Wrap Text
Abridged Condensed Consolidated Annual Financial Statement for the financial year ending 31 December 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 AIM: KIBO ISIN:
IE00B61XQX41
("Kibo" or "the Company")
Abridged Condensed Consolidated Annual Financial Statement for the
financial year ending 31 December 2014
Date: 29 May 2015
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 abridged condensed consolidated annual financial results for the
period ending 31 December 2014. 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, at which time a copy thereof will also be made 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 June, will be announced shortly.
Louis Coetzee, CEO of Kibo Mining, said:
"We are pleased to present positive 2014 financial results at a pivotal time in Kibo's
development. We are well on the way towards completing our Definitive Feasibility Study
on the flagship *Mbeya Coal to Power Project ("MCPP") in co-operation with our recently
announced joint development partner, SEPCO III. The positive results from the pre-
feasibility reports completed during 2014 as outlined in our Annual Report, not only
secured a Joint Development Agreement with SEPCO III, but moved Kibo towards becoming
a more mature development company. This is well demonstrated by the Company's MCPP
and Imweru Projects that have progressed to advanced feasibility status in less than a
year. The Company also succeeded in getting all its remaining exploration projects back
into active exploration status and this includes the signing of two Joint Venture
Agreements during 2014.
The work completed during 2014 enabled us to re-activate advanced feasibility studies and
exploration across all our commodity streams and we expect to show steady progress and
newsflow from this work over the remainder of 2015.
Highlights from the Chairman, Christian Schaffalitzky's statement:
- Results from first phase Definitive Feasibility Study ("DFS") reports on the Company's
MCPP and Imweru projects exceed expectations across all aspects of the studies;
- Estimated economic indicators for the MCPP based on a preliminary base case
financial model by Standard Bank demonstrate strongly positive returns for the
project;
- Signing of Joint Development Agreement with China based EPC contractor SEPCO III
post year end represents another major step in the development of the MCPP and
should enable the Company to complete its DFS by the end of 2015 and enter the
construction phase of the project which is scheduled for completion by the end of
2018;
- The results of a Preliminary Economic Assessment (PEA) on the Imweru project (gold)
showed a positive economic outcome for a base case development supporting a mine
life of 6 to 10 years and the potential to increase the mine life by an extra 6 years
contingent on expansion of the current gold resource;
- Joint Venture Agreements signed with Metal Tiger Plc on the Morogoro and
Pinewood projects a welcome development for Kibo as it allows it the Company to
once again resume exploration on these areas;
- Increase in the carrying value of intangible assets from GBP9.7 million at 31
December 2013 to GBP14.4 million at 31 December 2014 as a result of a reversal of
previously recognised impairment.
*The Rukwa Coal to Power Project ("RCPP") has recently been renamed the Mbeya Coal to Power Project
("MCPP") – Refer RNS of the 26th May 2015.
Condensed Consolidated Financial Results for the year ended 31 December 2014
Condensed Consolidated Statement of Comprehensive Income
Year Year
ended ended
31 31
December December
2014 2013
Audited Audited
Continuing operations GBP GBP
Administrative expenses (1,500,757) (600,832)
Impairment of assets 4,695,356 (14,790,675)
Exploration expenditure (1,073,022) (1,358,664)
Operating profit/ (loss) 2,121,577 (16,750,171)
Investment and other income 3,427 1,166,834
Profit/ (Loss) on ordinary activities before tax 2,125,004 (15,583,337)
Taxation - -
Profit/ (Loss) for the period 2,125,004 (15,583,337)
Other comprehensive gain/ (loss):
Exchange differences on translation of foreign operations 193,550 (513,201)
Other Comprehensive gain/ (loss) for the period net of tax 193,550 (513,201)
Total comprehensive profit/ (loss) for the period 2,318,554 (16,096,538)
Profit/ (Loss) for the period attributable to the owners of the parent 2,125,004 (15,583,337)
Total comprehensive Loss attributable to the owners of the parent 2,318,554 (16,096,538)
Loss Per Share
Basic earnings/ (loss) per share 0.01 (0.14)
Diluted earnings/ (loss) per share 0.01 (0.14)
Headline (loss) per share (0.018) (0.007)
Condensed Consolidated Statement of Financial Position
31 31
December December
2014 2013
Audited Audited
GBP GBP
Assets
Non-Current Assets
Property, plant and equipment 3,761 6,326
Intangible assets 14,413,865 9,718,509
Total non-current assets 14,417,626 9,724,835
Current Assets
