TIDMKIBO
RNS Number : 8073K
Kibo Mining Plc
27 September 2016
Kibo Mining Plc
(Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Unaudited Interim results for the six months ended 30 June
2016
Dated 27 September 2016
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO)
the mineral exploration and development company focused on coal,
gold, nickel, and uranium projects in Tanzania, is pleased to
announce its unaudited half year results for the period ended 30
June 2016.
Highlights from the Chairman, Christian Schaffalitzky's
statement:
-- Key feasibility studies on the Mbeya Coal to Power project
completed with strongly positive results;
-- Agreement reached with SEPCO III granting it sole bidder status
for the MCPP EPC contract for refund of 50% of development
costs incurred by the Company to date;
-- Agreement reached to convert Sanderson loan of GBP1.5m into
a 2.5% equity interest in the MCPP project company demonstrates
confidence in the project;
-- Recent appointments of reputable advisors and agreement with
GE International has given renewed momentum to MCPP as it
approaches financial close;
-- Plans well advanced to spin-out Imweru gold project into a
new AIM & JSE listed company, Katoro Gold Mining Limited,
raise funds and commence mine development.
Chairman's Statement
Dear Shareholder,
I am pleased to present our accounts for the six-month period
ending 30 June 2016 and report on significant progress on our Mbeya
Coal to Power ("MCPP") and Imweru gold projects. I outline a
summary of the principal operational and corporate developments
during the period below.
Operations - MCPP
The Company's primary focus was on advancing the various
component feasibility studies and stakeholder negotiations required
to finalise the Integrated Bankable Feasibility Study ("IBFS") for
our flag ship Mbeya Coal to Power Project ("MCPP"). We made
excellent progress on all fronts resulting in the completion of a
number of key technical studies and progress with associated
activities as follows:
-- Detailed engagement with TANESCO and the Government of Tanzania
on terms for the negotiation of a Power Purchase Agreement;
-- Consolidation of the MCPP Coal licence block by the acquisition
of 3 new licence areas;
-- Completion of a Mineral Resource re-statement on the Mbeya coal
deposit which showed an 10.42% increase in the total resource over
the previous estimate.;
-- Completion of the Definitive Power Feasibility Study and the Definitive
Mining Feasibility Study;
-- Appointment of consultants to complete Environmental and Social
Impact Assessment ("ESIA") and completion of Phase 1 of the ESIA
(scoping study) which also included implementation of a water availability
study; and
-- Initiation of EPC bid process for the construction of the project.
I am delighted with the strongly positive results from the key
studies finalised during the period which have continued to de-risk
the MCPP by demonstrating improved financial, technical and
operational metrics and so enhancing its prospects for a successful
financial close and commencement of project construction.
I note that momentum on the MCPP has continued to gather pace
during the third quarter 2016 with a highlight being the new
agreement we recently signed with international China based EPC
contractor, SEPCO III. This agreement grants SEPCO III the right to
be the sole EPC bidder for the construction of the MCPP power plant
in exchange for it refunding 50% of the development costs incurred
by Kibo to date on the project. We have already received the first
tranche of US$1.8 million of the development costs from SEPCO III.
The awarding of the EPC contract to SEPCO III will be contingent on
it meeting the strict bid proposal specification laid down by Kibo
and its power plant consultants Tractabel Engineering Ltd and
agreement being reached with Kibo on the balance of the development
costs to be refunded. The agreement with SEPCO III was achieved as
a result the outstanding results received from the power and mining
feasibility studies completed during the first half of 2016. The
agreement is an acknowledgement of the advanced development stage
achieved with the MCPP and the recognized quality of the project.
Consequently, the tender process for awarding the EPC contract to
construct the power plant is now warranted and has begun.
I also note the recent appointment of UK law firm Norton Rose
Fulbright as legal advisors on the MCPP, the Memo of Understanding
signed with US industrial conglomerate GE International for the
provision of technical services and assistance with bringing the
project to financial close and the appointment of Absa bank as
financial advisors. These appointments further reflect the
increased momentum we now have behind this much needed energy
project in southern Tanzania.
Operations - Imweru
Apart from reaching the major developmental milestones on the
MCPP discussed above, we also initiated a major initiative on our
Imweru gold project during the first half of 2016 in order to
release value for shareholders in this exciting gold project. We
are well advanced in our plans to spin-out this project into a new
AIM and JSE listed company, to be called Katoro Gold Mining Limited
("Katoro") and raise sufficient finance to develop a gold mine with
an initial production target of 50,000 oz. gold per annum within 12
to 18 months. While initially we had reached heads of agreement,
with Australian private company, Lake Victoria Gold, to include its
adjacent Imwelo project in Katoro, subsequent issues that came to
light during our due diligence review on Imwelo has meant that we
will not now proceed with amalgamating the two projects. Instead we
will replace Imwelo with our Lubando gold project areas ("Geita
East") which together with Imweru will be the initial projects in
Katoro.
