Leo Lithium stock collapses 50pc as Mali halts shipments
Shares of Leo Lithium crashed 50 per cent on Monday as Mali’s military regime halted the miner’s plans to ship its first ore amid escalating problems engulfing its African lithium dream in the war-torn country.
The military-backed government of Mali asked United Nations peacekeepers to leave the country last month, amid a broader conflict involving jihadist insurgents. The Mali regime has turned to Russia’s mercenary Wagner group to help shore up its control over its territory, according to French newspaper Le Monde.
Simon Hay, managing director and CEO of Leo Lithium. AFR
Still, Leo Lithium insists plans to build the Goulamina lithium mine in a joint venture with Ganfeng, China’s biggest lithium producer, remain on track.
“Obviously, a lot has changed with Leo Lithium over the last few weeks. We’ve continued to push the project ahead on schedule. We’ve got great support from Ganfeng with the co-operation agreement and this subsequent equity investment into the asset,” said Simon Hay, chief executive of Leo Lithium.
Leo shares were lifted from a six-week trading halt on Monday after the company told the market of Mali’s decision to suspend direct ore shipments and plummeted 50 per cent to 57¢.
Over that time, Mali has adopted a new mining code, Leo said, that allows the government to increase its stake in resource projects to 20 per cent.
The government has already secured a 10 per cent “free carry” stake in the joint venture, giving rise to dividends and two government directors, Leo told shareholders.
Mr Hay said Mali’s move to suspend planned “direct shipping ore” or DSO – which is lithium-rich spodumene ore in unprocessed form – will not delay the project, with spodumene concentrate production on schedule for the
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