Wrap Text
Half year results for the period ended 30 June 2014
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 2014
Dated: 25 September 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 unaudited half year results for the period ended 30
June 2014.
Highlights from the Chairman, Christian Schaffalitzky's statement:
* Updated gold resource estimate and internal optimisation study at Imweru and selection
of consultant for a feasibility study at Rukwa implemented during period.
* Initial results from the feasibility study at Rukwa exceeding expectations and
demonstrate the economic and technical robustness of the Rukwa coal resource and its
potential to sustain a 300 Mw power plant over a minimum mine life of 40 years.
* Results from high level internal optimisation study indicate potential of the Imweru gold
resource to sustain a stand-alone mining operation with attractive investment returns
(subject to required feasibility work and mine planning).
* Appointment of new Financial Director to the board to strengthen Company
management.
Highlights from the interim results for the period ended 30 June 2014:
* Decrease in basic and dilutive loss per ordinary share of 13% compared to previous
interim results.
Chairman's Statement
Dear Shareholder,
I am pleased to present our accounts for the six month period ending 30 June 2014.
During the period the Company has continued to focus on its two most advanced projects,
the Rukwa Coal to Power Project (RCPP) and the Imweru gold project ("Imweru"), both of
which we believe have the capacity to move Kibo from an exploration to a development
and mining company in the short term. Significant work has been carried out on both
projects during the period. At Imweru an updated resource estimate and internal
optimisation study (validated by independent technical consultants) based on the positive
results from last year's drilling programme was undertaken. At the RCPP a consultant
(Minxcon Projects) was selected to implement a Definitive Mining Feasibility Study
(DMFS) and the work commenced in July. The board is greatly encouraged by the initial
results of the DMFS which are exceeding expectations. In line with our strategy to focus
on these advanced gold and coal projects, we continue to hold our earlier stage projects
on care and maintenance and intend to resume exploration when market conditions
improve. On the corporate front, I am pleased to welcome Andreas Lianos to the board
who was appointed Financial Director in March 2014. Andreas's appointment has
strengthened the Company's management, particularly as it moves towards development
of its coal and gold assets.
Exploration & Development
Imweru
A comprehensive resource update report prepared by independent consultants, Tetratech
EBA (March 2014), based on the results of Kibo's November 2013 drill programme at
Imweru, provided the Company with a revised JORC-compliant gold Mineral Resource
estimate of 550,000 oz (~15 million tonnes at 1.14 grams per tonne). Additionally the
report notes the potential to materially increase the existing resource by further drilling
both in the vicinity of the resource itself and on the high quality drill targets within the
greater project area.
Encouraged by these results, your company has undertaken a high level optimisation
study in conjunction with its independent consultants over recent months to test the
economic feasibility of developing a mine at the site. This work concentrated on a full
internal review of historic Imweru exploration data to identify the optimal route for
further development. I am pleased to say that the results to date have been most
encouraging and have demonstrated the potential of the resource to support a stand-
alone mining operation with attractive investment returns based on the existing resource
estimate alone (subject to required feasibility work and mine planning). The potential
opportunity to generate early cash-flows from this gold asset makes Kibo an attractive
investment and the Company has therefore made the decision to prioritise implementing
a fast-track mine development at Imweru. Imweru is well situated and will benefit from
being located close to existing producing gold mines (e.g. Geita, Bulyanhulu) and well
established neighbouring gold mining infrastructure.
RCPP
Negotiations with potential development partners on the RCPP continued during the
reporting period and are at an advanced stage. The complex nature of the project, the
significant financial investment required and the challenges of dealing with large multi-
layered transnational investors have resulted in a longer process in concluding a
comprehensive joint venture agreement on the project than we had anticipated. Despite
this delay, the interest from a number of investors remains robust and the board is
prepared to wait in order to successfully negotiate the best deal for shareholders. In order
to support this strategy the Company has selected South African mining consultants
Minxcon Projects to commence a DMFS on the Rukwa coal deposit to clearly demonstrate
the mining viability of the coal resource to potential investors, support a high valuation
and move it further along the development path. I am pleased to note that the initial
results emerging from this study have been very encouraging and demonstrate the
economic and technical robustness of the Rukwa coal resource and its potential to
sustain a 300 Mw power plant over a minimum mine life of 40 years.
