Property, plant and equipment

7

 

 

1,356

 

6,889


3,309

 


 

 

 

 

 




 


 

 

 

 

 




 

 

 



12,790,261


10,001,655


11,445,712

 

CURRENT ASSETS

 



 





 

Other receivables

 



18,700


11,631


5,769

 

Cash and cash equivalents

 



2,628,334


3,085,708


1,045,515

 


 



 





 


 



2,647,034


3,097,339


1,051,284

 

CURRENT LIABILITIES

 



 





Trade and other payables

 



(598,543)


(592,143)


(406,341)

 


 



 





 

TOTAL LIABILITIES

 



(598,543)


(592,143)


(406,341)

 


 



 





 

NET ASSETS




14,838,752


12,506,851


12,090,655

 





 





EQUITY




 





Attributable to owners of the parent:

 



 





Share capital

10



5,282,416


4,941,475


4,947,595

Share premium account

10



18,456,035


15,874,194


15,933,071

Share based payment reserve




1,272,684


932,583


1,150,678

Translation reserve




(59,466)


(149,162)


(318,627)

Retained deficit




(10,112,917)


(9,092,239)


(9,622,062)

 




 





TOTAL EQUITY




14, 838,752


12,506,851


12,090,655

 

 


KODAL MINERALS PLC

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022


Share capital

 

Share premium account

 

 

Share based payments reserve

 

 

Translation

reserve

 

Retained deficit

 

Total equity

 

£

 

£

 

£

 

 

 

£

 

£

At 31 March 2021 (audited)

4,916,364

 

15,841,134

 

807,802

 

(210,460)

 

(8,718,975)

 

12,635,865

 

Comprehensive income












Loss for the period

-


-


-


-


(373,264)


(373,264)

Currency translation gain

-


-


-


61,298


-


61,298

Total comprehensive income for the period

-


-


-


61,298


(373,264)


(311,966)

 












Transactions with owners












Proceeds from shares issued

25,111


33,060


-


-


-


58,171

Share based payment

-

 

-

 

124,781

 

-

 

-

 

124,781

At 30 September 2021 (unaudited)

4,941,475

 

15,874,194

 

932,583

 

(149,162)

 

(9,092,239)

 

12,506,851

 

Comprehensive income












Loss for the period

-


-


-


-


(529,823)


(529,823)

Currency translation gain

-


-


-


(169,465)


-


(169,465)

Total comprehensive income for the period

-


-


-


(169,465)


(529,823)


(699,288)

 












Transactions with owners












Proceeds from shares issued

6,120


58,877


-


-


-


64,997

Share based payment

-

 

-

 

218,095

 

-

 

-

 

218,095

At 31 March 2022 (audited)

4,947,595

 

15,933,071

 

1,150,678

 

(318,627)

 

(9,622,062)

 

12,090,655

 












 

Comprehensive income












Loss for the period

-


-


-


-


(490,855)


(490,855)

Currency translation gain

-


-


-


259,161


-


259,161

Total comprehensive income for the period

-


-


-


259,161


(490,855)


(231,694)

 












Transactions with owners












Proceeds from shares issued

334,821


2,522,964


-


-


-


2,857,785

Share based payment

-

 

-

 

122,006

 

-

 

-

 

122,006

At 30 September 2022 (unaudited)

5,282,416

 

18,456,035

 

1,272,684

 

(59,466)

 

(10,112,917)

 

14,838,752

 












 













KODAL MINERALS PLC

 

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

 

 

 

Unaudited

6 months to

30 September

2022

 

Unaudited

6 months to

30 September

2021

 

Audited

Year ended 31 March

2022


 

 

£

 

£


£

Cash flows from operating activities

 


 





Loss before tax

 


(490,856)


(373,264)


(903,087)

Adjustments for non-cash items:

 


 





Finance costs

 


-


22,330



Share based payments

 


122,006


124,781


342,876

Operating cash flow before movements in working capital

 


(368,850)


(226,153)


(560,211)

 

 


 





Movement in working capital

 


 





(Increase)/decrease in receivables

 


(12,931)


13,494


10,244

Increase/(decrease) in payables

 


192,202


(54,804)


