Annual Financial Statement

RNS Number : 5204O

Kibo Mining Plc

29 May 2015

 

Kibo Mining Plc

(Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE Limited: KBO

Share code on AIM: KIBO ISIN: IE00B61XQX41

("Kibo" or "the Company")

Abridged Condensed Consolidated Annual Financial Statement for the financial year ending 31 December 2014

 

Date: 29 May 2015

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania is pleased to announce its abridged condensed consolidated annual financial results for the period ending 31 December2014. The Company's Annual Report, which contains the full financial statements accompanying this announcement, is in the process of being printed and mailed to shareholders, at which time a copy thereof will also be made available from the Company's website at www.kibomining.com. Details of the date and venue for this year's AGM, which will take place towards the end of June, will be announced shortly.

Louis Coetzee, CEO of Kibo Mining, said:

"We are pleased to present positive 2014 financial results at a pivotal time in Kibo's development. We are well on the way towards completing our Definitive Feasibility Study on the flagship *Mbeya Coal to Power Project ("MCPP") in co-operation with our recently announced joint development partner, SEPCO III. The positive results from the pre-feasibility reports completed during 2014 as outlined in our Annual Report, not only secured a Joint Development Agreement with SEPCO III, but moved Kibo towards becoming a more mature development company. This is well demonstrated by the Company's MCPP and Imweru Projects that have progressed to advanced feasibility status in less than a year. The Company also succeeded in getting all its remaining exploration projects back into active exploration status and this includes the signing of two Joint Venture Agreements during 2014.

The work completed during 2014 enabled us to re-activate advanced feasibility studies and exploration across all our commodity streams and we expect to show steady progress and newsflow from this work over the remainder of 2015.

Highlights from the Chairman, Christian Schaffalitzky's statement:

·    Results from first phase Definitive Feasibility Study ("DFS") reports on the Company's MCPP and Imweru projects exceed expectations across all aspects of the studies;

·    Estimated economic indicators for the MCPP based on a preliminary base case financial model by Standard Bank  demonstrate strongly positive returns for the project;

·    Signing of Joint Development Agreement with China based EPC contractor SEPCO III post year end represents another major step in the development of the MCPP and should enable the Company to complete its DFS by the end of 2015 and enter the construction phase of the project which is scheduled for completion by the end of 2018;

·    The results of a Preliminary Economic Assessment (PEA) on the Imweru project (gold) showed a positive economic outcome for a base case development supporting a mine life of 6 to 10 years and the potential to increase the mine life by an extra 6 years contingent on expansion of the current gold resource;

·    Joint Venture Agreements signed with Metal Tiger Plc on the Morogoro and Pinewood projects a welcome development for Kibo as it allows it the Company to once again resume exploration on these areas;

·    Increase in the carrying value of intangible assets from £9.7 million at 31 December 2013 to £14.4 million at 31 December 2014 as a result of a reversal of previously recognised impairment.

*The Rukwa Coal to Power Project ("RCPP") has recently been renamed the Mbeya Coal to Power Project ("MCPP") - Refer RNS of the 26^th May 2015.

Condensed Consolidated Financial Results for the year ended 31 December 2014

Condensed Consolidated Statement of Comprehensive Income

	Year ended 31 December 2014	Year ended 31 December 2013
	Audited	Audited
Continuing operations	£	£
Administrative expenses	(1,500,757)	(600,832)
Impairment of assets	4,695,356	(14,790,675)
Exploration expenditure	(1,073,022)	(1,358,664)
Operating profit/ (loss)	2,121,577	(16,750,171)
Investment and other income	3,427	1,166,834
Profit/ (Loss) on ordinary activities before tax	2,125,004	(15,583,337)
Taxation	-	-
Profit/ (Loss) for the period	2,125,004	(15,583,337)
Other comprehensive gain/ (loss):
Exchange differences on translation of foreign operations	193,550	(513,201)
Other Comprehensive gain/ (loss) for the period net of tax	193,550	(513,201)
Total comprehensive profit/ (loss) for the period	2,318,554	(16,096,538)
Profit/ (Loss) for the period attributable to the owners of the parent	2,125,004	(15,583,337)
Total comprehensive Loss attributable to the owners of the parent	2,318,554	(16,096,538)
Loss Per Share
Basic  earnings/ (loss) per share	0.01	(0.14)
Diluted earnings/ (loss) per share	0.01	(0.14)
Headline (loss) per share	(0.018)	(0.007)