Imweru and Lubando together have a combined gold resource of
approximately 700,000 oz. at 1-2 g/t. We plan to commence mine
development at Imweru where there is an existing JORC-compliant
Mineral Resource of 14.9 Mt @ 1.1 g/t (550,000 oz. Au) and for
which we have already commenced a Mining Feasibility Study. The
first part of this study, a Preliminary Economic Assessment, was
completed during 2015 and established the potential of Imweru to
warrant a mine development with a mine life of 7-10 years and the
potential to expand the resource and extend the mine life by
another 6 years. Lubando, located 70km east of Imweru, has a
NI43-101 compliant Mineral Resource of 2,593,710 tonnes at 2g/t
(168,300 oz. Au) and together with adjacent Geita East projects
properties at Busolwa and Pamba offer the opportunity for further
gold exploration and resource expansion that may lead to a mine
development being warranted in the longer term.
Operations - Other Projects
We have kept work to a minimum on our other projects at Haneti
(nickel-PGM), Morogoro (gold) and Pinewood (uranium) during 2016 to
date as we focus resources on our coal and gold development
projects. Haneti remains drill ready to test initial nickel-PGM
targets established from earlier exploration. We continue to engage
with Metal Tiger plc, our joint venture partners on the Morogoro
and Pinewood projects on the best way to extract value from these
projects and a number of initiatives are currently under
consideration.
Corporate
The increased funding requirement of the Company to maintain
momentum behind the MCPP during the period was satisfied with an
innovative loan arrangement with Sanderson Capital Partners. The
loan has proved to be a successful alternative to direct placings
in the market in minimising shareholder dilution and maintaining
shareholder value in the MCPP pending completion of the IBFS and
financial close. The loan of GBP 1.5 million, arranged in March
2106, was drawn down in five tranches of GBP 300,000 each over a
period of six months (March-August inclusive). A total of
15,060,418 Kibo shares were issued at prices of between 4p to 5.25p
in settlement of loan arrangement and drawdown fees over the loan
term. I am pleased to reflect on the re-negotiated terms for the
payback of the loan which we recently announced on the 1(st)
September and which converted the loan to a 2.5% equity interest in
the MCPP for a conversion fee of GBP150,000 in Kibo shares. These
attractive terms demonstrate confidence by Sanderson in the project
and also minimise dilution of your shareholding in Kibo.
In addition to the shares issued during the January - June
period pertaining to the Sanderson loan discussed above in the
amount of 12,902, 943 shares, a further 9,614,613 shares were
issued by the Company in settlement of an earlier Sanderson loan
and as payment for technical and corporate services to the Company.
The total number of shares thus issued during the first six months
of 2016 was thus 22,517, 556 shares at prices of between 3.7p and
5.25p.
The Company also received re-payment of GBP522,800 in January
2016 being the delayed receipt of the final proceeds from its
February 2015 placing with Hume Capital Securities plc (funds were
locked down following Hume going into administration in March
2016).
In conclusion, I would like to thank our board and management
for their on-going work under the direction of CEO Louis Coetzee
where we have again seen major critical milestones reached on the
MCPP since the start of the year.
_________________________________
Christian Schaffalitzky
Chairman
Unaudited Interim Results for the six months ended 30 June
2016
Unaudited condensed consolidated interim Statement of
Comprehensive Income
For the six months ended 30 June 2016
6 months to 6 months to 12 months to
30 June 30 June 31 December
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Revenue 4,184 - 44,181
Administrative expenses
* (1,458,100) (851,620) (1,791,358)
Exploration Expenditure (866,967) (248,203) (1,454,216)
Reversal of Impairment - - 3,182,240
Bargain purchase on acquisition - 185,698 -
of subsidiary
Operating (loss)/ profit (2,320,883) (914,125) (19,153)
Investment and Other Income 480 234 196,315
------------ ------------ -------------
(Loss)/ Profit before tax (2,320,403) (913,891) 177,162
Tax - - -
------------ ------------ -------------
Loss for the period (2,320,403) (913,891) 177,162
Other comprehensive income:
Exchange differences on
translating of foreign operations,
net of taxes 46,378 69,704 16,366
Total comprehensive (loss)
/ profit for the period (2,274,025) (844,187) 193,528
------------ ------------ -------------
(Loss)/ Profit for the period
attributable to (2,320,403) (913,891) 177,162
------------ ------------ -------------
Owners of the parent (2,320,403) (913,891) 177,162
Non-controlling interest - - -
------------ ------------ -------------
Total comprehensive (loss)
income attributable to (2,274,025) (844,187) 193,528
------------ ------------ -------------
Owners of the parent (2,274,025) (844,187) 193,528
Non-controlling interest - - -
------------ ------------ -------------
Basic (loss)/ earnings per
share (0.007) (0.0029) 0.001
Diluted (loss)/ earnings
per share (0.007) (0.0029) 0.001
Headline loss per share (0.007) (0.0036) (0.010)
*Administrative expenditure for the interim period ended June
2016 includes GBP947,418 relating to financing activities specific
to the borrowings raised throughout the current period.
