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KOD Kodal Minerals Plc

0.43
0.00 (0.00%)
Last Updated: 11:28:59
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Kodal Minerals Plc LSE:KOD London Ordinary Share GB00BH3X7Y70 ORD 0.03125P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.43 0.42 0.44 0.44 0.43 0.43 30,836,980 11:28:59
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Misc Nonmtl Minrls, Ex Fuels 0 -1.46M -0.0001 -43.00 87.04M

Kodal Minerals PLC Final Results and Notice of AGM (0259S)

28/09/2017 7:00am

UK Regulatory


Kodal Minerals (LSE:KOD)
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TIDMKOD

RNS Number : 0259S

Kodal Minerals PLC

28 September 2017

Prior to publication, the information contained within this announcement was 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, this information is now considered to be in the public domain.

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

28 September 2017

Kodal Minerals plc ("Kodal Minerals", the "Company" or the "Group")

Final Results and Notice of AGM

Kodal Minerals plc, the mineral exploration and development company focussed on West Africa, is pleased to announce its audited final results for the year ended 31 March 2017.

The Company's Annual Report and Accounts is being posted to shareholders later this week and will be made available on the Company's website www.kodalminerals.com. It will contain notice of the Annual General Meeting of the Company to be held at Fieldfisher LLP, 9(th) Floor, Riverbank House, 2 Swan Lane, EC4R 3TT at 12.00 p.m. on Tuesday 31 October 2017.

Chairman's Statement

Kodal Minerals began a year of significant change and development with the acquisition of a suite of ten West African gold licences (together the "Gold Projects") which was announced in April 2016 and completed in May 2016. This was followed by the subsequent acquisitions of six exciting lithium exploration licences (together the "Lithium Projects") in southern Mali by way of three separate transactions announced in August, September and November 2016.

The Lithium Projects are referred to as the Bougouni Project and the Diendio Project. These acquisitions strengthened our focus in West Africa and further expanded the range of minerals in which the Group is interested. In particular, the Bougouni Project, acquired in September 2016, has been particularly successful for the Company with our exploration programme continuing to demonstrate high-grade lithium mineralisation. We have completed two drilling programmes at the Bougouni Project, with a total of six prospects tested. Drilling has consisted of reverse circulation ("RC") drilling and diamond drilling, with a total of 76 RC drill holes for 10,260 metres completed and 5 diamond drill holes for 362 metres completed. In particular, the Ngoualana prospect within the Bougouni Project looks extremely exciting with the strike length of the mineralised zone currently confirmed at 650 metres. This zone remains open along strike and has yielded multiple high-grade intersections including 28 metres at 1.96% lithium oxide ("Li(2) O").

The Company has been very successful in securing its financial position through a series of equity fundraisings during the year. In May 2016, we raised GBP0.7 million in connection with the acquisition of the Gold Projects. Subsequently, we completed a capital raising in October 2016 of GBP0.75 million to support the initial acquisition of the Lithium Projects, then a further placement of GBP1.0 million in January 2017 to expand the lithium exploration programme and continue to delineate the high-grade lithium mineralisation. Most significantly in March 2017, the Company announced an initial investment of GBP0.5 million by Singapore based investment company Suay Chin International Pte Limited ("Suay Chin"), followed in May 2017 with the conclusion of a formal subscription agreement with Suay Chin for a further GBP4.3 million investment in the Company together with a binding off-take term sheet covering the Group's lithium production from the Bougouni Project. This subscription agreement is continuing, with Suay Chin having completed staged investments since the year end for a total of GBP4.0 million, bringing its total investment to GBP4.5 million out of its overall committed investment of GBP4.8 million. Suay Chin is now the largest shareholder in the Company, with a holding of 18.92%.

While our focus is currently on the rapid definition of the extent of lithium mineralisation at our projects in southern Mali, the Company has maintained the suite of West African gold assets acquired in May 2016. In Côte d'Ivoire, the joint venture projects with Resolute Mining Limited ("Resolute") and Newcrest Mining Limited ("Newcrest") are continuing. Resolute has been very active in the Nielle licence, located in the north of Côte d'Ivoire, where a new surface gold anomaly has been defined. It is anticipated that Resolute will continue to explore this area in the coming year, and is expected to complete first pass reconnaissance drilling. Newcrest has continued with the auger drilling programme on the Dabakala licence, located in central Côte d'Ivoire, and continues to assess the area.

For those Gold Projects held outside the joint ventures, Kodal has maintained its licences in Mali and Côte d'Ivoire, and during the coming year will continue to review the exploration data and explore ways for the Company to advance these prospective areas most effectively.

Outside West Africa, the Group has maintained its Norwegian phosphate and titano-magnetite project ("Kodal Project") during the year and continues to evaluate opportunities for it. Following an impairment review at the other Norwegian project, the Grimeli copper project, the Company has fully impaired this asset and expects to relinquish these licence areas.

During the year, the Company also completed changes to the Board of directors, with the resignation of former Chairman David Jones and my stepping up from non-executive director to Chairman. The Company is looking to strengthen the Board, and when the Suay Chin placement is completed, Suay Chin will have the right to appoint a director who will assist the Company in its growth plans.

We are looking forward to the year ahead as we have a very busy exploration programme planned, which is concentrated on our lithium Bougouni and Diendio Projects. We will continue drilling at Bougouni with the aim of targeting extensions and providing definition to the known mineralised zones and looking to identify new prospects. With the support of our major shareholder, we will continue with the metallurgical testing of our lithium mineralised zones and review the plant and processing requirements to allow the production of a spodumene concentrate suitable for marketing to China-based end users. This will be a very exciting year for development at Bougouni and we anticipate being able to continue to add significantly to the value of the Lithium Projects.

We look forward to being able to report back to you during the year on developments.

Robert Wooldridge

Non-Executive Chairman

27 September 2017

OPERATIONAL REVIEW

I am delighted to present this operational review following a very busy and transformational year for our Company. Following a review of opportunities, the Board of Kodal identified lithium as a high-value strategic mineral having recently seen strong demand for batteries (deployed in electric cars and for static storage) and tight supply apply upward pressure on prices. The Company was able to leverage the strong operational history and understanding of Mali of its senior executives to acquire two exciting lithium exploration projects that significantly expanded our footprint in West Africa and which complement our existing gold exploration licences.

The two Lithium Projects are located in southern Mali - the Bougouni Project and the Diendio Project. Our field exploration activities for the year focused on these lithium projects, and in particular on the rapid advancement of the Bougouni Project where our exploration activities include geological mapping and geochemical sampling, trenching, geophysical review and drilling. The exploration completed to date has continued to return very encouraging results and the Company is planning a major exploration programme at Bougouni during the 2017/2018 financial year.

Kodal Minerals has also maintained the suite of gold exploration licences in Côte d'Ivoire and Mali following the acquisition of International Goldfields (Bermuda) Limited ("IG Bermuda") and its subsidiaries in May 2016. These gold licences are all located in highly mineralised regions of the Birimian sequence of West Africa and early stage exploration work has returned encouraging results.

The Group has maintained the Kodal Project in Norway during the year and continues to evaluate opportunities for it. Following an impairment review at the other Norwegian project, the Grimeli copper project, the Company has fully impaired this asset and expects to relinquish these licence areas.

Lithium Projects

The new lithium projects, located in southern Mali, are held by subsidiary company Future Minerals SARL ("Future Minerals"), a Malian registered company owned 100% by the Group. Future Minerals holds the rights to the projects via three separate option to purchase agreements that grant Kodal exclusive rights to explore and exploit all minerals in the respective licence areas, and upon completion of agreed staged payments allow Future Minerals to become the registered holder and owner of a 90% economic interest in each of the licences.

The lithium project licences are tabled below:

Table of Concessions - Mali Lithium projects

 
 Tenements     Country   Kodal Ownership   Project/Joint   Validity 
                                            Venture 
------------  --------  ----------------  --------------  ---------------------- 
 Kolassokoro   Mali      Held through      Bougouni        Licence valid 
                          Option to         Project         and in good 
                          Purchase                          standing. 
                          Agreement                         Renewal received 
                          giving right                      dated 19 September 
                          to acquire                        2017 and valid 
                          up to 90%                         for 2 years. 
                          economic 
                          interest 
------------  --------  ----------------  --------------  ---------------------- 
 Madina        Mali      Held through      Bougouni        Licence valid 
                          Option to         Project         and in good 
                          Purchase                          standing. 
                          Agreement                         Renewal received 
                          giving right                      dated 19 September 
                          to acquire                        2017 and valid 
                          up to 90%                         for 2 years. 
                          economic 
                          interest 
------------  --------  ----------------  --------------  ---------------------- 
 Diendio       Mali      Held through      Diendio         Licence valid 
  Sud                     Option to         Project         and in good 
                          Purchase                          standing. First 
                          Agreement                         renewal expired 
                          giving right                      on 30/4/2016. 
                          to acquire                        Application 
                          up to 90%                         for renewal 
                          economic                          for a further 
                          interest                          2 years submitted 
                                                            and awaiting 
                                                            formal approval; 
                                                            all fees paid. 
------------  --------  ----------------  --------------  ---------------------- 
 Diossyan      Mali      Held through      Diendio         Licence valid 
  Sud                     Option to         Project         and in good 
                          Purchase                          standing. First 
                          Agreement                         renewal expired 
                          giving right                      on 2/5/2016. 
                          to acquire                        Application 
                          up to 90%                         for renewal 
                          economic                          for a further 
                          interest                          2 years submitted 
                                                            and awaiting 
                                                            formal approval; 
                                                            all fees paid. 
------------  --------  ----------------  --------------  ---------------------- 
 Manankoro     Mali      Held through      Diendio         Licence valid 
  Nord                    Option to         Project         and in good 
                          Purchase                          standing. 
                          Agreement                         Licence is in 
                          giving right                      the form of 
                          to acquire                        a signed convention 
                          up to 90%                         dated 21/01/2013. 
                          economic                          The convention 
                          interest                          is the first 
                                                            stage of being 
                                                            granted a licence 
                                                            and it is normal 
                                                            to apply for 
                                                            an arrêté 
                                                            to continue 
                                                            exploration 
                                                            on areas of 
                                                            anomalism or 
                                                            geological interest. 
                                                            The Group has 
                                                            applied for 
                                                            the arrêté 
                                                            and paid all 
                                                            fees. Upon grant, 
                                                            the arrêté 
                                                            will be valid 
                                                            for 3 years, 
                                                            with right for 
                                                            renewals each 
                                                            for 2 years. 
------------  --------  ----------------  --------------  ---------------------- 
 

All licences remain valid and in good standing pending receipt of formal documents for renewals or arrêtésin respect of which the Company has received letters from the Directorate Nationale de la Géologie et des Mines ("DNGM", Malian National Directorate of Geology and Mines) confirming all such applications are complete and in process.

