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KIBO ENERGY PLC - Unaudited Interim results for the six months ended 30 June 2018

Release Date: 14/09/2018 13:00
Code(s): KBO     PDF:  
Wrap Text
Unaudited Interim results for the six months ended 30 June 2018

Kibo Energy 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:
IE00B97C0C31
("Kibo" or "the Group" or "the Company")

Unaudited Interim results for the six months ended 30 June 2018

Dated 14 September 2018

Kibo Energy PLC ("Kibo" or the "Company"), the multi-asset, Africa focused, energy company, is pleased to announce its unaudited half year results for the period 
ended 30 June 2018.

Highlights

-  Considerable progress being made on transforming Kibo into a focused diversified energy development company in Africa
-  Expansion of the Company's energy project footprint outside of Tanzania with the acquisition of the Mabesekwa Coal Independent Power Project
   ("MCIPP") in Botswana, and joint venture on the Benga Independent Power Project ("BIPP") in Mozambique
-  Kibo remains confident in the commitment and support of the Tanzanian Government for the Mbeya Coal to Power Project ("MCPP")
-  Strengthened international partnership team with Strategic Development Agreement signed with SEPCOIII - represents a major endorsement of Kibo's ability to
   source, develop and construct major energy projects globally
-  Placings to raise GBP2.25 million and shares issued for settlement of outstanding balance on the Sanderson forward payment facility provided stable funding
   for the on-going work on existing projects and costs associated with the new acquisitions during the first half of 2018
-  Name change to Kibo Energy PLC to more accurately reflect the Company's new focus on energy development
-  Administrative expense down 46.5% year on year and loss per share down 58% year on year

Chairman's Statement

This has been a very active period for the Company, during which we have expanded our portfolio, signed additional strategic agreements with international blue
chips and solidified our position in the African energy market. I am therefore pleased to present our half-year accounts for the period ending 30 June 2018 and 
provide a summary of these developments, which I believe underline the strength of our offering and its potential.

There is a significant and expanding opportunity in the African energy sector due to the acute shortage of power. We aim to participate in the solution and now 
have the Mbeya Coal to Power Project ("MCPP") in Tanzania, the Mabesekwa Coal Independent Power Project ("MCIPP") in Botswana and the Benga Independent Power Project 
("BIPP") in Mozambique. Additionally, with the inclusion of our recent Memorandum of Understanding ("MOU") with Mast Energy Developments in the UK, we have further 
expanded our offering and successfully transformed Kibo from a multi-commodity exploration company to a diversified energy development company in Africa with a 
broad-based platform from which to build value.

Operations

As you are aware, we have been engaged in continual discussion with the Tanzanian Government on the Power Purchase Agreement ("PPA") for the MCPP, following the 
signing of a MOU on the PPA in mid-February. Agreement on a follow-up definitive PPA, based on the terms of the MOU, is currently at an advanced stage of negotiation 
and, while taking longer to conclude than anticipated, the Company remains confident in the commitment and support of the Tanzanian Government for the MCPP, 
notwithstanding its complex nature and scale and the additional requirements needed from Kibo necessitated by the recent changes to the Tanzanian mining legislation. 
This situation is clear from both our private discussions with Tanzanian Government officials and their public announcements. The country's commitment to private 
sector input to national development projects includes those that address the country's growing energy deficit. Indeed, President Magufuli's recent pronouncements 
at the Tanzanian National Business Council meeting in March is an example of this commitment and further underpins our confidence in the process.

On a wider level, during the period, your Company continued to deepen and expand its relationship with Chinese based international EPC contractor SEPCOIII,
already a key partner in the development of the MCPP, following Kibo awarding it the EPC contract to build the MCPP power plant in November 2016. Both
parties agreed that PPA discussions with the Tanzanian Government had advanced sufficiently to warrant signing of the second part of the contract. This was
signed in May thereby awarding SEPCOIII the EPC contract for the construction of the power line that will evacuate power from the proposed Mbeya Power
Plant to the nearest sub-station in Mbeya. This is contingent on a successful Financial Close.

In early July, Kibo further cemented its relationship with SEPCOIII by signing a Strategic Development Agreement ("SDA") which commits SEPCOIII to a
direct equity investment in Kibo and an option to make a second equity investment within 18 months of the first. The investment amounts constitute 10% to 15%
of Kibo's share capital for the first investment and 5% to 10% for the second, with the precise amounts and share subscription price to be negotiated between the
parties at the respective investment dates (refer to our RNS of the 3rd July for full details). In consideration for these equity investments, Kibo has granted
SEPCOIII the right to become the sole bidder for all EPC contracts pertaining to its existing and future energy development projects anywhere in the world,
subject to its bids meeting strict EPC-specifications developed by Kibo and its engineers. I believe this SDA with a proven international energy developer
represents a major endorsement of our ability to source, develop and construct major energy projects globally and will significantly empower the Company's
ability to bring projects to Financial Close.

