Wrap Text
Half year results for the period ended 30 June 2013
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: IE00B61XQX41
("Kibo" or "the Company")
_____________________________________________________________________
Half year results for the period ended 30 June 2013
_____________________________________________________________________
Dated: 30 September 2013
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO) the mineral
exploration and development company focused on gold, nickel, coal and uranium projects in
Tanzania, is pleased to announce its unaudited half year results for the period ended 30 June
2013.
Highlights from the interim results for the period ended 30 June 2013:
* Decrease in basic and dilutive loss per ordinary share of 19% compared to previous
interim results; and
* Net tangible asset value per ordinary share of (0.76) pence (31 December 2012:
(2.17) pence), resulting in an increase in the net tangible asset value per share of
65%.
Highlights from the Chairman, Christian Schaffalitzky’s statement:
* Initial exploration phase at Haneti under the Votorantim joint venture nears
completion with drilling anticipated to commence early next year;
* Negotiation with EWP on the Rukwa Coal to Power project progressed as the
Company continues to win support from stakeholders and investors within and
outside Tanzania;
* Company acquires two new gold projects, Imweru and Lubando, with established
gold resources which will be the focus of a drilling programme currently planned for
early in 2014;
* Successful capital re-organization and recent fund raisings puts the Company in good
stead to advance work on key projects.
Chairman’s Statement
Dear Shareholder,
I am pleased to present our accounts for the six month period ending 30 June 2013. During
the period your board has continued to steer a steady course towards achieving the company’s
corporate and exploration objectives of building shareholder value through the discovery,
acquisition and development of quality mineral assets in Tanzania. This is being done
through our proven exploration capability in the country and our partnerships with major
international companies who recognize the potential in our projects. In this regard the re-
commencement of work on our Haneti project following the signing of a joint venture with
the major Brazilian industrial group, Votorantim Metaís Participações Ltda (“Votorantim”),
in late 2012 and the signing of a Memo of Understanding with state owned Korean East-West
Power (EWP) for the development of our flagship Rukwa Coal to Power Project (Rukwa) are
noteworthy developments during the year to date. On the corporate side, we implemented a
capital re-organization in March. Since then I am encouraged that our share price is
beginning to show some strength and this has helped to carry out a number of recent fund
raisings at more favourable prices the proceeds of which will enable us fund our work
objectives for the remainder of the year. During the year to date, Des Burke, Cecil Bond and
Bernard Poznanski retired from the board to concentrate on other business interests. These
planned retirements follow the Company’s corporate acquisitions and AIM/JSE re-admission
during 2012. I wish to extend thanks on behalf of the board to Des, Cecil and Bernard for
their contribution to the completion of these transformational acquisitions during 2012. I will
now outline in more detail below these main developments highlighted above on both the
exploration and corporate fronts for 2013 to date.
Exploration
Exploration during the period focused on our Haneti Ni-PGM project which is being funded
by Votorantim under a joint venture signed in December 2012. The joint venture provides an
option for Votorantim to expend GBP 2.7 million on exploration over a three-year period to
earn a 50% interest in the project. Work commenced in April with the mobilization of field
crews and is continuing. As you will no doubt be aware from our regular project updates over
the last few months, the results from soil sampling, detailed geological mapping and regional
reconnaissance work are meeting expectations and have helped us refine our geological and
mineralisation models for the project. Drill targets have been selected and it is anticipated
that following this initial exploration phase expected to end in the middle of October, a
drilling programme will commence in early 2014.
We announced in June that we have postponed follow up field exploration on the Lake
Victoria, Morogoro and Pinewood projects to 2014 in order to focus resources on the Rukwa
and Haneti projects. We have used this break in field operations to carry out a comprehensive
evaluation and rationalization of our mineral interests (including issued Prospecting Licences,
Offers and Applications) which has resulted in an approximately 50% reduction in our total
tenement area. This process which is on-going will allow us to focus on our most prospective
exploration areas while making significant cost savings in licence fees. Post period, as part of
the tenement rationalization process, we also announced the acquisition of two brownfield
resource based gold exploration projects in northern Tanzania which complement our
existing Lake Victoria project holdings. Imweru and Lubando together have a combined gold
resource of just less than 798,000 oz. at an average grade of about 1.4 grams per tonne. We
believe the up-side exploration potential on these projects is significant and we plan to carry
out an in-fill drilling programme on the projects before the end of this year.
