Kodal Minerals Share Discussion Threads

[euclid5] 16/1/2017 10:45

Reading over the Sysmin's report (on pg 25) they placed the reserves of the Goulamina (which is the BGS asset) at 750,000m3

With Kod's updated work on the 3 veins we are currently at 615,000m3, so that's 82% of the BGS reserves 12,750,000 m/tonnes x 1.50% = 190,000 tonnes Li20

The interesting part I found in the report is the Blakala pegmatite vein, They have this in the reserves at 700,000m. (see pg 25: 500L x 50W x 40D Li20: 2.0% - 2.3%)

I am not sure if Kodal own this pegmatite asset, based on the second license they bought, as it seem to fit in the land/acreage they got. It's definitely not BGS asset, as the Hot Copper board were talking about this also

Pg 7 of the report has details of Kod's Ngouanala vein

Please see link below for the Sysmin Mali report, thank's again Kenirogas for this.

hxxps://www.yumpu.com/fr/document/view/20423710/telecharger/23

[cpap man] 16/1/2017 10:20

Not really ch4p_85 as KOD have more than twice the licence area for LITHIUM than near neighbours Aussie listed BGS who are currently subject to a cheeky bid for A$107M from the CHINESE

To be fair BGS are most probably some 3 to 6 months ahead of KOD but KOD everything being equal of course could get a bid from the CHINESE or be valued during 2017 some where north of £100M+

Hence a share price target during 2017 for KOD of 3p+

[ch4p_85] 16/1/2017 09:58

3p is a bit ambitious but who knows

[olly1972] 16/1/2017 09:34

Holding up very well. ....

[cpap man] 16/1/2017 09:31

I continue to be bullish on KOD and think that KOD are a STRONG BUY with the KOD share price likely to go on during 2017 and hit 3p+

[monkeywench1] 15/1/2017 21:14

Excellent post paul. Ignore the muppets.

[paulpaolo] 15/1/2017 20:26

Re : "Industry insiders reckon that lithium will triple in price from here to 2020"
- your reading seems selective. There ARE commentators saying that, but there seem to be quite a few of them lately not saying that. There was quite a balanced and long article in the FT this month, 5th Jan 2017, main title "Lithium: the next speculative bubble?", subtitle, "The silvery metal’s price has had a meteoric rise, but supply is also accelerating".

It has tripled in price since January 2015, the best performance of any metal or mineral over that time, and isn't that hard to develop new mines (the rival to mining is production from Brine in places like Chile, higher capital costs but lower marginal costs - that's why it's vital that any rock-and-dirt miner of Lithium has reliable plant and reliable chemical processing) .... the risk is, like with shipping and LNG tanker capacity a few years ago, that over-investment can take place, because the capital cost of investing is the same, and people assume today's spot price will prevail going forward - when making a capital investment, for all the talk of fundamental analysis, that is the usual approach to forecasting the commodity price - anything else by the developer is deemed imprudent, and not investible by bankers. Shipping prices went down to marginal costs for a while as a result of over-investment in new shipping. Recovered since. If demand is up, which for lithium it is (hence the increase in price is the best for any metal, over the last 18 months, by a long way), then long term, the price should go up barring some technological breakthrough or new sources, but it doesn't increase monotonically or always move in one direction (up) along the way, as people tend to over-respond. Right now the output of the Greenbushes mine in W. Australia (you can view it from a tourist platform) is about to double - pre-doubling, it supplies 30% of all the world's lithium, so that alone is a +30% increase in global supply about to go live; it is Chinese-owned by the way. Nevada has many deposits and there is much fighting for rights to mine Li in certain parts there right now.

The Bloomberg article "Lithium Frenzy Seen Ending in Tears as Bernstein Warns of Supply", October 2016, warns of the capital now being devoted to better ways to extract lithium from other sources such as salt lakes or seawater (lower marginal cost already than rock/soil mining for the salt lakes, but up to now, higher capital costs).

Mining Weekly's article entitled "Lithium bubble floats higher as investors ignore dangers", with text including "she urged investors to be careful when seeking value in lithium. For example, she highlighted proximity plays witnessed in Nevada, whereby land had been secured near producers and promoted on this". The article claims that lot of proprietary technology is used for processing, and that if you're not already about to actually extract and process lithium (preliminary processing is done at the mine, final purification to 99.5% Lithium Carbonate is often done at the battery factory; glassworks don't need it quite so pure), your mine won't benefit from present high prices. Processing the ore into good lithium hydroxide and carbonate is hard and ideally uses proprietary technology to be cost-effective, which newcomers won't have. The Mining Weekly article suggests that Lithium X and Nemaska may be able to prove low-cost production using new techniques.

