Wrap Text
12 months results for the period ended 31 December 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 AIM: KIBO
ISIN: IE00B61XQX41
(“Kibo” or “the Company”)
12 months results for the period ended 31 December 2013
27 June 2014
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 audited 12 month financial results for the period ending
31 December 2013. The Company’s Annual Report, which contains the full financial
statements accompanying this announcement, is in the process of being printed and mailed
to shareholders. A copy of this Annual Report will also be available from the Company’s
website at www.kibomining.com. Details of the date and venue for this year’s AGM, which
will take place towards the end of July, will be announced shortly.
Louis Coetzee, CEO of Kibo Mining, commented today:
“Kibo has made significant progress during 2013-4 despite the challenging environment,
most notably at Rukwa and Imweru. The Rukwa Coal to Power Project is essential to
support the growth of the Tanzanian power sector and I look forward to reporting further
progress building on our success to date. Imweru has been a great addition to our asset
portfolio which takes us closer to our goal of being a mineral development company. I am
confident that with our strengthened Board, we will achieve our objectives and capitalise
on an improving market in the year ahead.”
Highlights from the Chairman, Christian Schaffalitzky’s statement:
* Key appointments to Rukwa Coal to Power Project (“RCPP”) project development team
* RCPP included in Tanzania’s National Strategic Energy Plan
* Appointment of Standard Bank as corporate finance advisor to RCPP
* Completion of successful field programmes at Imweru (gold) and Haneti (nickel-PGM)
including drilling and gold resource update at the former
* Board re-organisation including appointment of Andreas Lianos as new financial director
Chairman’s Statement
Dear Shareholder,
Introduction
I am pleased to introduce Kibo’s 2013 Annual Report which records significant progress in
our strategy of moving Kibo (the “Company”) from a junior explorer to a mineral
development company. This progress is seen in the milestones we have reached in relation to
both the Rukwa Coal to Power Project (“RCPP”) and the Imweru gold project.
On the RCPP, during the reporting period, we have acquired support from both the Tanzanian
Government and major global energy producers for the development of this much needed
power generating capacity in Tanzania which will help to address both the country’s current
power shortages and projected increased demand. The inclusion of the project in the
Tanzanian National Strategic Energy Plan and the strengthening of our project team will
allow us to develop rapidly the planned Rukwa Development Programme. I would like to
welcome Roy Adair and Casper Van Wyk as key members of this team, who collectively
bring extensive executive leadership, corporate finance and project management skills, and a
successful track record of achievement in the energy and natural resource sectors.
We also announced the engagement of Standard Bank as corporate finance advisor to the
project with the task of completing a financial model and project financing strategy for the
development. I believe that the support of Africa’s largest bank with a successful record in
Tanzania of advising on and structuring finance on public private partnerships across a range
of business sectors is a strong endorsement of the RCPP.
In addition to the RCPP, your Company made steady progress across its other commodity
streams, notably in gold and base metals. In regard to gold, we were able to take advantage of
a distressed asset disposal by one of our competitors to acquire a high quality gold
exploration portfolio in northern Tanzania, significantly improving the quality of our gold
licence holdings in this region. The portfolio included brownfields projects with pre-defined
resources at Imweru and Lubando where Kibo holds a 90% interest, as well as earlier stage
projects with some well-defined drill ready gold targets from exploration by previous
operators. A drill programme was carried out towards the end of 2013 at the Imweru property
with the objective of increasing the quality and quantity of the pre-existing NI 43-101
resource estimate of 629,600 oz. (19.5 million tonnes at 1.1 gram per tonne).
The eastern part of the pre-existing NI 43-101 Imweru resource was re-stated to a lower value
as it partly falls within a licence no longer part of the Imweru project block. However, the net
effect of the increase in estimated resource over the recently drilled central zone of the
resource is 550,000 oz. (~15 million tonnes @ 1.14 grams per tonne) of which 495,000 oz, or
90% is attributable to Kibo. Taken together with the estimated gold resource at Lubando of
160,000 oz. (~ 2.59 million tonnes at 2 g/t), of which 144,000 oz or 90% is attributable to
Kibo. Kibo’s combined gold resource estimate for its projects in the Geita Region is just over
700,000 (630,000 oz or 90% of this is attributable to Kibo). It is encouraging that our
independent technical consultant, Tetra Tech EBA, has acknowledged in its report the
potential to materially increase the resource by further drilling at Imweru and on a number of
other proximal targets within the project region that remain to be tested.