In April, the Company completed the acquisition of an 85% interest in the MCIPP in Botswana in an all share transaction which we first announced in November
2017. This marked the first step in the diversification of our asset portfolio outside of Tanzania and in realizing our new strategy of becoming a diversified
energy developer with a primary focus on sub-Saharan Africa. I believe that the MCIPP is a particularly well considered acquisition because of its similarity
with MCPP in terms of size, projected development path, a demand-led electricity market and government support. Additionally, there is considerable scope for
Kibo to leverage its existing expertise and partner networks from the MCPP. Work by Kibo on MCIPP commenced immediately post acquisition and on 21 June
2018 we published a SAMREC-compliant maiden Coal Resource Statement 1 of approximately 303 million tonnes on a 100% basis (approximately 258Mt on an
85% attributable basis) of thermal coal underpinning the MCIPP of which Kibo holds an 85% interest. Pleasingly, the results of further technical studies on the
coal are showing that improved coal yields and lower sulphur contents can be achieved by industry standard beneficiation processes prior to burning. I also
welcome our project partner, Shumba Energy ("Shumba"), which has completed significant feasibility work on the project and which will shortly be nominating
a new director to our board in line with the terms of the MCIPP acquisition. Shumba bring a long history of operating in Botswana and have a strong
institutional investor base and now, as a significant Kibo shareholder, will substantially benefit from Kibo's on-going development of the MCIPP.

Further expanding on our African energy project footprint, we announced our second major acquisition outside of Tanzania in June with the signing of a joint
venture agreement ("JV") with Mozambican company Termoeléctrica de Benga S.A ("Termoeléctrica"). Under the terms of the JV, Kibo and Termoeléctrical
will hold participating interests in the BIPP in the proportions of 65% and 35% respectively. The BIPP shares many similarities with the MCPP and the MCIPP
and comprises an advanced proposal for the development of a 150 MW to 300 MW thermal power plant in Mozambique close to current thermal coal producers.
Termoeléctrica already has various authorisations and agreements in place pertaining to the development of a thermal power plant. This includes, inter alia,
permission from the Mozambique Government to proceed with a final Definitive Feasibility Study ("DFS"), an MOU with the state electricity distribution
company, in-principle confirmation of water availability from the local water authority, and, lease title over land for project construction. Letters of comfort
from potential coal suppliers and power off-takers are also in place for the project. Kibo's initial funding commitment is a maximum GBP1 million to fund the DFS
and so maintain its 65% interest in the JV; thereafter both parties to the JV will fund development on a pro-rata basis save for Kibo's right to increase its JV
interest to 85% within a year of producing a positive DFS at a price to be agreed between the parties. I am pleased to note that we have already embarked on a
DFS path for this project building on the pre-feasibility work carried out to date by Termoeléctrica and we look forward to providing shareholders with updates
on progress as we proceed.

(1) Reference should be made to the Company's RNS announcement of the 21st June 2018 for details of Kibo's Mabesekwa Coal Resource, a Competent Person's Statement 
    and the Company's attributable interest. The Company confirms that there has been no update to Kibo's Mabesekwa Coal Resource Statement since 21 June 2018.

Further to the acquisition and joint ventures discussed above, we also announced the sale of our Haneti Nickel Project ("Haneti") to Katoro Gold Limited in June
in an all share transaction. Kibo will receive 15,384,615 new Katoro shares at a price of 1.3p per Katoro share (which values Haneti at GBP200,000) upon
successful completion of the transaction. Additionally, Kibo will retain a 2% Net Smelter Royalty from any concentrates produced from the Haneti mineral
licenses. This divestment will free up Company resources to focus on its expanding energy project portfolio while retaining a significant on-going interest in the
future development of Haneti through its major shareholding in Katoro. This will ensure Kibo shareholders benefit from the Company's investment in the project
to date and from any future upside following on-going exploration by Katoro.

Corporate

In addition to the corporate activity associated with the new acquisitions discussed above, the Company complemented two placings during the first half of 2018
to fund its on-going operations across its growing energy portfolio. These were undertaken in March (see RNS dated 27 February 2018) and April (see RNS
dated 10 April 2018) for GBP750,000 and GBP1,500,000 respectively (total of GBP2.25 million). The placing subscription prices were 4.25p (March placing) and 5.25p
(April Placing) and a total of 46,218,488 new Kibo shares were issued to subscribers. The March placing overlapped with our broker at the time, Beaufort
Securities Limited ("Beaufort") being put into insolvency which necessitated the appointment of a new broker, SVS Securities Limited ("SVS") pursuant to AIM
rule 35 to replace Beaufort. Fortunately, SVS were able to complete the placing for the full amount. The April placing was completed jointly by both SVS and
Novum Securities Limited ("Novum"). Coinciding with this placing, Novum were appointed joint brokers. The proceeds of these placings have provided stable
funding for the on-going work on existing projects and costs associated with the new acquisitions during the first half of 2018. Also, in April, we announced
changes in responsibilities among our board members and reconstituted our executive management team to align better with the current strategy of the Company
and the skill sets required to take it to the next stage of development. In this regard, I would like to welcome Pieter Krugel to the executive management team
who was appointed as Kibo's Chief Financial Officer. Mr. Krugel, a qualified Chartered Accountant, brings a broad range of financial management experience
to Kibo and I wish him well in his new role.

