Final Results

RNS Number : 7671K

Kibo Mining Plc

27 June 2014

 

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")

12 months results for the period ended 31 December 2013

 

27 June 2014

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 audited 12 month financial results for the period ending 31 December 2013. The Company's Annual Report, which contains the full financial statements accompanying this announcement, is in the process of being printed and mailed to shareholders. A copy of this Annual Report will also be available from the Company's website at www.kibomining.com. Details of the date and venue for this year's AGM, which will take place towards the end of July, will be announced shortly.

Louis Coetzee, CEO of Kibo Mining, commented today:

"Kibo has made significant progress during 2013-4 despite the challenging environment, most notably at Rukwa and Imweru. The Rukwa Coal to Power Project is essential to support the growth of the Tanzanian power sector and I look forward to reporting further progress building on our success to date. Imweru has been a great addition to our asset portfolio which takes us closer to our goal of being a mineral development company. I am confident that with our strengthened Board, we will achieve our objectives and capitalise on an improving market in the year ahead."

Highlights from the Chairman, Christian Schaffalitzky's statement:

•     Key appointments to Rukwa Coal to Power Project ("RCPP") project development team

•     RCPP included in Tanzania's National Strategic Energy Plan

•     Appointment of Standard Bank as corporate finance advisor to RCPP

•     Completion of successful field programmes at Imweru (gold) and Haneti (nickel-PGM) including drilling and gold resource update at the former

•     Board re-organisation including appointment of Andreas Lianos as new financial director

 

Chairman's Statement

Dear Shareholder,

Introduction

I am pleased to introduce Kibo's 2013 Annual Report which records significant progress in our strategy of moving Kibo (the "Company") from a junior explorer to a mineral development company. This progress is seen in the milestones we have reached in relation to both the Rukwa Coal to Power Project ("RCPP") and the Imweru gold project.

On the RCPP, during the reporting period, we have acquired support from both the Tanzanian Government and major global energy producers for the development of this much needed power generating capacity in Tanzania which will help to address both the country's current power shortages and projected increased demand. The inclusion of the project in the Tanzanian National Strategic Energy Plan and the strengthening of our project team will allow us to develop rapidly the planned Rukwa Development Programme.  I would like to welcome Roy Adair and Casper Van Wyk as key members of this team, who collectively bring extensive executive leadership, corporate finance and project management skills, and a successful track record of achievement in the energy and natural resource sectors.

We also announced the engagement of Standard Bank as corporate finance advisor to the project with the task of completing a financial model and project financing strategy for the development. I believe that the support of Africa's largest bank with a successful record in Tanzania of advising on and structuring finance on public private partnerships across a range of business sectors is a strong endorsement of the RCPP.

In addition to the RCPP, your Company made steady progress across its other commodity streams, notably in gold and base metals. In regard to gold, we were able to take advantage of a distressed asset disposal by one of our competitors to acquire a high quality gold exploration portfolio in northern Tanzania, significantly improving the quality of our gold licence holdings in this region. The portfolio included brownfields projects with pre-defined resources at Imweru and Lubando where Kibo holds a 90% interest, as well as earlier stage projects with some well-defined drill ready gold targets from exploration by previous operators. A drill programme was carried out towards the end of 2013 at the Imweru property with the objective of increasing the quality and quantity of the pre-existing NI 43-101 resource estimate of 629,600 oz. (19.5 million tonnes at 1.1 gram per tonne).

The eastern part of the pre-existing NI 43-101 Imweru resource was re-stated to a lower value as it partly falls within a licence no longer part of the Imweru project block. However, the net effect of theincrease in estimated resource over the recently drilled central zone of the resource is 550,000 oz. (~15 million tonnes @ 1.14 grams per tonne) of which 495,000 oz, or 90% is attributable to Kibo. Taken together with the estimated gold resource at Lubando  of 160,000 oz. (~ 2.59 million tonnes at 2 g/t), of which 144,000 oz or 90% is attributable to Kibo. Kibo's combined gold resource estimate for its projects in the Geita Region is just over 700,000 (630,000 oz or 90% of this is attributable to Kibo). It is encouraging that our independent technical consultant, Tetra Tech EBA, has acknowledged in its report the potential to materially increase the resource by further drilling at Imweru and on a number of other proximal targets within the project region that remain to be tested.

On the base metal front, we implemented a comprehensive field exploration programme at our Haneti nickel-PGM project during 2013, funded by Brazilian multi-national Votorantim Metaís Participações Ltda ("Votorantim") under the terms of a joint venture. Subsequent to the withdrawal of Votorantim from the joint venture in December 2013 following a review of their southern African operations, Kibo has now re-acquired a 100% interest in Haneti with the benefit of a field season's exploration data acquired at no cost to the Company. 

