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Kibo Energy PLC

Kibo Mining Plc - 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 cooperation 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


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