During May, the Company issued 8,370,716 shares in partial settlement on the balance of funds drawn down under the forward payment facility agreed with
Sanderson Capital Partners ("Sanderson") in December 2016. These shares were issued at a price of 5p per share and in lieu of a repayment amount of USD
568,712. On the 9th July, after reporting period end, the Company issued an additional 21,239,375 shares to Sanderson as full and final settlement under the
forward payment facility. These shares were issued at a price of 5.25p per share in lieu of a repayment amount of GBP1,115,067. I am happy to note that these
payments have now settled all outstanding payments from Kibo to Sanderson under the forward payment facility and the pending $3.7 million due to Kibo from
SEPCOIII at Financial Close of the MCPP will now be wholly received by Kibo unencumbered.

Kibo also participated in a placing by Katoro in June for an amount of GBP75,000. The subscription price was 1.3p and Kibo received 5,769,231 shares bringing its
current percentage shareholding in Katoro to 50.43%.

Recent Developments

Post period end, the Company has gained significant momentum in its transformation to become a diversified energy developer and at the AGM, shareholders
approved to change the name from Kibo Mining PLC to Kibo Energy PLC to reflect its sole focus on energy projects. The appointment of Crowe UK LLP
("Crowe") as the Company's auditors was also confirmed, and the board believes that Crowe is well placed to serve our needs within the energy development
sector and with future business plans. I would like to thank our previous auditors Saffery Champness for its contribution to Kibo's development over the last
few years.

I would also like to take this opportunity to remind shareholders of recent developments on the MCPP in relation to the Special Mining Licence Application
("SMLA") and Water Permits. The relevant Tanzanian authorities have recently indicated a readiness to consider the SMLA following receipt of some final
documentation necessitated by the recent changes to the Tanzanian mining legislation (now submitted) and have also provisionally approved water permits
relevant to the water requirements of the MCPP. This engagement with the Company on its SMLA and Water Permits reflects our advanced stage of PPA
negotiations with the Government and I believe shows its commitment to ensure all critical path ancillary documentation and permits are in place in preparation
for the finalization of the PPA.

Our recent announcement of a Memorandum of Understanding with UK Mast Energy Developments ("MED") to acquire a 60% interest in the Company, and its
subsequent potential to generate revenue streams for Kibo in the short term at relatively modest cost to the Company, is a welcome development and I believe
further underpins our commitment to seek out attractive projects in the energy sector. We look forward to reporting on further progress on this exciting project
which, while initially based in the UK, has exciting upside potential for the transfer of the technology and the Reserve Energy market model to the emerging
energy markets in Africa. This model has the potential to complement and provide a further value generation component to our existing flagship energy
projects.

I conclude by thanking our CEO, Louis Coetzee, and his executive management team for their persistent and dedicated commitment in stewarding Kibo along a
path to becoming a major African focused energy development company and power producer with an additional European presence. I believe we are well on the
way to realizing this vision.


Christian Schaffalitzky
Chairman

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

For further information please visit www.kibomining.com or contact:

Louis Coetzee                     info@kibo.energy           Kibo Energy PLC              Chief Executive Officer                   
Andreas Lianos                    +27 (0) 83 4408365         River Group                  Corporate and Designated Adviser on JSE   
Ben Tadd / Tom Curran             +44 (0) 20 3700 0093       SVS Securities Limited       Joint Broker                                                                                                                                      
Jon Belliss                       +44 (0) 20 7399 9400       Novum Securities Ltd         Joint Broker                              
Andrew Thomson                    +61 8 9480 2500            RFC Ambrian Limited          NOMAD on AIM                              
Priit Piip                        +44 (0) 20 7236 1177       St Brides Partners Ltd       Investor and Media Relations Adviser      

Unaudited Interim Results for the six months ended 30 June 2018

Unaudited condensed consolidated interim Statement of Comprehensive Income
For the six months ended 30 June 2018
                                                                                                             6 months to      6 months to      12 months to
                                                                                                                 30 June          30 June       31 December
                                                                                                 Note               2018             2017              2017
                                                                                                             (Unaudited)      (Unaudited)         (Audited)
                                                                                                                     GBP              GBP               GBP
                                                     
