Final Results

RNS Number : 0369B

Kibo Mining Plc

14 June 2016

 

Kibo Mining Plc

(Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on AIM: KIBO 

Share code on the AltX: KBO

ISIN: IE00B97C0C31

("Kibo" or "the Company" or together with its subsidiaries "the Group")

Condensed Consolidated Annual Financial Results of for the year ended 31 December 2015

 

 14 June 2016

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the mineral exploration and development company focused on coal, gold, nickel, and uranium projects in Tanzania is pleased to release its condensed consolidated annual financial results for the year ended 31 December 2015. 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 middle of July, will be announced shortly.
 

Louis Coetzee, CEO of the Kibo, commented today:

"We are pleased to present positive 2015 financial results at a pivotal time in Kibo's development. We are well on the way towards completing our Integrated Bankable Feasibility Study on the flagship Mbeya Coal to Power Project ("MCPP") in co‐operation with our joint development partner, SEPCO III. The positive results from the reports completed during 2015 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 Project which has 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 commencement of two Joint Ventures during 2015."

Comments from the Chairman, Christian Schaffalitzky:

"2015 saw our Company achieve several important milestones that I believe lay the foundations for us to graduate as a mining company from our formative years in exploration. We have reached this critical stage despite another tough year for commodities and a depressed market for mining equities.

The Company's main achievements are:

·    The near completion of definitive feasibility studies (DFS) on both the proposed coal mine and its dedicated power plant at our Mbeya Coal to Power Project (MCPP); and

·    The completion of a Preliminary Economic Assessment on our Imweru gold project.

In parallel, we continued with exploration at Haneti, where the prospectivity for nickel, copper and platinum group metals was enhanced; and work commenced on our Morogoro gold and Pinewood uranium projects, with our joint venture partner, Metal Tiger plc.

Furthermore, the increase in the carrying value of intangible assets from GBP14.4 million at 31 December 2014 to GBP17.6 million at 31 December 2015 as a result of a reversal of previously recognised impairment reflects the significant progress made with regard to the MCPP."                                     .

Condensed Consolidated Financial Results for the year ended 31 December 2015

Condensed Consolidated Statement of Comprehensive Income

	Year ended 31 December 2015	Year ended 31 December 2014
	Audited	Audited
Continuing operations	£	£
Revenue	44,181	-
Administrative expenses	(1,791,358)	(1,500,757)
Reversal of impairment of intangible assets	3,182,240	4,695,356
Exploration expenditure	(1,454,216)	(1,073,022)
Operating (loss)/ profit	(19,153)	2,121,577
Investment and other income	196,315	3,427
Profit from ordinary activities before tax	177,162	2,125,004
Taxation	-	-
Profit for the period	177,162	2,125,004
Other comprehensive gain:
Exchange differences on translation of foreign operations	16,366	193,550
Other Comprehensive gain for the period net of tax	16,366	193,550
Total comprehensive profit for the period	193,528	2,318,554
Profit for the period attributable to the owners of the parent	177,162	2,125,004
Total comprehensive profit attributable to the owners of the parent	193,528	2,318,554
Earnings/ (Loss) Per Share
Basic  earnings per share	0.001	0.01
Diluted earnings per share	0.001	0.01
Headline (loss) per share	(0.010)	(0.013)

Condensed Consolidated Statement of Financial Position

					31 December 2015	31 December 2014
					Audited	Audited
					£	£
Assets
Non‑Current Assets
Property, plant and equipment					7,182	3,761
Intangible assets					17,596,105	14,413,865
Total non-current assets					17,603,287	14,417,626
Current Assets
Trade and other receivables					550,692	11,557
Cash and cash equivalents					189,435	186,447
Total current assets					740,127	198,004
Total Assets					18,343,414	14,615,630
Equity and Liabilities
Equity
Called up share capital					13,210,288	12,591,750
Share premium account  Treasury Shares					25,782,519 (44,464)	23,903,307 -
Share based payment reserve					514,279	510,978
Translation reserve					(384,619)	(400,985)
Retained deficit					(21,541,386)	(22,229,526)
Total Equity					17,536,617	14,375,524
Liabilities
Current Liabilities
Trade and other payables					306,797	240,106
Borrowings					500,000	-
Total Current Liabilities					806,797	240,106
Total Equity and Liabilities					18,343,414	14,615,630

Condensed Consolidated Statement of Changes in Equity

	Share Capital	Share premium	Treasury shares	Total share capital	Share based payment reserve		Foreign currency translation reserve				Total        reserves			Retained deficit		Total
All figures are stated in Sterling	£	£	£	£	£		£				£			£		£
Balance as at 1 January 2014	10,998,282	23,398,853	-	34,397,135	977,543		(594,535)				383,008			(24,821,095)		9,959,048
Profit for the year	-	-	-	-	-		-				-			2,125,004		2,125,004
Other comprehensive income- exchange differences on translating foreign operations	-	-	-	-	-		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	-		-				-			-		2,097,922
	1,593,468	504,454	-	2,097,922	(466,565)		193,550				(273,015)			(2,591,569)		4,416,476
Balance as at 31 December 2014	12,591,750	23,903,307	-	36,495,057	510,978		(400,985)				109,993			(22,229,526)		14,375,524
Profit  for the year	-	-			-		-				-			177,162		177,162
Other comprehensive income - exchange differences on translating foreign operations	-	-	-	-	-		16,366				16,366			-		16,366
Share options and warrants expired or cancelled during the period	-	-	-	-	(510,978)		-				(510,978)			510,978		-
Share options issued during the current period	-	-	-	-	514,279		-				514,279			-		514,279
Proceeds of share issue of share capital	574,074	1,879,212	-	2,453,286	-		-				-			-		2,453,286
Issue of treasury shares	44,464	-	(44,464)	-	-		-				-			-		-
	618,538	1,879,212	(44,464)	2,453,286	3,301		16,366				19,667			688,140		3,161,093
Balance at 31 December 2015	13,210,288	25,782,519	(44,464)	38,948,343	514,279		(384,619)				129,660			(21,541,386)		17,536,617