Bougouni Lithium Project Exploration Highlights

Exploration Drilling and Geological Exploration

Since acquiring the Bougouni Lithium project in August and September of 2016, Kodal has been actively exploring this highly prospective area. The Company has completed two stages of exploration drilling that total 76 reverse circulation drill holes for 10,260m drilled and 5 diamond drill holes for 362m drilled. The exploration drilling has targeted six prospects within the Bougouni Lithium project, with approximately 60% of the drilling metres targeting the Ngoualana prospect where high-grade lithium mineralisation has been encountered in a spodumene rich pegmatite vein. Exploration drilling and geological mapping has now identified a high-grade pegmatite vein that extends for over 650m strike length, has been drill tested to approximately 200m vertically and remains open along strike and at depth. This is a key target for further drilling for Kodal in the new field season.

In addition, exploration drilling has targeted new prospect areas where high-grade lithium mineralisation has been identified in early stage geological mapping and rock-chip sampling and areas where surface mineralisation has been identified that has potential to host shallow, high-grade mineralisation.

The drilling programmes commenced with a reconnaissance Stage 1 programme completed in December 2016, and a major Stage 2 programme running from April 2017 to June 2017. The Company has received very encouraging results from the drilling programmes, particularly at the Ngoualana and Sogola-Baoule prospects where highlights include:

   --    21m at 1.70% Li(2) O from 62m in drill KLRC001, Ngoualana 
   --    22m at 1.64% Li(2) O from 45m in drill KLRC004, Ngoualana 
   --    21m at 1.72% Li(2) O from 11m in drill KLRC024, Ngoualana 
   --    18m at 2.06% Li(2) O from 140m in drill KLRC027, Ngoualana 
   --    47m at 1.51% Li(2) O from 32m in drill KLRC028, Ngoualana 
   --    41.5m at 1.71% Li(2) O from 45.39m in drill KLDH001, Ngoualana 
   --    27.25m at 1.61% Li(2) O from 28.65m in drill KLDH005, Ngoualana 
   --    12m at 1.68% Li(2) O from 216m in drill MDRC015, Sogola-Baoule 
   --    12m at 1.59% Li(2) O from 241m in drill MDRC015, Sogola-Baoule 
   --    17m at 1.79% Li(2) O from 277m in drill MDRC015, Sogola-Baoule 
   --    11m at 1.65% Li(2) O from 131m in drill MDRC008, Sogola-Baoule 

It is noted that the drilling is still at an exploration stage and the Company continues to review the drilling with the focus being on extension and definition drilling of the Ngoualana prospect, extension of the Sogola-Baoule prospect and identification of additional exploration targets. The Company has continued to focus on the Bougouni Project with the objective of defining a future "mining hub" where multiple pegmatite veins provide source for a central processing plant.

The Company is currently planning the new drilling programme to commence following the cessation of the annual rains, and will immediately follow-up the high-grade intersections at Sogola-Baoule, Ngoualana and Boumou. In addition, the Company has been undertaking preparation work at other prospects, including ground magnetics, and this will be used to prioritise other prospects for initial drill testing.

A summary of the completed drilling across the Stage 1 and Stage 2 programmes is provided below:

Bougouni Lithium Project - Summary of Completed Drilling

 
Prospect          Reverse Circulation           Diamond Drilling 
                             Drilling 
                  Holes        Metres     Holes            Metres 
Ngoualana          42           5,936       5                 362 
Sogola              6             415 
Sogola-Baoule      14           2,327 
Boumou              6             842 
Orchard             4             544 
Kola                4             196 
TOTAL              76          10,260       5                 362 
 

In addition to the drill testing, the Company has completed geological mapping, a total of 121 rock chip samples and a total of 14 trench excavations for 862m. This reconnaissance geological work continues to define targets for drill testing and demonstrate the prospectivity of the Bougouni Project.

Metallurgical Test work

In June 2017, the Company announced the results of initial metallurgical test work on a sample of core from the RC drilling at the Ngoualana prospect. This indicated that the ore could produce high grade spodumene concentrate with good levels of recovery.

The metallurgical recoveries ranged from 80% to 87% using only a flotation process and produced high grade spodumene concentrate with grades ranging between 5.5% and 6.7% Li(2) O. The level of mineralisation is of suitable grade and quality for the production of lithium carbonate which is used in the manufacture of lithium batteries and other industrial applications.

The metallurgical testing was completed at the Shandong Ruifu Lithium Co Ltd ("Shandong Ruifu") which operates a lithium carbonate and lithium hydroxide production plant in China. Shandong Ruifu has a close relationship with Kodal's major shareholder Suay Chin International Pte Ltd and is looking to secure supply of quality lithium bearing minerals following a recently completed upgrade to its processing plant.

This initial test work used flotation tests only, as the samples comprised reverse circulation drill chips which contain a significant portion of very fine material not suitable for other techniques.

Further metallurgical test work is planned utilising diamond drill core to seek to further enhance overall recoveries through a comprehensive process utilising gravity separation as well as flotation.

Gold Projects

The Group's Gold Projects are located in Côte d'Ivoire and Mali and consist of licences either directly 100% owned by the Group, or held via option agreements granting the Group exclusive rights to explore and exploit minerals over the area and containing a right to purchase the licences. In Mali, the licences are held through subsidiary company IGS Mali SARL ("IGS Mali"), a Malian registered company, and in Côte d'Ivoire by IGS CIV SARL ("IGS CIV") and Corvette SARL ("Corvette"), Côte d'Ivoire registered companies.

In Mali, the Group has two projects, the Nangalasso Project (including the Nangalasso and Sotian licence areas) and the SLAM Project (including the Djelibani Sud and Kambali licences). The Nangalasso Project licences are held through option to purchase agreements that grant the Company exclusive rights to explore and operate over the licences and allow the Company to acquire the licence outright. For the SLAM Project, the Djelibani Sud licence is held outright following the completion of the final option payment during the year, while the Kambali licence is subject to the DNGM granting an extension, and this licence remains subject to an Option to purchase agreement.

In Côte d'Ivoire, the Group is the 100% owner of the Korhogo licence having secured the licence via direct Government application and is applying for the Boundiali licence. The Group is also continuing with two active joint ventures in Côte d'Ivoire, with joint venture partners, Resolute and Newcrest, each responsible for the maintenance and good standing of the licences.

The gold exploration licences are tabled below:

Table of Licences - Gold Exploration projects

 
 Tenements    Country     Kodal           Project        Validity 
                           Group           / Joint 
                           Ownership       Venture 
-----------  ----------  --------------  -------------  ----------------------------- 
 Djelibani    Mali        100%            SLAM Project   Licence valid and 
  Sud                      direct                         in good standing with 
                           ownership                      expiry date 29 October 
                                                          2017. 
                                                          Application to transfer 
                                                          licence to IGS Mali 
                                                          has been submitted 
                                                          and is pending completion. 
                                                          The Group intends 
                                                          to lodge an application 
                                                          for extension of prior 
                                                          to the expiry in October 
                                                          2017 and, in addition, 
                                                          is reviewing the potential 
                                                          for new licence application 
-----------  ----------  --------------  -------------  ----------------------------- 
 Kambali      Mali        Held            SLAM Project   Licence expired in 
                           through                        2016. Application 
                           Option                         for additional year 
                           Agreement                      has been lodged; awaiting 
                           giving                         formal acceptance 
                           right                          letter from DNGM. 
                           to acquire 
                           100% 
                           ownership 
-----------  ----------  --------------  -------------  ----------------------------- 
 Nangalasso   Mali        Held            Nangalasso     Permit is valid and 
                           through         Project        in good standing. 
                           Option                         First renewal expired 
                           Agreement                      on 4 February 2017. 
                           giving                         Application for renewal 
                           right                          for further 2 years 
                           to acquire                     submitted and awaiting 
                           100%                           formal approval; all 
                           ownership                      fees paid. 
-----------  ----------  --------------  -------------  ----------------------------- 
 Sotian       Mali        Held            Nangalasso     Licence expired in 
                           through         Project        2017. Application 
                           Option                         for an additional 
                           Agreement                      year of validity over 
                           giving                         the whole licence 
                           right                          has been submitted 
                           to acquire                     and is under discussion 
                           100%                           with DNGM. 
                           ownership                      Due to change of Government 
                                                          regulations on licence 
                                                          size, two new applications 
                                                          have also been lodged 
                                                          for 100km2 each, to 
                                                          cover the majority 
                                                          of existing licence 
                                                          area. These applications 
                                                          are awaiting formal 
                                                          approval by DNGM if 
                                                          application for additional 
                                                          year of validity for 
                                                          the whole licence 
                                                          is rejected. 
-----------  ----------  --------------  -------------  ----------------------------- 
 Boundiali    Côte   100%                           Licence application 
               d'Ivoire    direct                         submitted and in process. 
                           ownership 
                           (under 
                           application) 
-----------  ----------  --------------  -------------  ----------------------------- 
 Korhogo      Côte   100%                           Licence valid and 
               d'Ivoire    direct                         in good standing 
                           ownership                      Renewal granted in 
                                                          September 2017 for 
                                                          a further 3 year period. 
-----------  ----------  --------------  -------------  ----------------------------- 
 Dabakala     Côte   100%            Newcrest       Licence valid and 
               d'Ivoire    direct          JV             in good standing. 
                           ownership                      Renewal granted in 
                           may reduce                     September 2017 for 
                           to 25%                         a further 3 year period. 
                           under 
                           JV agreement 
-----------  ----------  --------------  -------------  ----------------------------- 
 Nielle       Côte   100%            Resolute       Licence valid and 
               d'Ivoire    direct          JV             in good standing. 
                           ownership                      Initial licence term 
                           may reduce                     expired on 7 January 
                           to 25%                         2017. 
                           under                          Renewal application 
                           JV agreement                   lodged and all fees 
                                                          paid. Government field 
                                                          visit completed in 
                                                          September 2017 and 
                                                          now awaiting formal 
                                                          notification of renewal. 
-----------  ----------  --------------  -------------  ----------------------------- 
 Tiebissou    Côte   100%            Resolute       Licence valid and 
               d'Ivoire    direct          JV             in good standing. 
                           ownership                      Initial term expires 
                           may reduce                     30 September 2018. 
                           to 25% 
                           under 
                           JV agreement 
-----------  ----------  --------------  -------------  ----------------------------- 
 M'Bahaikro   Côte   100%            Resolute       Licence application 
               d'Ivoire    direct          JV             submitted and in process. 
                           ownership 
                           (under 
                           application) 
                           may reduce 
                           to 25% 
                           under 
                           JV agreement 
-----------  ----------  --------------  -------------  ----------------------------- 
 