Condensed Consolidated Statement of Financial Position

					31 December 2014	31 December 2013
					Audited	Audited
					£	£
Assets
Non‑Current Assets
Property, plant and equipment					3,761	6,326
Intangible assets					14,413,865	9,718,509
Total non-current assets					14,417,626	9,724,835
Current Assets
Trade and other receivables					11,557	51,200
Cash and cash equivalents					186,447	443,763
Total current assets					198,004	494,963
Total Assets					14,615,630	10,219,798
Equity and Liabilities
Equity
Called up share capital					12,591,750	10,998,282
Share premium account					23,903,307	23,398,853
Share based payment reserve					510,978	977,543
Translation reserve					(400,985)	(594,535)
Retained deficit					(22,229,526)	(24,821,095)
					14,375,524	9,959,048
Liabilities
Current Liabilities
Trade and other payables					240,106	228,391
Current tax liabilities					-	32,359
Total Current Liabilities					240,106	260,750
Total Equity and Liabilities					14,615,630	10,219,798

Condensed Consolidated Statement of Changes in Equity

	Share Capital	Share premium	Share based payment reserve		Foreign currency translation reserve				Total        reserves				Retained deficit		Total
	£	£	£	£			£				£			£
Balance as at 1 January 2013	9,192,046	21,879,748	977,543	(81,334)			896,209				(9,237,758)			22,730,245
Profit / (loss) for the year	-	-	-	-			-				(15,583,337)			(15,583,337)
Other comprehensive income- exchange differences on translating foreign operations	-	-	-	(513,201)			(513,201)				-			(513,201)
Proceeds of share issue of share capital	1,806,236	1,519,105	-	-			-				-			3,325,341
Share options acquired through business combinations	-	-	-	-			-				-			-
Share options issued	-	-	-	-			-				-			-
	1,806,236	1,519,105	-	(513,201)			(513,201)				(15,583,337)			(10,855,257)
Balance as at 31 December 2013	10,998,282	23,398,853	977,543	(594,535)			383,008				(24,821,095)			9,959,048
Profit / (loss) for the year	-	-	-	-			-				2,125,004			2,125,004
Other comprehensive income (loss) - exchange differences	-	-	-	193,550			193,550				-			193,550
Reclassification of share based payment reserve on expired share options issued	-	-	(466,565)	-			(466,565)				466,565			-
Proceeds of share issue of share capital	1,593,468	504,454	-	-			-				-			2,097,922
	1,593,468	504,454	(466,565)	193,550			(273,015)				2,591,569			4,416,476
Balance at 31 December 2014	12,591,750	23,903,307	510,978	(400,985)			109,993				(22,229,526)			14,375,524

Condensed consolidated Statement of Cash Flow

	12 month period  ended 31 December 2014	12 month period ended 31 December 2013
	Audited	Audited
	£	£
Net cash outflows from operating activities	(2,377,664)	(1,301,894)
Net cash proceeds from financing activities	2,101,349	3,325,945
Net cash used in investing activities	-	(147,058)
Net increase in cash and cash equivalents	(257,316)	345,085
Cash and cash equivalents at beginning of period	443,763	98,678
Cash and cash equivalents at end of the period	186,447	443,763

Notes to the abridged condensed consolidated financial results for the year ended
31 December 2014

1. General information

Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The Group annual financial statements consolidate those of the Company and its subsidiaries (together referred to as the "Group"). The Company's shares are listed on the AIM market ("AIM") of the London Stock Exchange plc and the Alternative Exchange of the Johannesburg Stock Exchange Limited (ALTX). The principal activities of the Company and its subsidiaries are related to the exploration for and development of coal and other minerals in Tanzania.

2. Statement of Compliance and basis of preparation

The abridged condensed consolidated annual financial results are for the year ended 31 December 2014 was prepared in accordance with framework concepts and the recognition and measurement criteria of International Financial Reporting Standards (IFRS and IFRC interpretations) issued by the International Accounting Standards Board (IASB) as adopted for use in the EU (IFRS, including the SAICA financial reporting guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council, IAS 34 - Interim Financial Reporting), the Listings Requirements of the JSE Limited and the provisions of the Irish Companies Acts, 1963 to 2013 ('the Companies Acts').