Condensed consolidated Statement of Cash Flow

	year ended 31 December 2015	year ended 31 December 2014
	Audited	Audited
	£	£
Net cash outflows from operating activities	(3,013,680)	(2,358,665)
Net cash proceeds from financing activities	2,955,176	2,101,349
Net cash used in investing activities	61,492	-
Net increase in cash and cash equivalents	2,988	(257,316)
Cash and cash equivalents at beginning of period	186,447	443,763
Cash and cash equivalents at end of the period	189,435	186,447

Notes to the condensed consolidated financial results for the year ended 31 December 2015

1. General information

Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The consolidated 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 condensed consolidated annual financial results are for the year ended 31 December 2015 are 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 2014 ('the Companies Acts').

These condensed consolidated annual financial results do not include all the information required for full financial statements and should be read in conjunction with the consolidated annual financial statements of the Group for the period ended 31 December 2015, which is available for inspection at the Company's registered offices.

The comparative amounts included in these condensed consolidated financial results include extracts from the consolidated annual financial statements for the period ended 31 December 2014.

All monetary information is presented in the functional currency of the Company being pound Sterling.

The Company's financial statements are prepared on the historical cost basis, other than intangible assets which is 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 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 2014 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. These financial results were prepared under the supervision of the Chief Financial Officer, Andreas Lianos.

5. Audit opinion

The consolidated annual 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 11, 12 and 20 to the financial statements concerning the valuation of intangible assets, and investments in Group undertakings. The realisation of intangible assets of £17,596,105 (2014: £14,413,865), amounts due from Group undertakings of £27,712,269 (2014: £26,047,465) and investments in Group undertakings of £1,700,000 (2014: £1,700,000) included in the Company Statement of Financial Position are dependent on the discovery and economic exploitation of 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 Earnings 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 2015 (£)	Year ended 31 December 2014 (£)
Profit/ (Loss) for the period attributable to equity holders of the parent	177,162	2,125,004
Weighted average number of ordinary shares for the purposes of basic and dilutive loss per share (revised)	316,986,334	193,400,160
Basic earnings/ (loss) per share	0.001	0.01
Dilutive earnings/ (loss) per share	0.001	0.01

As the exercise price of the share options and warrants in issue is 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 for the period attributable to normal shareholders		177,162	2,215,004
Loss on the disposal of subsidiaries		5,762	-
Reversal of Impairment of Intangible Assets		(3,182,240)	(4,695,356)
Bargain purchase from acquisition of Subsidiaries		(193,425)	-
Impairment of goodwill on acquisition of Subsidiaries		20,057	-
Headline (Loss) for the period attributable to normal shareholders		(3,172,687)	(2,570,352)
Headline loss per ordinary share		(0.010)	(0.013)
Dilutive headline loss per ordinary share		(0.010)	(0.013)

11. Called up share capital and share premium

Details of authorised and issued capital are as follows:

	2015	2014
Authorised equity
800,000,000 Ordinary shares of €0.015 each (2014: 400,000,000 Ordinary shares of €0.015 each) 3,000,000,000 Deferred shares of €0.009 each	€12,000,000 €27,000,000	€6,000,000 €27,000,000
	€39,000,000	€33,000,000
Allotted, issued and fully paid shares
(2015: 330,928,714 Ordinary shares of €0.015 each	£3,953,213	-
(2014: 274,238,757 Ordinary shares of €0.015 each)	-	£3,334,675
1,291,394,535 Deferred shares of €0.009 each	£9,257,075	£9,257,075
	£13,210,288	£12,591,750

	Number of Shares	Ordinary Share Capital (£)	Deferred Share Capital (£)	Share Premium (£)	Treasury shares (£)
Balance at 31 December 2014	274,238,757	12,591,750	9,257,075	23,903,307	-
Shares issued during the period	56,689,957	618,538	-	1,879,212	(44,464)
Balance at 31 December 2015	330,928,714	13,210,288	9,257,075	25,782,519	(44,464)

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.

2015 Group	Mining and Exploration	Corporate	31 December 2015 (£)
	Group	Group	Group
Revenue	44,181	-	44,181
Administrative cost	-	(1,791,358)	(1,791,358)
Exploration expenditure	(1,454,216)	-	(1,454,216)
Net reversal of impairment of assets	3,182,240	-	3,182,240
Investment and other income	2,890	193,425	196,315
Tax	-	-	-
Profit/ (Loss) after tax	1,775,095	(1,597,933)	177,162

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)

2015 Group	Mining	Corporate	31 December 2015 (£)
	Group	Group	Group
Assets
Segment assets	17,816,927	526,487	18,343,414
Liabilities
Segment liabilities	139,905	666,892	806,797
Other Significant items
Depreciation	21,685	-	21,685

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

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

8 June 2016

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

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

14 June 2016

Corporate and Designated Adviser

River Group

 

END

 

 

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