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Condensed Consolidated Annual Financial Results of for the year ended 31 December 2015
Kibo Mining Plc
(Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on AIM: KIBO
Share code on the AltX: KBO
ISIN: IE00B97C0C31
("Kibo" or "the Company" or together with its subsidiaries "the Group")
Condensed Consolidated Annual Financial Results of for the year ended 31 December 2015
14 June 2015
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the mineral
exploration and development company focused on coal, gold, nickel, and uranium projects in
Tanzania is pleased to release its condensed consolidated annual financial results for the year
ended 31 December 2015. 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 middle of July, will be announced shortly.
Louis Coetzee, CEO of the Kibo, commented today:
"We are pleased to present positive 2015 financial results at a pivotal time in Kibo's
development. We are well on the way towards completing our Integrated Bankable
Feasibility Study on the flagship Mbeya Coal to Power Project ("MCPP") in co-operation
with our joint development partner, SEPCO III. The positive results from the reports
completed during 2015 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 Project
which has 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 commencement of two Joint Ventures during 2015."
Comments from the Chairman, Christian Schaffalitzky:
"2015 saw our Company achieve several important milestones that I believe lay the
foundations for us to graduate as a mining company from our formative years in
exploration. We have reached this critical stage despite another tough year for commodities
and a depressed market for mining equities.
The Company's main achievements are:
- The near completion of definitive feasibility studies (DFS) on both the proposed
coal mine and its dedicated power plant at our Mbeya Coal to Power Project
(MCPP); and
- The completion of a Preliminary Economic Assessment on our Imweru gold
project.
In parallel, we continued with exploration at Haneti, where the prospectivity for nickel,
copper and platinum group metals was enhanced; and work commenced on our Morogoro
gold and Pinewood uranium projects, with our joint venture partner, Metal Tiger plc.
Furthermore, the increase in the carrying value of intangible assets from GBP14.4 million at
31 December 2014 to GBP17.6 million at 31 December 2015 as a result of a reversal of
previously recognised impairment reflects the significant progress made with regard to the
MCPP." .
Condensed Consolidated Financial Results for the year ended 31 December 2015
Condensed Consolidated Statement of Comprehensive Income
Year Year
ended ended
31 31
December December
2015 2014
Audited Audited
Continuing operations GBP GBP
Revenue 44,181 -
Administrative expenses (1,791,358) (1,500,757)
Reversal of impairment of intangible assets 3,182,240 4,695,356
Exploration expenditure (1,454,216) (1,073,022)
Operating (loss)/ profit (19,153) 2,121,577
Investment and other income 196,315 3,427
Profit from ordinary activities before tax 177,162 2,125,004
Taxation - -
Profit for the period 177,162 2,125,004
Other comprehensive gain:
Exchange differences on translation of foreign operations 16,366 193,550
Other Comprehensive gain for the period net of tax 16,366 193,550
Total comprehensive profit for the period 193,528 2,318,554
Profit for the period attributable to the owners of the parent 177,162 2,125,004
Total comprehensive profit attributable to the owners of the parent 193,528 2,318,554
Earnings/ (Loss) Per Share
Basic earnings per share 0.001 0.01
Diluted earnings per share 0.001 0.01
Headline (loss) per share (0.010) (0.013)
Condensed Consolidated Statement of Financial Position
31 31
December December
2015 2014
Audited Audited
GBP GBP
Assets
Non-Current Assets
Property, plant and equipment 7,182 3,761
Intangible assets 17,596,105 14,413,865
Total non-current assets 17,603,287 14,417,626
Current Assets
Trade and other receivables 550,692 11,557
Cash and cash equivalents 189,435 186,447
Total current assets 740,127 198,004
Total Assets 18,343,414 14,615,630
Equity and Liabilities
Equity
Called up share capital 13,210,288 12,591,750
Share premium account 25,782,519 23,903,307
Treasury Shares (44,464) -
Share based payment reserve 514,279 510,978
Translation reserve (384,619) (400,985)
Retained deficit (21,541,386) (22,229,526)
Total Equity 17,536,617 14,375,524
Liabilities
Current Liabilities
Trade and other payables 306,797 240,106
Borrowings 500,000 -
Total Current Liabilities 806,797 240,106
Total Equity and Liabilities 18,343,414 14,615,630
Condensed Consolidated Statement of Changes in Equity
Share Share Treasury Total share S Share based Foreign Total Retained Total
Capital premium shares capital payment currency reserves deficit
reserve translation
reserve
All figures are stated in Sterling GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance as at 1 January 2014 10,998,282 23,398,853 - 34,397,135 977,543 (594,535) 383,008 (24,821,095) 9,959,048
Profit for the year - - - - - - - 2,125,004 2,125,004
Other comprehensive income- - - - - - 193,550 193,550 - 193,550
exchange differences on
translating foreign operations
Reclassification of share based - - - - (466,565) - (466,565) 466,565 -
payment reserve on expired share
options issued
Proceeds of share issue of share 1,593,468 504,454 - 2,097,922 - - - - 2,097,922
capital
1,593,468 504,454 - 2,097,922 (466,565) 193,550 (273,015) (2,591,569) 4,416,476
Balance as at 31 December 2014 12,591,750 23,903,307 - 36,495,057 510,978 (400,985) 109,993 (22,229,526) 14,375,524
Profit for the year - - - - - 177,162 177,162
Other comprehensive income - - - - - - 16,366 16,366 - 16,366
exchange differences on
translating foreign operations
Share options and warrants expired - - - - (510,978) - (510,978) 510,978 -
or cancelled during the period
Share options issued during the - - - - 514,279 - 514,279 - 514,279
current period
Proceeds of share issue of share 574,074 1,879,212 - 2,453,286 - - - - 2,453,286
capital
Issue of treasury shares 44,464 - (44,464) - - - - - -
618,538 1,879,212 (44,464) 2,453,286 3,301 16,366 19,667 688,140 3,161,093
Balance at 31 December 2015 13,210,288 25,782,519 (44,464) 38,948,343 514,279 (384,619) 129,660 (21,541,386) 17,536,617
Condensed consolidated Statement of Cash Flow
year ended 31 year ended 31
December December
2015 2014
Audited Audited
GBP GBP
Net cash outflows from operating activities (3,013,680) (2,358,665)
Net cash proceeds from financing activities 2,955,176 2,101,349
Net cash used in investing activities 61,492 -
Net increase in cash and cash equivalents 2,988 (257,316)
Cash and cash equivalents at beginning of period 186,447 443,763
Cash and cash equivalents at end of the period 189,435 186,447
Notes to the condensed consolidated financial results for the year ended 31 December 2015
1. General information
Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The
consolidated 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 condensed consolidated annual financial results are for the year ended 31 December 2015
are 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 2014 ("the Companies Acts").