They do not include all the information required for full financial statements and should be read in conjunction with the audited consolidated annual financial statements of the Group for the period ended 31 December 2014, which is available for inspection at the Company's registered offices.

The comparative amounts in the condensed consolidated financial results include extracts from the Company's consolidated annual financial statements for the period ended 31 December 2013.

All monetary information is presented in the functional currency of the Company being Great British Pound.

The Company's financial statements are prepared on the historical cost basis, other than goodwill and intangible assets which are measured at fair value. The accounting policies have been applied consistently by Group entities and are similar to those applied in the prior period. The Group financial results have been prepared on a going concern basis.

These abridged condensed consolidated financial results have been extracted from the audited financial statements, but are not itself audited.

3. Statement of Accounting Policies

The accounting policies have been applied consistently to all periods presented in these condensed consolidated financial results using the accounting policies applied by the Group in its 31 December 2013 report, updated for any new accounting standards which became effective in the current year.

4. Responsibility Statement

The directors take full responsibility for the preparation of the report and that the financial information has been correctly extracted from the underlying financial statements.

5. Audit opinion

The consolidated financial statements were audited by the Company's auditors, Saffery Champness. The modified auditors report together with the financial statements is available for inspection at the Company's register offices. The modified auditors' report contains an emphasis of matter with regard to the realisation of certain assets, as follows:

Emphasis of Matter - Realisation of Assets

In forming our opinion on the financial statements, which is not modified, we considered the adequacy of disclosures made in Notes 10, 12 and 18 to the financial statements concerning the valuation of intangible assets, and investments in Group undertakings. The realisation of intangible assets of £14,413,865 (2013: £9,718,509), amounts due from Group undertakings of £26,047,465 (2013: £25,286,099) and investments in Group undertakings of £1,700,000 (2013: £1,700,000) included in the Company Statement of Financial Position is dependent on the discovery of economic reserves including the ability of the Group to raise sufficient finance to develop the projects.

6. Subsequent events

The directors are not aware of any matter or circumstance arising since the reporting date which would have a material effect on the consolidated financial results.

7. Litigation

There are currently no arbitration proceedings against the Group, or of which the Group is aware, which may have, or have had in the 12 months preceding the date of this report, a material effect on the consolidated annual financial results.

8. Dividends

There have been no dividends declared or paid during the current financial period.

9. Going Concern

The consolidated annual financial results have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The directors constantly review the business models of the Group and its operating subsidiaries to ensure sustainability and the ability to operate profitably and generate positive cash flows. Funding facilities are also reviewed regularly to ensure that the Group has sufficient facilities in place to finance its operations.

10. Basic, Dilutive and Headline Loss per share

The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share is as follows:

	Year ended 31 December 2014 (£)	Year ended 31 December 2013 (£)
Profit/ (Loss) for the period attributable to equity holders of the parent	2,125,004	(15,583,337)
Weighted average number of ordinary shares for the purposes of basic and dilutive loss per share (revised)	193,400,160	110,593,163
Basic earnings/ (loss) per share	0.01	(0.14)
Dilutive earnings/ (loss) per share	0.01	(0.14)

As the exercise price of the share options and warrants in issue is considerably higher than the current market value as at reporting date, these option and warrants do not have a dilutive impact. Thus there are no dilutive share options or warrants in issue as at year end which decreased the basic loss per share as indicated above.

Headline loss per share

Reconciliation of headline loss per share:		Year ended 31 December 2014 (£)	Year ended  31 December 2013 (£)
Earnings/ (Loss) for the period attributable to normal shareholders		2,215,004	(15,583,337)
Impairment of Goodwill		-	3,454,570
Reversal of Impairment of Intangible Assets/ (Impairment of Intangible assets)		(4,695,356)	11,336,105
Headline (Loss) for the period attributable to normal shareholders		(2,570,352)	(792,662)
Headline loss per ordinary share		(0.013)	(0.007)

11. Called up share capital and share premium

Details of authorised and issued capital are as follows:

	2014	2013
Authorised equity
400,000,000 Ordinary shares of €0.015 each (2013: 200,000,000 Ordinary shares of €0.015 each) 3,000,000,000 Deferred shares of €0.009 each	€6,000,000 €27,000,000	€3,000,000 €27,000,000
	€33,000,000	€30,000,000
Allotted, issued and fully paid shares
(2014: 274,238,757 Ordinary shares of €0.015 each	£3,334,675
(2013: 141,116,691 Ordinary shares of €0.015 each)	-	£1,741,207
1,291,394,535 Deferred shares of €0.009 each	£9,257,075	£9,257,075

