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 26th 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 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 | +27 (0) 83 2606126 | Kibo Mining plc | Chief Executive Officer |
Andreas Lianos | +27 (0) 83 4408365 | River Group | Corporate Adviser and Designated Adviser on JSE |
Elliot Hance | +44 (0) 207 382 8300 | Beaufort Securities Limited | Broker |
Oliver Morse | +61 8 9480 2500 | RFC Ambrian Limited | Nominated Adviser on AIM |
Daniel Thöle Lucinda Alderson | +44 (0) 203 772 2500 | 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 20th 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