All licences remain valid and in good standing pending receipt of formal documents for renewals or arrêtés. The Company is continuing to pursue the Boundiali and M'Bahaikro applications with the DGMG Direction General des Mines et de la Géologie in Côte d'Ivoire and is looking to advance the process this year.

Norway Projects

Kodal retains full rights to the two projects located in Norway, namely the Kodal Project, a phosphate and titano-magnetite project located in southern Norway and the Grimeli copper-zinc project located in western Norway.

Kodal Project

The Kodal Project is a phosphate and titano-magnetite project located in southern Norway. Previous exploration and development activity completed by the Company has defined a JORC compliant total Indicated Resource of 14.6 million tonnes (Mt) at 2.26% P (5.18% P2O5) and 24.12% Fe with an Inferred Resource of 34.3 million tonnes at 2% P (4.59% P2O5) and 20.38% Fe.

The Group is maintaining the Kodal Project and has continued discussions with local municipalities and stakeholders in the area. The Group will continue to review options for development or other opportunities in the region to realise value for this project.

Grimeli Project

The Grimeli Project is a copper-zinc exploration project around the site of former copper mines in western Norway. Kodal has completed exploration consisting of channel sampling, geophysical survey and drilling. Following an impairment review, the Group has determined not to invest further in this project or maintain its licences and has fully impaired the carrying value as at 31 March 2017.

Work programme for 2017/18

The Group has an extensive work programme for 2017/18 which is principally focussed on its lithium exploration projects in West Africa, as well as a process of review and prioritisation of exploration opportunities for the Gold exploration projects.

The primary target of the exploration programme is the continued exploration and definition of lithium mineralisation at the Bougouni Project. Kodal has completed two phases of drilling to date that have returned very encouraging results and we plan to continue to define and extend these mineralised zones as well as continue exploration for new targets.

A significant portion of the planned exploration programme is based on direct drilling of targets, however, additional work planned also includes surface geochemical sampling, ground geophysical programmes targeting extensions of identified structural zones and geological mapping of the project area. In addition, the Company will continue with the metallurgical testing and process review that will be of great importance in demonstrating the development potential of the project.

In addition to the proposed exploration on existing projects, the Group will continue the process of review, and potential acquisition, of additional high-value projects that may be complementary to the existing portfolio and identification of joint venture partners or realisation of value for the existing projects.

Future Strategy

The focus of the Company is on the immediate exploration and definition of the lithium mineralisation at the Bougouni Project in southern Mali. The Company is currently well-funded to undertake an aggressive exploration programme of prospect definition and continued exploration drilling. The Company will continue to review and assess the potential for future development of the Bougouni Project.

The Company holds a highly prospective suite of gold assets in West Africa. The active joint ventures in Côte d'Ivoire are ensuring that funds are spent advancing exploration on our projects with the potential for new discovery. The Company is continuing to assess and rank the projects it holds directly to determine priorities for further exploration or for ways to deliver value for our shareholders.

I look forward to being able to report back with positive news.

Bernard Aylward

Chief Executive Officer

27 September 2017

Finance Review

Results of operations

For the year ended 31 March 2017, the Group reported a loss for the year of GBP1,178,000 compared to a loss of GBP466,000 in the previous year. Excluding the impairment charges, outlined further below, the loss for the year was GBP503,000 compared to GBP415,000 in 2016, reflecting the higher administrative charges of GBP488,000 compared to GBP375,000 in 2016 as operational activity has expanded, including the running of an office in Mali, following the acquisition of the gold and lithium exploration assets in West Africa.

In June 2017, in connection with the preparation of the financial statements for the year ended 31 March 2017, the directors undertook an impairment review of the carrying value of the Grimeli Project in Norway. This has resulted in an impairment charge in the year to 31 March 2017 of GBP669,000 (2016: GBPnil), being the full carrying value of the Grimeli Project. In the year to 31 March 2017, the Group has recognised a further impairment charge on the Kodal Project of GBP6,000 (2016: GBP50,000), representing exploration and evaluation costs in the year associated with the Kodal Project.

During the year, the Group invested GBP1,392,000 in exploration and evaluation expenditure on its various projects, the large majority of which related to its West African Gold Projects acquired in May 2016 and its Mali lithium projects acquired in August and September 2016. As a result, the carrying value of the Group's capitalised exploration and evaluation expenditure, net of the impairment charge relating to the Kodal Project and Grimeli Project, increased from GBP597,000 to GBP1,323,000. At 31 March 2017, the carrying value of the Gold Projects was GBP714,000 (2016: GBPnil) and of the lithium projects was GBP609,000 (2016: nil).

Cash balances as at 31 March 2017 were GBP1,723,000, an increase of GBP1,588,000 on the previous year's level of GBP135,000, with further funds of GBP3,994,000 having been raised subsequent to the year-end. Net assets of the Group at the year-end were GBP2,737,000 (2016: GBP704,000).

Financing

During the year, the Group has successfully completed a number of equity fundraisings. In May 2016, it raised GBP680,000 in connection with the acquisition of the Gold Projects. Subsequently, it completed a capital raising in October 2016 of GBP750,000 to support the initial acquisition of the Lithium Projects, then a further share placing of GBP1,000,000 in January 2017 to expand the lithium exploration programme. Most significantly, in March 2017, Kodal Minerals announced an initial investment of GBP500,000 by Singapore-based investment company Suay Chin International Pte Limited, followed after the end of the financial year in May 2017 with the conclusion of a formal subscription agreement with Suay Chin for a further GBP4,325,000 investment in the Company together with a binding off-take term sheet covering the Group's lithium production. This subscription agreement is continuing, with Suay Chin having completed staged investments since the year end for a total of GBP3,994,000, bringing its total investment to date to GBP4,494,000 million out of its overall committed investment of GBP4,825,000. Suay Chin is now the largest shareholder in the Company, with a holding of 18.92%. The net proceeds of the subscriptions from Suay Chin will be used to continue exploration work on the lithium projects and for general corporate purposes.

Going concern and funding

The Group has not earned revenue during the year to 31 March 2017 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.

As at 31 March 2017, the Group held cash balances of GBP1,723,000 and since the end of the financial year the Company raised GBP3,994,000 by way of a subscription of new shares by Suay Chin. The Group's cash balances at 31 August 2017 were GBP4,121,000.

The Directors have prepared cash flow forecasts for the period ending 30 September 2018. The forecasts include the costs of progressing the Lithium Projects and the corporate and operational overheads of the Group. The forecasts demonstrate 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 twelve months from the date of approval of these financial statements without the need for a further fund raising. Accordingly, the financial statements have been prepared on a going concern basis.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31 MARCH 2017

 
                                   Note            Year          Year 
                                                  ended         ended 
                                               31 March      31 March 
                                                   2017          2016 
                                                    GBP           GBP 
 Continuing operations 
 Revenue                                              -             - 
 
 Impairment of exploration 
  and evaluation assets            7          (675,236)      (50,426) 
 Administrative expenses                      (488,376)     (374,651) 
 Share based payments              5           (14,667)      (40,556) 
                                         --------------  ------------ 
 
 OPERATING LOSS                             (1,178,279)     (465,633) 
 
 Finance income                                       -            11 
                                         --------------  ------------ 
 
 LOSS BEFORE TAX                   2        (1,178,279)     (465,622) 
 
 Taxation                          6                  -             - 
 
 LOSS FOR THE YEAR FROM 
  CONTINUING OPERATIONS                     (1,178,279)     (465,622) 
 
 OTHER COMPREHENSIVE INCOME 
 
 Items that may be subsequently 
  reclassified to profit 
  or loss 
 
 Currency translation 
  loss                                          (5,497)       (1,142) 
 
 TOTAL COMPREHENSIVE INCOME 
  FOR THE YEAR                              (1,183,776)     (466,764) 
                                         ==============  ============ 
 
 Loss per share 
 Basic and diluted - loss 
  per share on total earnings 
  (pence)                          4           (0.0299)      (0.0458) 
 

The loss for the current and prior years and the total comprehensive income for the current and the prior years are wholly attributable to owners of the parent company.