I am also pleased to report that we have made good progress in securing both Tanzanian
government support and major company interest in our Rukwa project. This commenced in
March with our announcement of the inclusion of Rukwa as a strategic component of the
Tanzanian Government’s National Energy Strategy and its commitment to proactively
support development of the infrastructure to support the project. In April we announced the
selection of Korean state owned multi-national EWP as our preferred development partner
and a Memo of Understanding was signed with EWP in July. Negotiation with EWP is
continuing in preparation for their due diligence review which will include site visit to the
project. Meanwhile we are continuing to win support for the project from stakeholders and
investors both within and outside Tanzania.
Corporate
The interim accounts cover the 6-month period to the 30 June 2013. These are our first
interim accounts following the change in the Company’s financial year-end from 30
September to 31 December. The accounts reflect the impact of the Company’s share re-
organisation carried out during the period the net effect of which was a change in the par
value of the Company’s shares from €0.01 to €0.015 and a rollback of the issued and
unissued share capital on a ratio of 1 to 15. The terms of unexercised warrants and options at
the re-organization date were adjusted pro rata (the expiry dates remain unchanged). The
board is pleased with the results of the share re-organization which has resulted in a less
volatile share trading price and this has contributed to our ability to raise funds at more
attractive prices since the period end.
In conclusion, I would like to thank our board and management for their dedicated work
under the direction of Louis Coetzee our CEO and thank them for the progress that has been
made during the first half of 2013. I look forward to continued progress on the Company’s
projects for the remainder of 2013 and beyond.
Christian Schaffalitzky
Chairman
Unaudited condensed consolidated interim statement of comprehensive income
For the six months ended 30 June 2013
6 months to 6 months to 15 months to
30 June 31 March 31 December
2013 2012 2012
(Unaudited) (Restated) (Audited)
£ £ £
Continuing Operations
Administrative expenses (1,155,130) (245,410) (2,295,936)
Exploration Expenditure (339,155) - (897,740)
Share based payments - - (1,290,446)
Operating Loss (1,494,285) (245,410) (4,484,122)
Gain arising on acquisition of subsidiary 800,819 - -
Investment Income - 2,372 1,043
Loss on ordinary activities before tax for the period (693,466) (243,038) (4,483,079)
Tax - - -
Loss for the period (693,466) (243,038) (4,483,079)
Other comprehensive income:
Exchange differences on translating foreign operations, (548,973) (11,988) (3,830)
net of taxes
Total comprehensive loss for the period (1,242,439) (255,026) (4,486,909)
Loss for the period attributable to (693,466) (243,038) (4,483,079)
Owners of the parent (689,710) (243,038) (4,483,079)
Non-controlling interest (3,756) - -
Total comprehensive income attributable to (1,242,439) (255,026) (4,486,909)
Owners of the parent (1,238,683) (255,026) (4,486,909)
Non-controlling interest (3,756) - -
Basic loss per share (pence) (0.75) (0.93) (12.42)
Diluted loss per share (pence) (0.75) (0.93) (12.42)
Headline Loss per share (pence) (1.62) (0.93) (12.42)
Unaudited condensed consolidated interim statement of financial position
As at 30 June 2013
6 months to 6 months to 15 months to
30 June 31 March 31 December
2013 2012 2012
(Unaudited) (Restated) (Audited)
£ £ £
Assets
Non-current assets
Property, plant and equipment 10,802 - 10,654
Intangible assets 21,054,614 3,853,550 21,054,614
Goodwill 3,307,757 - 3,307,757
Total non-current assets 24,373,173 3,853,550 24,373,025
Current assets
Trade and other receivables 896,095 108,532 75,438
Cash and cash equivalents 337,742 862,562 98,678
Total current assets 1,233,837 971,094 174,116
Total assets 25,607,010 4,824,644 24,547,141
Equity
Called up share capital 10,558,761 3,545,915 9,192,046
Share premium 22,576,154 6,285,809 21,879,748
Translation reserve (630,307) (97,152) (81,334)
Non – controlling interest (126,536) - -
Share options 977,543 456,820 977,543
Retained deficit (9,804,688) (5,535,223) (9,237,758)
Total equity 23,550,927 4,656,169 22,730,245
Liabilities
Current liabilities
Trade and other payables 2,026,487 168,475 1,783,668
Current tax liabilities 29,596 - 33,228
Total current liabilities 2,056,083 168,475 1,816,896
Total equity and liabilities 25,607,010 4,824,644 24,547,141
Unaudited condensed consolidated interim statement of changes in equity
For the six months ended 30 June 2013
Group Share Share Total Share Share Based Foreign Non- Total Reserves Retained Total