Revenue                                                                                                                -            1,001                 -   
Administrative expenses                                                                                        (924,829)      (1,730,200)       (1,871,697)   
Exploration Expenditure                                                                                        (402,609)        (634,141)       (1,741,018)   
Capital raising fees                                                                                                   -                -         (908,543)   
Operating Loss                                                                                               (1,327,438)      (2,363,340)       (4,521,258)   
Other Income                                                                                                         578                -             1,445   
Loss before Tax                                                                                              (1,326,860)      (2,363,340)       (4,519,813)   
Tax                                                                                                                    -                -                 -   
Loss for the period                                                                                          (1,326,860)      (2,363,340)       (4,519,813)   
Other comprehensive income:                                                                                                                                   
Exchange differences on translating of foreign                                                                 (247,108)           50,148            16,985   
operations, net of taxes                                                                                                                                      
Total Comprehensive Loss for the Period                                                                      (1,573,968)      (2,313,192)       (4,502,828)   
Loss for the period attributable to                                                                          (1,326,860)      (2,363,340)       (4,519,813)   
Owners of the parent                                                                                         (1,250,934)      (1,900,505)       (3,712,707)   
Non-controlling interest                                                                                        (75,926)        (462,835)         (807,106)   
Total comprehensive loss attributable to                                                                     (1,573,968)      (2,313,192)       (4,502,828)   
Owners of the parent                                                                                         (1,578,376)      (1,850,357)       (3,689,196)   
Non-controlling interest                                                                                           4,408        (462,835)         (813,632)   
Basic loss per share                                                                                5           (0.0025)         (0.0052)           (0.010)   
Diluted loss per share                                                                              5           (0.0025)         (0.0052)           (0.010)   
                                

Unaudited condensed consolidated interim Statement of Financial Position
As at 30 June 2018


                                                                                                  Note            30 June          30 June      30 December
                                                                                                                     2018             2017             2017
                                                                                                              (Unaudited)      (Unaudited)        (Audited)
                                                                                                                      GBP              GBP              GBP
                             
Assets                                                                                                                      
Non-current assets                                                                                                          
Property, plant and equipment                                                                                       7,847           11,085            7,650   
Intangible assets                                                                                    8         26,972,417       17,596,105       17,596,105   
Total non-current assets                                                                                       26,980,264       17,607,190       17,603,755   
Current assets                                                                                                                                                
Trade and other receivables                                                                                        78,631          117,453           59,046   
Cash and cash equivalents                                                                                       1,679,453        1,946,688          766,586   
Total current assets                                                                                            1,758,084        2,064,141          825,632   
Total assets                                                                                                   28,738,348       19,671,331       18,429,387   
Equity                                                                                                                                                        
Called up share capital                                                                              6         16,756,351       13,607,630       14,015,670   
Share premium                                                                                        6         37,719,010       27,327,791       28,469,750   
Common control reserve                                                                                          2,097,442        2,156,726        2,097,442   
Translation reserve                                                                                             (595,948)        (235,343)        (268,506)   
Share based payment reserve                                                                                       556,086          514,279          556,086   
Retained deficit                                                                                             (27,785,587)     (24,722,536)     (26,534,653)   
Attributable to equity holders of the parent                                                                   28,747,354       18,648,547       18,335,789   
Non-controlling interest                                                                                      (1,378,980)      (1,032,591)      (1,383,388)   
Total Equity                                                                                                   27,368,374       17,615,956       16,952,401   
Liabilities                                                                                                                                                   
Current liabilities                                                                                                                                           
Trade and other payables                                                                                          470,646          343,312          266,218   
Borrowings                                                                                           9            899,328        1,712,063        1,210,768   
Total current liabilities                                                                                       1,369,974        2,055,375        1,476,986   
Total equity and liabilities                                                                                   28,738,348       19,671,331       18,429,387   


Unaudited Condensed Consolidated Statement of Changes in Equity


                                                                                  Share                  Foreign
                                                                                payment                 currency                         Non-
                                                           Share        Share     based     Control  translation       Retained   controlling         
                                                         Capital      Premium   reserve     Reserve      reserve        deficit      interest         Total
                                                             GBP          GBP       GBP         GBP          GBP            GBP                         GBP
 
Balance at 31 December 2017 (audited)                 14,015,670   28,469,750   556,086   2,097,442    (268,506)   (26,534,653)   (1,383,388)    16,952,401   
Other comprehensive income- exchange differences on            -            -         -           -    (327,442)              -        80,334     (247,108)   
Proceeds of share issue of share capital               2,740,681    9,249,260         -           -            -              -             -    11,989,941   
Balance as at 30 June 2018 
(unaudited)                                           16,756,351   37,719,010   556,086   2,097,442    (595,948)   (27,785,587)   (1,378,980)    27,368,374   
Balance at 1 January 2017 (audited)                   13,603,965   27,318,262   514,279           -    (285,491)   (23,625,367)       (1,435)    17,524,213   
Loss for the year                                              -            -         -           -            -    (1,900,505)     (462,835)   (2,363,340)   
Other comprehensive income- exchange differences on            -            -         -           -       50,148              -             -        50,148   
Adjustment arising from acquisition of subsidiary              -            -    41,808   2,114,918            -        803,336     (568,321)     2,391,741   
Proceeds of share issue of share capital                   3,665        9,529         -           -            -              -             -        13,194   
Balance at 30 June 2017 (unaudited)                   13,607,630   27,327,791   514,279   2,156,726    (235,343)   (24,722,536)   (1,032,591)    17,615,956   
Balance at 1 January 2017 (audited)                   13,603,965   27,318,262   514,279           -    (285,491)   (23,625,367)       (1,435)    17,524,213   
Loss for the year                                              -            -         -                             (3,712,707)     (807,106)   (4,519,813)   
Other comprehensive income - exchange differences              -            -         -           -      319,102              -       (6,526)       312,576   
Adjustment arising from acquisition of subsidiary              -            -         -   2,097,442    (302,117)        803,421     (568,321)     2,030,425   
Share options issued during the current period                 -            -    41,807           -            -              -             -        41,807   
Proceeds of share issue of share capital                 411,705    1,151,488         -           -            -              -             -     1,563,193   
Balance at 31 December 2017 (audited)                 14,015,670   28,469,750   556,086   2,097,442    (268,506)   (26,534,653)   (1,383,388)    16,952,401   