On the Corporate side, we implemented a capital re-organisation during the early part of 2013 which was approved by shareholders at an EGM on 22 March 2013. During the period, three directors, Des Burke, Cecil Bond and Bernard Poznanski also retired to pursue other interests and I wish to thank them for their contribution to the development of the Company to date and wish them well for the future. I would also like to welcome the recent appointment of Andrew Lianos to the board effective from 1 March 2014. Andrew is an experienced chartered accountant and corporate financier whose skills will be most valuable to the Company as it proceeds with its project development plans.

During the audit and in finalisation of the Annual Report the auditors drew the board's attention to the requirements of IAS36 of the International Financial Reporting Standards ("IFRS") which requires that the board undertakes a regular review, at least annually, of the value of the assets as disclosed in the Financial Statements so as to disclose all assets at their fair value taking the current state of affairs of the world economy and the stage of development of the various projects into account. This has required that certain assets be impaired to the extent necessary. The major adjustments were made against the Company's Rukwa coal and Pinewood uranium assets. Adoption of this policy will require an annual review and adjustment as to the value of assets as and when new information comes to hand or circumstances surrounding the assets change.

In summary, our capital re-organisation, board changes and new appointments for RCPP implemented during 2013 and early 2014 give us the appropriate corporate structure to face the challenges ahead. I am confident that these changes will enhance our ability to deliver on the RCPP in particular. It only remains for me to thank our CEO Louis Coetzee and the management team for persisting in the challenging climate for our sector to take Kibo forward from exploration to development. I also wish to thank my fellow board members for their valuable insights, our advisors for their on-going guidance and the Tanzanian Government for their support of our development plans. We hope to repay this support with the completion of the RCPP, a much needed energy project development which will substantially benefit the country and in particular local communities in southern Tanzania. Finally, I would like to acknowledge the continued support of our shareholders while we work to realise the inherent value across all our projects.

Christian  Schaffalitzky

Chairman

Condensed Consolidated Financial Results for the year ended 31 December 2013

Condensed Consolidated Statement of Comprehensive Income

	Year ended 31 December 2013	15 months ended 31 December 2012
	Audited	Audited
Continuing operations	£	£
Administrative expenses	(600,832)	(2,295,936)
Impairment of assets	(14,790,675)	-
Share based payment charge	-	(1,290,446)
Exploration expenditure	(1,358,664)	(897,740)
Operating loss	(16,750,171)	(4,484,122)
Investment and other income	1,166,834	1,043
Loss on ordinary activities before tax	(15,583,337)	(4,483,079)
Taxation	-	-
Loss for the period	(15,583,337)	(4,483,079)
Other comprehensive loss:
Exchange differences on translation of foreign operations	(513,201)	(3,830)
Other Comprehensive loss for the period net of tax	(513,201)	(3,830)
Total comprehensive loss for the period	(16,096,538)	(4,486,909)
Loss for the period attributable to the owners of the parent	(15,583,337)	(4,483,079)
Total comprehensive Loss attributable to the owners of the parent	(16,096,538)	(4,486,909)
Loss Per Share
Basic  (loss) per share	(0.14)	(0.12)
Diluted (loss) per share	(0.14)	(0.12)
Headline (loss) per share	(0.007)	(0.12)

Condensed Consolidated Statement of Financial Position

					31 December 2013	31 December 2012
					Audited	Audited
					£	£
Assets
Non‑Current Assets
Property, plant and equipment					6,326	10,654
Intangible assets					9,718,509	21,054,614
Goodwill					-	3,307,757
Total non-current assets					9,724,835	24,373,025
Current Assets
Trade and other receivables					51,200	75,438
Cash and cash equivalents					443,763	98,678
Total current assets					494,963	174,116
Total Assets					10,219,798	24,547,141
Equity and Liabilities
Equity
Called up share capital					10,998,282	9,192,046
Share premium account					23,398,853	21,879,748
Share based payment reserve					977,543	977,543
Translation reserve					(594,535)	(81,334)
Retained deficit					(24,821,095)	(9,237,758)
					9,959,048	22,730,245
Liabilities
Current Liabilities
Trade and other payables					228,391	1,783,668
Current tax liabilities					32,359	33,228
Total Current Liabilities					260,750	1,816,896
Total Equity and Liabilities					10,219,798	24,547,141