Capital Premium Capital payment Currency Controlling Deficit Restated
reserve Translation interest
Reserve
£ £ £ £ £ £ £ £ £
Balance at 30 September 2011
(Restated) 3,231,898 5,887,327 9,119,225 456,820 (85,164) - 371,656 (5,292,185) 4,198,696
Other comprehensive income
Exchange differences on translating
foreign operations - - - - (11,988) - (11,988) - (11,988)
Loss for the period - - - - - - - (243,038) (243,038)
Issue of share capital (net of
expenses) 314,017 398,482 712,499 - - - - - 712,499
Balance as at 31 March 2012 3,545,915 6,285,809 9,831,724 456,820 (97,152) - 359,668 (5,535,223) 4,656,169
Issue of shares (net of expenses) 5,646,131 15,593,939 21,240,070 21,240,070
Share options acquires through
business combination - - - 466,565 - - 466,565 - 466,565
Share options issued - - - 54,158 - 54,158 - 54,158
Other comprehensive income –
exchange difference on translating
foreign operations - - - - 15,818 - 15,818 - 15,818
Profit/ (loss) for the period - - - - - - - (3,702,535) (3,702,535)
Balance at 1 January 2013 9,192,046 21,879,748 31,071,794 977,543 (81,334) 896,209 (9,237,758) 22,730,245
Other comprehensive income
Exchange differences on translating
foreign operations - - - - (548,973) - (548,973) - (548,973)
Loss for the period
- - - - - (3,756) (3,756) (689,710) (693,466)
Disposal on non-controlling interests
without a change in control - - - - - (122,780) (122,780) 122,780 -
Issue of share capital (net of
expenses) 1,366,715 696,406 2,063,121 - - - - - 2,063,121
Balance as at 30 June 2013 10,558,761 22,576,154 33,134,915 977,543 (630,307) (126,536) 220,700 (9,804,688) 23,550,927
Unaudited condensed consolidated interim statement of cash flow
For the six months ended 30 June 2013
6 months to 6 months to 15 months to
30 June 31 March 31 December
2013 2012 2012
(Unaudited) (Restated) (Audited)
£ £ £
Operating loss for the period (693,466) (243,038) (4,483,079)
Adjusted for:
Depreciation 536 - 1,072
Investment revenue - (2,372) (1,043)
Foreign exchange movement (128,392) (11,988) (83,871)
Movement of exploration activities 339,155 - 897,740
Gain arising on acquisition of subsidiary (800,819) - -
Share based payments - - 1,290,446
Operating income before working capital changes (1,282,986) (257 398) (2,378,735)
Change in trade and other receivables (19,411) (55,568) (22,473)
Change in trade and other payables 239,278 61,078 1,709,499
Cash generated from Group operations (1,063,119) (251,888) (691,709)
Cash flows from investing activities
Acquisition of subsidiary (85) - -
Expenditure on exploration activities (339,155) (537,506) (897,740)
Net cash used in investing activities (339,240) (537,506) (897,740)
Cash flows from financing activities
Proceeds from issue of share capital 1,643,423 712,500 750,000
Investment Income - 2,372 1,043
Net cash proceeds from financing activities 1,643,423 714,872 751,043
Net increase in cash and cash equivalents 241,064 (74,522) (838,406)
Cash and cash equivalents at beginning of period 96,678 937,084 935,084
Cash and cash equivalents at end of period 337,742 862,562 96,678
Notes to the unaudited condensed consolidated interim financial statements
For the six months ended 30 June 2013
1. General information
Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The
Group financial statements consolidate those of the Company and its subsidiaries (together
referred to as the "Group"). The Company's shares are listed on the Alternative Investment
Market ("AIM") of the London Stock Exchange and from the 30 May 2011 the Alternative
Exchange of the Johannesburg Stock Exchange 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 Financial Statements are for the six months ended 30 June 2013. They do not include all the
information required for full annual financial statements and should be read in conjunction with
the audited consolidated financial statements of the Group for the period ended 31 December
2012, which were prepared under International Financial Reporting Standards ("IFRS") as
adopted by the European Union ("EU").
The financial information is prepared under the historical cost convention and in accordance with
the recognition and measurement principles contained within IFRS as endorsed by the EU.
The comparative amounts in the audited consolidated financial statements include extracts from
the Company's consolidated financial statements for the period ended 31 December 2012. These
extracts do not constitute statutory accounts in accordance with the Irish Companies Acts 1963
to 2012.
During the previous financial period the Group had changed its financial reporting period from
30 September to 31 December. The current interim financial information presented comprises
the 6 month period from 1 January 2013 to 30 June 2013, with the comparative period from 1
October 2011 to 31 March 2012, as previously reported.