(218,275)

Net movements in working capital

 


179,271


41,310


(208,031)


 


 





Net cash outflow from operating activities

 


(189,579)


(267,463)


(768,242)

 

 


 





Cash flows from investing activities

 


 





Purchase of tangible assets

 


-


(1,600)


(1,600)

Purchase of intangible assets

 


(1,045,662)


(954,842)


(2,474,768)

Net cash outflow from investing activities



(1,045,662)


(956,442)


(2,476,368)

 

 


 





Cash flow from financing activities

 


 





Net proceeds from share issues

 


2,857,785


1,887,954


1,962,064


 


 





Net cash inflow from financing activities

 


2,857,785


1,887,954


1,962,064


 


 





Increase/(decrease) in cash and cash equivalents

 


1,622,544


664,049


(1,282,546)

Cash and cash equivalents at beginning of the period

 

 


1,045,515


2,432,807


2,432,807

Exchange (loss) / gain on cash



(39,725)


(11,148)


(104,746)

 

Cash and cash equivalents at end of the period

 

 


 

2,628,334


 

3,085,708


 

1,045,515


 







 

 

 

KODAL MINERALS PLC

 

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

 

General information

 

Kodal Minerals plc is a public limited company incorporated and domiciled in England & Wales. The Company's shares are publicly traded on the AIM market of the London stock exchange. Kodal Minerals Plc and its subsidiaries are involved in the exploration and evaluation of mineral resources in West Africa.

 

Basis of preparation

 

These unaudited condensed consolidated interim financial statements for the six months ended 30 September 2022 were approved by the board and authorised for issue on 22 December 2022.

 

The basis of preparation and accounting policies set out in the Annual Report and Accounts for the year ended 31 March 2022 have been applied in the preparation of these condensed consolidated interim financial statements. These interim financial statements have been prepared in accordance with the historical cost convention and in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 that are expected to be applicable to the consolidated financial statements for the year ending 31 March 2023 and on the basis of the accounting policies expected to be used in those financial statements.

 

The figures for the six months ended 30 September 2022 and 30 September 2021 are unaudited and do not constitute full accounts.  The comparative figures for the year ended 31 March 2022 are taken from the 2022 audited accounts, which are available on the Group's website, and have been delivered to the Registrar of Companies, and do not constitute full accounts.

 

The Group has not earned revenue during the period to 30 September 2022 as it is still in the exploration and development phases of its business.  The operations of the Group are currently being financed from funds which the Company has raised from the issue of new shares.

 

The directors have prepared cash flow forecasts for the next 12 months. The forecast includes the costs of further refining the feasibility study at the Bougouni Lithium Project, discretionary expenditure on additional targeted exploration of some of the company's gold assets, and the ongoing overheads of the Group. The forecast also includes cash inflows from corporate activity and/or other fundraising transactions of which the directors have a reasonable expectation of receipt. On this basis, the forecast shows that the Group has sufficient cash resources available to allow it to continue as a going concern and meet its liabilities as they fall due for a period of at least 12 months from the date of the approval of these interim results. Accordingly, the interims have been prepared on a going concern basis. 

 

 

 

KODAL MINERALS PLC

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

 

1.         SEGMENTAL REPORTING

 

The operations and assets of the Group are focused in the United Kingdom and West Africa and comprise one class of business: the exploration and evaluation of mineral resources. The parent Company acts as a holding company.  At 30 September 2022, the Group had not commenced commercial production from its exploration sites and therefore had no revenue for the period.

 

Six months to 30 September 2022 (Unaudited)

West African Gold

West African Lithium

Corporate

Total


£

£

£

£

Administration expenses

(293)

(9,986)

(358,570)

(368,849)

Share based payments

-

-

(122,006)

(122,006)

Loss for the period

(293)

(9,986)

(480,576)

(490,855)






At 30 September 2022





Trade and other receivables

17,088

806

806

18,700

Cash and cash equivalents

23,049

311

2,604,974

2,628,334

Trade and other payables

(4,645)

(481,624)

(112,274)

(598,543)

Intangible assets - exploration and evaluation expenditure

3,068,268

9,720,637

-

12,788,905

Property plant and equipment

338

1,018

-

1,356

Net assets

3,104,098

9,241,148

2,493,506

14,838,752

 