CONSOLIDATED AND PARENT COMPANY STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2017

 
                                          Group         Group       Company       Company 
                                       31 March      31 March      31 March      31 March 
                                           2017          2016          2017          2016 
                             Note           GBP           GBP           GBP           GBP 
 NON CURRENT ASSETS 
 Intangible assets           7        1,323,226       601,391             -             - 
 Property, plant 
  and equipment              8                -        63,581             -             - 
 Amounts due from 
  subsidiary undertakings                     -             -       921,198       180,324 
 Investments in 
  subsidiary 
  undertakings                 9              -             -       512,373       476,752 
                                                 ------------                ------------ 
 
                                      1,323,226       664,972     1,433,571       657,076 
                                   ------------  ------------  ------------  ------------ 
 CURRENT ASSETS 
 Other receivables           10          16,229         2,984        33,238        15,983 
 Cash and cash 
  equivalents                         1,722,950       134,801     1,693,016       134,523 
                                   ------------  ------------  ------------  ------------ 
 
                                      1,739,179       137,785     1,726,254       150,506 
                                   ------------  ------------  ------------  ------------ 
 
 TOTAL ASSETS                         3,062,405       802,757     3,159,825       807,582 
                                   ------------  ------------  ------------  ------------ 
 
 
 CURRENT LIABILITIES 
 Trade and other 
  payables                   11       (325,213)      (98,859)     (321,898)      (98,767) 
                                                 ------------                ------------ 
 
 TOTAL LIABILITIES                    (325,213)      (98,859)     (321,898)      (98,767) 
                                   ------------  ------------  ------------  ------------ 
 
 
 NET ASSETS                           2,737,192       703,898     2,837,927       708,815 
                                                 ============                ============ 
 
 EQUITY 
 Attributable 
  to owners of 
  the parent: 
 Share capital               12       1,683,206       328,080     1,683,206       328,080 
 Share premium 
  account                    12       6,784,682     4,937,405     6,784,682     4,937,405 
 Share based payment 
  reserve                               169,334       154,667       169,334       154,667 
 Translation reserve                    (3,597)         1,900             -             - 
 Retained deficit                   (5,896,433)   (4,718,154)   (5,799,295)   (4,711,337) 
                                   ------------  ------------  ------------  ------------ 
 
 TOTAL EQUITY                         2,737,192       703,898     2,837,927       708,815 
                                   ============  ============  ============  ============ 
 

The Company's loss for the year ended 31 March 2017 was GBP1,087,958 (2016: GBP537,084).

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 MARCH 2017

 
                                                     Share 
                                         Share       based 
                             Share     premium     payment     Translation       Retained         Total 
                           capital     account     reserve         reserve        deficit        equity 
 Group                         GBP         GBP         GBP             GBP            GBP           GBP 
 At 31 March 
  2015                     243,186   4,562,017     114,111           3,042    (4,252,532)       669,824 
 
 Comprehensive 
  income 
 Loss for the 
  year                           -           -           -               -      (465,622)     (465,622) 
 Other comprehensive 
  income 
 Currency translation 
  loss                           -           -           -         (1,142)              -       (1,142) 
                                                                            ------------- 
 Total comprehensive 
  income for 
  the year                       -           -           -         (1,142)      (465,622)     (466,764) 
 
 Transactions 
  with owners 
 Shares in 
  settlement 
  of services               15,449      68,837           -               -              -        84,286 
 Share based 
  payment                        -           -      40,556               -              -        40,556 
 Proceeds from 
  share issue               69,444     330,552           -               -              -       399,996 
 Share issue 
  expenses                       -    (24,000)           -               -              -      (24,000) 
 
   At 31 March 
   2016                    328,080   4,937,405     154,667           1,900    (4,718,154)       703,898 
 
 Comprehensive 
  income 
 Loss for the 
  year                           -           -           -               -    (1,178,279)   (1,178,279) 
 Other comprehensive 
  income 
 Currency translation 
  loss                           -           -           -         (5,497)              -       (5,497) 
                                                                            ------------- 
 Total comprehensive 
  income for 
  the year                       -           -           -         (5,497)    (1,178,279)   (1,183,776) 
 
 Transactions 
  with owners 
 Shares in 
  settlement 
  of services                8,771      22,629           -               -              -        31,400 
 Share based 
  payment                        -           -      14,667               -              -        14,667 
 Proceeds from 
  share issue            1,346,355   1,993,645           -               -              -     3,340,000 
 Share issue 
  expenses                       -   (168,997)           -               -              -     (168,997) 
                        ----------  ----------  ----------  --------------  -------------  ------------ 
 
 At 31 March 
  2017                   1,683,206   6,784,682     169,334         (3,597)    (5,896,433)     2,737,192 
                        ==========  ==========  ==========  ==============  =============  ============ 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 MARCH 2017

 
                                                     Share 
                                         Share       based 
                             Share     premium     payment      Retained         Total 
                           capital     account     reserve       deficit        equity 
 Company                       GBP         GBP         GBP           GBP           GBP 
 At 31 March 2015          243,186   4,562,017     114,111   (4,174,253)       745,061 
 
 Comprehensive 
  income 
 Loss for the year               -           -           -     (537,084)     (537,084) 
 
 Total comprehensive 
  income for the 
  year                           -           -           -     (537,084)     (537,084) 
 
 Transactions with 
  owners 
 Shares in settlement 
  of services               15,449      68,837           -             -        84,286 
 Share based payments            -           -      40,556             -        40,556 
 Proceeds from 
  shares issued             69,444     330,552           -             -       399,996 
 Share issue expenses            -    (24,000)           -             -      (24,000) 
                                                            ------------ 
 
 At 31 March 2016          328,080   4,937,405     154,667   (4,711,337)       708,815 
 
 Comprehensive 
  income 
 Loss for the year               -           -           -   (1,087,958)   (1,087,958) 
 
 Total comprehensive 
  income for the 
  year                           -           -           -   (1,087,958)   (1,087,958) 
 
 Transactions with 
  owners 
 Shares in settlement 
  of services                8,771      22,629           -             -        31,400 
 Share based payment             -           -      14,667             -        14,667 
 Proceeds from 
  shares issued          1,346,355   1,993,645           -             -     3,340,000 
 Share issue expenses            -   (168,997)           -             -     (168,997) 
 
   At 31 March 2017      1,683,206   6,784,682     169,334   (5,799,295)     2,837,927 
                        ==========  ==========  ==========  ============  ============ 
 

CONSOLIDATED AND PARENT COMPANY STATEMENTS OF CASH FLOWS FOR THE YEARED 31 MARCH 2017

 
                                           Group       Group         Company       Company 
                                            Year        Year            Year          Year 
                                           ended       ended           ended         ended 
                                        31 March    31 March        31 March      31 March 
                                            2017        2016            2017          2016 
                              Note           GBP         GBP             GBP           GBP 
 Cash flows from 
  operating activities 
 Loss before tax                     (1,178,279)   (465,622)     (1,087,958)     (537,084) 
 Adjustments for 
  non-cash items: 
 Loss on sale of                                                           -             - 
  property, plant 
  and equipment                           41,994           - 
 Impairment of exploration 
  and evaluation 
  assets                        7        675,236      50,426               -             - 
 Impairment of investments 
  in subsidiaries 
  and intercompany 
  balances                                     -           -         653,887        11,485 
 Share based payments                     14,667      40,556          14,667        40,556 
 Equity settled 
  transactions - 
  other                                   20,000           -          20,000             - 
 Operating cash 
  flow before movements 
  in working capital                   (426,382)   (374,640)       (399,404)     (485,043) 
 
 Movement in working 
  capital 
 (Increase) / decrease 
  in receivables                        (13,245)      25,111        (17,255)        13,707 
 Increase / (decrease) 
  in payables                            220,858    (14,856)         223,131         5,955 
                                    ------------  ----------  --------------  ------------ 
 Net movements in 
  working capital                        207,613      10,255         205,876        19,662 
 
 Net cash inflow 
  / (outflow) from 
  operating activities                 (218,769)   (364,385)       (193,528)     (465,381) 
 
 Cash flows from 
  investing activities 
 Purchase of subsidiary                                            (102,373)             - 
  undertakings                                 -           - 
 Disposal of property,                                                     -             - 
  plant and equipment                     10,000           - 
 Purchase of intangible 
  assets                               (961,205)   (182,764)               -      (11,485) 
 Loans to subsidiary 
  undertakings                                 -           -       (906,609)      (66,038) 
                                    ------------  ----------  --------------  ------------ 
 
   Net cash outflow 
   from investing 
   activities                          (951,205)   (182,764)     (1,008,982)      (77,523) 
 
 Cash flow from 
  financing activities 
 Interest received                             -          11               -             - 
 Net proceeds from 
  share issues                12       2,761,003     375,996       2,761,003       375,996 
 
 Net cash inflow 
  from financing 
  activities                           2,761,003     376,007       2,761,003      375,996- 
                                    ------------  ----------  --------------  ------------ 
 
 Increase / (decrease) 
  in cash and cash 
  equivalents                          1,591,029   (171,142)       1,558,493     (166,908) 
 Cash and cash equivalents 
  at beginning of 
  the year                               134,801     306,843         134,523       301,431 
 Exchange loss on 
  cash                                   (2,880)       (900)               -             - 
 
 Cash and cash equivalents 
  at end of the year                   1,722,950     134,801       1,693,016       134,523 
                                    ============  ==========  ==============  ============ 
 
 

Cash and cash equivalents comprise cash on hand and bank balances.

Financial Information

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2017 or 2016 but is derived from those accounts. Statutory accounts for 2016 have been delivered to the registrar of companies, and those for 2017 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Annual Report and Accounts and Annual General Meeting

The 2017 Annual Report and Accounts and Notice of the General Meeting will be posted to shareholders and published on the Group's website at www.KodalMinerals.com shortly. The Annual General Meeting is to be held on 31 October 2017.