On the base metal front, we implemented a comprehensive field exploration programme at
our Haneti nickel-PGM project during 2013, funded by Brazilian multi-national Votorantim
Metaís Participações Ltda (“Votorantim”) under the terms of a joint venture. Subsequent to
the withdrawal of Votorantim from the joint venture in December 2013 following a review of
their southern African operations, Kibo has now re-acquired a 100% interest in Haneti with
the benefit of a field season’s exploration data acquired at no cost to the Company.
On the Corporate side, we implemented a capital re-organisation during the early part of 2013
which was approved by shareholders at an EGM on 22 March 2013. During the period, three
directors, Des Burke, Cecil Bond and Bernard Poznanski also retired to pursue other interests
and I wish to thank them for their contribution to the development of the Company to date
and wish them well for the future. I would also like to welcome the recent appointment of
Andrew Lianos to the board effective from 1 March 2014. Andrew is an experienced
chartered accountant and corporate financier whose skills will be most valuable to the
Company as it proceeds with its project development plans.
During the audit and in finalisation of the Annual Report the auditors drew the board’s
attention to the requirements of IAS36 of the International Financial Reporting Standards
(“IFRS”) which requires that the board undertakes a regular review, at least annually, of the
value of the assets as disclosed in the Financial Statements so as to disclose all assets at their
fair value taking the current state of affairs of the world economy and the stage of
development of the various projects into account. This has required that certain assets be
impaired to the extent necessary. The major adjustments were made against the Company’s
Rukwa coal and Pinewood uranium assets. Adoption of this policy will require an annual
review and adjustment as to the value of assets as and when new information comes to hand
or circumstances surrounding the assets change.
In summary, our capital re-organisation, board changes and new appointments for RCPP
implemented during 2013 and early 2014 give us the appropriate corporate structure to face
the challenges ahead. I am confident that these changes will enhance our ability to deliver on
the RCPP in particular. It only remains for me to thank our CEO Louis Coetzee and the
management team for persisting in the challenging climate for our sector to take Kibo forward
from exploration to development. I also wish to thank my fellow board members for their
valuable insights, our advisors for their on-going guidance and the Tanzanian Government for
their support of our development plans. We hope to repay this support with the completion of
the RCPP, a much needed energy project development which will substantially benefit the
country and in particular local communities in southern Tanzania. Finally, I would like to
acknowledge the continued support of our shareholders while we work to realise the inherent
value across all our projects.
Christian Schaffalitzky
Chairman
Condensed Consolidated Financial Results for the year ended 31 December 2013
Condensed Consolidated Statement of Comprehensive Income
Year 15 months
ended ended
31 31
December December
201 201
Audited Audited
Continuing operations £ £
Administrative expenses (600,832) (2,295,936)
Impairment of assets (14,790,675) -
Share based payment charge - (1,290,446)
Exploration expenditure (1,358,664) (897,740)
Operating loss (16,750,171) (4,484,122)
Investment and other incom 1,166,834 1,043
Loss on ordinary activities before tax (15,583,337) (4,483,079)
Taxation - -
Loss for the period (15,583,337) (4,483,079)
Other comprehensive loss:
Exchange differences on translation of foreign operations (513,201) (3,830)
Other Comprehensive loss for the period net of tax (513,201) (3,830)
Total comprehensive loss for the period (16,096,538) (4,486,909)
Loss for the period attributable to the owners of the parent (15,583,337) (4,483,079)
Total comprehensive Loss attributable to the owners of the parent (16,096,538) (4,486,909)
Loss Per Share
Basic (loss) per share (0.14) (0.12)
Diluted (loss) per share (0.14) (0.12)
Headline (loss) per share (0.007) (0.12)
Condensed Consolidated Statement of Financial Position
31 31
December December
2013 2012
Audited Audited
£ £
Assets
Non-Current Assets
Property, plant and equipment 6,326 10,654
Intangible assets 9,718,509 21,054,614
Goodwill - 3,307,757
Total non-current assets 9,724,835 24,373,025
Current Assets
Trade and other receivables 51,200 75,438