Six months to 30 September 2021 (Unaudited)

West African Gold

West African Lithium

Corporate

Total


£

£

£

£

Administration expenses

(1,115)

(32)

(225,006)

(226,153)

Share based payments

-

-

(124,781)

(124,781)

Loss for the period

(1,115)

(32)

(349,787)

(350,934)

 

 





At 30 September 2021





Trade and other receivables

-

-

11,631

11,631

Cash and cash equivalents

22,106

21,750

3,041,852

3,085,708

Trade and other payables

-

(298,683)

(293,460)

(592,143)

Intangible assets - exploration and evaluation expenditure

2,078,176

7,916,590

-

9,994,766

Property plant and equipment

5,484

1,405

-

6,889

Net assets

2,105,766

7,641,062

2,760,023

12,506,851

 

 

Year to 31 March 2022 (Audited)

West African Gold

West African Lithium

Corporate

Total


£

£

£

£

Finance costs

-

-

(19,556)

(19,556)

Administration expenses

(866)

(1,164)

(538,625)

(540,655)

Share based payments

-

-

(342,876)

(342,876)

Loss for the year

(866)

(1,164)

(901,057)

(903,087)






 

At 31 March 2022 (Audited)





Other receivables

-

-

5,769

5,769

Cash and cash equivalents

38,481

57,184

949,850

1,045,515

Trade and other payables

-

(305,382)

(100,959)

(406,341)

Tangible assets

-

3,309

-

3,309

Intangible assets - exploration and evaluation expenditure

2,410,787

 

9,031,616

-

11,442,403

Net assets

2,449,268

8,786,727

854,660

12,090,655

 

2.         OPERATING LOSS

 

The operating loss before tax is stated after charging:

 



Unaudited

6 months to

30 September

2022

Unaudited

6 months to

30 September

2021


Audited

Year ended

31 March

2022



£

£


£

Audit services


-


-


40,000

Share based payment

 

122,006

124,781


342,876

Directors' salaries and fees

 

80,530


78,925


167,980

Employer's National Insurance

 

-


-


5,980

 

3.         LOSS PER SHARE

 

Basic loss per share is calculated by dividing the loss for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.

 

The following reflects the loss and share data used in the basic EPS computations:

 



Loss

Weighted average number of shares


Basic loss per share (pence)



£




Six months to 30 September 2022

 

(490,855)

16,715,347,911

 

0.0029

Six months to 30 September 2021


(373,264)

15,791,967,987


0.0024

Year ended 31 March 2022


(903,087)

15,809,383,877


0.0057

 

Diluted loss per share is calculated by dividing the loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.  Options in issue are not considered diluting to the earnings per share as the Group is currently loss making.   Diluted loss per share is therefore the same as the basic loss per share.

 

4.         SHARE BASED PAYMENTS

 

The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.

 



Unaudited

6 months to

30 September

2022

 

Unaudited

6 months to

30 September

2021

 

Audited

Year ended

31 March

2022

Share options outstanding


 

 


 

 

Opening balance


250,000,000


205,000,000


205,000,000

Issued in the period


640,000,000


45,000,000


45,000,000

Lapsed in the period


(85,000,000)


-



 

Closing balance


 

805,000,000


 

250,000,000


 

250,000,000

 



Unaudited

6 months to

30 September

2022

 

Unaudited

6 months to

30 September

2021

 

Audited

Year ended

31 March

2022

Performance share rights outstanding


 

 


 

 

Opening balance


175,000,000


-


-

Issued in the period


75,000,000


175,000,000


175,000,000

Lapsed in the period


-


-


-

 

Closing balance


 

250,000,000


 

175,000,000


 

175,000,000

 

 



Unaudited

6 months to

30 September

2022

 

Unaudited

6 months to

30 September

2021

 

Audited

Year ended

31 March

2022

Share warrants outstanding


 

 


 

 

Opening balance


205,000,000


285,355,663


285,355,663

Issued in the period


-


-


-

Exercised in the period


-


(80,355,663)


(80,355,663)

 

Closing balance


 