Basis of preparation

The consolidated financial statements of Kodal Minerals plc are prepared in accordance with the historical cost convention and in accordance with International Financial Reporting Standards ("IFRSs"), as adopted by the European Union ("EU") and in accordance with the provisions of the Companies Act 2006. The Company's ordinary shares are quoted on AIM, a market operated by the London Stock Exchange.

Critical accounting judgements and estimates

The preparation of these consolidated financial statements in accordance with International Financial Reporting Standards requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results ultimately may differ from those estimates. IFRSs also require management to exercise its judgement in the process of applying the Group's accounting policies.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

Licence renewals

The Group's exploration activities and future development opportunities are dependent upon maintaining the necessary licences and permits to operate, which typically require periodic renewal or extension. In Mali and Côte d'Ivoire, the process of renewal or extension of a licence can only be initiated on expiry of the previous term and takes time to be processed by the relevant government authority. Until formal notification is received there is a risk that renewal or extension will not be granted.

At the date of these financial statements, the majority of the Group's exploration licences in Mali and Côte d'Ivoire are due for renewal or extension. The Group complies with the prevailing laws and regulations relating to these licences and ensures that the regulatory reporting and government compliance requirements for each licence are met. In all cases, applications for renewal or extension of these licences have been submitted, and associated fees paid, as they became due. Accordingly, the directors have no reason to believe that the applications for these renewals and extensions will not be successful.

Exploration and evaluation expenditure

In accordance with the Group's accounting policy for exploration and evaluation expenditure, after obtaining licences giving legal rights to explore in the project area, all exploration and evaluation costs for each project are capitalised as exploration and evaluation assets.

The exploration and evaluation assets for each project are assessed for impairment when such facts and circumstances suggest that the carrying value of the assets may exceed the recoverable amount.

In connection with the preparation of the financial statements for the year ended 31 March 2017, the directors undertook an impairment review of the carrying value of the Grimeli Project in Norway. The impairment review was conducted following an assessment by the directors of the exploration data on the Grimeli Project which led to a decision not to commit any further expenditure to the project. The Company expects to relinquish these licence areas at the next renewal date. The impairment review has resulted in an impairment charge in the year to 31 March 2017 of GBP669,000 (2016: GBPnil), being the full carrying value of the Grimeli Project.

The directors have assessed the Group's Gold Projects in Mali and Côte d'Ivoire that are not part of the joint venture agreements and determined that they remain prospective. Accordingly, the directors have determined to continue to maintain these licences and explore ways for the Company to advance these prospective areas most effectively. Accordingly, no impairment review has been conducted on these assets.

In connection with the preparation of the financial statements for the year ended 31 March 2015, the directors undertook an impairment review of the carrying value of the Kodal Project in Norway in response to the significant fall in the price of iron ore, by performing a value in use calculation. As a result of this review, the Kodal Project was fully impaired and its value in the financial statements written down to nil. In the year to 31 March 2017, the Group has recognised a further impairment charge on the Kodal Project of GBP6,000 (2016: GBP50,000), representing exploration and evaluation costs in the year associated with the project. At 31 March 2017 the carrying value of the Kodal Project was GBPnil compared to GBPnil in 2016. No further expenditure is being incurred on the Kodal Project other than the costs of maintaining the extraction and exploration licences and limited consulting work to advance the Norwegian planning application.

Acquisition of International Goldfields (Bermuda) Limited ("IG Bermuda")

On 20 May 2016, Kodal Minerals plc completed the acquisition of IG Bermuda which through its four subsidiaries has interests in a number of gold exploration projects in Mali and C te d'Ivoire in Western Africa. Including fees and expenses, the total cost of the acquisition was GBP512,373. Due to the lack of processes and outputs relating to IG Bermuda at the time of purchase, the Board does not consider the entities acquired to meet the definition of a business. As such, the Group has accounted for the acquisition of IG Bermuda as an asset purchase.

Going concern

The Group has not earned revenue during the year to 31 March 2017 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.

As at 31 March 2017, the Group held cash balances of GBP1,723,000 and following the end of the financial year the Company raised GBP3,994,000 by way of a subscription of new shares. The Group's cash balances at 31 August 2017 were GBP4,121,000.

The Directors have prepared cash flow forecasts for the period ending 30 September 2018. The forecasts include the costs of progressing the Lithium Projects and the corporate and operational overheads of the Group. The forecasts demonstrate 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 twelve months from the date of approval of these financial statements without the need for a further fund raising. Accordingly, the financial statements have been prepared on a going concern basis.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 MARCH 2017

   1.     SEGMENTAL REPORTING 

The operations and assets of the Group in the year ended 31 March 2017 are focused in the United Kingdom, West Africa and Norway and comprise one class of business: the exploration and evaluation of mineral resources. Management have determined that the Group had four operating segments being the West African Gold Projects, the West African Lithium Projects, the Norway Projects and the UK administration operations. The Parent Company acts as a holding company. At 31 March 2017, the Group had not commenced commercial production from its exploration sites and therefore had no revenue for the year.

 
 Year ended 31                       West        West 
  March 2017                 UK    Africa      Africa      Norway         Total 
                                     Gold     Lithium 
                            GBP       GBP         GBP         GBP           GBP 
 Administrative 
  expenses            (443,035)     (160)       (160)    (45,021)     (488,376) 
 Impairment charge            -         -           -   (675,236)     (675,236) 
 Share based 
  payments             (14,667)         -           -           -      (14,667) 
 Loss for the 
  year                (457,702)     (160)       (160)   (720,257)   (1,178,279) 
                     ----------  --------  ----------  ----------  ------------ 
 
 At 31 March 
  2017 
 Other receivables       13,189         -       1,040       2,000        16,229 
 Cash and cash 
  equivalents         1,693,016    11,423      11,423       7,088     1,722,950 
 Trade and other 
  payables            (170,137)         -   (155,076)           -     (325,213) 
 Intangible assets 
  - exploration 
  and evaluation 
  expenditure                 -   714,085     609,141           -     1,323,226 
 Net assets at 
  31 March 2017       1,536,068   725,508     466,528       9,088     2,737,192 
                     ----------  --------  ----------  ----------  ------------ 
 
 
 Year ended 31                       West      West 
  March 2016                 UK    Africa    Africa     Norway       Total 
                                     Gold   Lithium 
                            GBP       GBP       GBP        GBP         GBP 
 Finance income               -         -         -         11          11 
 Administrative 
  expenses            (353,980)         -         -   (20,671)   (374,651) 
 Impairment charge            -         -         -   (50,426)    (50,426) 
 Share based 
  payments             (40,556)         -         -          -    (40,556) 
 Loss for the 
  year                (394,536)         -         -   (71,086)   (465,622) 
                     ----------  --------  --------  ---------  ---------- 
 
 At 31 March 
  2016 
 Other receivables            -         -         -      2,984       2,984 
 Cash and cash 
  equivalents           134,523         -         -        278     134,801 
 Trade and other 
  payables             (98,859)         -         -          -    (98,859) 
 Intangible assets 
  - software                  -         -         -      4,836       4,836 
 Intangible assets 
  - exploration 
  and evaluation 
  expenditure                 -         -         -    596,555     596,555 
 Property plant 
  and equipment               -         -         -     63,581      63,581 
                     ----------  --------  --------  ---------  ---------- 
 Net assets as 
  at 31 March 
  2016                   35,664         -         -    668,234     703,898 
                     ----------  --------  --------  ---------  ---------- 
 
   2.     LOSS BEFORE TAX 

The loss before tax from continuing activities is stated after charging:

 
                                   Group         Group 
                              Year ended    Year ended 
                                31 March      31 March 
                                    2017          2016 
                                     GBP           GBP 
 Impairment of intangible 
  assets                         675,236        50,426 
 Fees payable to the 
  Company's auditor               37,500        22,500 
 Share based payments             14,667        40,556 
 Directors' salaries 
  and fees                        96,815       120,000 
 Employer's National 
  Insurance                        2,311         8,442 
 

Amounts payable to RSM UK Audit LLP and its associates in respect of both audit and non-audit services are as follows;

 
                                             Group         Group 
                                        Year ended    Year ended 
                                          31 March      31 March 
                                              2017          2016 
                                               GBP           GBP 
 Audit services 
 - statutory audit of parent 
  and consolidated accounts                 27,500        20,000 
 - statutory audit of subsidiaries           2,500         2,500 
 - review of interim accounts                7,500             - 
                                            37,500        22,500 
                                      ------------  ------------ 
 
   3.     EMPLOYEES' AND DIRECTORS' REMUNERATION 

The average number of people employed in the Group is as follows:

 
                        Group       Group     Company     Company 
                     31 March    31 March    31 March    31 March 
                         2017        2016        2017        2016 
                       Number      Number      Number      Number 
 Average number 
  of employees 
  (including 
  directors):               6           4           3           4 
                   ----------  ----------  ----------  ---------- 
 

The remuneration expense for directors of the Company is as follows:

 
                               Year ended   Year ended 
                                 31 March     31 March 
                                     2017         2016 
                                      GBP          GBP 
 Directors' remuneration           96,815      120,000 
 Directors' social security 
  costs                             2,311        8,442 
                              -----------  ----------- 
 
   Total                           99,126      128,442 
                              -----------  ----------- 
 
 
                        Directors'         Share 
                            salary         based 
                          and fees      payments          Total 
                        year ended    year ended     year ended 
                          31 March      31 March       31 March 
                              2017          2017           2017 
                               GBP           GBP            GBP 
 Luke Bryan (1)             24,077        14,667         38,744 
 Markus Ekberg               1,667             -          1,667 
 David Jones                 8,769             -          8,769 
 Robert Wooldridge          30,635             -         30,635 
 Bernard Aylward 
  (2)                       31,667             -         31,667 
 
                            96,815        14,667        111,482 
                      ============  ============  ============= 
 
 
                        Directors'   Share based 
                            salary      payments          Total 
                          and fees    year ended     year ended 
                        year ended      31 March       31 March 
                          31 March          2016           2016 
                              2016 
                               GBP           GBP            GBP 
 Luke Bryan (1)             50,000        25,347         75,347 
 Markus Ekberg              20,000             -         20,000 
 David Jones                30,000             -         30,000 
 Robert Wooldridge          20,000             -         20,000 
                      ------------  ------------  ------------- 
 
                           120,000        25,347        145,347 
                      ------------  ------------  ------------- 
 

1 In addition to the amounts included above, Novoco Mine Engineering Limited, a company wholly owned by Luke Bryan, provided consultancy services to the Group during the year and received fees of GBP24,300 (2016: GBP46,750).