Cash and cash equivalents 443,763 98,678
Total current assets 494,963 174,116
Total Assets 10,219,798 24,547,141
Equity and Liabilities
Equity
Called up share capital 10,998,282 9,192,046
Share premium account 23,398,853 21,879,748
Share based payment reserve 977,543 977,543
Translation reserve (594,535) (81,334)
Retained deficit (24,821,095) (9,237,758)
9,959,048 22,730,245
Liabilities
Current Liabilities
Trade and other payables 228,391 1,783,668
Current tax liabilities 32,359 33,228
Total Current Liabilities 260,750 1,816,896
Total Equity and Liabilities 10,219,798 24,547,141
Condensed Consolidated Statement of Changes in Equity
Share Share Share based Foreign Total Retained Total
Capital premium payment currency reserves deficit
reserve translation
reserve
£ £ £ £ £ £
£
Balance as at 1 October 2011 3, 231,898 5,887,327 456,820 (85,164) 371, 656 (4,754,679) 4,736,202
Profit / (loss) for the 15 month period - - - - - (4,483,079) (4,483,079)
Other comprehensive income- - - - 3,830 3,830 - 3,830
exchange differences on translating
foreign operations
Proceeds of share issue of share capital 5,960,148 15,992,421 - - - - 21,952,569
Share options acquired through - - 466,565 - 466,565 - 466,565
business combinations
Share options issued - - 54,158 - 54,158 - 54,158
5,960,148 15,992,421 520,723 3,830 524,553 (4,483,079) 17,994,043
Balance as at 31 December 2012 9,192,046 21,879,748 977,543 (81,334) 896,209 (9,237,758) 22,730,245
Profit / (loss) for the 12 month period - - - - - (15,583,337) (15,583,337)
Other comprehensive income (loss) - - - - (513,201) (513,201) - (513,201)
exchange differences
Proceeds of share issue of share capital 1,806,236 1,519,105 - - - - 3,325,341
1,806,236 1,519,105 - (513,201) (513,201) (15,583,337) (12,771,197)
Balance at 31 December 2013 10,998,282 23,398,853 977,543 (594,535) 383,008 (24,821,095) 9,959,048
Condensed consolidated Statement of Cash Flow
12 month 15 month
period ended period ended
31 December 31 December
2013 2012
Audited Audited
£ £
Net cash outflows from operating activities (1,475,138) (691,709)
Net cash proceeds from financing activities 3,325,945 751,043
Net cash used in investing activities (1,505,722) (897,740)
Net increase in cash and cash equivalents 345,085 (838,406)
Cash and cash equivalents at beginning of period 98,678 937,084
Cash and cash equivalents at end of the period 443,763 98,678
Notes to the condensed consolidated financial results for the year ended 31 December 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 AIM market
("AIM") of the London Stock Exchange plc and 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 condensed consolidated financial results are for the year ended 31 December 2013
which were prepared in accordance with framework concepts and the recognition and
measurement criteria of 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 and Financial Pronouncements as issued by Financial
Reporting Standards Council, IAS 34 – Interim Financial Reporting), the Listings
Requirements of the JSE Limited and the provisions of the Irish Companies Acts, 1963 to
2013 (‘the Companies Acts’).
They do not include all the information required for full financial statements and should be
read in conjunction with the audited consolidated financial statements of the Group for the
period ended 31 December 2013.
The comparative amounts in the condensed consolidated financial results include extracts
from the Company's consolidated financial statements for the period ended 31 December
2012.
All monetary information is presented in the functional currency of the Company being
Great British Pound.
The Company’s financial statements are prepared on the historical cost basis, other than
goodwill and intangible assets which are measured at fair value. The accounting policies
have been applied consistently by Group entities. The Group financial results have been
prepared on a going concern basis.
These unaudited condensed consolidated financial results have been extracted from the
audited financial statements, but are not itself audited.
3. Statement of Accounting Policies
The accounting policies have been applied consistently to all periods presented in these
condensed consolidated financial results using the accounting policies applied by the
Group in its 31 December 2012 report, updated for any new accounting standards which
became effective in the current year.
4. Responsibility Statement
The directors take full responsibility for the preparation of the report and that the financial
information has been correctly extracted from the underlying financial statements.