205,000,000


 

205,000,000


 

205,000,000

 

Options, performance share rights and warrants issued in the period to 30 September 2022

 

On 27 July 2022 the Company granted Performance Share Rights of up to 75,000,000 ordinary shares to Steven Zaninovich.  The Performance Share Rights carry vesting conditions that are linked to achievement of the following milestones critical to the development of the Bougouni Project:

·    Securing of finance for the Bougouni mine

·    Receipt of funds from first sale of spodumene concentrate from Bougouni within 18 months of receipt of finance

·    Production of 175,000 tonnes of spodumene concentrate from Bougouni

 

Subject to the vesting conditions being satisfied, the holders of the Performance Share Rights may call for Ordinary Shares to be issued to them at any time within five years of the vesting condition being met and upon payment by them of the nominal value for the Ordinary Shares:

 

On 18 August 2022 the Company granted Share Options to certain directors and senior management in accordance with its Management Incentive Award Plan. 

 

Options over 130,000,000 Ordinary Shares were issued to Bernard Aylward and over 25,000,000 to Mohamed Niaré (Country Manager).  The Share Options are exercisable at between 0.3 pence and 0.38 pence per share and carry vesting conditions that are linked to the achievement of the following milestones critical to the development of the Bougouni Project:

·    Securing of finance for the Bougouni mine and completion of all Mali Government Agreements, Update and Variation of Mining Licence and Environment permitting in relation to the Project

·    Receipt of funds from first sale of spodumene concentrate from Bougouni within 18 months of receipt of finance

·    Production of 175,000 tonnes of spodumene concentrate from Bougouni

 

On 18 August 2022, options over Ordinary Shares were granted to Robert Wooldridge (Chairman), Charles Joseland (Non-Executive Director) and Qingtao Zeng (Non-Executive Director). as set out in the table below. The Share Options will vest in equal tranches with the first one third vesting immediately and exercisable at £0.0030 per share, and the remaining two thirds vesting in two equal tranches on the first and second anniversaries of the grant and exercisable at £0.0034 per share.

 

Recipient                                            Share Option Awards

Robert Wooldridge                         100,000,000 options

Charles Joseland                              75,000,000 options

Qingtao Zeng                                     130,000,000 options

 

5.         TAXATION

 

There is no taxation charge for the period to 30 September 2022 (6 months to 30 September 2021: £nil, year to 31 March 2022: £nil) as the group continues to incur losses.

 

No deferred tax asset has been recognised in respect of losses as the timing of their utilisation is uncertain at this stage.

 

6.         INTANGIBLE ASSETS




Exploration and evaluation


 

 

 

£

 

COST





 

At 31 March 2021



8,964,089


Additions in the period



958,344


Effects of foreign exchange



72,333


 

At 30 September 2021

 

 

9,994,766


Additions in the period



1,588,342


Effects of foreign exchange



(140,705)


 

At 31 March 2022

 

 

11,442,403

 

Additions in the period



1,047,742


Effects of foreign exchange



298,760


 

At 30 September 2022

 

 

12,788,905

 

 

 

 

 

 

AMORTISATION





 

At 31 March 2021 and 30 September 2021 and 31 March 2022 and 30 September 2022

 

 

-

 

 





NET BOOK VALUES





 


 

 

 

At 30 September 2022 (Unaudited)


 

12,788,905

 

 


 

 

 

At 30 September 2021 (Unaudited)



9,994,766







At 31 March 2022 (Audited)


 

11,442,403


 

7.         PROPERTY, PLANT AND EQUIPMENT



Plant and machinery


 

 

£

 

COST




 

At 31 March 2021


26,079


Additions in the period


1,600


Effects of foreign exchange


114


 

At 30 September 2021


27,793

 

Additions in the period


-


Effects of foreign exchange


(160)


At 31 March 2022


27,633


Additions in the period


-


Effects of foreign exchange


(127)


At 30 September 2022


27,761






 

 

 




DEPRECIATION




At 31 March 2021


17,402


Charge for the period


3,502


 

At 30 September 2021


20,904


Charge for the period


3,420


 

At 31 March 2022


24,324


Charge in the period


2,081


At 30 September 2022


26,405


 