But, if Kod goes cheap again for now, and if it proves a decent number of nice THICK seams out of the 44 it's drilling, which is still rather uncertain (remember their gold mine results in the autumn ..7th November, the result was the price went below 0.1p and stayed there for all rest of November and most December ... chat rooms were so sure the gold at Tiebissou would be of high concentration so as to boost the stock price, but it WASN'T), I'll go back in, in the revived hope that a lithium major does buy them out, or that they with partners can mine it well. It's not certain though, and looking back Kod has started a lot of mining ventures, and moved on from one thing to another, never quite getting to production whether of phosphorus, iron, gold or lithium, some licences eventually just lapsing. Nature of the beast with pre-production mining ventures, or even producing ones like AUE. Eventually it won't be stable : you either make a real lot, or lose almost all, like the long term holders of AUE unfortunately did.... (so far - it could still come good, and so could Kod, perfectly well, once we are through the next week or few weeks - I have read everyone's posts but it hasn't convinced me tomorrow and the days after won't see a hit ... if not, so be it, you make a decision and that's that - I never have too much riding on any one stock) ; it would presumably need a more or less perfect RNS on assays to recover all the way to Friday's ~0.38p; I might go back in after taking time to reflect. I think the novel RNS timing was to give people including PI's time to thoroughly reflect on the information, and was prompted by the beginnings of a further marked price rise on Friday afternoon after the pause of several hours, during which time many of us will have been considering selling as the pause can often precede a re-trace - but it looks like few of us sold at that time (too greedy, I am learning... don't hang on, sell on the rise). I am reading more about the lithium market over time. It is, it seems to me, quite a complicated market on both sides; and layered onto fundamentals, are investor behaviours in this type of stock.

People simplify things too much, with too much bluster : chat rooms are best if used at least partly for something like impartial discussion, not only "advertising" for or against holding a stock (i.e. either it is brilliant, according to some posts, or it is 100% ghastly, according to a few others). If they only have positive information plus a bit of bluster, and the same formulaic comments "exciting times", "enjoy the ride", "this'll pay my pension .. GLA", they are not actually that valuable to investors, or would-be investors, collaboratively researching a stock.

[pixi] 15/1/2017 18:25

cpap

Industry insiders reckon that lithium will triple in price from here to 2020.

[dingo75] 15/1/2017 17:56

the volume last week and price rise was down purely to demand and valuation comparisons with our neighbours and their 107$m offer from the chinese.
the company were forced to put out this statement, it will make no difference - there might be some weak holders selling, but the reason for the rise in the price was the disparity between KOD's valuation and BGS's and the likelihood that KOD have at least double the resource of BGS and therefore a theoretical but very realistic value of $214m value that could well be attributed to KODs Lithium licence here.

Don't forget they have another Lithium Package and all the Gold licences with Newcrest.

!!!$$$$$$

[cpap man] 15/1/2017 16:45

"The price of lithium carbonate has increased fivefold from EUR 4,000 per tonne to more than EUR 20,000 per capita since 2014."

[shols] 15/1/2017 15:31

It's a Stock Exchange regulation that a company is required to comment when it's share price rises sharply, and that may have been the only reason for the statement issued on Friday.
It's also quite possible that they deliberately left issuing the statement until as near to the close as possible in order to give investors the weekend to think it over and to come to the conclusion, as I have done, that nothing has changed and that there is certainly no reason for panic.

[pixi] 15/1/2017 12:39

cpap

I read somewhere that the lot next door to KOD in Mali have been made an offer by a Chinese battery manufacturer.

Elon Musk and Warren Buffet have set themselves up in direct competition to one another both wanting lithium for batteries for their respective car manufacturers. Then there's all the rest on the hunt who are also wanting lithium for batteries to power watches, laptops, tablets and all these other electronic gizmo's worldwide.

If you Google lithium, you will discover that demand exceeds supply so prices are rocketing. That's probably why the Chinese have made an early offer to the lot next door and it makes sense that they could also approach KOD when they get their sample results later this month. That would leave KOD and the lot next door with cash to develop their respective gold resources.

