LVI - Thanks for the lucid explanation re £1.1+m income shewn in the last accounts; Sun 17 August 20:34. My poor explanation was incorrect and failed miserably, apologies to all. Also thanks for your thoughts on the current year, it looks like prudent management to use an overused word. OLEUM
Why does this keep on dropping. I though tanzania was desperate for coal, power plants and electricity. KIBO has coal and looking to build power plant for electricity so shouldn't the sp be flying high? Edl is in the same boat and its sp is on its arse too.
who can make money selling at this level?
explo costs and income
with regards to costs and income.. the 600k are roughly the G&A to expect on a yearly basis.Thats what you can call cash burn. The explo costs are on an ad hoc basis so you cannot imply it is a regular cash burn. the mngt team has mentionned they are reducing their explo expenditures on morogoro, lake Victoria and haneti to focus on Rukwa. so explo costs will be significantly reduced in 2014. Regarding the income, about 500k is linked to Votorantim spending 500k on Haneti and then withdrawing. So the 50% we regain for free can include an income of the 500k capitalised expense Voto did. the remaining is linked to Kibo relinquishing acreage at Lake Victoria in June 2013 so we saved on rental fees already accounted for in Kibo accts. Also, we made some income when we pay bills with shares. it dilutes the capital but reduces the liability side, which is reflected as income. Admitedly, 2013 has been a dilutive waiting game (costly game) with exciting news early in the year on Haneti and Rukwa and nothing to sow for it 18months later. The focus is now solely on Rukwa and as per his RNS, news on the JV might be finalised as early as nov/dec. explo costs will be much lower than last year and we have cash to cover for the rest of the year. I believe the next 6 months will be different than what we got used to. LC put some of his own money in the last placing, which is not bad considering his salary is on the low of AIM CEOs.
SuperWoofer and LeValueInvestor - I also noted the £1,116.834. I only had a quick look at the accounts. KIBO started 2013 with 86m shares and finished with 141m. The RNS shew that during 2013 they sold 34.3m of the extra shares at 5.0p. This was a 3.5p premium to nominal value of the shares. 34.3m x 0.035 = £1.2m, then deduct expenses. I am not an accountant but this gain has to appear somewhere. Is there an accountant out there? Have I got it right? Someone give me some comfort, please. OLEUM.
I have read your post and agree with the figures, but in the results it shows an income and investment plus of 1,166,834. Could you be good enough to advise me on what this figure is attributed to please?
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