Unaudited condensed consolidated interim statement of cash flow
For the six months ended 30 June 2018

                                                                                                              6 months to      6 months to     12 months to
                                                                                                                  30 June          30 June      31 December
                                                                                                                     2018             2017             2017
                                                                                                              (Unaudited)      (Unaudited)        (Audited)
                                                                                                                      GBP              GBP              GBP
                                                   
Loss for the period before taxation                                                                                                             
                                                                                                              (1,326,860)      (2,363,340)      (4,519,813)   
Adjusted for:                                                                                                                                                 
Foreign exchange gain/(loss)                                                                                    (129,425)           48,236          249,437   
Depreciation on property, plant and equipment                                                                           -            2,420            2,738   
Provisions                                                                                                              -        (115,663)        (115,663)   
Shares based remuneration to directors                                                                                  -                -          260,000   
Deemed cost of listing                                                                                                  -                -          206,680   
Deal cost settled in shares                                                                                             -                -          155,539   
Liabilities settled in shares                                                                                           -          357,002                -   
Operating income before working capital changes                                                               (1,456,285)      (2,071,345)      (3,761,082)   
Increase in trade and other receivables                                                                          (19,585)         (66,820)          (8,413)   
Increase in trade and other payables                                                                              204,428          196,961          119,838   
Net cash outflows from operating activities                                                                   (1,271,442)      (1,941,204)      (3,649,657)   
Cash flows from investing activities                                                                                                                          
Purchase of property, plant and equipment                                                                               -                -          (1,175)   
Net cash flow from acquisition of subsidiaries                                                                          -        2,045,418          465,408   
Net cash used in investing activities                                                                                   -        2,045,418          464,233   
Cash flows from financing activities                                                                                                                          
Repayment of borrowings                                                                                         (199,709)                -                -   
Proceeds from borrowings                                                                                          251,565        1,460,135        1,751,326   
Proceeds from issue of share capital*                                                                           2,132,453                -        1,818,345   
Net cash proceeds from financing activities                                                                     2,184,309        1,460,135        3,569,671   
Net increase in cash and cash equivalents                                                                         912,867        1,564,349          384,247   
Cash and cash equivalents at beginning of period                                                                  766,586          382,339          382,339   
Cash and cash equivalents at end of period                                                                      1,679,453        1,946,688          766,586   


*During the period, the Group had concluded significant non-cash transactions related to the acquisition of a 85% interest in the Mabesekwa Independent Coal 
to Power Project (MICPP) in the amount of GBP9.3mil as well as a partial settlement of the Sanderson Capital Partners Limited forward payment facility in the 
amount of EUR0.4mil. Note 6 provides further information on these transactions, and the impact thereof on the capital in issue.

Notes to the unaudited condensed consolidated interim financial statements
For the six months ended 30 June 2018

1. General information

Kibo Energy plc ("formerly Kibo Mining plc") is a public limited company incorporated in Ireland. Kibo Mining plc announced its change of name to 
Kibo Energy plc effective from 3 August 2018 onward. The condensed consolidated interim financial results consolidate those of the Company and its subsidiaries 
(together referred to as the "Group"). The Company's shares are listed on the AIM of the London Stock Exchange and the Alternative Exchange of the 
JSE 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 interim financial results are for the six months ended 30 June 2018, and have been prepared using the same accounting policies as 
those applied by the Group in its December 2017 consolidated annual financial statements, which are in accordance with the framework concepts and the 
recognition and measurement criteria of the International Financial Reporting Standards and Financial Reporting Pronouncements as issued by the Financial 
Reporting Standards Council 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, IAS 34 - Interim Financial Reporting, the Listings Requirements of the JSE Limited, 
the AIM rules of the London Stock Exchange and the Irish Companies Act 2015.

These condensed consolidated interim financial statements do not include all the notes presented in a complete set of consolidated annual financial statements, 
as only selected explanatory notes are included to explain key events and transactions that are significant to obtaining an understanding of the changes 
throughout the financial period, accordingly the report must be read in conjunction with the annual report for the year ended 31 December 2017.

The comparative amounts in the consolidated financial results include extracts from the consolidated annual financial statements for the period ended 31 December 2017.

These extracts do not constitute statutory accounts in accordance with the Irish Companies Acts 2015. All monetary information is presented in the presentation 
currency of the Company being Pound Sterling. The Group's principal accounting policies and assumptions have been applied consistently over the current and prior 
comparative financial period.

3. Use of estimates and judgements

Preparing the condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application 
of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, significant judgements made by management in applying the Group's accounting policies 
and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 December 2017.

