Wrap Text
Letter to Shareholders
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 Company”)
Dated: 07 January 2019
Kibo Energy PLC (‘Kibo’ or the ‘Company’)
Letter to Shareholders
Dear Shareholder,
As we start a new year, I am writing to provide an overview of activities across our multi-project
portfolio including three major and equally exciting African energy projects, and a UK flexible energy
project which could generate near-term revenue. Our strategy remains focused on the delivery of these
energy projects to address the critical energy deficit in sub-Saharan Africa. With approximately 580
million Africans still reliant on inefficient, unreliable and expensive energy sources, this remains a
socio-economic imperative and therefore a key market opportunity. In 2018, through strategic
acquisitions and divestments, we successfully repositioned Kibo as a purely energy-focused company,
and our projects are now positioned to be critically important in the effort to provide power to more of
Africa.
In April 2018 we acquired an 85% interest in the Mabesekwa Coal Independent Power Project
(‘Mabesekwa’) in Botswana which currently has:
*obtained water and land use permits and environmental certification;
*completed a Pre-feasibility study;
*submitted an application for a mining license on the coal mine;
*undertaken a Scoping Study on the power plant;
*a clear development path with deliverables that are expected to increase the inherent value of this
project
The year ahead will see us focusing on fast tracking the remaining technical work to complete an
integrated bankable feasibility study for Mabesekwa. We will also dedicate priority time and attention
to investigating new, very exciting commercial opportunities for the Mabesekwa project that were
presented to Kibo during December 2018.
In June 2018 we acquired a 65% interest in the Benga Independent Power Project (‘Benga’) in
Mozambique, which includes a 150-300MW coal fired power station. This is being developed with our
joint venture partner, Termoelectrica de Mozambique de Benga S.A. (‘Termoeléctrica’), and is
advancing according to plan. A full feasibility study designed to confirm its commercial and operational
viability is progressing well ahead of schedule, and discussions regarding a Power Purchase Agreement
(‘PPA’) with prospective off-takers continue to advance. Notably, and most recently, we announced
the renewal of an MOU with Mozambican state-owned electric utility, Electricidade de Mocambique
(‘EDM’), to advance the financing, construction and operation of this project. We are also particularly
pleased with recent progress in negotiations with potential coal suppliers and private power off takers
and these discussions will receive priority attention during Q1 of 2019.
The MCPP was our first project and continues to represent one of the most advanced and strategically
important socio-economic development projects in Tanzania, positioned to alleviate the country’s
current energy deficit. Naturally, we were frustrated that the PPA with the Tanzanian Electric Supply
Company (‘TANESCO’) was delayed and that additional work was required as the Government of
Tanzania introduced new standardised project procurement processes. We are hopeful that we can now
advance the project in a timely manner to hit key value trigger points, such as agreement of the PPA,
during 2019 leading to the commissioning of a 300MW mouth-of-mine thermal power station; and in
the longer term, this could potentially increase to 1,000MW. It is important to once more note that the
fundamental merits of, and Government support for the project, has never been questioned by any of
the strategic MCPP stakeholders and remains strong.
Later in 2018, we acquired a 60% interest in MAST Energy Developments Limited ("MED), a private
UK registered company targeting the development and operation of flexible power plants to service the
Reserve Power generation market. The strategy behind this acquisition was to generate near-term
revenues for the Company. Towards the end of 2018, we moved one step closer to achieving this, as
MED secured an exclusive option to acquire three peaking power sites totalling 31.3MW, which have
the potential to lead to revenue generation for Kibo in the latter part of 2019.
In summary, we believe that Kibo is in every respect, i.e. corporately, financially, operationally, very
well positioned for growth, as we advance our strategy focused on the provision of energy in key under-
serviced markets. Whilst we were disappointed that the MCPP did not progress as planned in 2018, we
are also grateful to have been able to report very positive news during the year regarding the
advancement of our equally important Mabesekwa and Benga energy projects in Botswana and
Mozambique as well as our first foray into the UK energy sector. It is disappointing that the substantial
milestones we have reached during 2018 have not been reflected in our share price, but we are confident
that this should be corrected by the market over time.
We value our shareholders and understand the need to maintain regular contact. To this end, during
2018 we launched a new website, www.kibo.energy, and released 56 announcements to ensure that
shareholders remain fully informed of our activities. We also invited shareholders to submit questions
in order to provide regular Q&A documents. We intend to continue this practice, so once again, please
do submit any questions you might have to info@kibo.energy Additionally, we are planning an investor
evening for end of January 2019 in London, with details in this regard to be announced at a later date.
I hope that 2019 is prosperous for you and thank you for your continued support.
Kind regards,
Louis Coetzee
CEO
*ENDS*
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU)
no. 596/2014 ("MAR").
For further information please visit www.kibo.energy 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 / +44 (0) 20 3700 0093 SVS Securities Limited Joint Broker
Tom Curran
First Equity Limited Joint Broker
Jason Robertson +44 (0) 20 7374 2212
Andrew Thomson +61 8 9480 2500 RFC Ambrian Limited NOMAD on AIM
Isabel de Salis / +44 (0) 20 7236 1177 St Brides Partners Ltd Investor and Media
Gaby Jenner Relations Adviser
Notes to editors
Kibo Energy PLC is a multi-asset, Africa focussed, energy company positioned to address the acute
power deficit, which is one of the primary impediments to economic development in Sub-Saharan
Africa. To this end, it is the Company’s objective to become a leading independent power producer
in the region.
Kibo is simultaneously developing three similar coal-fuelled power projects: 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. By developing these
projects in parallel, the Company intends to leverage considerable economies of scale and timing in
respect of strategic partnerships, procurement, equipment, human capital, execution capability /
capacity and project finance. Additionally, the Company will benefit from its robust and experienced
international blue-chip partnership network across its project portfolio, which includes: SEPCO III
(China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting (South
Africa); ABSA / Barclays Africa; and Hogan Lovells International LLP.
Johannesburg
07 January 2019
Corporate and Designated Adviser
River Group
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