These condensed consolidated annual financial results do not include all the information required
for full financial statements and should be read in conjunction with the consolidated annual
financial statements of the Group for the period ended 31 December 2015, which is available for
inspection at the Company's registered offices.
The comparative amounts included in these condensed consolidated financial results include
extracts from the consolidated annual financial statements for the period ended 31 December
2014.
All monetary information is presented in the functional currency of the Company being pound
Sterling.
The Company's financial statements are prepared on the historical cost basis, other than
intangible assets which is 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 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 2014 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. These
financial results were prepared under the supervision of the Chief Financial Officer, Andreas
Lianos.
5. Audit opinion
The consolidated annual 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 11, 12 and 20 to the financial statements concerning the
valuation of intangible assets, and investments in Group undertakings. The realisation of
intangible assets of GBP17,596,105 (2014: GBP14,413,865), amounts due from Group undertakings of
GBP27,712,269 (2014: GBP26,047,465) and investments in Group undertakings of GBP1,700,000 (2014:
GBP1,700,000) included in the Company Statement of Financial Position are dependent on the
discovery and economic exploitation of 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 Earnings 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
Profit/ (Loss) for the period attributable 2015 (GBP) 2014 (GBP)
to equity holders of the parent 177,162 2,125,004
Weighted average number of ordinary 316,986,334 193,400,160
shares for the purposes of basic and dilutive
loss per share (revised)
Basic earnings/ (loss) per share 0.001 0.01
Dilutive earnings/ (loss) per share 0.001 0.01
As the exercise price of the share options and warrants in issue is 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 Year ended
ended 31
31 December
December 2013 (GBP)
2014 (GBP)
Earnings for the period attributable to 177,162 2,215,004
normal shareholders
Loss on the disposal of subsidiaries 5,762 -
Reversal of Impairment of Intangible Assets (3,182,240) (4,695,356)
Bargain purchase from acquisition of (193,425) -
Subsidiaries
Impairment of goodwill on acquisition of 20,057 -
Subsidiaries
Headline (Loss) for the period attributable (3,172,687) (2,570,352)
to normal shareholders
Headline loss per ordinary share (0.010) (0.013)
Dilutive headline loss per ordinary share (0.010) (0.013)
11. Called up share capital and share premium
Details of authorised and issued capital are as follows:
2015 2014
Authorised equity
800,000,000 Ordinary shares of EUR0.015 each EUR12,000,000
(2014: 400,000,000 Ordinary shares of EUR0.015 each) EUR6,000,000
EUR27,000,000 EUR27,000,000
3,000,000,000 Deferred shares of EUR0.009 each
EUR39,000,000 EUR33,000,000
Allotted, issued and fully paid shares
(2015: 330,928,714 Ordinary shares of EUR0.015 each GBP3,953,213 -
(2014: 274,238,757 Ordinary shares of EUR0.015 each) - GBP3,334,675
1,291,394,535 Deferred shares of EUR0.009 each GBP9,257,075 GBP9,257,075
GBP13,210,288 GBP12,591,750
Ordinary Deferred Treasury
Share Share Share shares
Number of Capital Capital Premium (GBP)
Shares (GBP) (GBP) (GBP)
Balance at 31 274,238,757 12,591,750 9,257,075 23,903,307 -
December 2014
Shares issued 56,689,957 618,538 - 1,879,212 (44,464)
during the period
Balance at 31 330,928,714 13,210,288 9,257,075 25,782,519 (44,464)
December 2015
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.
2015 Group Mining and 31 December
Exploration Corporate 201(GBP)
Group Group Group
Revenue 44,181 - 44,181
Administrative cost - (1,791,358) (1,791,358)
Exploration expenditure (1,454,216) - (1,454,216)
Net reversal of impairment of assets 3,182,240 - 3,182,240
Investment and other income 2,890 193,425 196,315
Tax - - -
Profit/ (Loss) after tax 1,775,095 (1,597,933) 177,162
2014 Group Mining and 31 December
Exploration Corporate 201(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)
2015 Group 31 December
Mining Corporate 201(GBP)
Group Group Group
Assets
Segment assets 17,816,927 526,487 18,343,414
Liabilities
Segment liabilities 139,905 666,892 806,797
Other Significant items
Depreciation 21,685 - 21,685
2014 Group 31 December
Mining Corporate 201(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
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
8 June 2016
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
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
14 June 2016
Corporate and Designated Adviser
River Group
Date: 14/06/2016 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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