Kodal Minerals Share Discussion Threads

[pwhite73] 12/3/2017 19:25

mhin2 - "sujja, lets see what the results from drilling and due diligence are"

The results from the drilling will be spectacular and proof that the Bougouni Project is a commercial concern. That I am 100% certain of.

The success of the due diligence will be determined by how far up you guys chase the stock. If it hits 1p in the next 45 days as many here have suggested then of course there is going to be announcement that Suay China taken their 20% stake at 0.38p.

In the RNS KOD stated they already have the authority to issue the shares required to meet a placing to the value of £4.3 million.

[mhin2] 12/3/2017 19:21

lets see how this plays out, and lets have a few surprises thrown in from Newcrest and Resolute. Perhaps will do the same at kod. Seems to me that if Kod has battery grade lithium they will be at the right place at the right time...massive ramp up in lithium batteries underway. I really liked the Bravado of Musk in offering Australia a battery based future for their energy needs in 100 days, or its done for free. Musk really trying to get orders to ramp up production at the gigafactories. Seems to me billions are being spent on lithium based energy solutions. However, I am not a scientist/engineer, and battery grade lithium would be essential. Nevertheless the fact that there is Chinese interest around Bougouni would seem to indicate that the grades are right. Am I correct in believing that KOD has a larger area, and potential resource than Biriimian....possibly why their deal fell through.

[equity growth] 12/3/2017 18:49

Yes that's an interesting scenario. Prove up the resource (by mid year according to interview) and then sell on to the highest bidder. Win, win all round. Either way KOD's soon to be largest shareholder hasn't come just for the beer. It's a follow the money situation plain and simple. Can't really blame them over BGS when KOD was so close lol.

[mhin2] 12/3/2017 18:13

sujja, lets see what the results from drilling and due diligence are, and lets see if anyone else comes knocking on the door. It will be the latter that will indicate the potential.

[shujja1] 12/3/2017 16:40

This will get taken over soon at a very high price ones the Chinese have done they home work they are not going to hold 20% no way a take over.
in the Far East they is a old saying let me though the door I will find a place to sit down .

[john2017] 12/3/2017 16:13

The more people feed this troll with replies , the more extreme reasoning he will give to satisfy his agenda.Better off he is ignored as he is not to be taken seriously.

[cpap man] 12/3/2017 16:10

Also would always rather listen to those who know everything there is to know about KOD such as the likes of the CEO of KOD namely Bernard Alyward....



goneawol10 Mar '17 - 15:22 - 1424 of 1428 3 0



Equity Growth10 Mar '17 - 15:33 - 1425 of 1428 2 0

"Looking to have a significant resource by mid-year"

Sooner or later this is going to get seriously rerated.

I think sooner.

[goneawol] 12/3/2017 16:03

"Exempt Private Companies were exempted from statutory auditing requirements if their annual turnover remains below S$5 million."

£4.3 million plus the £500k is £4.8 million. To have exempt status the Suay Chin must have a turnover of less than S$5 million. £4.8 million is S$8 million.

.....

The £4.8m has nothing to do with Suay Chin's turnover.

[goneawol] 12/3/2017 16:01

'...This means no corporation which would include Shandong has a beneficial interest. Beneficial is normally 3% or more.'
...

I think you are confusing a beneficial interest with a notifiable interest.

[pwhite73] 12/3/2017 15:53

HOW IT ALL WORKS.

I'm now going to theorise as to how I believe it all works.

The £500k at 0.30p is a placing they could probably get away with straight away for just the mention of Chinese involvement is enough to lift the share price to that level. The £4.3 million is much harder.

The success of this placing will all depend on you guys. If sufficient investors purchase £4.3 million worth of stock over the next 45 days or thereabouts the placing will take place for you have effectively stumped up the money for Suay Chin whoever they are.

If the money is not stumped up by you guys over the next 45 days don't be surprised to read the deal has been scaled back or called off. Just like the BGS deal was called off.

In essence you are Suay Chin.

Gone (for now)

[seal1] 12/3/2017 15:49

Its not even 1p yet this stock, seems amazing. Gold and Lithium, Chinese buying in now..all for under 1p
Dont like to hype but couldnt resist it sorry.