Trade and other receivables 11,557 51,200
Cash and cash equivalents 186,447 443,763
Total current assets 198,004 494,963
Total Assets 14,615,630 10,219,798
Equity and Liabilities
Equity
Called up share capital 12,591,750 10,998,282
Share premium account 23,903,307 23,398,853
Share based payment reserve 510,978 977,543
Translation reserve (400,985) (594,535)
Retained deficit (22,229,526) (2 24,821,095)
14,375,524 9,959,048
Liabilities
Current Liabilities
Trade and other payables 240,106 228,391
Current tax liabilities - 32,359
Total Current Liabilities 240,106 260,750
Total Equity and Liabilities 14,615,630 10,219,798
Condensed Consolidated Statement of Changes in Equity
Share Share Share based Foreign currency Total Retained Total
Capital premium payment reserve translation reserve reserves deficit
GBP GBP GBP GBP GBP GBP GBP
Balance as at 1 January 2013 9,192,046 21,879,748 977,543 (81,334) 896,209 (9,237,758) 22,730,245
Profit / (loss) for the year - - - - - (15,583,337) (15,583,337)
Other comprehensive income- exchange - - - (513,201) (513,201) - (513,201)
differences on translating foreign operations
Proceeds of share issue of share capital 1,806,236 1,519,105 - - - - 3,325,341
Share options acquired through business - - - - - - -
combinations
Share options issued - - - - - - -
1,806,236 1,519,105 - (513,201) (513,201) (15,583,337) (10,855,257)
Balance as at 31 December 2013 10,998,282 23,398,853 977,543 (594,535) 383,008 (24,821,095) 9,959,048
Profit / (loss) for the year - - - - - 2,125,004 2,125,004
Other comprehensive income (loss) - - - - 193,550 193,550 - 193,550
exchange differences
Reclassification of share based payment
reserve on expired share options issued - - (466,565) - (466,565) 466,565 -
Proceeds of share issue of share capital 1,593,468 504,454 - - - - 2,097,922
1,593,468 504,454 (466,565) 193,550 (273,015) 2,591,569 4,416,476
Balance at 31 December 2014 12,591,750 23,903,307 510,978 (400,985) 109,993 (22,229,526) 14,375,524
Condensed consolidated Statement of Cash Flow
12 month 12 month
period ended period ended
31 December 31 December
2014 2013
Audited Audited
GBP GBP
Net cash outflows from operating activities (2,377,664) (1,301,894)
Net cash proceeds from financing activities 2,101,349 3,325,945
Net cash used in investing activities - (147,058)
Net increase in cash and cash equivalents (257,316) 345,085
Cash and cash equivalents at beginning of period 443,763 98,678
Cash and cash equivalents at end of the period 186,447 443,763
Notes to the abridged condensed consolidated financial results for the year ended
31 December 2014
1. General information
Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The Group
annual 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 abridged condensed consolidated annual financial results are for the year ended 31 December
2014 was 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 annual financial statements of the Group for the period
ended 31 December 2014, which is available for inspection at the Company's registered offices.
The comparative amounts in the condensed consolidated financial results include extracts from the
Company's consolidated annual financial statements for the period ended 31 December 2013.
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 and are similar to those applied in the prior period. The Group
financial results have been prepared on a going concern basis.
These abridged 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
2013 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, Saffery Champness.
The modified auditors report together with the financial statements is available for inspection at the
Company's register offices. The modified auditors' report contains an emphasis of matter with regard
to the realisation of certain assets, 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, 12 and 18 to the financial statements concerning the
valuation of intangible assets, and investments in Group undertakings. The realisation of intangible
assets of GBP14,413,865 (2013: GBP9,718,509), amounts due from Group undertakings of
GBP26,047,465 (2013: GBP25,286,099) and investments in Group undertakings of GBP1,700,000
(2013: GBP1,700,000) 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 annual financial results.
8. Dividends
There have been no dividends declared or paid during the current financial period.
9. Going Concern
The consolidated annual 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 Year ended
December 31 December
2014 (GBP) 2013 (GBP)
Profit/ (Loss) for the period attributable to 2,125,004 (15,583,337)
equity holders of the parent
Weighted average number of ordinary 193,400,160 110,593,163
shares for the purposes of basic and dilutive
loss per share (revised)
Basic earnings/ (loss) per share 0.01 (0.14)
Dilutive earnings/ (loss) per share 0.01 (0.14)
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.