Unaudited condensed consolidated interim Statement of Financial
Position
As at 30 June 2016
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Assets
Non-current assets
Property, plant and equipment 3,449 27,394 7,182
Intangible assets 17,596,105 14,413,865 17,596,105
Total non-current assets 17,599,554 14,441,259 17,603,287
------------- ------------- ---------------
Current assets
Trade and other receivables 56,718 844,143 550,692
Cash and cash equivalents 107,086 835,227 189,435
------------- ------------- ---------------
Total current assets 163,804 1,679,370 740,127
------------- ------------- ---------------
Total assets 17,763,358 16,120.629 18,343,414
------------- ------------- ---------------
Equity
Called up share capital 13,470,787 13,191,116 13,210,288
Share premium 26,495,318 25,791,441 25,782,519
Treasury shares (44,464) - (44,464)
Translation reserve (338,241) (331,281) (384,619)
Share based payment reserve 514,279 510,978 514,279
Retained deficit (23,861,789) (23,143,417) (21,541,386)
------------- ------------- ---------------
Total equity 16,235,890 16,018,837 17,536,617
------------- ------------- ---------------
Liabilities
Current liabilities
Trade and other payables 327,468 75,209 306,797
Current tax liability - 26,583 -
Borrowings 1,200,000 - 500,000
Total current liabilities 1,527,468 101,792 806,797
------------- ------------- ---------------
Total equity and liabilities 17,763,358 16,120,629 18,343,414
------------- ------------- ---------------
Unaudited Condensed Consolidated Statement of Changes in
Equity
Share Share Treasury Share based Foreign Total Retained Total
Capital Premium shares payment currency reserves deficit
reserve translation
reserve
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 30 June 2015
(unaudited) 13,191,116 25,791,441 - 510,978 (331,281) 179,697 (23,143,417) 16,018,837
Profit / (loss) for the
year 1,091,053 1,091,053
Other comprehensive income
(loss) - exchange
differences (53,338) (53,338) (53,338)
Share options and warrants
expired or cancelled
during the period (510,978) (510,978) 510,978
Share options issued during
the current period 514,279 514,279 514,279
Proceeds of share issue of
share capital (25,292) (8,922) (34,214)
Issue of treasury shares 44,464 -44,464
Balance at 31 December 2015
(audited) 13,210,288 25,782,519 (44,464) 514,279 (384,619) 129,660 (21,541,386) 17,536,617
Profit / (loss) for the
year - - - - - - (2,320,403) (2,320,403)
Other comprehensive income-
exchange differences on
translating of foreign
operations - - - 46,378 46,378 - 46,378
Share options issued during - - - - - - - -
the current period
Proceeds of share issue of
share capital 260,499 712,799 - - - - - 973,298
Balance as at 30 June 2016 13,470,787 26,495,318 (44,464) 514,279 (338,241) 176,038 (23,861,789) 16,235,890
(unaudited)
============================ =========== =========== ========= ============ ============ ========== ============= ============
Unaudited condensed consolidated interim statement of cash
flow
For the six months ended 30 June 2016
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
(Loss) / Profit for the period
before taxation (2,320,403) (913,891) 177,162
Adjusted for:
Foreign exchange loss 46,378 69,704 16,366
Depreciation on property, plant
and equipment 3,683 699 21,685
Investment income (480) (234) (2,890)
Bargain purchase from business
combinations - (185,698) (193,425)
Loss on disposal of subsidiaries - - 5,762
Impairment of Goodwill recognised - - 20,057
Non-cash items - - 29,554
Movement on exploration activities - 248,203 -
Share based payments 973,348 - 596,287
Reversal of impairment - - (3,182,240)
Operating income before working
capital changes (1,297,474) (781,217) (2,541,236)
(Increase)/ Decrease in trade
and other receivables 493,974 (832,587) (539,135)
(Decrease)/ Increase in trade
and other payables 20,671 (138,314) 66,691
Cash flow from business combination - 161,367 -
Net cash outflows from operating
activities (782,829) (1,590,751) (3,013,680)
Cash flows from investing activities
Expenditure on exploration activities - (248,203) -
Net cash flow from acquisition
of subsidiaries - - 61,492
Net cash used in investing activities - (248,203) 61,492
Cash flows from financing activities
Proceeds from issue of share capital - 2,487,500 2,453,286
Proceeds from borrowings 700,000 - 500,000
Investment Income 480 234 2,890
------------ ------------ ------------
Net cash proceeds from financing
activities 700,480 2,487,734 2,955,176
