News that lithium from a Kodal mine is viable for use in battery grade li-carbonate sent shares in the Group up 7%
Companies: Kodal Minerals Plc
Kodal Minerals (AIM: KOD) has announced today that spodumene from the Group's Bougouni lithium project in Mali, Africa has been used to produce high quality, low impurity battery grade lithium carbonate.
The testwork undertaken by Chinese lithium carbonate producer Shandong Ruifu Lithium means that lithium from the Group's principal asset is viable for use in lithium batteries, whose demand is expected to spike exponentially in the coming years.
Last week we wrote a piece titled "4 lithium stocks to watch and why", in which we delved into the opportunities the dramatic increase in demand for lithium will open up for investors and mining companies, one of which was Kodal.
Today's announcement meant KOD was trading up 7% on Friday's closing share price.
Commenting on the promising news for the Group, CEO Bernard Aylward said:
"The testwork completed previously had demonstrated good metallurgical recoveries producing a high-grade spodumene concentrate, and these test results now confirm that this spodumene can be converted to a final lithium carbonate product that will be seen as a premium product compared to many others in the market."
Kodal currently has a market cap of c. £16m, with its share price spiking January this year to 0.5p per share from its December 2016 price of c. 0.08p per share. Today's share price is c. 0.27p per share, well below its all-time high of 2.08p per share just after its IPO in December 2013.