Exploration and evaluation expenditure
The Group's accounting policy for exploration and evaluation expenditure results in the capitalisation of certain intangible mineral resources which are identified 
through business combinations or equivalent acquisitions. This policy requires management to make certain estimates and assumptions as to future events and 
circumstances, in particular whether an economically viable extraction operation can be established based on the separately identified mineral resources. 
Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the intangible mineral resources under the 
policy, a judgement is made that recovery of the intangible asset is unlikely, the relevant capitalised amount will be written off to the income statement.

4. Adoption of new and revised standards

From 1 January 2018 the following standards, amendments and interpretations were adopted by the group:

  -   IFRS 9: Financial instruments
  -   IFRS 15: Revenue from contracts with Customers

The adoption of the above has not had a significant impact on the group's result for the period under review or for any comparative period presented.

5. 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   
                                                                                                          2018           2017            2017   
                                                                                                           GBP            GBP             GBP   
Loss for the year attributable to equity holders of the parent                                                                                  
                                                                                                   (1,250,934)    (1,900,505)     (3,712,707)   
Weighted average number of ordinary shares for the purposes of basic and                                                                        
dilutive loss per share                                                                            496,954,459    364,254,364     372,255,127   
Basic loss per share                                                                                  (0.0025)       (0.0052)         (0.010)   
  
  
                                                                                                   6 months to    6 months to    12 months to   
Reconciliation of Headline loss per share                                                              30 June        30 June     31 December   
                                                                                                          2018           2017            2017   
                                                                                                           GBP            GBP             GBP   
Loss for the year attributable to equity holders of the parent                                     (1,250,934)    (1,900,505)     (3,712,707)   
Deemed cost of listing                                                                                       -              -         206,680   
Headline loss per share                                                                            (1,250,934)    (1,900,505)     (3,506,027)   
Weighted average number of ordinary shares for the purposes of headline loss per share (revised)   496,954,459    364,254,364     372,255,127   
Headline loss per share                                                                               (0.0025)       (0.0052)         (0.010)   


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 4/2018 issued by the South African 
Institute of Chartered Accountants (SAICA).

6. Called up share capital and share premium

Authorised ordinary share capital of the company is 1,000,000,000 ordinary shares of EUR0.015 each and 3,000,000,000 deferred 
shares of EUR0.009 each.

Detail of issued capital is as follows:                                                                      
                                                                                          Number of                                             
                                                                                           Ordinary       Share   Deferred Share        Share   
                                                                                             shares     Capital          Capital      Premium   
                                                                                                            GBP              GBP          GBP   
Balance at 31 December 2016                                                             363,976,596   4,346,890        9,257,075   27,318,262   
Shares issued in period (net of expensed for cash)                                       31,277,768     411,705                -    1,151,488   
Balance at 31 December 2017                                                             395,254,364   4,758,595        9,257,075   28,469,750   
Shares issued in period (net of expensed for cash)                                      208,299,234   2,740,681                -    9,249,260   
Balance at 30 June 2018                                                                 603,553,598   7,499,276        9,257,075   37,719,010   

The company issued the following ordinary shares during the period, with regard to key transactions:

-  17,647,060 ordinary shares were issued on 27 February 2018 at 4.25p per share. The GBP750,000 raised was utilised to advance the company's 
   strategy to create a strategic regional electricity supplier;

-  153,710,030 new ordinary shares in the company were issued on 3 April 2018 at GBP0.061 per share. The shares were issued under the agreement 
   with Sechaba Natural Resources Limited whereby the company acquired an 85% interest in the Mabesekwa Independent Coal to Power Project, 
   located in Botswana;

-  28,571,428 ordinary shares were issued on 10 April 2018 at 5.25p per share. The GBP1,500,000 received went towards general working capital 
   and expediting ongoing advanced feasibility studies at the Mabesekwa Independent Coal to Power Project as well as strengthening the company's 
   financial position ahead of the commencement of further work at the Mbeya Coal to Power Project; and

-  8,370,716 ordinary shares were issued on 1 May 2018 at 5p per share as a partial settlement on the balance of funds drawn down under the 
   forward payment facility between the company and Sanderson Capital Partners Limited.

7. Segment analysis

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments, which are operating segments or 
aggregations of operating segments that meet specific criteria. Operating segments are components of an entity about which separate financial 
information is available that is evaluated regularly by the chief operating decision maker. The Chief Executive Officer is the Chief Operating
 decision maker of the Group.