5. Audit opinion
The consolidated financial statements were audited by the Company’s auditors, LHM
Casey McGrath. The modified auditors report together with the financial statements is
available for inspection at the Company’s register office. The modified auditors’ report
contains an emphasis of matter with regard to the going concern of the Group, as follows:
Emphasis of Matter – Realisation of Assets
In forming our opinion on the financial statements, which is not modified, we considered
the adequacy of disclosures made in Notes 10, 11, 12 and 18 to the financial statements
concerning the valuation of intangible assets, amounts due from Group undertakings and
investments in Group undertakings. The realisation of intangible assets of £9,718,509
(2012: £21,054,614), amounts due from Group undertakings of £25,286,099 (2012:
£24,462,066) and investments in Group undertakings of £1,700,000 (2012: £4,326,511)
included in the Company Statement of Financial Position is dependent on the discovery of
economic reserves including the ability of the Group to raise sufficient finance to develop
the projects.
6. Subsequent events
The directors are not aware of any matter or circumstance arising since the reporting date
which would have a material effect on the consolidated financial results.
7. Litigation
There are currently no arbitration proceedings against the Group, or of which the Group is
aware, which may have, or have had in the 12 months preceding the date of this report, a
material effect on the consolidated financial results.
8. Dividends
There have been no dividends declared or paid during the current financial period.
9. Going Concern
The condensed consolidated financial results have been prepared on the basis of
accounting policies applicable to a going concern. This basis presumes that funds will be
available to finance future operations and that the realisation of assets and settlement of
liabilities, contingent obligations and commitments will occur in the ordinary course of
business. The directors constantly review the business models of the Group and its
operating subsidiaries to ensure sustainability and the ability to operate profitably and
generate positive cash flows. Funding facilities are also reviewed regularly to ensure that
the Group has sufficient facilities in place to finance its operations.
10. 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:
Year ended 31 15 Months ended
December 31 December
2013 (£) 2012 (£)
(Loss) for the period attributable to equity (15,583,337) (4,483,079)
holders of the parent
Weighted average number of ordinary shares for 110,593,163 36,089,081
the purposes of basic and dilutive loss per share
(revised)
Basic loss per share (0.14) (0.12)
Dilutive loss per share (0.14) (0.12)
As the exercise price of the share options and warrants in issue is considerably higher
than the current market value as at reporting date, these option and warrants do not have a
dilutive impact. Thus there are no dilutive share options or warrants in issue as at year
end which decreased the basic loss per share as indicated above.
During the current period the Company entered into a capital re-organisation 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 period has been rested in accordance with IAS 33 in
order to accurately present the earnings, dilutive and headline earnings per share.
Headline loss per share
Reconciliation of headline loss per share: Year ended Year ended
31 December 31 December
2013 (£) 2012 (£)
(Loss) for the period attributable to normal shareholders (15,583,337) (4,483,079)
Impairment of Goodwill 3,454,570 -
Impairment of Intangible Assets 11,336,105 -
Headline (Loss) for the period attributable to normal (792,662) (4,483,079)
shareholders
Headline loss per ordinary share (0.007) (0.12)
11. Called up share capital and share premium
Details of authorised and issued capital are as follows:
2013 2012
Authorised equity
200,000,000 Ordinary shares of €0.015 each €3,000,000
3,000,000,000 Deferred shares of €0.009 each €27,000,000
(2012: 3,000,000,000 Ordinary shares of €0.1 each) €30,000,000
€30,000,000 €30,000,000
Allotted, issued and fully paid shares
141,116,691 Ordinary shares of €0.015 each £1,741,207
(2012: 1,126,521,842 Ordinary shares of €0.01 each) £9,192,046
1,291,394,535 Deferred shares of €0.009 each £9,257,075
(2012: Nil) -
Deferred
Ordinary Share Share
Number of Share Capital Premium
Shares Capital (£) (£) (£)
Balance at 30 December 1,126,521,842 9,192,046 - 21,879,748
2012
Shares issued during the 164,872,693 1,103,650 - -
period to 23 March 2013
(net of expense)
Capital Re-organisation (1,205,301,566) (9,257,075) 9,257,075 -
Shares issued post 23 55,023,722 702,586 - 1,519,105
March 2013 (net of
expenses)
Balance at 31 December 141,116,691 1,741,207 9,257,075 23,398,853
2013
The Company resolved to decrease the number of shares in issue as well as increase the
nominal value of each share, through a capital re-organisation whereby every ordinary
shareholder would receive 1 new ordinary share for every 15 previously held ordinary
shares, at the revised nominal value of €0.015 per share in issue, applicable to all
shareholders registered as at 23 March 2013.