2 In addition to the amounts included above, Matlock Geological Services Pty Ltd, a company wholly owned by Bernard Aylward, provided consultancy services to the Group during the year and received fees of GBP91,106 (2016: GBPnil).

   4.     LOSS PER SHARE 

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

The following reflects the result and share data used in the computations:

 
                          Loss        Weighted       Basic 
                                       average    loss per 
                                        number       share 
                                     of shares     (pence) 
                           GBP 
 Year ended 
  31 March 2017    (1,178,279)   3,942,928,822      0.0299 
 Year ended 
  31 March 2016      (465,622)   1,015,307,538      0.0458 
 

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 year 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 loss per share as the Group is currently

loss making.   Diluted loss per share is therefore the same as the basic loss per share. 
   5.     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.

 
                                 Year ended     Year ended 
                                   31 March       31 March 
                                       2017           2016 
 Share options outstanding              GBP            GBP 
 Opening balance                 40,000,000     40,000,000 
 Issued in the period                     -              - 
 
   Closing balance               40,000,000     40,000,000 
                              =============  ============= 
 

Options issued in the year to 31 March 2014

In respect of services provided in connection with the Company's admission to AIM, the Company entered into option agreements dated 20 December 2013 between the Company and Novoco Mine Engineering Limited ("Novoco"), a company wholly owned by Luke Bryan, and between the Company and David Hakes (a consultant to the Group at the time). Under these agreements, the Company granted to Novoco and David Hakes respectively options over 25,000,000 shares and 15,000,000 shares ("Option Shares") at an exercise price of 0.7 pence per share. The options become exercisable in respect of one third of the total number of Option Shares on each of the first, second and third anniversaries of 30 December 2013. The options are exercisable for a period of ten years from the date on which they vest and become exercisable.

Details of share options outstanding at 31 March 2017:

Date of grant Number of options Option price Exercisable between

30 December 2013 13,333,333 0.7 pence 30 Dec 2014 - 30 Dec 2024

30 December 2013 13,333,333 0.7 pence 30 Dec 2015 - 30 Dec 2025

30 December 2013 13,333,333 0.7 pence 30 Dec 2016 - 30 Dec 2026

Included within operating losses is a charge for issuing share options and making share based payments of GBP14,667 (2016: GBP40,556) which was recognised in accordance with the Group's accounting policies.

Additional disclosure information:

Weighted average exercise price of share options:

-- outstanding at the beginning of the period 0.7 pence

-- granted during the period N/A

-- outstanding at the end of the period 0.7 pence

-- exercisable at the end of the period 0.7 pence

Weighted average remaining contractual life of

   share options outstanding at the end of the period                                    8.76 years 

Tetra Option Agreement

In December 2013, the Group entered into an option agreement (the "Agreement") with Tetra Minerals Oy ("Tetra") a company registered in Finland, under which it granted to Tetra an option (the "Option") to subscribe for new shares in the Company. Under the terms of the Agreement, which is governed by English law, Tetra could not assign its right to the Option to another party. In March 2017, Kodal was informed that on 1 February 2017, under a demerger plan in accordance with Finnish law, Tetra's assets had been transferred equally to two new Finnish companies and Tetra had been dissolved. The Company believes, based on legal advice, that as a result of the restriction in the Agreement on assigning the Option and the dissolution of Tetra, the Option is no longer capable of being exercised.

The maximum number of shares that are subject to the Option is 714,285,714, corresponding to the number of shares that would be issued for a total amount of GBP5 million at 0.7 pence per share. Once vested, each tranche of the Option may be exercised by Tetra at a subscription price of 10p per share for a period of three years after the date on which each tranche vests. The Option vests and becomes exercisable in tranches only once the JORC indicated resource for phosphate minerals at the Kodal Project meets certain thresholds from 90m tonnes to 170m tonnes. These thresholds are well beyond the size of the current targeted ore body, which has a JORC mineral resource of 48.9m tonnes. Unless and until further exploration of the Kodal Project identifies a further potential ore body the likelihood of the thresholds being met is considered to be remote.

The Board has reviewed the Tetra option arrangements and determined that the fair value of the Tetra Option is GBPnil on the grounds that Tetra has been dissolved and is no longer capable of exercising the Option and that the likelihood of the options vesting is remote.

   6.     TAXATION 
 
                                           Group         Group 
                                      Year ended    Year ended 
                                   31 March 2017      31 March 
                                                          2016 
                                             GBP           GBP 
 Taxation charge for the                       -             - 
  year 
                                 ---------------  ------------ 
 
 Factors affecting the 
  tax charge for the year 
 Loss from continuing 
  operations before income 
  tax                                (1,178,279)     (465,622) 
 
 Tax at 20% (2016: 20%)                (235,656)      (93,124) 
 
 Expenses not deductible                     232            53 
 Overseas rate differences                     -       (3,043) 
 Losses carried forward 
  not deductible                          89,044        78,287 
 Other temporary differences             137,981        29,135 
 Non-current assets temporary 
  differences                              8,399      (11,308) 
 
   Income tax expense                          -             - 
                                 ===============  ============ 
 

The Group has tax losses and other potential deferred tax assets totalling GBP790,000 (2016: GBP582,000) which will be able to be offset against future income. No deferred tax asset has been recognised in respect of these losses as the timing of their utilisation is uncertain at this stage.

   7.     INTANGIBLE ASSETS 
 
                                    Exploration 
                                 and evaluation   Software       Total 
 GROUP                                      GBP        GBP         GBP 
 COST 
 At 1 April 2015                      3,696,562     27,295   3,723,857 
 Additions in the 
  year                                  362,600          -     362,600 
 Effects of foreign 
  exchange                                (517)          -       (517) 
                               ----------------  ---------  ---------- 
 
   At 1 April 2016                    4,058,645     27,295   4,085,940 
 Additions in the 
  year - acquisition 
  of IG Bermuda                         535,134          -     535,134 
 Additions in the 
  year - other expenditure              857,022          -     857,022 
 Disposals in the 
  year                                        -   (27,295)    (27,295) 
 Effects of foreign 
  exchange                                9,751          -       9,751 
                               ----------------  ---------  ---------- 
 
 At 31 March 2017                     5,460,552          -   5,460,552 
 
 AMORTISATION 
 At 1 April 2015                      3,411,664     13,452   3,425,116 
 Amortisation charge                          -      9,007       9,007 
 Impairment (see note 
  below)                                 50,426          -      50,426 
                               ----------------  ---------  ---------- 
 
   At 31 March 2016                   3,462,090     22,459   3,484,549 
 Amortisation charge                          -      3,306       3,306 
 Disposals in the 
  year                                        -   (25,765)    (25,765) 
 Impairment (see note 
  below)                                675,236          -     675,236 
 
 At 31 March 2017                     4,137,326          -   4,137,326 
                               ----------------  ---------  ---------- 
 
   NET BOOK VALUES 
 At 31 March 2017                     1,323,226          -   1,323,226 
                               ================  =========  ========== 
 
 At 31 March 2016                       596,555      4,836     601,391 
                               ================  =========  ========== 
 
 At 31 March 2015                       284,898     13,843     298,741 
                               ================  =========  ========== 
 

In connection with the preparation of the financial statements for the year ended 31 March 2017, the directors undertook an impairment review of the carrying value of the Grimeli Project in Norway. The impairment review was conducted following an assessment by the directors of the exploration data on the Grimeli Project which led to a decision not to commit any further expenditure to the project. The Company expects to relinquish these licence areas at the next renewal date. The impairment review has resulted in an impairment charge in the year to 31 March 2017 of GBP669,000 (2016: GBPnil), being the full carrying value of the Grimeli Project.

In connection with the preparation of the financial statements for the year ended 31 March 2015, the directors undertook an impairment review of the carrying value of the Kodal Project in Norway in response to the significant fall in the price of iron ore, by performing a value in use calculation. As a result of this review, the Kodal Project was fully impaired and its value in the financial statements written down to nil. In the year to 31 March 2017, the Group has recognised a further impairment charge on the Kodal Project of GBP6,436 (2016: GBP50,426), representing exploration and evaluation costs in the year associated with the project. At 31 March 2017, the carrying value of the Kodal Project was GBPnil compared to GBPnil in 2016. No further expenditure is being incurred on the Kodal Project other than the costs of maintaining the extraction and exploration licences and limited consulting work to advance the Norwegian planning application.

At the date of these financial statements, the majority of the Group's exploration licences in Mali and Côte d'Ivoire are due for renewal or extension. The Group complies with the prevailing laws and regulations relating to these licences and ensures that the regulatory reporting and government compliance requirements for each licence are met. In all cases, applications for renewal or extension of these licences have been submitted, and associated fees paid, as they became due. Accordingly, the directors have no reason to believe that the applications for these renewals and extensions will not be successful.