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:

30 June 2018                                                                Mining and Exploration       Corporate         30 June 2018 (GBP)   
                                                                                             Group           Group                      Group   
Revenue                                                                                          -               -                          -   
Administrative cost                                                                              -       (924,829)                  (924,829)   
Exploration expenditure                                                                  (402,609)               -                  (402,609)   
Investment and other income                                                                    578               -                        578   
Loss after tax                                                                           (402,031)       (924,829)                (1,326,860)   
30 June 2017                                                                Mining and Exploration       Corporate         30 June 2017 (GBP)   
                                                                                             Group           Group                      Group   
Revenue                                                                                      1,001               -                      1,001   
Administrative cost                                                                              -     (1,730,200)                (1,730,200)   
Exploration expenditure                                                                  (634,141)               -                  (634,141)   
Investment and other income                                                                      -               -                          -   
Loss after tax                                                                                   -               -                          -   
                                                                                         (633,140)     (1,730,200)                (2,363,340)   
30 June 2018                                                                                Mining       Corporate         30 June 2018 (GBP)   
                                                                                             Group           Group                      Group   
Assets                                                                                                                                          
Segment assets                                                                          19,206,661       9,531,687                 28,738,348   
Liabilities                                                                                                                                     
Segment liabilities                                                                        391,334         978,640                  1,369,974   
Other Significant items                                                                                            
Depreciation                                                                                     -              -                           -  
                                             
31 December 2017                                                                            Mining       Corporate     31 December 2017 (GBP)   
                                                                                             Group           Group                      Group   
Assets                                                                                                                                          
Segment assets                                                                          18,423,284           6,103                 18,429,387   
Liabilities                                                                                                                                     
Segment liabilities                                                                        264,562       1,297,504                  1,562,066   
Other Significant items                                                                                                                         
Depreciation                                                                                 2,738               -                      2,738   
8. Intangible assets                                                                                                                            
                                                                                       6 months to     6 months to               12 months to   
Composition of Intangible assets                                                           30 June         30 June                31 December   
                                                                                              2018            2017                       2017   
                                                                                               GBP             GBP                        GBP   
Mbeya Coal to Power Project                                                             15,896,105      15,896,105                 15,896,105   
Lake Victoria                                                                            1,700,000       1,700,000                  1,700,000   
Mabesekwa Coal Independent Power Project                                                 9,376,312               -                          -   
                                                                                        26,972,417      17,596,105                 17,596,105   
    

Intangible assets are not amortised, due to the indefinite useful life which is attached to the underlying prospecting rights, until such time 
that active mining operations commence, which will result in the intangible asset being amortised over the useful life of the relevant 
mining licences.

Intangible assets with an indefinite useful life are assessed for impairment on an annual basis, against the prospective fair value of the 
intangible asset. The valuation of intangible assets with an indefinite useful life is reassessed on an annual basis through valuation techniques 
applicable to the nature of the intangible assets.

Refer to note 11 for more information on the Mabesekwa Coal Independent Power Project.

9. Borrowings                                                                    
                                                                                                   6 months to     6 months to   12 months to   
Amounts falling due within one year                                                                    30 June         30 June    31 December   
                                                                                                          2018            2017           2017   
                                                                                                           GBP             GBP            GBP   
Short term borrowings                                                                                  899,328       1,712,063      1,210,768   
                                                                                                       899,328       1,712,063      1,210,768   
            

The borrowings relate to the unsecured interest free loan facility from Sanderson Capital Partners Limited which was repayable either through 
the issue of cash or ordinary shares in the Company.

Refer also to note 6 for detail on the shares issued during the period as partial settlement of the facility.

10. Financial instruments                                                                 
                                                                                                   6 months to     6 months to   12 months to   
                                                                                                       30 June         30 June    31 December   
                                                                                                          2018            2017           2017   
                                                                                                           GBP             GBP            GBP   
Financial assets - carrying amount                                                                                                             
Loans and receivable held at amortised cost                                                                                                    
Trade and other receivables                                                                             78,631         117,453         59,046   
Cash and cash equivalents                                                                            1,679,453       1,946,688        766,586   
                                                                                                     1,758,084       2,064,141        825,632   
Financial liabilities - carrying amount                                                                                                         
Financial liabilities held at amortised cost                                                                                                    
Trade and other payables                                                                               470,646         343,312        266,218   
Borrowings                                                                                             899,328       1,712,063      1,210,768   
                                                                                                     1,369,974       2,055,375      1,476,986   


The Board of Directors considers that the fair values of financial assets and liabilities approximate their carrying values at each reporting date.

11. Corporate transactions

Kibo Nickel Disposal
The Group has entered into an agreement to dispose 100% of Kibo Nickel Limited ("Kibo Nickel"), a wholly owned subsidiary of Kibo (Cyprus) Limited, 
to Katoro Gold Limited ("Katoro"), also a subsidiary of the company. Consideration for the sale will be settled by the issue of 15,384,615 new ordinary 
shares in Katoro at a price of 1.3p per share (valued at GBP200,000) ("Consideration shares"). The consideration shares will be issued to Kibo upon 
transaction completion and will rank pari passu with the existing ordinary shares. Kibo will also retain a 2% NSR royalty in respect of the nickel 
or mineral concentrates produced and sold from any of Kibo Nickel's property.

As at interim reporting period end, the suspensive conditions had not been fulfilled, and control was not lost, thus the transaction had not become 
effective. As at the date of this report, the main suspensive condition, being the successful completion of a due diligence, is well advanced and, 
pending the outcome, it is expected that the transaction will be completed shortly.

Shumba Acquisition
On 3 April 2018, the Group completed the acquisition of an 85% interest in the Mabesekwa Coal Independent Power Project, located in Botswana. This 
acquisition is in line with the Group's strategy of positioning itself as a strategic regional electricity supplier in Southern Africa and creates 
many synergies with the MCPP in Tanzania.