The total number of existing ordinary shares in the Company on issue as at 23 March
2013, prior to the re-organisation, was 1,291,394,535. Following the re-organisation, the
Company had 86,092,969 ordinary shares of €0.015 par value in issue.
12. Condensed Consolidated Segmental Analysis
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.
12 months
period ended
Mining and 31 December
Exploration Corporate 2013 (£)
Group Group Group
Administrative cost - (600,832) (600,832)
Exploration expenditure (1,358,664) - (1,358,664)
Impairment of assets (14,790,675) - (14,790,675)
Investment and other income 510,326 656,508 1,166,834
Tax - - -
Loss after tax (15,639,013) 55,676 (15,583,337)
12 month
period ended
Mining and 31 December
Exploration Corporate 2013 (£)
Group Group Group
Assets
Segment assets 9,724,835 494,963 10,219,798
Liabilities
Segment liabilities - 260,750 260,750
13. Changes to the board of Kibo Mining Plc
Andreas Lianos has been appointed as the Chief Financial Officer (Executive Director)
with effect from 1 March 2014. Cecil Bond and Bernard Poznanski (both Non-Executive
Directors) have retired with effect from 31 July 2013.
By order of the Board
27 June 2014
Directors: Christian Schaffalitzky Chairman (Non-Executive)
Louis Coetzee Chief Executive Officer (Executive)
Noel O’Keeffe Exploration Director (Executive)
Andrew Lianos Finance Director (Executive)
Lukas Marthinus Maree Non-Executive Director
Wenzel Kerremans Non-Executive Director
Company Secretary: Noel O’Keeffe
Auditors: LHM Casey McGrath
Contacts
Louis Chief Executive Officer
+ 27 (0)83 2606126 Kibo Mining plc
Coetzee
Andreas Executive Director; Corporate and
Kibo Mining plc and
Lianos + 27 (0)83 4408365 Designated
River Group
Adviser on JSE
Hume Capital
Jon Belliss + 44 (0) 20 3216 2630 Broker
(Previously XCAP)
Oliver Morse
RFC Ambrian
Trinity + 61 8 94802500 Nominated Adviser on AIM
Limited
McIntyre
Daniel Thöle
+44 (0) 207 8611606 Bell Pottinger Investor and Media Relations
Lydia Eades
Kibo Mining - Notes to editors
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The Company
was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The
Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania’s
largest mineral right portfolios, including the Haneti (nickel, PGE and gold), Morogoro (gold), Lake
Victoria (gold), and Pinewood (coal & uranium) projects.
Its projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging
goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has
prioritised infrastructural development attracting significant recent investment in coal and uranium.
Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through
exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration
and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value
curve whilst benefitting from strategic relationships with industry leaders with special skills and
competencies within their chosen fields.
Updates on the Company’s activities are regularly posted on its website www.kibomining.com
Johannesburg
27 June 2014
Corporate and Designated Adviser
River Group
Review by Qualified Person
Imweru and Lubando
Information in this announcement that relates to the Imweru mineral resources is taken from the report
titled “Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC Competent
Persons Report” dated February 17th 2014 (the “Report”). The Report states a JORC-compliant resource
estimate and was prepared for Kibo Mining plc by James Barr P.Geo. and Darryn Hitchcock P.Geo. Senior
Geologist and Geologist respectively with TetraTech EBA Ltd. Both Mr. Barr and Mr. Hitchcock are
registered as Certified Professional Geologists with Association of Professional Engineers and
Geoscientists of British Columbia a recognised professional organisation. Mr Barr as principal author
responsible for the Report has extensive experience in the evaluation and reporting of Archaean Gold
projects and is a “Qualified Person” for reporting gold resources to the JORC Standard. He consents to the
inclusion in this document of the matters based on his information in the form and context in which they
appears.
The information in this announcement that relates to the Lubando mineral resources is taken from a report
titled, Tanzania” “Technical Report on the Lubando property, Mwanza, Tanzania” dated 31st August 2009”
(the “Report”) The Report is NI 43-101 compliant and was 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. Fier is 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 and is a “Qualified Person” for reporting gold resources to the NI 43-101 Standard.
Kibo’s Technical Director, Noel O’Keeffe has also reviewed the technical reports referenced above.
Date: 27/06/2014 03:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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