   8.     PROPERTY, PLANT AND EQUIPMENT 
 
                            Fixtures, 
                             fittings            Plant       Motor 
                        and equipment    and machinery    vehicles       Total 
 GROUP                            GBP              GBP         GBP         GBP 
 COST 
 At 1 April 
  2015                         96,448           30,673      19,758     146,879 
 Effects of 
  foreign exchange                149               85          93         327 
                      ---------------  ---------------  ----------  ---------- 
 
 At 1 April 
  2016                         96,597           30,758      19,851     147,206 
 Disposals 
  in the year                (96,597)         (30,758)    (19,851)   (147,206) 
                      ---------------  ---------------  ----------  ---------- 
 
 At 31 March 
  2017                              -                -           -           - 
 
 DEPRECIATION 
 At 1 April 
  2015                         16,383            4,803       5,833      27,019 
 Depreciation 
  charge                       17,036            4,405       4,969      26,410 
 Impairment 
  charge/write 
  off                          20,393            9,738           -      30,131 
 Effects of 
  foreign exchange                 20               18          27          65 
                      ---------------  ---------------  ----------  ---------- 
 
 At 1 April 
  2016                         53,832           18,964      10,829      83,625 
 Depreciation 
  charge                        8,704            2,248       2,668      13,620 
 Disposals 
  in the year                (62,536)         (21,212)    (13,497)    (97,245) 
                      ---------------  ---------------  ----------  ---------- 
 
 At 31 March 
  2017                              -                -           -           - 
                      ---------------  ---------------  ----------  ---------- 
 
 NET BOOK VALUES 
 At 31 March 
  2017                              -                -           -           - 
                      ===============  ===============  ==========  ========== 
 
 At 31 March 
  2016                         42,765           11,794       9,022      63,581 
                      ===============  ===============  ==========  ========== 
 
 At 31 March 
  2015                         80,065           25,870      13,925     119,860 
                      ===============  ===============  ==========  ========== 
 

For those tangible assets wholly associated with exploration and development projects, the amounts charged in respect of depreciation are capitalised as evaluation and exploration assets within intangible assets. The assets disposed of in the year all related to the projects in Norway.

The Company did not have any Property, Plant and Equipment as at 31 March 2015, 2016 and 2017.

   9.     INVESTMENTS IN SUBSIDIARY UNDERTAKINGS 

The consolidated financial statements include the following subsidiary companies:

 
                                        Country         Registered office     Equity         Nature 
   Company          Subsidiary               of                              holding             of 
                            of    incorporation                                            business 
 Kodal                   Kodal           United          Prince Frederick       100%      Operating 
  Norway              Minerals          Kingdom                    House,                   company 
  (UK) Ltd                 Plc                               35-39 Maddox 
                                                           Street, London 
                                                                  W1S 2PP 
 Kodal                   Kodal           Norway   c/o Tenden Advokatfirma       100%         Mining 
  Mining                Norway                                       ANS,               exploration 
  AS                  (UK) Ltd                            3210 Sandefjord 
                                                                   Norway 
 Kodal                   Kodal           Norway   c/o Tenden Advokatfirma       100%         Mining 
  Phosphate             Norway                                       ANS,               exploration 
  AS                  (UK) Ltd                            3210 Sandefjord 
                                                                   Norway 
 International           Kodal          Bermuda           MQ Services Ltd       100%        Holding 
  Goldfields          Minerals                            Victoria Place,                   company 
  (Bermuda)                Plc                        31 Victoria Street, 
  Limited                                                  Hamilton HM 10 
                                                                  Bermuda 
 International   International        Côte            Abidjan Cocody       100%         Mining 
  Goldfields        Goldfields         d'Ivoire         Les Deux Plateaux               exploration 
  Côte          (Bermuda)                               7eme Tranche 
  d'Ivoire             Limited                                 BP Abidjan 
  SARL                                                 Côte d'Ivoire 
 International   International             Mali           Bamako, Faladi,       100%         Mining 
  Goldfields        Goldfields                              Mali Univers,               exploration 
  Mali SARL          (Bermuda)                           Rue 886 B, Porte 
                       Limited                                        487 
                                                                     Mali 
 Jigsaw          International          Bermuda           MQ Services Ltd       100%         Mining 
  Resources         Goldfields                            Victoria Place,               exploration 
  CIV Ltd            (Bermuda)                        31 Victoria Street, 
                       Limited                             Hamilton HM 10 
                                                                  Bermuda 
 Corvette        International        Côte            Abidjan Cocody       100%         Mining 
  CIV SARL          Goldfields         d'Ivoire         Les Deux Plateaux               exploration 
                     (Bermuda)                               7eme Tranche 
                       Limited                                 BP Abidjan 
                                                       Côte d'Ivoire 
 Future          International          Bermuda           MQ Services Ltd       100%         Mining 
  Minerals          Goldfields                            Victoria Place,               exploration 
  Limited            (Bermuda)                        31 Victoria Street, 
                       Limited                             Hamilton HM 10 
                                                                  Bermuda 
 
 
                                   Year ended   Year ended 
   Carrying value of investment      31 March     31 March 
   in subsidiaries                       2017         2016 
 Opening balance                      476,752      476,752 
 Acquisition of IG Bermuda            512,373            - 
  (see below) 
 Impairment in the year             (476,752)            - 
 
   Closing balance                    512,373      476,752 
                                  ===========  =========== 
 

Acquisition of International Goldfields (Bermuda) Limited ("IG Bermuda")

On 20 May 2016, Kodal Minerals Plc completed the acquisition of IG Bermuda which through its four subsidiaries has interests in a number of gold exploration projects in Mali and C te d'Ivoire in Western Africa. The consideration of GBP410,000 was satisfied by the issue of 1,025,000,000 ordinary shares of the Company, which were issued to Taruga Gold Limited ("Taruga"), a company listed on the Australian Stock Exchange and the previous owner of IG Bermuda. The consideration shares were subsequently distributed by Taruga to its shareholders as an in specie distribution. Due to the lack of processes and outputs relating to IG Bermuda at the time of purchase, the Board does not consider the entities acquired to meet the definition of a business. As such, the Group has accounted for the acquisition of IG Bermuda as an asset purchase.

IG Bermuda and its subsidiaries has interests in four licences in Mali and four exploration licences plus two further licence applications in C te d'Ivoire including a farm-in agreement with Newcrest Mining Limited over one of the C te d'Ivoire licences and a joint venture agreement with Resolute Mining Limited over three licences and one licence application in C te d'Ivoire.

Including fees and expenses, the total cost of the acquisition was GBP512,373. The relative fair values of the identifiable assets and liabilities acquired and included in the consolidation are:

 
                                          GBP 
 Intangible assets - exploration 
  and evaluation                      535,134 
 Cash                                      39 
 Other liabilities                   (22,800) 
                                    --------- 
                                      512,373 
                                    --------- 
 

10. OTHER RECEIVABLES

 
                           Group       Group     Company     Company 
                        31 March    31 March    31 March    31 March 
                            2017        2016        2017        2016 
                             GBP         GBP         GBP         GBP 
 Other receivables        16,229       2,984      33,238      15,983 
 
                          16,229       2,984      33,238      15,983 
 
 

All receivables at each reporting date are current. No receivables are past due. The Directors consider that the carrying amount of the other receivables approximates their fair value.

11. TRADE AND OTHER PAYABLES

 
                        Group       Group     Company     Company 
                     31 March    31 March    31 March    31 March 
                         2017        2016        2017        2016 
                          GBP         GBP         GBP         GBP 
 Trade payables       238,200      73,507     238,200      73,409 
 Other payables        87,013      25,352      83,698      25,358 
 
                      325,213      98,859     321,898      98,767 
 
 

All trade and other payables at each reporting date are current. The Directors consider that the carrying amount of the trade and other payables approximates their fair value.

12. SHARE CAPITAL

GROUP AND COMPANY

Allotted, issued and fully paid:

 
                        Nominal            Number   Share Capital         Share 
                          Value       of Ordinary             GBP       Premium 
                                           Shares                           GBP 
 
   At 31 March 
   2015                               778,194,606         243,186     4,562,017 
 
 Issue (Note 
  1)               GBP0.0003125       222,222,222          69,445       306,551 
 Issue (Note 
  2)               GBP0.0003125        22,867,135           7,146        35,158 
 Issue (Note 
  3)               GBP0.0003125        26,570,886           8,303        33,679 
                                 ----------------  --------------  ------------ 
 
   At 31 March 
   2016                             1,049,854,849         328,080     4,937,405 
 
 
 Issue (Note 
  4)              GBP0.0003125      1,025,000,000         320,313        89,687 
 Issue (Note 
  5)              GBP0.0003125      1,700,000,000         531,250       108,900 
 Issue (Note 
  6)              GBP0.0003125        771,400,000         241,063       486,237 
 Issue (Note 
  7)              GBP0.0003125        673,333,334         210,417       739,536 
 Issue (Note 
  8)              GBP0.0003125        166,666,667          52,083       422,917 
 
 
   At 31 March 
   2017                             5,386,254,850       1,683,206     6,784,682 
                                 ----------------  --------------  ------------ 
 

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

Note 1: On 14 May 2015, a total of 222,222,222 shares were issued in a placing at an issue price of 0.18 pence per share.

Note 2: On 19 May 2015, a total of 22,867,135 shares were issued to a supplier of the Company in part settlement of the services provided at an issue price of 0.185 pence per share.

Note 3: On 22 June 2015, a total of 26,570,886 shares were issues to a supplier of the Company in part settlement of the services provided at an issue price of 0.158 pence per share.

Note 4: On 20 May 2016, a total of 1,025,000,000 shares were issued to Taruga Gold Limited in consideration for the acquisition of the issued share capital of International Goldfields (Bermuda) Limited. The shares were issued at an issue price of 0.04 pence per share.

Note 5: On 20 May 2016, a total of 1,700,000,000 shares were issued in a placing at an issue price of 0.04 pence per share.

Note 6: On 3 October 2016, a total of 720,000,000 shares were issued in a placing and a total of 51,400,000 shares were issued to suppliers of the Company in part settlement of the services provided, in each case at an issue price of 0.1 pence per share.