Net increase in cash and cash
equivalents (82,349) 648,780 2,988
Cash and cash equivalents at beginning
of period 189,435 186,447 186,447
------------ ------------ ------------
Cash and cash equivalents at end
of period 107,086 835,227 189,435
------------ ------------ ------------
Notes to the unaudited condensed consolidated interim financial
statements
For the six months ended 30 June 2016
1. General information
Kibo Mining Plc ("the Company") is a public limited company
incorporated in Ireland. The condensed consolidated interim
financial statements consolidate those of the Company and its
subsidiaries (together referred to as the "Group"). The Company's
shares are listed on the AIM of the London Stock Exchange and the
Alternative Exchange of the JSE Limited (ALTX). The principal
activities of the Company and its subsidiaries are related to the
exploration for and development of coal and other minerals in
Tanzania.
2. Statement of Compliance and Basis of Preparation
The condensed consolidated financial statements are for the six
months ended 30 June 2016, and have been prepared using the same
accounting policies as those applied by the Group in its December
2015 consolidated annual financial statements, which are in
accordance with the framework concepts and the recognition and
measurement criteria of the International Financial Reporting
Standards (IFRS and IFRC interpretations) issued by the
International Accounting Standards Board ("IASB") as adopted for
use in the EU ("IFRS, including the SAICA financial reporting
guides as issued by the Accounting Practices Committee, IAS 34 -
Interim Financial Reporting, the Listings Requirements of the JSE
Limited, the AIM rules of the London Stock Exchange and the Irish
Companies Act 2015.
The condensed consolidated interim financial results are
prepared in accordance with the going concern principle under the
historical cost basis as modified by the fair value accounting of
certain assets and liabilities where required or permitted by IFRS
in the EU.
These condensed consolidated interim financial statements do not
include all the notes presented in a complete set of consolidated
annual financial statements.
The comparative amounts in the consolidated financial statements
include extracts from the Company's consolidated annual financial
statements for the period ended 31 December 2015.
These extracts do not constitute statutory accounts in
accordance with the Irish Companies Acts 2015. All monetary
information is presented in the presentation currency of the
Company being Pound Sterling.
3. Operating (loss)/ profit
Administrative expenditure for the interim period ended June
2016 includes GBP947,418 relating to financing activities specific
to the borrowings raised throughout the current period (2015
financial period GBP51,000).
4. Loss per share
Basic, dilutive and Headline loss per share
The basic and weighted average number of ordinary shares used in
the calculation of basic earnings per share is as follows:
6 months to 6 months 12 months
to to
30 June 30 June 31 December
2016 2015 2015
GBP GBP GBP
Loss for the year attributable
to equity holders of the parent (2,320,403) (913,891) 177,162
Weighted average number of
ordinary shares for the purposes
of basic and dilutive loss
per share 338,524,702 305,438,536 316,986,334
Basic loss per share (0.007) (0.0029) 0.001
Dilutive loss per share (0.007) (0.0029) 0.001
6 months 6 months 12 months
to to to
Reconciliation of Headline loss 30 June 30 June 31 December
per share
2016 2015 2015
GBP GBP GBP
Loss for the year attributable
to equity holders of the parent (2,320,403) (913,891) 177,162
Impairment of Goodwill - (185,698) 20,057
Loss on disposal of subsidiaries - - 5,762
Bargain purchase from acquisition
of subsidiaries - (193,425)
Reversal of Impairment of Intangible
Assets - - (3,182,240)
------------ ------------ ------------
Headline loss per share (2,320,403) (1,099,589) (3,172,684)
------------ ------------ ------------
Weighted average number of ordinary
shares for the purposes of headline
loss per share (revised) 338,524,702 305,438,536 316,986,334
Headline loss per share (0.007) (0.0036) (0.010)
Headline earnings per share (HEPS) is calculated using the
weighted average number of ordinary shares in issue during the
period and is based on the earnings attributable to ordinary
shareholders, after excluding those items as required by Circular
2/2015 issued by the South African Institute of Chartered
Accountants (SAICA).
