Want to find out more? Here goes.

Who?

Kodal Minerals (LSE:KOD) is an exploration and development company with operations in West Africa. At the moment, its only source of revenue is from the sale of spodumene concentrate (high-purity lithium), which is a major component in the electric vehicle and grid-scale battery storage industries.

Production has only recent started at its Bougouni mine in Mali. Importantly, it claims the operation is “fully permitted and financed”, which removes some of the risk normally associated with small mining companies.

The group also has a 100% offtake agreement with Hainan Mining. In other words, the Chinese company will buy all of the mine’s output. This is a useful arrangement, which helps avoid the need to repeatedly find new customers.  

Kodal Minerals has now sent three shipments to China generating revenue of $89m. And prices appear to be going in the right direction. The company received the equivalent of $1,148 per tonne for its first shipment. For the second, it was $1,681.

A crucial element

This isn’t surprising given lithium’s critical importance in the move to net zero. According to Fortune Business Insights, the global market is currently worth $16.5bn. This is forecast to rise to $78.5bn by 2034, implying an annual growth rate of 18.9%.

With production underway, a guaranteed buyer, and rising prices in a growing market, everything appears to be going well for Kodal Minerals. On this basis, surely I want to take a stake?

Actually, no.

On the plus side, I can see why the three brokers see it as undervalued. If everything goes to plan, the potential is huge. They have 12-month price targets of 1.2p, 0.95p, and 0.7p, respectively. The group’s current (20 June) share price is approximately 0.34p.

However, an investment would be too risky for me.

Not in control

A look at the legal structure of the group shows that Kodal Mining UK (KMUK) is the owner and operator of the mine. Meanwhile, Kodal Minerals (the London-listed company) only has a 49% stake in KMUK. The remaining 51% is owned by Hainan Mining. In effect, the Chinese company has control of the project by virtue of its majority stake.

In turn, KMUK has a 65% interest in Bougouni. The government of Mali holds the remaining 35%. In other words, the listed business has an effective interest of 31.9% (49% x 65%) in the mine.

Because it’s not classified as a subsidiary, the assets and liabilities associated with the project don’t appear on Kodal Mineral’s balance sheet. There’s nothing wrong with this arrangement. But in my opinion, it’s a potential risk.

Geography is also an issue for me. As well as being one of the most politically unstable countries in Africa, Mali is landlocked. All exports to China have to be routed through Cote d’Ivoire, which could be operationally complex.

I acknowledge the potential – Hainan claims (unconfirmed) that there’s another 15.5m tonnes of reserves at the mine. But on balance, I think there are better opportunities to consider elsewhere.

Should you invest £5,000 in Kodal Minerals Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Kodal Minerals Plc made the list?

James Beard does not own shares in any of the companies mentioned.

The post Could this penny stock double (or treble) in value over the next 12 months? appeared first on The Twelfth Magpie.

Global demand’s surging as EVs replace petrol engines and governments push for clean energy. The International Energy Agency projects lithium demand will grow 40x by 2040, creating a multi-decade supply shortage.

The problem is, most companies involved are just explorers with no revenue and no operational mines.

But Kodal Minerals (LSE:KOD) is different. Costing just a third of a penny per share, it’s already shipped 28,950 tonnes and received $21.3m in revenue – and it’s fully funded with no dilution risk.

I looked into this because it’s rare to find such a small penny stock with actual production and revenue. Let me break down what I found.

What is Kodal?

Kodal Minerals has a £61m market-cap and operates the 350km² Bougouni Lithium Project in Southern Mali. The Stage 1 DMS plant’s on track to produce 125,000 tonnes/year until 2029.

Production started in February 2025, and the company received its first $21.3m revenue in December 2025. The project is fully funded by Hainan Mining with $117.75m, and consumes 100% of production – a guaranteed buyer.

The second shipment of 20,000-30,000 tonnes was delivered in Q1 2026, ramping to nameplate capacity of 125ktpa.

The 10x pathway

Here’s my realistic assessment of potential outcomes, using a range of possible operating margins and price-to-earnings (P/E) ratios.

The base case assumes steady 125ktpa production through 2026–2027, lithium prices at $2,000-$2,500/tonne, and industry-average 40% operating margins. At a P/E ratio of 5 for high-growth lithium, the valuation could reach £600m, pushing the share price up 10 times to 3p.