Note 7: On 13 January 2017, a total of 666,666,667 shares were issued in a placing and a total of 6,666,667 shares were issued to a supplier of the Company in part settlement of the services provided, in each case at an issue price of 0.15 pence per share.

Note 8: On 10 March 2017, a total of 166,666,667 shares were issued in a subscription at an issue price of 0.3 pence per share.

13. RESERVES

 
 Reserve             Description and purpose 
 Share premium       Amount subscribed for share capital 
                      in excess of nominal value. 
 Share based         Cumulative fair value of options and 
  payment reserve     share rights recognised as an expense. 
                      Upon exercise of options or share 
                      rights, any proceeds received are 
                      credited to share capital. The share-based 
                      payment reserve remains as a separate 
                      component of equity. 
 Translation         Gains/losses arising on re-translating 
  reserve             the net assets of overseas operations 
                      into sterling. 
 Retained earnings   Cumulative net gains and losses recognised 
                      in the consolidated statement of financial 
                      position. 
 

14. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

The Group's principal financial instruments comprise cash and cash equivalents, other receivables and trade and other payables.

The main purpose of cash and cash equivalents is to finance the Group's operations. The Group's other financial assets and liabilities such as other receivables and trade and other payables, arise directly from its operations.

It has been the Group's policy, throughout the periods presented in the consolidated financial statements, that no trading in financial instruments was to be undertaken, and no such instruments were entered in to.

The main risk arising from the Group's financial instruments is market risk. The Directors consider other risks to be more minor, and these are summarised below. The Board reviews and agrees policies for managing each of these risks.

Market risk

Market risk is the risk that changes in market prices, and market factors such as foreign exchange rates and interest rates will affect the Group's results or the value of its assets and liabilities.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return.

Interest rate risk

The Group does not have any borrowings and does not pay interest.

The Group's exposure to the risks of changes in market interest rates relates primarily to the Group's cash and cash equivalents with a floating interest rate. These financial assets with variable rates expose the Group to interest rate risk. All other financial assets and liabilities in the form of receivables and payables are non-interest bearing.

In regard to its interest rate risk, the Group periodically analyses its exposure. Within this analysis consideration is given to alternative investments and the mix of fixed and variable interest rates. The Group does not engage in any hedging or derivative transactions to manage interest rate risk.

The Group in the year to 31 March 2017 earned interest of GBPnil (2016: GBPnil). Due to the Group's relatively low level of interest bearing assets and the very low interest rates available in the market the Group is not exposed to any significant interest rate risk.

Credit risk

Credit risk refers to the risk that a counterparty could default on its contractual obligations resulting in financial loss to the Group. The Group's principal financial assets are cash balances and other receivables.

The Group has adopted a policy of only dealing with what it believes to be creditworthy counterparties and would consider obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group's exposure to and the credit ratings of its counterparties are continuously monitored. An allowance for impairment is made where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables concerned.

Other receivables consist primarily of prepayments and other sundry receivables and none of the amounts included therein are past due or impaired.

 
                                                   Other financial 
                                           Loans       liabilities 
                                 and receivables      at amortised         Total 
                                                              cost 
 31 March 2017                               GBP               GBP           GBP 
 Assets 
 Other receivables                        16,229                 -        16,229 
 Cash and cash equivalents             1,722,950                 -     1,722,950 
                              ------------------  ----------------  ------------ 
 
   Total                               1,739,179                 -     1,739,179 
                              ==================  ================  ============ 
 
 Liabilities 
 Trade and other payables                      -           325,213       325,213 
 
   Total                                       -           325,213       325,213 
                              ==================  ================  ============ 
 
 31 March 2016 
 Assets 
 Other receivables                         2,984                 -         2,984 
 Cash and cash equivalents               134,801                 -       134,801 
                              ------------------  ----------------  ------------ 
 
   Total                                 137,785                 -       137,785 
                              ==================  ================  ============ 
 
 Liabilities 
 Trade and other payables                      -            98,859        98,859 
                              ------------------  ----------------  ------------ 
 
   Total                                       -            98,859        98,859 
                              ==================  ================  ============ 
 
 

Foreign exchange risk

Throughout the periods presented in the consolidated financial statements, the functional currency for the Group's Norwegian subsidiaries has been the Norwegian Kronor and for the Group's West African subsidiaries has been the CFA Franc.

The Group incurs certain exploration costs in Norwegian Kronor, the CFA Franc and US Dollars and has exposure to foreign exchange rates prevailing at the dates when Sterling funds are translated into other currencies. The Group has not hedged against this foreign exchange risk as the Directors do not consider that the level of exposure poses a significant risk.

The Group continues to keep the matter under review as further exploration and evaluation work is performed in West Africa, Norway and other countries, and will develop currency risk mitigation procedures if the significance of this risk materially increases.

The Group's consolidated financial statements have a low sensitivity to changes in exchange due to the low value of assets and liabilities (principally cash balances) maintained in foreign currencies. Once any project moves into the development phase a greater proportion of expenditure is expected to be denominated in foreign currencies which may increase the foreign exchange risk.

 
                       GBP denominated            NOK   XOF denominated 
                                          denominated                         Total 
 31 March 2017                     GBP            GBP               GBP         GBP 
 Assets 
 Other receivables              15,189              -             1,040      16,229 
 Cash and cash 
  equivalents                1,693,016          7,088            22,846   1,722,950 
                      ----------------  -------------  ----------------  ---------- 
 
 Total                       1,708,205          7,088            23,886   1,739,179 
                                                       ================ 
 
 Liabilities 
 Trade and other 
  payables                     325,213              -                 -     325,213 
                                                       ================ 
 
 31 March 2016 
 Assets 
 Trade and other 
  receivables                    2,984              -                 -       2,984 
 Cash and cash 
  equivalents                  134,540            261                 -     134,801 
                      ----------------  -------------  ----------------  ---------- 
 
 Total                         137,524            261                 -     137,785 
                                                       ================ 
 
 Liabilities 
 Trade and other 
  payables                      98,756            103                 -      98,859 
                      ----------------  -------------  ================  ---------- 
 
 

Liquidity risk

Liquidity risk is the risk that the entity will not be able to meet its financial obligations as they fall due.

The objective of managing liquidity risk is to ensure, as far as possible, that the Group will always have sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions.

The Group has established policies and processes to manage liquidity risk. These include:

-- Monitoring the maturity profiles of financial assets and liabilities in order to match inflows and outflows;

   --              Monitoring liquidity ratios (working capital); and 
   --              Capital management procedures, as defined below. 

Capital management

The Group's objective when managing capital is to ensure that adequate funding and resources are obtained to enable it to develop its projects through to profitable production, whilst in the meantime safeguarding the Group's ability to continue as a going concern. This is to enable the Group, once projects become commercially and technically viable, to provide appropriate returns for shareholders and benefits for other stakeholders.

The Group has historically relied on equity to finance its growth and exploration activity, raised through the issue of shares. In the future, the Board will utilise financing sources, be that debt or equity, that best suits the Group's working capital requirements and taking into account the prevailing market conditions.

Fair value

The fair value of the financial assets and financial liabilities of the Group, at each reporting date, approximates to their carrying amount as disclosed in the Statement of Financial Position and in the related notes.

The fair values of the financial assets and liabilities are included at the amounts at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The cash and cash equivalents, other receivables, trade payables and other current liabilities approximate their carrying value amounts largely due to the short-term maturities of these instruments.

Disclosure of financial instruments and financial risk management for the Company has not been performed as they are not significantly different from the Group's position noted above.

15. RELATED PARTY TRANSACTIONS

Robert Wooldridge, a Director, is a member of SP Angel Corporate Finance LLP ("SP Angel") which acts as financial adviser and broker to the Company. During the year ended 31 March 2017, the Company paid fees to SP Angel of GBP148,891 (2016: GBP49,000) for its services as broker.

Novoco Mine Engineering Limited ("Novoco"), a company wholly owned by Luke Bryan, a Director, provided consultancy services to the Group during the year ended 31 March 2017 and received fees of GBP24,300 (2016: GBP46,750).

Matlock Geological Services Pty Ltd ("Matlock") a company wholly owned by Bernard Aylward, a Director, provided consultancy services to the Group during the year ended 31 March 2017 and received fees of GBP91,106 (2016: GBPnil).

16. CONTROL

No one party is identified as controlling the Group.

17. EVENTS AFTER THE REPORTING PERIOD

In May 2017, the Company raised GBP3,994,000 by way of two further subscriptions totalling 1,051,131,025 ordinary shares at 0.38 pence per share by Singapore-based Suay Chin International Pte. The net proceeds of the subscriptions will be used to continue exploration work on the Lithium Projects and for general corporate purposes.

On 8 May 2017, the Company granted share options to directors and certain key personnel over a total of 145 million ordinary shares, including options over 50 million shares to each of Bernard Aylward and Luke Bryan and options over 25 million shares to Robert Wooldridge. All options are exercisable at a price of 0.38 pence per share and have a life of 5 years from vesting. 50 per cent of the options vested immediately with a further 25% vesting after one year and the remaining 25 per cent vesting after two years.

On 22 May 2017, the Company issued warrants over 25,000,000 ordinary shares to SP Angel Corporate Finance LLP in respect of additional services provided by it to the Company since its admission to AIM and for advice and assistance in respect of the investment by Suay Chin International Pte and associated agreements. The warrants are exercisable at 0.38 pence per share and have a life of 5 years from vesting. 50 per cent of the options vested immediately with a further 25% vesting after one year and the remaining 25 per cent vesting after two years.

**ENDS**

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                                     Tel: 020 3328 
  Jeremy Porter/Nick Harriss                  5656 
 SP Angel Corporate Finance LLP, 
  Financial Adviser & Broker                  Tel: 020 3470 
  John Mackay                                 0470 
 St Brides Partners Ltd, Financial 
  PR                                          Tel: 020 7236 
  Susie Geliher/Lottie Brocklehurst/Megan     1177 
  Dennison 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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