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 October 2011	3, 231,898	5,887,327	456,820	(85,164)			371, 656						(4,754,679)		4,736,202
Profit / (loss) for the 15 month period	-	-	-	-			-						(4,483,079)		(4,483,079)
Other comprehensive income- exchange differences on translating foreign operations	-	-	-	3,830			3,830						-		3,830
Proceeds of share issue of share capital	5,960,148	15,992,421	-	-			-						-		21,952,569
Share options acquired through business combinations	-	-	466,565	-			466,565						-		466,565
Share options issued	-	-	54,158	-			54,158						-		54,158
	5,960,148	15,992,421	520,723	3,830			524,553						(4,483,079)		17,994,043
Balance as at 31 December 2012	9,192,046	21,879,748	977,543	(81,334)			896,209						(9,237,758)		22,730,245
Profit / (loss) for the 12 month period	-	-	-	-			-						(15,583,337)		(15,583,337)
Other comprehensive income (loss) - exchange differences	-	-	-	(513,201)			(513,201)						-		(513,201)
Proceeds of share issue of share capital	1,806,236	1,519,105	-	-			-						-		3,325,341
	1,806,236	1,519,105	-	(513,201)			(513,201)						(15,583,337)		(12,771,197)
Balance at 31 December 2013	10,998,282	23,398,853	977,543	(594,535)			383,008						(24,821,095)		9,959,048

Condensed consolidated Statement of Cash Flow

	12 month period  ended 31 December 2013	15 month period ended 31 December 2012
	Audited	Audited
	£	£
Net cash outflows from operating activities	(1,475,138)	(691,709)
Net cash proceeds from financing activities	3,325,945	751,043
Net cash used in investing activities	(1,505,722)	(897,740)
Net increase in cash and cash equivalents	345,085	(838,406)
Cash and cash equivalents at beginning of period	98,678	937,084
Cash and cash equivalents at end of the period	443,763	98,678

Notes to the condensed consolidated financial results for the year ended 31 December 2013

1. General information

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

2. Statement of Compliance and basis of preparation

The condensed consolidated financial results are for the year ended 31 December 2013 which were 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 financial statements of the Group for the period ended 31 December 2013.

The comparative amounts in the condensed consolidated financial results include extracts from the Company's consolidated financial statements for the period ended 31 December 2012.

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. The Group financial results have been prepared on a going concern basis.

These unaudited 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 2012 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, LHM Casey McGrath. The modified auditors report together with the financial statements is available for inspection at the Company's register office. The modified auditors' report contains an emphasis of matter with regard to the going concern of the Group, 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, 11, 12 and 18 to the financial statements concerning the valuation of intangible assets, amounts due from Group undertakings and investments in Group undertakings. The realisation of intangible assets of £9,718,509 (2012: £21,054,614), amounts due from Group undertakings of £25,286,099 (2012: £24,462,066) and investments in Group undertakings of £1,700,000 (2012: £4,326,511) 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 financial results.

8. Dividends

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

9. Going Concern

The condensed consolidated 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 2013 (£)	15 Months ended 31 December 2012 (£)
(Loss) for the period attributable to equity holders of the parent	(15,583,337)	(4,483,079)
Weighted average number of ordinary shares for the purposes of basic and dilutive loss per share (revised)	110,593,163	36,089,081
Basic loss per share	(0.14)	(0.12)
Dilutive loss per share	(0.14)	(0.12)

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.

During the current period the Company entered into a capital re-organisation transaction whereby every 15 shares previously held were converted into 1 ordinary share. In accordance with IAS 33, the number of ordinary shares outstanding before the event is adjusted for the proportionate change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period presented. Thus the number of shares per the above comparative period has been rested in accordance with IAS 33 in order to accurately present the earnings, dilutive and headline earnings per share.

Headline loss per share

Reconciliation of headline loss per share:		Year ended 31 December 2013 (£)	Year ended  31 December 2012 (£)
(Loss) for the period attributable to normal shareholders		(15,583,337)	(4,483,079)
Impairment of Goodwill		3,454,570	-
Impairment of Intangible Assets		11,336,105	-
Headline (Loss) for the period attributable to normal shareholders		(792,662)	(4,483,079)
Headline loss per ordinary share		(0.007)	(0.12)

11. Called up share capital and share premium

Details of authorised and issued capital are as follows:

	2013	2012
Authorised equity
200,000,000 Ordinary shares of €0.015 each 3,000,000,000 Deferred shares of €0.009 each	€3,000,000 €27,000,000
(2012: 3,000,000,000 Ordinary shares of €0.1 each)		€30,000,000
	€30,000,000	€30,000,000
Allotted, issued and fully paid shares
141,116,691 Ordinary shares of €0.015 each	£1,741,207
(2012: 1,126,521,842 Ordinary shares of €0.01 each)		£9,192,046
1,291,394,535 Deferred shares of €0.009 each	£9,257,075
(2012: Nil)		-

	Number of Shares	Ordinary Share Capital (£)	Deferred Share Capital (£)	Share Premium (£)
Balance at 30 December 2012	1,126,521,842	9,192,046	-	21,879,748
Shares issued during the period to 23 March 2013 (net of expense)	164,872,693	1,103,650	-	-
Capital Re-organisation	(1,205,301,566)	(9,257,075)	9,257,075	-
Shares issued post 23 March 2013 (net of expenses)	55,023,722	702,586	-	1,519,105
Balance at 31 December 2013	141,116,691	1,741,207	9,257,075	23,398,853

The Company resolved to decrease the number of shares in issue as well as increase the nominal value of each share, through a capital re-organisation whereby every ordinary shareholder would receive 1 new ordinary share for every 15 previously held ordinary shares, at the revised nominal value of €0.015 per share in issue, applicable to all shareholders registered as at 23 March 2013.