Headline loss per share
Reconciliation of headline loss per share: Year ended Year ended
31 December 31 December
2014 (GBP) 2013 (GBP)
Earnings/ (Loss) for the period attributable 2,215,004 (15,583,337)
to normal shareholders
Impairment of Goodwill - 3,454,570
Reversal of Impairment of Intangible (4,695,356) 11,336,105
Assets/ (Impairment of Intangible assets)
Headline (Loss) for the period attributable (2,570,352) (792,662)
to normal shareholders
Headline loss per ordinary share (0.013) (0.007)
11. Called up share capital and share premium
Details of authorised and issued capital are as follows:
2014 2013
Authorised equity
400,000,000 Ordinary shares of EUR0.015 EUR6,000,000
each EUR3,000,000
(2013: 200,000,000 Ordinary shares of EUR27,000,000 EUR27,000,000
EUR0.015 each)
3,000,000,000 Deferred shares of EUR0.009
each
EUR33,000,000 EUR30,000,000
Allotted, issued and fully paid shares
(2014: 274,238,757 Ordinary shares of GBP3,334,675
EUR0.015 each
(2013: 141,116,691 Ordinary shares of - GBP1,741,207
EUR0.015 each)
1,291,394,535 Deferred shares of EUR0.009 GBP9,257,075 GBP9,257,075
each
Deferred
Ordinary Share Share Share
Number Capital Capital Premium
of Shares (GBP) (GBP) (GBP)
Balance at 30 December 141,116,691 1,741,207 9,257,075 23,398,853
2013
Shares issued during the 133,112,066 1,593,468 - 504,454
period
Deferred shares - 9,257,075 - -
Balance at 31 December 274,238,757 12,591,750 9,257,075 23,903,307
2014
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.
2014 Group Mining and 31 December
Exploration Corporate 2014 (GBP)
Group Group Group
Administrative cost - (1,500,757) (1,500,757)
Exploration expenditure (1,073,022) - (1,073,022)
Net reversal of impairment of assets 4,695,356 - 4,695,356
Investment and other income 3,427 - 3,427
Tax - - -
Profit/ (Loss) after tax 3,625,761 (1,500,757) (2,125,004)
2013 Group Mining and 31 December
Exploration Corporate 2013 (GBP)
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 - - -
Profit/ (Loss) after tax (15,639,013) 55,676 (15,583,337)
2014 Group 31 December
Mining Corporate 2014 (GBP)
Group Group Group
Assets
Segment assets 14,417,626 198,004 14,615,630
Liabilities
Segment liabilities - 240,106 240,106
Other Significant items
Depreciation 2,565 - 2,565
2013 Group 31 December
Mining Corporate 2013 (GBP)
Group Group Group
Assets
Segment assets 9,724,835 494,963 10,219,798
Liabilities
Segment liabilities - 260,750 260,750
Other Significant items
Depreciation 4,618 - 4,618
13. Changes to the board of Kibo Mining Plc
No changes were made to the board during the current financial year.
By order of the Board
21 May 2015
Directors: Christian Schaffalitzky Chairman (Non-Executive)
Louis Coetzee Chief Executive Officer (Executive)
Noel O'Keeffe Technical Director (Executive)
Andrew Lianos Finance Director (Executive)
Lukas Marthinus Maree Non-Executive Director
Wenzel Kerremans Non-Executive Director
Company Secretary: Noel O'Keeffe
Auditors: Saffery Champness
Contacts
Louis Coetzee +27 (0) 83 2606126 Kibo Mining plc Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate Adviser and
Designated Adviser on JSE
Elliot Hance +44 (0) 207 382 8300 Beaufort Broker
Securities Limited
Oliver Morse +61 8 9480 2500 RFC Ambrian Nominated Adviser on AIM
Limited
Daniel Thöle +44 (0) 203 772 2500 Bell Pottinger Investor and Media Relations
Lucinda Alderson
Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused
on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest
mineral right portfolios. Tanzania provides a secure and stable operating environment for the mineral
resource industry and Kibo Mining therein.
Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant defined
resource (See Table 1 below), and is developing a 250-350MW mouth-of-mine thermal power station with
an established management team that includes Standard Bank as Financial Advisor. Kibo is undertaking a
Coal Mining Definitive Feasibility Study and a Power Pre-Feasibility Study for Rukwa with an integrated
Coal-Power interim study report to be released in the near term. On 20th April 2015, Kibo signed a Joint
Development Agreement for the completion of the Definitive Feasibility Studies and development of the
RCPP with China based EPC contractor SEPCO III.
The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro
projects. At Lake Victoria, the Company has projects with a 550,000oz JORC compliant gold Mineral
Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 43-101 compliant gold Mineral
Resource at the Lubando Project (See Table 3 below) in which the Company holds a 90% attributable
interest. The Company is currently undertaking a Definitive Feasibility Study on its Imweru Project.
Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for nickel,
PGMs, gold and strategic metals including Lithium.
Kibo Mining further holds the Pinewood (coal & uranium) project where the company has entered into a
50/50 Exploration Joint Venture with Metal Tiger plc.
Finally the Company also holds the Morogoro (gold) project where the company has entered into a 50/50
Exploration Joint Venture with Metal Tiger plc.
The Company's projects are located 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. The Company has a positive working relationship with the Tanzanian government at
local, regional and national levels and works hard to maintain positive relationships with all communities
where company interests are held. The Company recognises the potential to enhance the quality of life
and opportunity for Tanzanian citizens through careful development of its projects.
Updates on the Company's activities are regularly posted on its website www.kibomining.com
Johannesburg
29 May 2015
Corporate and Designated Adviser
River Group
Date: 29/05/2015 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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