Corporate
The Company has undertaken two equity capital raisings during 2014 to date, one in
March for a gross amount of £750,000 at 2.5p and one in July (just outside the reporting
period) for a gross amount of £600,000 at 1.75p to fund the on-going work at Imweru,
the RCPP and for general working capital requirements. These fund raisings while at low
share prices were undertaken in difficult market conditions and the support of new and
existing investors reflects confidence in the Company's ability to ultimately realise value
from our principal coal and gold assets. The participation of the board in the July
fundraising also demonstrates our belief in the potential of these projects.
The appointment of Andreas Lianos as Financial Director in March brings an experienced
chartered accountant and corporate financier to our board and management team.
Andreas' skills will be critical to the success of our plans in moving Kibo from a purely
exploration company to a development and mining company. I wish him well in the
challenge ahead.
In conclusion, I would like to thank our board and management for their on-going work
under the direction of CEO Louis Coetzee. I look forward to further significant progress on
the Company's projects for the remainder of 2014 and beyond.
Christian Schaffalitzky Chairman
Unaudited condensed consolidated interim statement of comprehensive income
For the six months ended 30 June 2014
6 months to 6 months to 12 months to
30 June 30 June 31 December
2014 2013 2013
(Unaudited) (Unaudited) (Audited)
£ £ £
Continuing Operations
Administrative expenses (665,708) (1,155,130) (600,832)
Exploration Expenditure (389,764) (339,155) (1,358,664)
Impairment of asset - - (14,790,675)
Operating Loss (1,055,472) (1,494,285) (16,750,171)
Gain arising on acquisition of
subsidiary - 800,819 -
Investment and Other Income - - 1,166,834
Loss on ordinary activities before
tax for the period (1,055,472) (693,466) (15,583,337)
Tax
-
-
-
Loss for the period
(1,055,472)
(693,466)
(15,538,337)
Other comprehensive income:
Exchange differences on translating
foreign operations, net of taxes
37,500
(548,973)
(513,201)
Total comprehensive loss for the
period
(1,017,972)
(1,242,439)
(16,096,538)
Loss for the period attributable to
(1,055,472)
(693,466)
(15,583,337)
Owners of the parent
(1,055,472)
(689,710)
(15,583,337)
Non-controlling interest
-
(3,756)
-
Total comprehensive income
attributable to
(1,017,972)
(1,242,439)
(16,096,538)
Owners of the parent
(1,017,972)
(1,238,683)
(16,096,538)
Non-controlling interest
-
(3,756)
-
Basic loss per share (pence)
(0.68)
(0.75)
(0.14)
Diluted loss per share (pence)
(0.68)
(0.75)
(0.14)
Headline Loss per share (pence)
(0.68)
(1.62)
(0.007)
Unaudited condensed consolidated interim statement of financial position
As at 30 June 2014
6 months to
6 months to
12 months to
30 June
30 June
31 December
2014
2013
2013
(Unaudited)
(Unaudited)
(Audited)
£
£
£
Assets
Non-current assets
Property, plant and equipment
4,401
10,802
6,326
Intangible assets
9,718,509
21,054,614
9,718,509
Goodwill
-
3,307,757
-
Total non-current assets
9,722,910
24,373,173
9,724,835
Current assets
Trade and other receivables
59,594
896,095
51,200
Cash and cash equivalents
68,783
337,742
443,763
Total current assets
128,377
1,233,837
494,963
Total assets
9,851,287
25,607,010
10,219,798
Equity
Called up share capital
11,370,993
10,558,761
10,998,282
Share premium
23,672,092
22,576,154
23,398,853
Translation reserve
(557,035)
(630,307)
(594,535)
Non - controlling interest
-
(126,536)
-
Share options
977,543
977,543
977,543
Retained deficit
(25,876,567)
(9,804,688)
(24,821,095)
Total equity
9,587,026
23,550,927
9,959,048
Liabilities
Current liabilities
Trade and other payables
233,590
2,026,487
228,391
Current tax liabilities
30,671
29,596
32,359
Total current liabilities
264,261
2,056,083
260,750
Total equity and liabilities
9,851,287
25,607,010
10,219,798
Unaudited condensed consolidated interim statement of changes in equity
For the six months ended 30 June 2014
Group
Share Capital
Share
Premium
Total Share
Capital