The total number of existing ordinary shares in the Company on issue as at 23 March 2013, prior to the re-organisation, was 1,291,394,535. Following the re-organisation, the Company had 86,092,969 ordinary shares of €0.015 par value in issue.

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.

	Mining and Exploration	Corporate	12 months period ended 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	-	-	-
Loss after tax	(15,639,013)	55,676	(15,583,337)

	Mining and Exploration	Corporate	12 month period ended 31 December 2013 (£)
	Group	Group	Group
Assets
Segment assets	9,724,835	494,963	10,219,798
Liabilities
Segment liabilities	-	260,750	260,750

13. Changes to the board of Kibo Mining Plc

Andreas Lianos has been appointed as the Chief Financial Officer (Executive Director) with effect from 1 March 2014. Cecil Bond and Bernard Poznanski (both Non-Executive Directors) have retired with effect from 31 July 2013.

By order of the Board

27 June 2014

Directors:           Christian Schaffalitzky    Chairman (Non-Executive)

Louis Coetzee   Chief Executive Officer (Executive)

Noel O'Keeffe  Exploration Director (Executive)

Andrew Lianos  Finance Director (Executive)

Lukas Marthinus Maree Non-Executive Director

Wenzel Kerremans        Non-Executive Director

Company Secretary:                    Noel O'Keeffe

Auditors:                                                                LHM Casey McGrath

 Contacts 

Louis Coetzee	+ 27 (0)83 2606126	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	+ 27 (0)83 4408365	Kibo Mining plc and River Group	Executive Director; Corporate and Designated Adviser on JSE
Jon Belliss	+ 44 (0) 20 3216 2630	Hume  Capital (Previously XCAP)	Broker
Oliver Morse Trinity McIntyre	+ 61 8 94802500	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle Lydia Eades	[phone]	Bell Pottinger	Investor and Media Relations

Kibo Mining - Notes to editors

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The Company was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania's largest mineral right portfolios, including the Haneti (nickel, PGE and gold), Morogoro (gold), Lake Victoria (gold), and Pinewood (coal & uranium) projects.

Its projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has prioritised infrastructural development attracting significant recent investment in coal and uranium.

Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve whilst benefitting from strategic relationships with industry leaders with special skills and competencies within their chosen fields.

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

Johannesburg

27 June 2014

Corporate and Designated Adviser

River Group

Review by Qualified Person

 Imweru and Lubando

Information in this announcement that relates to the Imweru mineral resources is taken from the report titled "Resource Update for the Imweru Property Geita Region Northern, Tanzania, JORC Competent Persons Report" dated February 17^th  2014 (the "Report"). The Report states a JORC-compliant resource estimate and was prepared for Kibo Mining plc by James Barr P.Geo. and Darryn Hitchcock P.Geo. Senior Geologist and Geologist respectively with TetraTech EBA Ltd. Both Mr. Barr and Mr. Hitchcock are registered as Certified Professional Geologists with Association of Professional Engineers and Geoscientists of British Columbia a recognised professional organisation. Mr Barr as principal author responsible for the Report has extensive experience in the evaluation and reporting of Archaean Gold projects and is a "Qualified Person" for reporting gold resources to the JORC Standard. He consents to the inclusion in this document of the matters based on his information in the form and context in which they appears.

The information in this announcement that relates to the Lubando mineral resources is taken from a report titled, Tanzania" "Technical Report on the Lubando property, Mwanza, Tanzania" dated 31^st August 2009" (the "Report") The Report  is NI 43-101 compliant and was prepared for Great Basin Gold Rusaf Gold Limited by Nathan Eric Fier C.P.G., P.Eng. Market Director for EBA Engineering Consultants Ltd and a Senior Mining Consultant. Mr. Fier is registered as a Certified Professional Geologist with the American Institute of Professional Geologists, Registration No 10062, and a professional Engineer in British Columbia, Canada Registration No. 135165. He has extensive experience in the evaluation and reporting of Archaean Gold projects and is a "Qualified Person" for reporting gold resources to the NI 43-101 Standard. 

Kibo's Technical Director, Noel O'Keeffe has also reviewed the technical reports referenced above.

 

END

 

 

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