[pwhite73] 12/3/2017 15:35

"The Chinese group ‘has’ paid for £500,000 worth of shares at a price of £0.003 per share"

Suay Chin is a Singaporean not Chinese company. It is also an Exempt Private Company. This means no corporation which would include Shandong has a beneficial interest. Beneficial is normally 3% or more.

Even more more important is this:-



"Exempt Private Companies were exempted from statutory auditing requirements if their annual turnover remains below S$5 million."

£4.3 million plus the £500k is £4.8 million. To have exempt status the Suay Chin must have a turnover of less than S$5 million. £4.8 million is S$8 million.

So how comes it has S$8 million to purchase stock in KOD when the law requires that it has a turnover of less than S$5 million. If Shandong has pumped S$8 million into the company then it must have a beneficial interest.

[cpap man] 12/3/2017 15:20

Would always rather listen to those that are extremely well informed on KOD such as the likes of house broker to KOD namely S P Angel Stockbrokers....

[cpap man] 12/3/2017 15:11

Kodal Minerals* (LON:KOD) 0.325p, Mkt Cap £17m – Chinese offtaker preparing to buy £4.3m of stock at 65% premium following initial £0.5m investment at 30% premium

Suay Chin International Pte Ltd which has strong support from Shandong Mingrui Chemical Co Ltd has taken an initial stake in Kodal Minerals.

The Chinese group ‘has’ paid for £500,000 worth of shares at a price of £0.003 per share highlighting its interest in the company and not just the Bougouni lithium project.

Suay China is now undertaking due diligence which, if successful, will increase its shareholding in Kodal to 20% of the company at a price of £0.0038/s for a further cash investment of £4.3m representing a 65% premium to yesterday’s closing share price.

Kodal and Suay Chin International have agreed to start talking about an off-take agreement over 20% of the spodumene concentrate to be produced from Kodal’s Bougouni project.

Kodal is about to recommence drilling its Bougouni lithium project in Mali with similar-ish results to Birimian Limited’s results at its closely named and more advanced Bougouni Goulamina project in Mali.

Anecdotal evidence indicates there is a supply shortage of lithium feedstock in China which is causing prices to rise dramatically particularly for smaller contracts.

This appears to be causing Chinese companies to move quickly to take stakes in promising, higher-grade, lithium projects around the world where processing routes are reasonably well defined.

Lithium Carbonate prices which were generally considered to be around 6,500-8,500/t last year are now reported to vary between $10,000-18,000t for larger contracts and $18,000-21,000/t for smaller contracts in China. We suspect the larger contracts are still being priced towards the lower end of the range but Tesla’s entry into the market for its new Gigafactory and rising demand in China, Japan and South Korea is raising prices significantly for smaller contracts.

Morningstar estimates a potential supply shortfall of 100,000t by 2025 as lithium demand rises 16% each year till then

Conclusion: The subscription shows how serious Chinese companies are in securing future lithium supply and confirms our view that the Bougouni area of Mali looks like is may make a meaningful lithium production centre in future years.

Shandong Mingrui has previously offered to buy Birimian Limited for A$107.5m but the deal fell over when Shandong failed to deliver A$10.75m into an escrow account in January.

Suay Chin International Pte Ltd was set up in January this year specifically to act as a trading group for the supply and source of lithium feedstock into the Chinese Lithium market.

The Suay Chin team is said to be well connected, funded and with relevant industry experience and to have support from key Chinese manufacturers.

The statement says that Suay Chin has strong support from Shandong Mingrui which is a long-term supplier to existing lithium carbonate producers in Shandong Province.

The race to secure feedstock materials for battery producers is hotting up with Chinese companies moving to grab higher-grade lithium projects and prospects. This follows China’s recent multi-billion purchase of the Tenke Fungurume copper, cobalt mine in the DRC.



* S P Angel Stockbrokers

[cpap man] 12/3/2017 14:36

PWhite7312 Mar '17 - 14:24 - 1507 of 1508 0 0 (Filtered)
PWhite7312 Mar '17 - 14:35 - 1509 of 1509 0 0 (Filtered)

[pwhite73] 12/3/2017 14:35

They are unlikely to have the Chinese government as backers if they claim it was the Chinese government that prevented them from paying the $10 million deposit to BGS.