Share Based
payment
reserve
£
£
£
£
Balance at 1 January 2013
9,192,046
21,879,748
31,071,794
977,543
Other comprehensive income
Exchange differences on translating foreign
operations
-
-
-
-
Loss for the period
-
-
-
-
Change of non-controlling interests
without a change in control
-
-
-
-
Issue of share capital (net of expenses)
1,366,715
696,406
2,063,121
-
Balance as at 30 June 2013
10,558,761
22,576,154
33,134,915
977,543
Other comprehensive income
Exchange differences on translating foreign
operations
-
-
-
-
Change in non-controlling interests
without a change in control
-
-
-
-
Loss for the period
-
-
-
-
Issue of share capital (net of expenses)
439,521
822,699
1,262,220
-
Balance as at 31 December 2013
10,998,282
23,398,853
34,397,135
977,543
Other comprehensive income
Exchange differences on translating foreign
operations
-
-
-
-
Loss for the period
-
-
-
-
Issue of share capital (net of expenses)
372,711
273,239
645,950
-
Balance as at 30 June 2014
11,370,993
23,672,092
35,043,085
977,543
Foreign Currency
Translation
Reserve
Non-
Controlling
interest
Total
Reserves
Retained
Deficit
Total Equity
£
£
£
£
£
Balance at 1 January 2013
(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)
Change of non-controlling
interests without a change in
control
-
(122,780)
(122,780)
122,780
-
Issue of share capital (net of
expenses)
-
-
-
-
2,063,121
Balance as at 30 June 2013
(630,307)
(126,536)
220,700
(9,804,688)
23,550,927
Other comprehensive income
Exchange differences on
translating foreign operations
35,772
-
35,772
-
35,772
Change in non-controlling
interests without a change in
control
-
126,536
126,536
126,536
Loss for the period
-
-
-
(15,016,407)
(15,016,407)
Issue of share capital (net of
expenses)
-
-
-
-
1,262,220
Balance as at 31 December
2013
(594,535)
-
383,008
(24,821,095)
9,959,048
Other comprehensive income
Exchange differences on
translating foreign operations
37,500
-
37,500
-
37,500
Loss for the period
-
-
-
(1,055,472)
(1,055,472)
Issue of share capital (net of
expenses)
-
-
-
-
645,950
Balance as at 30 June 2014
(557,035)
-
420,508
(25,876,567)
9,587,026
Unaudited condensed consolidated interim statement of cash flow
For the six months ended 30 June 2014
6 months to
6 months to
12 months to
30 June
30 June
31 December
2014
2013
2013
(Unaudited)
(Unaudited)
(Audited)
£
£
£
Operating loss for the period
(1,055,472)
(693,466)
(15,583,337)
Adjusted for:
Depreciation
1,925
536
4,618
Investment revenue
-
-
(604)
Foreign exchange movement
37,500
(128,392)
(513,246)
Movement of exploration activities
389,764
339,155
1,358,664
Impairment of assets
-
-
14,790,675
Gain arising on acquisition of subsidiary
-
(800,819)
-
Operating income before working capital
changes
(626,283)
(1,282,986)
56,770
Change in trade and other receivables
(8,394)
(19,411)
24,238
Change in trade and other payables
3,511
239,278
(1,556,146)
Cash generated from Group operations
(631,166)
(1,063,119)
(1,475,138)
Cash flows from investing activities
Acquisition of subsidiary
-
(85)
(146,814)
Expenditure on exploration activities
(389,764)
(339,155)
(1,358,664)
Purchase of property, plant and equipment
-
(244)
Net cash used in investing activities
(389,764)
(339,240)
(1,505,722)
Cash flows from financing activities
Proceeds from issue of share capital
645,950
1,643,423
3,325,341
Investment Income
-
-
604
Net cash proceeds from financing activities
645,950
1,643,423
3,325,945
Net increase in cash and cash equivalents
(374,980)
241,064
345,085
Cash and cash equivalents at beginning of period
443,763
96,678
98,678
Cash and cash equivalents at end of period
68,783
337,742
443,763
Notes to the unaudited condensed consolidated interim financial statements
For the six months ended 30 June 2014
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 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 2014. 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 2013, 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 2013. These extracts do not
constitute statutory accounts in accordance with the Irish Companies Acts 1963 to 2013.