But is this realistic? Possibly. The company’s drilling results show 54m at 1.57% Li₂O and 37m at 1.60% Li₂O, supporting the ore quality needed for steady production.

Still, a number of things could go wrong.

Risks

Just being a penny stock alone adds risks, with low liquidity meaning sellers might struggle to get the desired price. On top of that, Kodal’s operational jurisdiction in Mali faces severe political instability which could disrupt operations. Some of its competitors in regions such as Australia or Europe don’t face these risks.

It already relies on just a single buyer, so if they pull out, revenue stops.

Addressing concerns, Bernard Aylward, Kodal’s CEO, noted: “We have over 20,000 tonnes produced on site now, so that’s at least two months’ worth of shipments”.

That stockpile helps alleviate some immediate worries, but doesn’t eliminate jurisdictional risk.

The bottom line

This isn’t exploration gambling – it’s a funded mine already shipping. The risk is jurisdiction, not funding. So for investors able to absorb that risk, it’s worth considering as a 1%-2% speculative position in a diversified portfolio.

Essentially, it’s an asymmetric bet on the EV supply chain, while trusting that Mali remains stable. If both happen, the 10x scenario’s possible. If either fails, things could go south.

But hey, that’s the penny stock reality: high reward, high risk.

Should you invest £5,000 in Kodal Minerals Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Kodal Minerals Plc made the list?

Mark Hartley does not hold any positions in the companies mentioned.

The post Here’s how this fully funded 0.3p penny stock could 10x if production ramps up in 2026 appeared first on The Twelfth Magpie.

Details to note down

I’m referring to Kodal Minerals (LSE:KOD). Unlike established mining giants that already generate billions in revenue from operating mines, Kodal Minerals is largely a development-stage company. That means it makes money differently from a mature miner. Currently, its value comes mainly from advancing its projects, securing funding, proving resources, and moving closer to commercial production.

When I’m talking about production, I’m mainly talking about lithium. This is a very interesting area of the market. The metal is a key ingredient in lithium-ion batteries, which is used in electric vehicles, energy storage systems, and consumer electronics.

The focus for me is whether or not it can extract value from its sites for the lithium. I’m confident that the demand for the end product will only increase in the coming years.

Waiting for a re-rating

Kodal’s flagship asset is the Bougouni Lithium Project in Mali, West Africa, which is being developed with the aim of becoming a producing lithium mine. In the latest half-year results, the CEO commented:

I am delighted with our achievements at Bougouni over the last six months, as commissioning of the plant nears completion and first export and receipt of first revenues was achieved post Period end.

Once Bougouni gets more fully operational, the company’s business model should shift towards generating revenue quickly.

The share price has rallied 13% over the past year as investors have increasingly recognised the potential value of Kodal’s lithium assets, especially following the CEO’s comments at the end of last year.

This ties into the high-reward part of the equation. The main reason Kodal Minerals could rally significantly over the coming year is that small mining stocks often move ahead of earnings. The biggest re-ratings can happen when a company transitions from being seen purely as an explorer to a fully fledged producer.

If Kodal continues to grow revenue from the mine and demonstrates that Bougouni can produce lithium at competitive costs, the market may start valuing the company more as a legitimate operating miner rather than a speculative project.

Risks to note

Of course, this is a high-risk stock. Kodal remains exposed to lithium price movements, and a prolonged period of weak lithium prices could hurt the economics of the project. Mining in Mali also carries political and operational risks, including regulatory changes and infrastructure challenges.

There’s certainly a lot to take in here, but I think the long-term outlook for the business is positive. There are lots of short-term factors that could cause share price volatility, and that’s true for any penny stock. But I’m looking at allocating a small amount of capital to this, as the potential for growth could be very high. Investors who have a similar risk tolerance may wish to consider it as well.

Should you invest £5,000 in Kodal Minerals Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Kodal Minerals Plc made the list?

Jon Smith has no positions in the shares mentioned.

The post This high-risk, high-reward penny stock could be primed to rocket from 0.3p appeared first on The Twelfth Magpie.

These tiny, under-the-radar businesses trading at tiny prices are where some of the most extraordinary wealth-creation stories begin for investors willing to take the risk. And right now, three such under-the-radar stocks have caught the eye of a few expert analysts.

So could these be among the best stocks to buy right now?