Significant variances
The exchange loss during the current period, recognised through other comprehensive income, is
attributable mainly to the strengthening of the euro in excess of 5% which affects to the groups
foreign investments valued at approximately £22 million.
Restatement
The comparative information as previously presented was restated to include the change in
accounting policy as reported in the Groups audited consolidated annual financial statements for
the 15 month period ended 31 December 2013.
The following information is presented in order to clarify the quantitative effect of the
restatement to the comparative interim information presented:
Description 31 March 2012 Restatement 31 March 2012
(Previously (Restated)
reported)
Non-Current Assets
Intangible assets 4,391,056 (537,506) 3,853,550
Equity
Retained deficit (4,997,717) (537,506) (5,535,223)
3. 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 to 15 months to
30 June 31 March 31 December
2013 2012 2013
£ £ £
Loss for the year attributable to equity
holders of the parent (693,466) (243,038) (4,483,079)
Weighted average number of ordinary shares
for the purposes of basic and dilutive loss
per share (revised) 92,374,783 25,899,344 36,089,081
Basic loss per share (pence) (0.75) (0.93) (12.42)
Dilutive loss per share (pence) (0.75) (0.93) (12.42)
During the current period the company entered into a capital reorganisation transaction
whereby every 15 shares previously held were converted into 1 ordinary share. In accordance
with IAS 33, the number of ordinary shares outstanding before the event is adjusted for the
proportionate change in the number of ordinary shares outstanding as if the event had
occurred at the beginning of the earliest period presented. Thus the number of shares per the
above comparative periods has been rested in accordance with IAS 33 in order to accurately
present the earnings, dilutive and headline earnings per share.
6 months to 6 months to 15 months to
Reconciliation of Headline loss per share 30 June 31 March 31 December
2013 2012 2013
£ £ £
Loss for the year attributable to equity holders of (693,466) (243,038) (4,483,079)
the parent
Gain arising on acquisition of subsidiary (800,819) - -
Headline loss per share (1,494,285) (243,038) (4,483,079)
Weighted average number of ordinary shares for the 92,374,783 25,899,344 36,089,081
purposes of headline loss per share (revised)
Headline loss per share (pence) (1,62) (0.93) (12.42)
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 2/2013 issued by the South
African Institute of Chartered Accountants (SAICA).
4. Called up share capital and share premium
Authorised share capital of the company is 200,000,000 ordinary shares of 0.015 euro each and
3,000,000,000 deferred shares of 0.009 euro each.
Details of issued capital are as follows:
Number of
Ordinary Nominal Share
shares Value Premium
£ £
At 1 October 2011 377,629,511 3,231,898 5,887,327
Shares issued in period (net of expenses for cash) 37,500,000 314,017 398,482
Balance at 31 March 2012 415,129,511 3,545,915 6,285,809
Shares issued in period (net of expenses for cash) 4,427,931 35,661 (4,524)
Shares issued for acquisition of subsidiaries 706,964,400 5,610,470 15,598,463
Balance at 1 January 2013 1,126,521,842 9,192,046 21,879,748
Shares issued in period (net of expensed for cash) 164,872,693 1,103,650 -
Capital re-organisation of shares (1,205,302,106) - -
Shares issued in period (net of expensed for cash) 20,567,714 263,065 696,406
Balance at 30 June 2013 106,660,143 10,558,761 22,576,154
Contacts
Louis Coetzee +27 (0)83 2606126 Kibo Mining plc Chief Executive Officer
Andreas +27 (0)83 4408365 River Group Corporate and Designated
Lianos Adviser on JSE
Jon Belliss +44 (0) 20 3216 2630 XCAP Broker
Stuart Laing +61 8 94802500 RFC Ambrian Limited Nominated Adviser on
AIM
Matt Beale +44 (0)7966 389196 Fortbridge Investor Relations
General Background & Strategy
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East
Africa and was admitted to AIM in London on 27 April 2010 and AltX in Johannesburg on 30
May 2011. The Board of Kibo is composed of professionals whose experience include mineral
exploration, mine development, mining finance, tax, law, mergers and acquisitions, and financial
control of public companies. It is supported by competent and motivated a Tanzanian staff that
operates from Kibo's operations office in Dar es Salaam.
The mineral assets of the Company comprise five projects areas in Tanzania - Haneti (nickel,
PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal &
Uranium).
