Kodal Minerals CEO on Q3 highlights, strong cash flow and Stage 2 plans for Bougouni

And we've received over $142 million of revenue. So, underpinning what's clearly a very uh cash generative operation, very strong production profile to date.

Hello, you're watching Proactive. I'm joined by Kodal Minerals CEO Bernard Ailward. And Bernard, very good to speak with you. The third quarter delivered just over 27,000 DMT of concentrate. The fifth cargo has departed San Pedro. What were the quarters and year to date key operational and commercial highlights?

Yeah, hi Stephen and hi uh all viewers. Um as you said, the quarter again produced over 27,000 tons of concentrate. Uh and for us a good quarter particularly given a wet season in uh West Africa that was, you know, heavy as usual, had a minor impact on our operation, but we came through it very well. The team did a very good job there. Um it's important for us that we continue this steady, steady shipments and uh export of our product and as you said, we've had 80,000 tons year to date. But importantly, our shipments in total for the completed shipments now were over 93,000 tons of concentrate delivered to our offtake partner in China in Hainan. and we've received over $142 million of revenue. So underpinning what's clearly a very uh cash generative operation, very strong production profile to date. Of course, we're always looking to improve and our team's very positive about improvements going forward for this next quarter and for next year. Um, we do have a fifth shipment on the water. Uh and importantly, we maintain these strong relationships both at the community level and the government level. and during the quarter, we've received a new export permit for a further 125,000 ton of concentrate underpinning our full export profile for the coming year.

The project level cash flows enabled CAM UK to repay the high and facility in full. How does that strengthen Codel's position, Bernard?

Yeah, look, I think it's very clear, Stephen that at the moment we've been exporting into a strong lithium market. We've been uh the beneficiary of a strong lithium price. It's allowed us to pay off the debt that we owed to Hind for a financing facility that helped us just through that last stage of commissioning and beginning to export. To pay that off quickly means that we're debt-free. It demonstrates a derisking of the venture and highlights the opportunity that we have going forward as we look to develop our stage two flotation plant that we're able to generate cash and continue to build cash within our within our uh joint venture company.

And looking ahead, what's the next key milestones for Bugunini?

Yeah, look, we we look at a couple of things of great importance to us, Stephen. Number one, as I mentioned earlier, we're looking to finish the year strongly with this last quarter. Our team is very uh very strong on improving quarter by quarter. We've uh made some changes that we look to see and uh see some benefit for in this final quarter of um 2026. Importantly though, we're continuing to work on the feasibility study for the stage two flotation. We've got a lot of work continuing with the environmental social impact assessment as well as metallurgical work and engineering. We're looking to finalize our design and looking to move to a decision point uh by the end of this year, looking to move into a development phase 2027. So, a big last quarter, a lot of uh positive uh positive feedback from our site team, as well as us as uh management, we've been very pleased with the way things have been going this year.

Bernard, hopefully you'll continue to keep us updated with your progress. Thanks for your time today.

Thanks very much, Stephen. Look forward to speaking to you soon.

I do too. Bernard Elward, the CEO of Kodal Minerals.