Three distinct opportunities

First up is digital media and technology group Brave Bison (LSE:BBSN). The firm helps major global brands reach audiences through social-first content, performance marketing, and media buying strategies.

It’s a bit niche. But the digital advertising market’s expanding rapidly, and Brave Bison’s been quietly assembling a diversified revenue base through both organic growth as well as disciplined acquisitions. That’s the same formula many quality compounders have used to reach FTSE 100 status – a proven strategy.

Of course, success is by no means guaranteed. Brave Bison faces stiff competition, and with a substantial level of client concentration, losing just one major account could hit revenues hard.

Then there’s lithium development company Kodal Minerals (LSE:KOD), with its flagship Bougouni project in Mali.

The structural story here’s genuinely powerful. Electric vehicle adoption’s accelerating, new lithium deposits are notoriously hard to find, and demand’s expected to significantly outpace supply over the next decade. If Kodal can bring Bougouni into production, the rewards could prove exceptional.

But that’s a significant ‘if’. Developing a mine in West Africa is a long, money-hungry process, and the lithium price has shown it can move sharply in both directions.

Finally, Made Tech‘s (LSE:MTEC) a UK technology services business helping NHS trusts, local authorities, and central government departments drag their legacy IT infrastructure into the modern era.

Public sector digitalisation is one of the most durable spending commitments in the UK across all major political parties. And Made Tech’s built genuine expertise as a trusted delivery partner in this space.

However, the risk is that government procurement’s notoriously competitive and contract-dependent. Revenue visibility’s never quite as clean as investors would like, and a tough spending review could slow the pipeline quickly.

What’s the potential profit?

The consensus price forecasts from professional analysts are genuinely exciting. But it’s important to highlight that each penny share’s tracked by less than a handful of analysts. And that means a single change of opinion can dramatically shift the outlook.

In other words, these price targets should be taken with a healthy pinch of salt.

Having said that, there’s definitely a lot to like when looking at these penny shares. So while the growth potential’s far from guaranteed and there are ample risks that invite volatility, I’m definitely going to be taking a closer look.

The post 3 penny shares tipped to surge in 2026 appeared first on The Twelfth Magpie.

Yet the long-term returns can also be considerably higher than when buying FTSE 100 and FTSE 250 shares. Take the following three penny stocks, for instance: Brave Bison (LSE:BBSN), Panthera Resources (LSE:PAT), and Kodal Minerals (LSE:KOD).

Over the past five years, they’ve delivered an average return of 111%. An investor who put £20,000 equally in these companies five years ago would have £42,260 sitting in their Stocks and Shares ISA.

Can these shares continue outperforming? I think so, as I’ll now explain.

Video star

Brave Bison produces online video content that it then distributes. Over the last five years, its shares have gained an impressive 135% in value.

Thanks to widescale restructuring, it’s turned from a loss-making company into one with strong earnings growth. In 2025, revenues leapt 57% and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) rose 44%, as its operations successfully straddle key growth areas of digital advertising and influencer marketing.

Brave Bison has successfully leveraged acquisitions to capture these opportunities. It works with major brands like Arsenal FC, Vodafone, and Google, and today has a larger and more diversified business model. This is especially important, as it helps the business to spread risk if cyclical sectors come under pressure and marketing budgets dip.

Feline good

During the past five years, Panthera Resources’ shares have risen a hefty 41%. This chiefly reflects gold’s multi-year price surge — the yellow metal was last at $4,700 an ounce, up from roughly $1,700 in May 2021.

Panthera doesn’t actually own any gold-producing assets. However, it owns a string of high-quality exploration projects in India and West Africa. This includes Kalaka in Mali, where the exploration target was recently hiked to 5m ounces from 3m previously.

What I would say is this early-stage miner is high risk. I expect gold prices to keep rising, but Panthera could still sink in value if it experiences operational setbacks. A $1.58bn damages claim against the Indian government for stopping work at its Bhukia mine could also go either way.

Another mining share to consider?

Over five years, Kodal Minerals’ share price has leapt 158%. The company’s evolved from an exploration play into a full-blown metals producer, reducing its risk profile — output has steadily ramped up since February 2025, and revenues have rolled in. The business operates the Bougouni lithium mine in Mali, which is expected to produce the white metal until 2038.