5. Called up share capital and share premium
Authorised ordinary share capital of the company is
1,000,000,000 ordinary shares of EUR0.015 each and 3,000,000,000
deferred shares of EUR0.009 each.
Detail of issued capital is as follows:
Number of
Ordinary Nominal Share Treasury
shares Value Premium Shares
GBP GBP GBP
Balance at 31 December
2014 274,238,757 12,591,750 23,903,307 -
Shares issued in period
(net of expensed for
cash) 56,689,957 618,538 1,879,212 (44,464)
Balance at 31 December
2015 330,928,714 13,210,288 25,782,519 (44,464)
------------ ----------- ----------- ---------
Shares issued in period
(net of expensed for
cash) 22,517,556 260,499 712,799 -
------------ ----------- ----------- ---------
Balance at 30 June
2016 353,446,270 13,470,787 26,495,318 (44,464)
------------ ----------- ----------- ---------
6. Segment analysis
IFRS 8 requires an entity to report financial and descriptive
information about its reportable segments, which are operating
segments or aggregations of operating segments that meet specific
criteria. Operating segments are components of an entity about
which separate financial information is available that is evaluated
regularly by the chief operating decision maker. The Chief
Executive Officer is the Chief Operating decision maker of the
Group.
Management currently identifies two divisions as operating
segments - mining and corporate. These operating segments are
monitored and strategic decisions are made based upon them together
with other non-financial data collated from exploration activities.
Principal activities for these operating segments are as
follows:
30 June 2016 Mining and 30 June 2016
Exploration Corporate (GBP)
Group Group Group
Revenue 4,184 - 4,184
Administrative cost - (1,458,100) (1,458,100)
Exploration expenditure (866,967) - (866,967)
Investment and other income - 480 480
Profit/ (Loss) after tax (862,783) (1,457,620) (2,320,403)
------------- ------------ -------------
30 June 2015 Mining and 30 June 2015
Exploration Corporate (GBP)
Group Group Group
Revenue - - -
Administrative cost - (851,620) (851,620)
Exploration expenditure (248,203) - (248,203)
Investment and other income 234 185,698 185,932
Tax - - -
Profit/ (Loss) after tax (247,969) (665,922) (913,891)
------------- ---------- -------------
30 June 2016 30 June 2016
Mining Corporate (GBP)
Group Group Group
----------- ---------- -------------
Assets
Segment assets 17,751,867 11,491 17,763,358
Liabilities
Segment liabilities 198,790 1,328,678 1,527,468
Other Significant items
Depreciation 3,683 - 3,683
31 December 2015 31 December
Mining Corporate 2015 (GBP)
Group Group Group
----------- ---------- ------------
Assets
Segment assets 17,816,927 526,487 18,343,414
Liabilities
Segment liabilities 139,905 666,892 806,797
Other Significant items
Depreciation 21,685 - 21,685
7. Unaudited results
These condensed consolidated interim financial results have not
been audited or reviewed by the Group's auditors.
8. Dividends
No dividends were declared during the interim period.
9. Board of Directors
There were no changes to the board of directors during the
interim period, or any other committee's composition.
10. Subsequent events
No significant events have occurred in the period between the
reporting date and the date of this report.
27 September 2016
By order of the board:
Christian Schaffalitzky Chairman (Non-Executive)
Louis Coetzee Chief Executive Officer (Executive)
Noel O'Keeffe Technical Director (Executive)
Andreas Lianos Chief Financial Officer (Executive)
Lukas Maree Non-Executive Director
Wenzel Kerremans Non-Executive Director
Company Secretary: Noel O'Keeffe
Auditors: Saffery Champness
71 Queen Victoria Street
London EC4V 4BE
Broker: Beaufort Securities Limited
131 Finsbury Pavement
London EC2A 1NT
United Kingdom
UK Nominated Adviser: RFC Ambrian Limited
Level 28, QV1 Building
250 St Georges Terrace
Perth WA 6000
Corporate and Designated River Group
Adviser: 211 Kloof Street
Waterkloof
Pretoria, South Africa
This information is provided by RNS
The company news service from the London Stock Exchange
END
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