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KIBO ENERGY PLC - Results for the Year Ended 31 December 2020

Release Date: 11/06/2021 08:00
Code(s): KBO     PDF:  
Wrap Text
Results for the Year Ended 31 December 2020

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: 11 June 2021
                          Kibo Energy PLC (‘Kibo’ or the ‘Company’)
                          Results for the Year Ended 31 December 2020
Kibo Energy PLC ("Kibo" or the "Company"), the multi-asset, Africa focused energy company, is
pleased to release its consolidated annual financial results for the year ended 31 December 2020. The
Company's Annual Report, which contains the full financial statements, is in the process of being
prepared for dispatch to shareholders. A copy of this Annual Report is also available from the
Company's website at at the following link
content/uploads/Kibo-Annual-Report-2020-Final.pdf. The financial statements are set out below and
should be read in conjunction with the 2020 Annual Report.

Details of the date and venue for this year's AGM will be announced in due course.


Financial (including the consolidated results of MAST Energy Developments Plc and Katoro Gold
      * Loss after tax £6,417,237 (2019: £3,903,116 loss)
         -£2,448,710 of total loss for the period stems from consolidated results of
           Katoro Gold Plc, which is separately funded
      * Administrative expenditure year to year remains fairly consistent at £3,393,687 (2019:
      * Listing and capital raising fees increased from £729,072 to £1,027,658 due to the MED
      * Additional exploration expenditure of £1,122,676 incurred in 2020 by Kibo’s subsidiary,
        Katoro, on the Blyvoor JV Project in South Africa;
      * Cash outflow from consolidated operating activities consistent year to year £2,374,684 (2019:
        £2,392,495 cash outflow), including the consolidated cash outflows of MAST Energy
        Developments Plc and Katoro Gold Plc respectively, both which are separately funded;
      * Cash outflow from company operating activities have declined year to year £396,994 (2019:
        £490,210 cash outflow);
      * Total net debt (cash less debt) £2,046,772 (2019: £1,456,217 net debt);
      * Basic and diluted EPS £0.003 loss (2019: basic and diluted £0.004 loss).

Operational highlights in the 2020 year

       * Continued advancement of the development of our key projects:
            -  Benga Power Plant Project in Mozambique (“Benga Project”);
            - the Mabesekwa Coal Independent Power Project in Botswana (“MCIPP Project”);
            - the Mbeya Coal to Power Project in Tanzania (“Mbeya Project”);
            - the UK’s Reserve Power Market Projects (Bordesley Energy Project”) held by Kibo’s
              subsidiary MAST Energy Developments Plc; and
            - the Blyvoor Gold Tailings Project ("the Project") and the Haneti Nickel Project held by
              Kibo’s subsidiary Katoro Gold Plc.

      *The Benga Project, located in the Tete province of Mozambique, is the Company’s highest
       development priority; it holds a 65% interest in the project with the remaining 35% held by a
       local company, Termoeléctrica de Benga. The project was developed for a c. 150 MW PPA with
       local state electric utility Electricidade de Moçambique ('EDM'). An updated Memorandum of
       Understanding was signed with EDM during 2020, which provides for its continued support and
       commitment to negotiate a PPA for power off-take for the national grid. The project is now in
       the process of being upgraded to accommodate a c. 20O MW additional private commercial off
       taker in the form of the Tete Steel and Vanadium Project with Baobab Resources Ltd (‘Baobab’).
       To date, the Defined Feasibility Study was updated and optimised to satisfy EDM and Baobab’s
       power off-take requirements with the incorporation of a grid impact assessment and integration
       studies as well as an updated technical and financial review of the project during the second half
       of 2020.

      *The MCIPP Project in Botswana sees Kibo assume a 35% equity interest in the total 761 Mt
       Mabesekwa Coal Resource while maintaining its 85% interests in the existing MCIPP project
       for the development of a 300 MW coal to power plant and participate as a 35%-40% partner with
       Shumba for the development of a second 300 MW power with electricity output directed solely
       to a petrochemical plant being developed by Shumba and other parties. The project is aligned
       with Shumba’s progress and therefore assumes a low development priority in the Kibo portfolio.

      *The Mbeya Project, with its 120 Mt Coal Resource, developed to a 1,5 million tonnes per annum
       mine, holds seven mining rights over the coal resource that will provide fuel to the 300 MW
       MCPP thermal power plant. The MCPP Environmental Impact Assessment certification for both
       mine and power station remain valid. The Company continues to work closely with the
       Tanzanian Government, partners, and other stakeholders to identify and investigate alternative
       commercial opportunities both within Tanzania and regionally.

      *The Bordesley Energy Project progressed the Bordesley 5 MW base case with upward
       optimization capability of 19.12 MW, amongst other development work such as EPC Scope of
       Works, entering into a 20-year tenancy agreement with two 5-year extension periods with the
       landlord. This term is synchronous with gas reciprocating engine life expectancy and optimizes
       commercial and technical outcomes. Bordesley now has numerous optimization options to
       develop as a Reserve Power generation hub by virtue of shared infrastructure with Target 2,
       power generation off-take by proxy sales and economy of scale due to two close-by Reserve
       Power sites totalling 14.12 Mw of generating capacity which culminates in EPC and Balance of
       Plant ("BOP") economy of scale project costs and timelines.