In my view, this makes Kodal one of the hottest penny shares in the mining sector. Lithium prices have been choppy in recent years, and volatility could return if the Iran war drags on. But the long-term lithium outlook is robust as electric vehicle (EV) sales lift off — analysts at Canaccord think the market could move into a prolonged deficit until 2035 as new demand outstrips supply growth.

If so, prices of the critical energy transition metal could explode, driving Kodal shares even higher.

The post £20,000 invested in these penny shares 5 years ago is now worth £42,260! appeared first on The Twelfth Magpie.

But one successful story can unlock phenomenal returns for investors who buy shares early in their lifecycle. And in the long run, that can even translate into millionaire-making gains.

It’s with this ambition that Kodal Minerals (LSE:KOD) has been drawing in a lot of investor attention. With a share price at just 0.27p, a simple £500 investment is enough to snap up 1,851 shares. But is this actually a good idea?

Explosive potential

As a tiny company, Kodal doesn’t get a lot of attention or coverage from institutional analysts. And yet there’s one expert tracking this company, rating it as a Buy and even putting a 1p share price target on the stock within the next 12 months.

If this projection’s accurate, that means a 285% capital gain could be just around the corner, enough to transform a small £500 investment into £1,923 and a £5,000 investment into £19,231!

But is this really realistic?

Projections always need to be taken with a pinch of salt, especially when they’re coming from just one analyst’s opinion. Having said that, Kodal might indeed be sitting on explosive growth potential.

The early-stage mining enterprise operates in West Africa. And its flagship project, the Bougouni lithium mine, has just begun commercial production with an anticipated mine life spanning through to 2038.

Given the rising global demand for lithium, particularly for its use within batteries for electric vehicles, the timing of production seems almost perfect.

In 2026, providing no surprise spanners are thrown into the works, Kodal will have transitioned from a developer into an active, cash-flow generating producer. And with plans to further ramp up production volumes, alongside anticipated higher lithium prices, a revenue surge could indeed be just around the corner.

Investigating the risks

Unlike most of the mining penny stocks out there, Kodal is massively ahead of the pack with all its mining licenses and flagship project fully funded and already entering production. That eliminates an enormous chunk of risk and makes buying Kodal shares more like an investment rather than speculation.

However, there’s still considerable risk to consider carefully. Bougouni is going to be responsible for almost the entire revenue stream of this business. That means, if there are any operational hiccups, the impact on Kodal’s cash flow could be substantial.

The project is located in Mali, a landlocked country with a reputation for political and regulatory instability compared to other OECD mining jurisdictions. Even if the mine runs flawlessly, growing tensions with neighbouring countries, as well as the rise of militant groups, could prevent Kodal from actually exporting and selling its extracted materials.

The bottom line

Compared to most mining penny stocks, Kodal’s quite exemplary. Reaching commercial production is an exceptionally difficult feat and makes this business worthy of closer inspection. Having said that, the geopolitical climate of Mali introduces significant risks that management has very little control over.

That’s why I’m personally not rushing to buy shares even with the optimistic outlook. But investors with a higher risk tolerance may still want to take a closer look.

The post 1 penny stock under 1p for me to snap up right now? appeared first on The Twelfth Magpie.

With electric vehicle (EV) adoption accelerating fast, lithium — a key component in battery chemistry — is primed for a surge. Many lithium shares are currently trading below what some analysts believe to be fair value, which could make them appealing to early investors.

But volatility has pummeled this space in recent years, so any tilt into it requires a dose of caution. The question beckons: will 2026 be the breakout year for lithium, and which UK penny stocks might ride the wave?

The lithium industry outlook in 2026

Arcane Capital Advisors believes that the lithium market’s current oversupply could begin to flip in 2026. Its forecast suggests demand may hit 2m tonnes of lithium carbonate equivalent (LCE) next year, climbing toward 4.6m by 2030.

In recent months, lithium prices have shown early signs of stabilisation. Goldman Sachs projects that lithium carbonate in China, currently priced around £7,850 a tonne, might rise above £9,800 a tonne in 2026 — roughly a 22% increase.

Such dynamics hint at a market slowly shifting from slack conditions toward tighter supply, particularly if supply growth fails to keep pace or if battery demand surprises on the upside yet again.

A British lithium stock worth a look

The UK’s by no means a leader in lithium mining, but one London-listed company is interesting: Kodal Minerals (LSE: KOD). At about 0.3p per share, it’s among the cheaper lithium-adjacent stocks still above the £50m market-cap line.

