(Alliance News) - Kibo Energy on Tuesday said its current projects "are directly positioned" to address energy issues domestically and in Africa.
Ahead of Kibo's annual general meeting on Tuesday, Chair Christian Schaffalitzky said the company is making "steady progress" in developing its power generation and mining projects in sub-Saharan Africa and in the UK.
Schaffalitzky said: "Our four current projects are directly positioned to address major energy issues in Africa and closer to home in the UK.
"Given world population is expected to increase by a further three billion in the next 50 years, in tandem with our thirst for new technologies, average power consumption is likely to escalate. Africa in particular already suffers from major energy shortages; our clean coal projects are being advanced to alleviate this bottle neck."
Kibo reported that its 65%-owned Benga "pure energy project" in Mozambique has progressed. Earlier in September, the company said it signed term sheets for coal supply and power purchase agreements with partner Vale Mozambique SA, a subsidiary of Brazilian mining giant Vale SA.
In Botswana, its 85%-owned Mabesekwa coal power project is at "feasibility stage" awaiting a mining licence.
Kibo's 60%-owned UK unit Mast Energy Development Ltd is "advancing as it looks to support the UK energy mix with much needed flexible energy projects".
Schaffalitzky added: "Looking ahead, as our projects advance and de-risk, I am certain that the disparity between our asset value and our market capitalisation will be recognised and corrected. Tough market conditions have also not helped us so I would like to thank shareholders for their continued support and look to the future with confidence."
Shares in Kibo were 2.2% lower at 0.66 pence each in London on Tuesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Kibo Energy (KIBO)