      *Katoro, entered into a binding conditional agreement to form a 50/50 unincorporated joint
       venture in South Africa, focused on the reprocessing of an existing 1.34 million ounce of gold
       JORC compliant tailings resource, completed technical work related to the upgrade and
       restatement of the Blyvoor Gold Tailings Project resource statement and completed additional
       technical and financial work that was conducted in response to the recommendations and findings
       of the Blyvoor Scoping Study. Katoro is currently in the processes of finalizing a comprehensive
       funding package in accordance with the Blyvoor Joint Venture ("the JV") that will allow the
       construction, commissioning and operation of a mining and processing facility capable of
       processing 500,000 tonnes of tailings material per month, at an average Life of Mine ("LoM")
       gold grade of 0.29 g/t and confirmed recovery of 51%, before incorporating recovery gains from
       the latest metallurgical optimization tests. The optimization results indicated that overall
       recoveries of up to 60% can be achieved by milling the coarser fraction (+75µm) of the feedstock
       which comprises around 30% of the total Run of Mine ("RoM").

     *Katoro, concluded the disposal of its Imweru and Lubando Gold Projects in Tanzania for a total
      staged cash consideration of up to US$1.0 million and a 1.5% Net Smelter Royalty.

     *Funding of £1.45 million through placing completed in late 2020 which has enabled the
      Company to continue with our project development plans and ongoing working capital
      requirements during 2021.

     *The Directors continue to consider it appropriate to prepare the financial statements on a going
      concern basis, as the Group has sufficient funds for its present working capital requirements for
      the foreseeable future due to the c. £698k funds secured from warrants exercised in Kibo Energy
      Plc in 2021 to date and Katoro Gold Plc in excess of £500k, and funds raised in excess of £5m
      from the recent listing of Mast Energy Developments Plc. This is further expanded on in the
      annual financial statements.

Post period highlights and Outlook

     *On the 14 April 2021, Mast Energy Developments Plc completed a successful IPO on the
      Official List of the London Stock Exchange by way of a Standard Listing raising £5.4m with a
      market capitalisation on admission of £23m. Kibo remains a majority shareholder at 55.4%.
      listed on the London Stock Exchange.

     *MAST Energy Developments Plc, has progressed the acquisition transaction announced in the
      RNS of 7 September 2020, to the point where it is now finalizing a definitive Share Purchase
      Agreement ("SPA") to acquire 100% of the 9MW flexible gas power project (the 'Acquisition').

     *Kibo and its local JV partners in the Benga Power Project recently attended a workshop with
      EDM in Maputo to discuss and agree the next steps towards the ultimate finalization of a PPA.
      During the meeting the final optimised definitive feasibility study, inclusive of the updated grid
      integration study, and a summary of an updated draft financial model was presented and
      discussed as the fundamentals that will guide and focus the further course of the PPA process.
      This will ensure that a final result is obtained at the earliest opportunity possible.

     *Kibo takes major step forward in execution of the Company's renewable energy strategy, by
      way of commencing an extensive due diligence process in relation to the potential acquisition of
      all or part of a prospective portfolio of UK renewable energy projects. The opportunity consists
      of several attractive standalone renewable energy projects in the UK, focusing on the generation
      and/or storage of electric power from renewable generation sources. The portfolio consists of
      several waste-to-energy projects in which the Company has negotiated exclusivity and a first
      right to acquire, subject to successful due diligence results and an agreement on commercial
      terms and conditions. Any successful acquisition(s) from the project portfolio will enhance
      Kibo's strategy, which is focused on transforming and integrating conventional energy generation
      into sustainable renewable energy, and in the process support the UK's Renewable Energy

     *Kibo entered into an agreement with South Africa-based Industrial Green Solutions (Pty) Ltd
      ('IGES') to jointly develop a portfolio of Waste to Energy projects in South Africa ('the
      Agreement') with an initial target of generating more than 50 megawatts of electricity for sale to
      industrial users. The Agreement, which is subject to the satisfaction of certain conditions, is in
      line with Kibo's strategy to integrate renewable energy into its project pipeline, which includes
      three utility-scale power generation and mining projects.

     *We are very excited about our new renewable energy initiatives which is focussed on addressing
      the non-recyclable plastics crisis to reduce the amount ending up in landfill by addressing this
      problem through a process of Pyrolysis which converts plastic waste into syngas which in turn
      generates electricity. Our renewable generated electricity will be sold to offtake partners, and our
      substantial combined project pipeline of waste to energy projects in the UK and ZA with two
      near term targets which we aim to take into production, will greatly assist in the realisation of
      our strategy and value to shareholders.

This short-form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement and does not contain full or complete details.

Any investment decision should be based on the full announcement published on SENS and the issuers
website as a whole.

The full announcement can be found on the company’s website at https://www.kibo.enregy/investor-
relations/annual-reports/ and on the JSE website at

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

For further information please visit or contact:

Louis Coetzee               Kibo Energy PLC       Chief Executive Officer

Andreas Lianos          +357 99 53 1107               River Group           JSE Corporate and Designated Adviser

Claire Noyce            +44 (0) 20 3764 2341          Hybridan LLP          Broker

Bhavesh Patel /
                        +44 20 3440 6800              RFC Ambrian Ltd       NOMAD on AIM
Stephen Allen

Isabel de Salis /
                 St Brides Partners Ltd Investor and Media Relations Adviser
Charlotte Hollinshead

11 June 2021
Designated and Corporate Adviser
River Group

Date: 11-06-2021 08:00:00
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