The stock’s slumped roughly 33.8% this year, though over a five-year period, it’s up nearly 253%.

Kodal’s principal asset is the Bougouni Lithium Project in Mali, where it aims to produce lithium superoxide (Li₂O) – an intermediate compound in batteries. In early September, the company secured a 125,000 tonne export permit for lithium-rich spodumene concentrate, clearing a major regulatory hurdle and solidifying its path toward first shipments.

On the flip side, it currently has no meaningful revenue and posted a loss of about £11m in its half-year 2024 results. Plus, its liabilities appear to outweigh its assets by a factor of four. It holds cash reserves of around £16.9m but has no free cash flow, so the company may soon need fresh funding.

The fact that it doesn’t yet generate operating cash raises a real risk of dilution or funding shortfalls if delays happen. Valuing early-stage mining firms is notoriously tricky, so while Kodal has potential, its path is littered with execution and financing risks.

Cautious allocation

An EV boom could well be the catalyst for a lithium revival. If demand tightens and prices rebound as many forecasts indicate, penny stocks like Kodal could become darlings of the mining sector.

But the flipside’s real: project delays, capital constraints, licensing risk or commodity price slides could undo much of the promise. I think investors inclined toward this space should consider only a small allocation, and always balance any exposure with more stable stocks in a portfolio.

The post Could an EV boom send lithium penny stocks soaring in 2026? appeared first on The Twelfth Magpie.

In this case, the analysts recommended snapping up shares in Kodal Minerals (LSE:KOD) as early as November 2023. But as 2025 kicked off, they once again reiterated their Buy recommendation for this early-stage mining enterprise and even set a price target of 1p.

Considering the penny stock’s currently trading at around 0.35p today, that suggests a 186% potential gain’s on the horizon!

The thesis behind the recommendation

In February, Kodal announced that the processing plant and services construction at its flagship Bougouni lithium project. Apart from hitting this milestone without exceeding the $65m budget, Kodal also produced its first batch of spodumene concentrate – a form of lithium ore.

After testing the extracted material, Kodal was able to confirm an ore grade of 5.53%. That’s ahead of the typical industry benchmark of 5% for commercial production. That puts it in the same league as more established lithium producers like Pilbara Minerals and Liontown Resources. And while it’s not quite as high as industry leaders like Froniter Lithium and Albermale (both with grades closer to 7.2%), 5.53% is still a very promising result, especially for a young mining enterprise.

At this level of concentration, Bougouni should be able to produce the critical material at a competitive cost, paving the way to wider margins as lithium prices rise. And with management setting a production target for 10,000 tonnes per month, Kodal appears on the verge of gaining a substantial revenue stream. With that in mind, it’s not so surprising Canacoord’s bullish on this business.

What could go wrong?

As Kodal transitions from an exploration to a production mining enterprise, the risk profile surrounding the business has decreased substantially. However, that doesn’t mean investors are guaranteed spectacular returns moving forward. In fact, there’s still plenty that can go wrong.

The Bougouni project’s located in Mali, which isn’t exactly the most politically stable of nations. In 2020, there was a military takeover of the government, and then a year later, there was another coup. And subsequently, the country was kicked out of the Economic Community of West African States (ECOWAS).

This political turnover introduces a lot of regulatory uncertainty for mining projects in the region that could disrupt operations later down the line. But even if everything manages to run smoothly, Kodal’s still highly sensitive to lithium and spodumene concentrate prices. And lately, both have been falling as other suppliers ramp up production.

Should this trend continue, even at a 5.53% ore grade, the economic viability of its Bougouni project could be compromised.

The bottom line

Overall, Kodal Minerals undeniably has explosive growth potential. But even Canacoord acknowledges it’s a speculative investment at this stage in the game. That’s hardly uncommon for a penny stock. But with ample room for error, investors may want to consider keeping this business on their watchlists for now.

The post Top analysts are snapping up this under-the-radar penny stock predicted to soar 186% in 2025! appeared first on The Twelfth Magpie.

So, with that in mind, I recently asked ChatGPT what it believes is the best penny stock currently listed on the London Stock Exchange. The answer: Kodal Minerals (LSE:KOD).

A winning penny stock?

At a market cap of £78m and a share price of just 0.392p, Kodal Minerals definitely meets the criteria for being a penny stock. Yet unlike many other micro-cap stocks in this category, Kodal’s shares have surprisingly been fairly stable.