[cpap man] 15/1/2017 12:33

Thanks pixi [actually noticed that there are a few recent KOD interviews on the Internet with BIDS / TAKEOVERS by the CHINESE getting more than a few mentions so adamB68 is spot on in POST 431]

[pixi] 15/1/2017 12:27

hxxp://tiptv.co.uk/ceo-interview-whats-behind-surge-kodal-minerals-shares/

[cpap man] 15/1/2017 11:15

Excellent reminder adamB68 of that recent interview with the CEO of KOD....perhaps you or indeed another poster would be kind enough to post a link to that interview again as it clearly states that a CHINESE BID / TAKE OVER is extremely likely....with the only uncertainty being one of timing!

[cpap man] 15/1/2017 11:10

"Very little if any BID PREMIUM is in the current KOD share price with most of the share price being backed by the LITHIUM drilling results"

- that is a little bold, isn't it ? We have all been hoping for a Chinese bid over this last fortnight, in particular, and that is surely why more PI's piled in at such spiralling prices.



One and only reply from me to you paulpaolo14 and that is that unlike you i have been here at KOD right from the start of what will be a serious mega share price rise to 3p+

So no it is NOT bold and if as you hint you have just found KOD and you expect an immediate BID from the CHINESE then you are truly a complete and utter muppet!

There will be a BID from the CHINESE who are already starting to BUY into KOD in a big way [just look at the increasing volumes of KOD shares traded] when KOD have completed further drilling on their LITHIUM licences which are more than twice the size of near neighbour Aussie listed BGS [who do have a BID from the CHINESE but are 3 to 6 months ahead of KOD with regards to their LITHIUM drilling campaign]

[adamb68] 15/1/2017 11:10

Funny how the CEO on ADVFN TV talks about possible Chinese interest in the future and then are forced to release statement saying there is no interest. It is a possibility in the future and if the results at the end of the month are good there could well be a takeover bid.

[pwhite73] 15/1/2017 10:16

cpap man - "MY fear real fear is that the CHINESE are already [increasingly] buying into KOD....just look at the increasing volumes of KOD share traded...."

Virtually of all of the volume buying is by PI investors. Basically what you have is a herd mentality with each buffalo seeing itself as an individual. But its the same momentum traders flitting from stock to stock.

What the smart PI investors have painfully learned over the years is that to make money on the AIM you have to be in and out of a moving stock in a short space of time and when I say a short space of time I mean a matter of days (sometimes in the very same day).

One of the side effects of this survival technique is that nobody has anytime for negative comments any longer hence why you get all the filtering of derampers here and outright banning of derampers on LSE chat. Everything must be positive for with an investment time frame of a matter of days there is no need for caution. However those who take the time to read negative comments or deramps as you prefer to call them save themselves thousands.

So when people say filter PWhite73 I understand and appreciate it is the system that has forced this on you.

[pwhite73] 15/1/2017 10:03

113mike

The run in the share price was due to an anticipated announcement from the company advising of interest from the Chinese. People who claim that nothing has fundamentally changed with the company since the Friday RNS are 100% correct. However the reason for the sharp rise has changed. At one point the shares were up 46% before the RNS and would have went higher but for the speeding ticket.

Now that the company has confirmed there has been no approach and are not in any discussions with the Chinese people will take their profits or cut their losses but nobody will openly admit this. In order to get out with the maximum amount of money everybody needs to continue to talk up the shares with their fingers on the sell button.

[113mike] 14/1/2017 21:40

You'd think that there will be a further run up in the share price towards the end of Jan in anticipation of good results? imho

[pixi] 14/1/2017 20:06

Speeding Ticket

I suspect KOD said more than was necessary because they are aware of the implications of their discovery regarding the lot next door and the Chinese offer and it was a subtle way of letting everyone know they know.

Some people seem to think we have 8 X what the lot next door have got, but that will only be revealed by further drilling.

Have a look at the chart on this link, although spiky, it shows a gentle up trend and does not look anywhere near overbought:

The obvious thing for the Chinese to do is to wait for the results of the survey of samples later this month and if good, make an offer to KOD to buy them out. That way they get their hands on the lot. Lithium is in BIG demand and that's why the volume has shot up in shares traded in KOD since the discovery, helped by the lot next door also finding lithium and the Chinese offer. KOD is in the right place, at the right time, with the right gear to multibag. Everyone knows lithium is the new oil and there ain't much of it around to power batteries for every electronic gizmo available worldwide. So prices have shot up, everyman and his dog wants lithium right now.

[miahkaysor] 14/1/2017 20:00

Like CPAP MAN, I have my buy button ready!!!I will be adding on Monday!!!