Kodal Minerals PLC (AIM:KOD), the West African lithium producer, has received an initial $13 million repayment from the operator of its Bougouni project in Mali, as strong spodumene prices continue to underpin the operation.
The payment from mining company Les Mines de Lithium de Bougouni (LMLB) to Kodal Mining UK (KMUK) represents the first repayment of loans advanced to finance capital expenditure at the mine.
KMUK, in which Kodal holds a 49% stake alongside majority partner Hainan Mining, has used the funds to pay down the majority of its Hainan loan facility.
Chief executive Bernard Aylward said the strong price environment is enabling LMLB to generate "very positive returns", with regular repayments to KMUK expected to continue.
Bougouni produced 26,174 dry metric tonnes of spodumene concentrate grading 5.34% lithium oxide in the three months to 30 June, taking year-to-date output to 53,195 tonnes.
Production came in below management's budget, mainly due to maintenance and breakdown issues with the crushing circuit that reduced feed to the dense media separation processing plant in May.
The site team has since completed maintenance work and throughput returned to normal levels in June, while additional mining equipment mobilised to the Ngoualana open pit has improved mining rates.
A third shipment of approximately 20,400 tonnes of concentrate arrived at Hainan port on 27 June, taking completed exports to more than 69,000 tonnes to date.
The price for the third shipment was calculated at $2,304 per tonne, based on the agreed weighting of Shanghai Metal Market Chinese and African CIF indices for 6% concentrate, with an interim payment of $34.4 million already received.
A fourth shipment of around 24,200 tonnes departed San Pedro in Côte d'Ivoire on 11 July and is expected to arrive in Hainan in late August.
Aylward said exports will continue on a six-week to two-month schedule, with revenue from both the third and fourth shipments expected in the current quarter.
The operation has made preparations for the upcoming wet season to ensure steady production, he added, with the team focused on meeting budget and maintaining prudent cash control.