	Number of Shares	Ordinary Share Capital (£)	Deferred Share Capital (£)	Share Premium (£)
Balance at 30 December 2013	141,116,691	1,741,207	9,257,075	23,398,853
Shares issued during the period	133,112,066	1,593,468	-	504,454
Deferred shares	-	9,257,075	-	-
Balance at 31 December 2014	274,238,757	12,591,750	9,257,075	23,903,307

12. Condensed Consolidated Segmental Analysis

Management currently identifies two divisions as operating segments - mining and corporate. These operating segments are monitored and strategic decisions are made based upon them together with other non-financial data collated from exploration activities. Principal activities for these operating segments are as follows.

2014 Group	Mining and Exploration	Corporate	31 December 2014 (£)
	Group	Group	Group
Administrative cost	-	(1,500,757)	(1,500,757)
Exploration expenditure	(1,073,022)	-	(1,073,022)
Net reversal of impairment of assets	4,695,356	-	4,695,356
Investment and other income	3,427	-	3,427
Tax	-	-	-
Profit/ (Loss) after tax	3,625,761	(1,500,757)	(2,125,004)

2013 Group	Mining and Exploration	Corporate	31 December 2013 (£)
	Group	Group	Group
Administrative cost	-	(600,832)	(600,832)
Exploration expenditure	(1,358,664)	-	(1,358,664)
Impairment of assets	(14,790,675)	-	(14,790,675)
Investment and other income	510,326	656,508	1,166,834
Tax	-	-	-
Profit/ (Loss) after tax	(15,639,013)	55,676	(15,583,337)

2014 Group	Mining	Corporate	31 December 2014 (£)
	Group	Group	Group
Assets
Segment assets	14,417,626	198,004	14,615,630
Liabilities
Segment liabilities	-	240,106	240,106
Other Significant items
Depreciation	2,565	-	2,565

2013 Group	Mining	Corporate	31 December 2013 (£)
	Group	Group	Group
Assets
Segment assets	9,724,835	494,963	10,219,798
Liabilities
Segment liabilities	-	260,750	260,750
Other Significant items
Depreciation	4,618	-	4,618

13. Changes to the board of Kibo Mining Plc

No changes were made to the board during the current financial year.

By order of the Board

21 May 2015

Directors:	Christian Schaffalitzky	Chairman (Non-Executive)
	Louis Coetzee	Chief Executive Officer (Executive)
	Noel O'Keeffe	Technical Director (Executive)
	Andrew Lianos	Finance Director (Executive)
	Lukas Marthinus Maree	Non-Executive Director
	Wenzel Kerremans	Non-Executive Director
Company Secretary:	Noel O'Keeffe
Auditors:	Saffery Champness

Contacts

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser on JSE
Elliot Hance	[phone]	Beaufort Securities Limited	Broker
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle Lucinda Alderson	[phone]	Bell Pottinger	Investor and Media Relations

Kibo Mining - Notes to editors

Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and stable operating environment for the mineral resource industry and Kibo Mining therein.

Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant defined resource (See Table 1 below), and is developing a 250-350MW mouth-of-mine thermal power station with an established management team that includes Standard Bank as Financial Advisor.  Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre-Feasibility Study for Rukwa with an integrated Coal-Power interim study report to be released in the near term. On 20^th April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive Feasibility Studies and development of the RCPP with China based EPC contractor SEPCO III.

The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) in which the Company holds a 90% attributable interest. The Company is currently undertaking a Definitive Feasibility Study on its Imweru Project.

Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals including Lithium. 

Kibo Mining further holds the Pinewood (coal & uranium) project where the company has entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally the Company also holds the Morogoro (gold) project where the company has entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

The Company's projects are located in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has prioritised infrastructural development attracting significant recent investment in coal and uranium. The Company has a positive working relationship with the Tanzanian government at local, regional and national levels and works hard to maintain positive relationships with all communities where company interests are held.  The Company recognises the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.

Updates on the Company's activities are regularly posted on its website www.kibomining.com  

Johannesburg

29 May 2015

Corporate and Designated Adviser

River Group

 

END

 

 

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