NET BOOK VALUES


 

 

 


 

 

At 30 September 2022 (Unaudited)


1,356

 

 


 

 

At 30 September 2021 (Unaudited)


6,889






At 31 March 2022 (Audited)


3,309


 




8.         SUBSIDIARY ENTITIES

 

The consolidated financial statements include the following subsidiary companies:

 

 

Company

 

Subsidiary of

Country of

incorporation

Equity holding

Nature of

Business

Kodal Norway (UK) Limited

Kodal Minerals Plc

United Kingdom

100%

Dormant company

International Goldfields (Bermuda) Limited

Kodal Minerals Plc

Bermuda

100%

Holding company

International Goldfields Mali SARL

International Goldfields (Bermuda) Limited

Mali

100%

Mining exploration

International Goldfields Cȏte d'Ivoire SARL

International Goldfields (Bermuda) Limited

Cȏte d'Ivoire

100%

Mining exploration

Jigsaw Resources CIV Limited

International Goldfields (Bermuda) Limited

Bermuda

100%

Holding company

Corvette CIV SARL

Jigsaw Resources CIV Limited

Cȏte d'Ivoire

100%

Mining exploration

Future Minerals SARL

International Goldfields (Bermuda) Limited

Mali

100%

Mining exploration

 

9.         ORDINARY SHARES

 

Allotted, issued and fully paid:

 


Nominal Value

Number of Ordinary Shares

Share Capital

£

Share Premium

£

At 30 September 2021



15,812,719,175

4,941,475

15,874,194







November 2021 (a)



19,583,212

6,120

58,877







At 31 March 2022



15,832,302,387

4,947,595

15,933,071

 



 

 

 

May 2022 (b)



1,071,428,569

33,821

2,522,964













At 30 September 2022

 

 

16,903,730,956

5,282,416

18,456,035

 

Share issue costs have been allocated against the Share Premium account.

 

Notes:

a)    On 5 November 2021, a total of 19,583,212 shares were issued pursuant to the Company's agreement with Bambara Resources SARL at 0.3319p per share.

b)    On 4 May 2022, raised £3,000,000 (before expenses) via a subscription for 130,142,857 shares and a placing of 941,285,712 shares at a price of 0.28 pence per share.

 

10.      RELATED PARTY TRANSACTIONS

 

Transactions with related parties

 

Robert Wooldridge, a Director, is a member of SP Angel Corporate Finance LLP ("SP Angel") which acts as financial advisor and broker to the Company.  During the six months to 30 September 2022, SP Angel received fees of £157,005 (6 months to 30 September 2021: £15,000, year to 31 March 2022:  £30,000).  The balance due to SP Angel at 30 September 2022 was £nil (30 September 2021:  £nil, 31 March 2022:  £nil).

 

Matlock Geological Services Pty Ltd ("Matlock"), a company wholly owned by Bernard Aylward, a Director, provided consultancy services to the Group during the six months to 30 September 2022 and received fees of £61,754 (6 months to 30 September 2021: £48,563, year to 31 March 2022:  £97,450). The balance due to Matlock at 30 September 2022 was £13,270 (30 September 2021:  £nil, 31 March 2022:  £nil).

 

Geosmart Consulting Pty Ltd ("Geosmart"), a company wholly owned by Qingtao Zeng, a Director, provided consultancy services to the Group during the six months to 30 September 2022 and received fees of £18,948 (6 months to 30 September 2021: £7,165, year to 31 March 2022:  £27,136).  The balance due to Geosmart at 30 September 2022 was £10,311 (30 September 2021:  £nil, 31 March 2022:  £nil).

 

Zivvo Pty Ltd ("Zivvo"), a company wholly owned by Steven Zaninovich, a Director, provided consultancy services to the Group.  Steven Zaninovich was appointed as a Director on 1 August 2022 and between that date and 30 September 2022, Zivvo received fees of £37,370. The balance due to Zivvo at 30 September 2022 was £37,370.

 

11.      CONTROL

 

No one party is identified as controlling the Group.

 

12.      EVENTS AFTER THE REPORTING PERIOD

 

There are no significant events to report subsequent to the reporting period end.

 

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