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
12 months to
30 June
30 June
31 December
2014
2013
2013
£
£
£
Loss for the year attributable to equity holders
of the parent
(1,055,472)
(693,466)
(15,583,337)
Weighted average number of ordinary shares
for the purposes of basic and dilutive loss per
share (revised)
155,134,424
92,374,783
110,593,163
Basic loss per share (pence)
(0.68)
(0.75)
(14,09)
Dilutive loss per share (pence)
(0.68)
(0.75)
(14,09)
Loss for the year attributable to equity holders
of the parent
(1,055,472)
(693,466)
(15,583,337)
Impairment of Goodwill
-
-
3,454,570
Impairment of Intangible Assets
-
-
11,336,105
Gain arising on acquisition of subsidiary
-
(800,819)
-
Headline loss per share
(1,055,472)
(1,494,285)
(792,662)
Weighted average number of ordinary shares
for the purposes of headline loss per share
(revised)
155,134,424
92,374,783
110,593,163
Headline loss per share (pence)
(0.68)
(1,62)
(0.72)
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.
Detail of issued capital is as follows:
Number of
Ordinary
Nominal
Share
shares
Value
Premium
£
£
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
(1,205,301,566)
-
-
Shares issued in period (net of expensed for
cash)
55,023,722
702,586
1,519,105
Balance at 31 December 2013
141,116,691
10,998,282
23,398,853
Shares issued in period (net of expensed for
cash)
30,038,000
372,711
273,239
Balance at 30 June 2014
171,154,691
11,370,993
23,672,092
Contacts
Louis Coetzee
+27 (0) 83 2606126
Kibo Mining plc
Chief
Executive
Officer
Andreas Lianos
+27 (0) 83 4408365
River Group
Corporate and
Designated
Adviser on JSE
Jon Belliss
Abigail Wayne
+44 (0) 20 3693 1470
Hume Capital
Securities Plc
Broker
Oliver Morse
Trinity McIntyre
+61 8 94802500
+61 8 94802500
RFC Ambrian
Limited
Nominated
Adviser on
AIM
Daniel Thšle
Lydia Eades
+44 (0) 203 772 2500
+44 (0) 203 772 2500
Bell Pottinger
Investor and
Media
Relations
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.