The other thing is this as stated on one of the BGS share forums Shandong are not a listed company. Companies that had $107 million to splash out tend to be public concerns.

I converted the $107 million to pounds and it is £87 million. If the company has assets of £143 million which isn't that much where were they going to get £87 million in cash from to purchase BGS.

Is this all beginning to make sense now?

Speak Later

[cpap man] 12/3/2017 14:25

Thanks for that E G - they have a whole "fist of USD/$'s" so funding KOD to the tune of circa $6M is obviously NOT a problem!

It is also pretty damn clear that they have many rich and powerful CHINESE backers....

Perhaps even the CHINESE Government....

Yup this is really serious LITHIUM business....

[cpap man] 12/3/2017 14:20

PWhite7312 Mar '17 - 13:52 - 1505 of 1505 0 0 (Filtered)

[pwhite73] 12/3/2017 13:52

Equity Growth

Thanks for that. Now lets all take a look at the figures.

Total Assets of 1.2 billion yuan. Converted to pounds that is £142 million pounds.

They claim they are capable of achieving sales of 1.8 billion yuan. Converted to pounds that is £213 million.

Their current yearly revenue (EBITDA) is 200 million yuan. Converted to pounds that is £23 million.

So you see they are not that big a company and where were they ever going to get the $107 million from to buy BGS. The purchase of BGS would have cost them about 60% of the company and this is before any lithium is extracted.

As I said I'm not personally convinced of the whole Mali lithium Chinese story. Is there really any Chinese interest?

[equity growth] 12/3/2017 13:32

From their website: Shandong Mingrui Chemical Group locates at the foot of Mountain Tai-famous as the first of the "Five Sacred Mountains" in China. The group has the advantages of excellent geographyenvironment, convenient transportationadvanced economics. The group founded in 2005 with registered capital of 60 million RMB, which contains many subsidiaries, such as Feicheng Mingrui Chemical Co. Ltd., Xintai Mingrui Chemical Co. Ltd., Laocheng Mingrui Chemical Co. Ltd.so on. The group covers an area of about 1,000,000 square meters, with total assets of 1.2 billion yuan. It has an annual productivity of 800,000 ton sulfur acid, 800,000 ton iron oxide, 100,000 ton ammonium dihydrogen phosphate, 20,000 ton phosphoric acid, 20,000 ton titanium tetrachloride. Our group could achieve annual sales revenue of 1,800,000,000 yuanEBITDA of 200,000,000 yuan. The group is managed in accordance with standard modern enterprise system, with a high-quality management team. The board of directors is consisted of economist, accountant, chemical expert, professional managerso on, who are all shareholders. There are more than 1800 staffs, more than 500 of whom are various types of professionaltechnical personnel. In recent years, the group follows the national industrial policy, increases its investment strength on new energymaterials, improves the comprehensive utilization level of various raw materials,positively develops the circular economy. The group focuses on technological innovationintellectual property protection,positively carries out capital operation in order to build a green, innovative, harmoniousscientific modern enterprise, with the target of annual growth rate of more than 50% percent. In a word, the group is a modern chemical industry group with flexible mechanism, rapid development, broad prospect,harmonious relations, which enjoys great support from the government.

[cpap man] 12/3/2017 13:30

PWhite7312 Mar '17 - 13:21 - 1502 of 1502 1 0 (Filtered)

[seal1] 12/3/2017 13:19

pwhite - so why are you here then talking about it day and night. Go call matron its time for your sedative.

[cpap man] 12/3/2017 12:00

Something MAJOR is going on LITHIUM & CHINESE wise in this region janestone for sure!

Recent RNSs hint at this....



"our strategy of developing a mining hub at Bougouni"

+

"This investment highlights the emerging lithium mineralised region in Mali, and Kodal is continuing to progress its strategy of developing a mining hub at Bougouni based on multiple high-grade lithium pegmatite veins within the Project area."



AIMHO & DYOR of course....