Its beta – a measure of volatility versus an index like the FTSE 100 – is just 0.9. For reference, most penny stocks typically have a beta of around 2.5. Furthermore, over the past five years, the share price has actually gone up almost 900%.

So far, ChatGPT seems to be on to a winner. But what does this business actually do?

Digging deeper

Kodal is an exploration company focusing on developing lithium and gold mining projects across West Africa. According to ChatGPT, the firm is entirely debt-free and has just reached profitability in 2024. That’s a pretty rare achievement, especially for such a small business operating within the highly capital-intensive natural resources industry.

However, it seems that ChatGPT may have made a critical error here. Kodal doesn’t actually have any active revenue streams, so how can it be profitable?

In 2024, the firm reported net income of £27m. Yet on closer inspection, all of this came from a revaluation of its equity stake in a mining project that has yet to reach the production stage. In other words, the gain only exists on paper due to accounting rules. And it’s also why cash generated from operations was actually in the red by over £3.3m.

What about the debt-free balance sheet? It’s true that Kodal doesn’t have any outstanding loan obligations. Normally, that’s a sign of a healthy business. However, in this case, the likely cause is simply that debt financing is either too expensive or unavailable for the company. Don’t forget that taking on debt demands regular interest payments, which is pretty tough for a firm with no positive cash flows.

Instead, Kodal has been relying on equity financing, which is why the number of shares outstanding has more than doubled over the last five years. As previously mentioned, mining exploration and development is expensive, and extreme equity dilution shouldn’t be a surprise.

Is there any potential?

ChatGPT’s penny stock pick seems questionable in my eyes, not to mention exceptionally risky. But to Kodal’s credit, the business does have some exciting potential ahead. Just earlier this year, it achieved its first lithium concentrate production with its Bougouni project. And everything goes according to plan, commercial production could begin in 2025 as well, paving the way to a much-needed revenue stream.

Overall, I think Kodal is definitely a stock worth watching this year.

The post I asked ChatGPT what the best UK penny stock was. This is what it said… appeared first on The Twelfth Magpie.

Promising moves towards commercial production

I do see some reasons to be optimistic about the outlook for the company.

In an update to the stock market today (4 April), Kodal provided some encouraging news on developments at its flagship lithium mining project in west Africa.

It said the mine (owned by a company in which Kodal has a 49% interest) is “ramping up towards commercial production”, having produced over 11,000 tonnes of spodumene concentrate to date. The plan is for that to be transported to a port in a neighbouring country and shipped to China, where the lithium can be extracted from it.

For now, the company is stockpiling spodumene concentrate in anticipation of future sales.

High-risk operating environment

So far, so good. But the process also demonstrates some of the risks I see as inherent in Kodal’s business model.

For now, its investment case is heavily focussed on one flagship project, meaning there is a lack of diversification both geographically and also in terms of product. For example, if lithium prices crash, the economics of the project would change dramatically.

But even if lithium prices are strong, there are risks.

The company in which Kodal has a stake in turn owns a local company in west Africa, in which the Malian government has taken a stake. The subsidiary “experienced delays beyond its control in relation to the finalisation of the mining licence transfer” to the local subsidiary. The company has accordingly requested a delay in making a payment due to the Malian government although for now has not received a response.

Clearly, the politics of running a mine in west Africa are not straightforward. Even once the spodumene concentrate is pulled out of the ground, however, it needs not only to be processed but also shipped over an international border from landlocked Mali and then loaded onto ships for a long voyage to China.

Whether it is geopolitical risk, the risk of arbitrary taxation in one of several countries or logistical issues, there is a lot that could go wrong here even if the mining does ramp up commercially as Kodal hopes.

Well outside my comfort zone!

None of that in itself is necessarily bad news. Kodal’s flagship project seems to be moving forward in a positive direction. If that continues, it could be excellent news for the penny share’s price.

But the set-up means that Kodal is far outside my risk tolerance as an investor. Some penny shares carry elevated risks, although as Kodal has shown that can also mean outsized rewards.

But the combination of risks here puts me off as an investor despite the potential gains if things go well. This is one penny share I will not be adding to my portfolio.

The post Up 900%, could penny share Kodal Minerals have further to run? appeared first on The Twelfth Magpie.