Kibo's 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
Technical Data
RUKWA COAL RESOURCE SUMMARY- GEMECS (Pty) Ltd
SEAM
NI 43-101
IN SITU
SEAM
THICKNESS
CLASS
MILLION TONS
S4
1.14
Indicated
2.17
S3U
2.04
Indicated
6.92
S3L
2.3
Indicated
12.63
S2
3.45
Indicated
23.43
S1U
2.48
Indicated
7.34
S1L
2.92
Indicated
17.4
S0
1.08
Indicated
1.44
Total Indicated Resources
71.34
S4
1.31
Inferred
1.38
S3U
2.24
Inferred
2.94
S3L
2.27
Inferred
3.86
S2
3.42
Inferred
7.94
S1U
2.05
Inferred
6.5
S1L
3.15
Inferred
12.83
S0
1.06
Inferred
2.6
Total Inferred Resources
38.05
TOTAL RESOURCES
109.39
Imweru Gold Resource Tetratech EBA
Area
Material
Type
Classification
Cut-
off
(g/t)
Specific
Gravity
Metric
Tonnes
(t)
Short Tons
Gold
Grade
(g/t)
Contained
Gold
Ounces
(troy)
Central
Laterite
Indicated
0.40
2.50
131,000
144,000
1.785
8,000
Saprolite
Indicated
0.40
2.50
706,000
778,000
1.387
32,000
Bedrock
Indicated
0.40
2.89
1,895,000
2,089,000
1.043
64,000
Total
Indicated
0.40
2.77
2,732,000
3,012,000
1.168
103,000
Central
Laterite
Inferred
0.40
2.50
685,000
755,000
1.317
29,000
Saprolite
Inferred
0.40
2.50
1,047,000
1,154,000
1.040
35,000
Bedrock
Inferred
0.40
2.89
7,838,000
8,640,000
1.029
259,000
Total
Inferred
0.40
2.82
9,569,000
10,548,000
1.051
323,000
East
Total
Inferred
0.40
2.70
2,653,000
2,925,000
1.449
124,000
Imweru Property
Total
Indicated
0.40
2.77
2,732,000
3,012,000
1.168
103,000
Inferred
0.40
2.79
12,222,000
13,473,000
1.137
447,000
Combined
(inf+ind)
0.40
2.79
14,954,000
16,485,000
1.143
550,000
* Total estimates are rounded, based on composites capped at 26 g/t gold at Imweru Central and 25 g/t at Imweru East, the cut-off grade is based on a gold
price of US$1,200 and a 90% metallurgical recovery is assumed in calculation of cut-off grade. A base case of 0.40 g/t has been selected.
** Classification of Mineral Resources incorporates the terms and definitions from the Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code) published by the Joint Ore Reserve Committee (JORC)
Pursuant to the terms of an inherited agreement with Barrick East Africa Exploration LTD (BEAL),
Kibo currently has an effective 90% interest in the Imweru Project, with Barrick having a 10%
carried interest up to a decision to mine at which point they have to contribute or dilute to a 2%
net smelter royalty. BEAL also has a first right of refusal pursuant to which they can buy the 90%
interest in the project at an agreed market related value after completion of a Bankable Feasibility
Study. Kibo remains the operator of the project.
Kibo's 90% attributable interest in the Imweru Mineral Resources are shown in Table 2 below
Area
Material
Type
Classification
Cut- off
(g/t)
Metric
Tonnes (t)
Gold
Grade
(g/t)
Contained
Gold
Ounces
(troy)
% Gold
Ounces
attributable
to Kibo
Total Gold
Ounces
attributable to
Kibo
Central
Total
Indicated
0.40
2,732,000
1.168
103,000
90%
92,700
Total
Inferred
0.40
9,569,000
1.051
323,000
90%
290,700
East
Total
Inferred
0.40
2,653,000
1.449
124,000
90%
111,600
Imweru Property
Total
Indicated
0.40
2,732,000
1.168
103,000
90%
92,700
Inferred
0.40
12,222,000
1.137
447,000
90%
402,300
Combined
(inf+ind)
0.40
14,954,000
1.143
550,000
90%
495,000
Review by Qualified Person
The information in this announcement that relates to the Rukwa coal Mineral Resource is
taken from a report titled "Independent Technical Report for the Rukwa Coal Project,
Mbeya Region, United Republic of Tanzania" dated 19th April 2012 by CD van Niekerk
Director and Principal Geologist with the firm GEMECS (Pty) Ltd. Mr van Niekerk is a
Professional Natural Scientist with the South African Council for Natural Scientific
Professions (SACNASP), Registration No. 400066/98 and a Fellow Member of the
Geological Society of South Africa. He has relevant experience and technical qualifications
to be a "Qualified Person" for reporting coal resources to the NI 43-101 Standard
Information in this announcement that relates to the Imweru Mineral Resource 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 Mineral 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 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 Company's Exploration Director, Noel O'Keeffe has also reviewed the technical
reports and the references to them in this announcement.
Corporate and Designated Advisor
River Group
25 September 2014
Date: 25/09/2014 05:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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