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(Alliance News) - Kibo Energy PLC on Friday reported a widened loss for 2020, driven by higher costs in exploration, mainly from subsidiary Katoro Gold PLC working on the Blyvoor gold joint venture project in South Africa.
For the year, the Africa-focused energy firm posted a pretax loss of GBP6.4 million, widened from GBP3.9 million in 2019, while generating no revenue for both years.
For 2020, exploration expenses rose substantially year-on-year to GBP2.1 million from GBP897,039, as Katoro completed additional technical and financial work in response to recommendations from the Blyvoor scoping study.
During the period, Kibo had continued to develop is portfolio, with its highest priority being the Benga power plant in Mozambique. Benga is now in the process of being upgraded to accommodate a 200 megawatts additional commercial offtaker in the form of the Tete steel and vanadium project with Baobab Resources Ltd.
Meanwhile, for the Mbeya project in Tanzania, Kibo has continued to work with the Tanzanian government, partners to find alternative commercial opportunities, as the environmental assessment of the mine and power station remains valid.
Looking ahead, Kibo is seeking to move forward with its renewable energy strategy, with the start of a due diligence process for the potential acquisition of a portfolio of renewable energy projects in the UK.
In addition, the company has entered an agreement with Industrial Green Solutions Pty Ltd for the development of waste-to-energy projects in South Africa.
Shares in Kibo Energy were down 2.0% at 0.24 pence on Friday in London, while its Johannesburg shares remained flat at ZAR0.12.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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