The Lake Victoria project covering a gold prospective licence portfolio in Tanzania’s premier
gold mining region, the Lake Victoria Goldfield, been recently enhanced by the addition of two
brownfield gold projects Imweu and Lubando. Both projects have NI 43-101 compliant total
gold resource of approximately 798,000 ounces (total of Measured, Indicated and Inferred for
both projects).
TABLE1:IMWERU MINERAL RESOURCE SUMMARY – BASECASE*
Category Measured Resource Indicated Resource Inferred Resource
Resource(t) - - 17,649,900
Grade(g/t) - - 1.11
Grade(oz/ton) - - 0.032
Total Gold(oz) - - 629,600
*Numbers are rounded. Composites capped at 25g/t gold.Cut-off grade of 0.5g/t gold based on a gold price of US$850/oz and
assumed100% metallurgical recovery .CIM definitions were followed for Mineral Resources.
TABLE2: LUBANDO MINERALRESOURCE SUMMARY – BASECASE*
East Zone South East Zone North
Category West Zone East Zone Mid Total
Measured Resource
Measured Resource(t) 107,900 4,880 16,900 54,440 184,150
Grade(g/t) 1.6 2.52 1.72 2.48 1.95
Total Gold(oz) 5,900 400 950 4,340 11,500
Indicated Resource
Indicated Resource(t) 280,710 18,330 61,000 149,350 509,420
Grade(g/t) 1.6 2.23 1.89 2.73 1.99
Total Gold(oz) 14,500 1,300 3,700 13,120 32,600
Inferred Resource
Total Resource(t) 1,090,000 65,470 209,340 535,330 1,900,140
Grade(g/t) 1.2 1.56 3.34 3.13 2.03
Total Gold(oz) 44,550 3,300 22,500 53,900 124,200
*Numbers are rounded. Composites capped at10.85g/tgold. Cut-off grade of 0.5g/t gold based on a gold price of US$850/oz and
assumed100% metallurgical recovery .CIM definitions were followed for Mineral Resources.
These projects provide the Company with drill ready targets supporting its objective to increase
the size and quality of the existing resource in the short term.
The Haneti project is the subject of a joint venture with Brazilian Votorantim Metais
Participações Ltda, a member of Votorantim Group. The Rukwa and Pinewood projects are
situated close to the Mtwara Corridor,an area where the Tanzanian Government has committed
to significant infrastructure development and which has seen recent multi-million dollar
investment in coal and coal-fired power stations and uranium exploration.
The Rukwa project is substantially more advanced than Kibo’s existing exploration projects,
with a significant Mineral Resource of thermal coal already defined. The project enjoys strong
support expressed by the Tanzanian Government for the expedited development of a coal mine
and mine-mouth coal-fired power plant and which is further enhanced by the now formal
relationship between the Korean Government owned Korean East – West Power Co. Ltd.
(“EWP”) and Kibo. In this relationship the parties have entered into a formal MOU which states
the parties’ respective commitments towards the joint development of the Rukwa Coal to Power
Project (“RCPP”), where EWP will be responsible for developing and operating the power
generation side of the RCPP and Kibo will be responsible for developing and operating the
mining side of the RCPP.
Kibo's objective is to build shareholder value in a sustainable manner. This objective will be
pursued primarily through active exploration of its own projects and by using the Company's
experience in Tanzania to acquire attractive exploration and development assets on competitive
terms that can be moved swiftly up the value curve by using the Company’s own skills base
whilst also seeking to benefit from strategic collaborative relationships with industry leaders who
have special skills and competencies within their chosen fields of focus. Kibo will undertake
continual risk assessment of its projects and take whatever actions it believes are necessary to
ensure that these risks are mitigated.
Review by Qualified Person
The information in this announcement that relates to the Imweru and Lubando mineral resources
is taken from reports titled “Technical Report on the Imweru property (Updated), Mwanza,
Tanzania” dated March 1, 2010 and “Technical Report on the Lubando property, Mwanza,
Tanzania” dated 31st August 2009” (the “Reports”) Both Reports are NI 43-101 compliant and
were prepared for Great Basin Gold Rusaf Gold Limited by Nathan Eric Fier C.P.G., P.Eng.
Market Director for EBA Engineering Consultants Ltd and a Senior Mining Consultant. Mr.
Fieris registered as a Certified Professional Geologist with the American Institute of Professional
Geologists, Registration No 10062, and a professional Engineer in British Columbia, Canada
Registration No. 135165. He has extensive experience in the evaluation and reporting of
Archaean Gold projects. The Company’s Exploration Director, Noel O’Keeffe has reviewed the
Reports and the references to them in this announcement.
Corporate and Designated Advisor
River Group
30 September 2013
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