As a result of the acquisition, 153,710,030 ordinary shares in Kibo were issued to Sechaba Natural Resources Limited ("Sechaba"). Sechaba retained 
a 15% interest in the Mabesekwa Coal Independent Power Project and gained a seat on Kibo's board of directors.

Benga Power Joint Venture
The Company concluded the Joint Venture Agreement (the 'Benga Power Joint Venture' or 'JV') with Mozambique energy company Termoeléctrica de Benga S.A. 
('Termoeléctrica') to participate in the further assessment and potential development of the Benga Independent Power Project ('BIPP'), including the 
right to construct and operate a 150-300MW coal fired power station. Kibo and Termoeléctrica shall hold initial Participation Interests in the 
unincorporated joint venture of 65% and 35% respectively. In order to maintain this 65% interest, Kibo must fund a maximum of GBP1 million towards 
the completion of a Definitive Feasibility Study for the BIPP. As at 30 June 2018, operations of the Joint Venture had not yet commenced, and as such 
expenditure incurred to this date is insignificant.

12. Unaudited results

These condensed consolidated interim financial results have not been audited or reviewed by the Group's auditors.

13. Dividends

No dividends were declared during the interim period.

14. Board of Directors

Mr. Tinus Maree, previously non-executive director, joined the executive committee ("EXCO") of Kibo. Mr. Maree has a robust and complete understanding 
of the Company and Kibo will continue to benefit from Mr. Maree's extensive experience as a corporate lawyer as he will continue to provide internal 
legal advice and review in his new position. Mr. Noel O'Keefe and Mr. Andreas Lianos transitioned to a non-executive role with the Company. Mr. O'Keefe 
shall continue to provide the Company with invaluable technical advice and oversight and Mr. Lianos will be instrumental in the Company's financial 
oversight as non-executive Financial Director (see RNS dated 10 April 2018).

15. Subsequent events

Share placements
Subsequent to the interim reporting date, the company has raised the following share placement:

-  GBP500,000 in the placement of 9,523,810 ordinary Kibo shares at 5.25p per share (see RNS dated 30 July 2018).

Strategic Development Agreement with SEPCOIII
The company has signed a Strategic Development Agreement (SDA) with China based SEPCOIII, one of the world's largest power EPC contractors, to work with 
Kibo towards enhancing its strategy and the development of its portfolio of energy projects. As part of the SDA, SEPCOIII has committed to a two-stage 
equity investment into Kibo, endorsing the company's strategy and its position in the African power market (see RNS dated 3 July 2018).

Full settlement of the Sanderson Capital Partners Limited Facility
On 9 July 2018, Kibo and Sanderson Capital Partners Limited settled the outstanding balance of GBP 1,115,067.17 on the forward payment facility agreed on 
20 December 2016. Sanderson will be issued 21,239,375 new ordinary Kibo shares of par value GBP0.015 each, at a price of 5.25p per Kibo share, a 13% 
premium to the closing price of 4.65p on Friday 6 July 2018 (see RNS dated 9 July 2018).

Acquisition of 60% Interest in UK Project Development Company
A Memorandum of Understanding ("MOU") for the acquisition of a 60% equity interest in Mast Energy Developments ("MED"), a private UK registered company 
targeting the development and operation of flexible power plants to service the Reserve Power generation market. Under the terms of the MOU, the company can 
acquire a 60% shareholding in MED for a consideration of GBP300,000 payable to existing MED shareholders in new Kibo shares and a share of future project 
revenue royalties, which will be reinvested in the company in the short term to an amount of GBP2.2 million (see RNS dated 15 August 2018).


16. Going concern

The condensed consolidated interim financial results are prepared in accordance with the going concern principle under the historical cost basis as modified 
by the fair value accounting of certain assets and liabilities where required or permitted by IFRS in the EU.

17. Commitments and contingencies

There are no material commitments, contingent assets or contingent liabilities as at 30 June 2018.

14 September 2018

By order of the board:

Christian Schaffalitzky            Chairman (Non-Executive)
Louis Coetzee                      Chief Executive Officer (Executive)
Noel O'Keeffe                      Technical Director (Executive)
Andreas Lianos                     Chief Financial Officer (Executive)
Lukas Maree                        Non-Executive Director
Wenzel Kerremans                   Non-Executive Director

Company Secretary:                 Noel O'Keeffe

Auditors:                          Crowe U.K. LLP

Brokers:                           SVS Securities Limited
                                   20 Ropemaker Street
                                   London EC2Y 9AR
                                   United Kingdom

                                   Novum Securities Limited
                                   London SW1W ODH

UK Nominated Adviser:              RFC Ambrian Limited
                                   Level 28, QV1 Building
                                   250 St Georges Terrace
                                   Perth WA 6000


JSE Designated Adviser:            River Group
                                   211 Kloof Street
                                   Waterkloof
                                   Pretoria, South Africa

Johannesburg
14 September 2018
Corporate and Designated Adviser
River Group



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