Last checked at 21 Jun 2012 07:58
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 the AIM: KIBO
ISIN: IE00B61XQX41
("Kibo" or "the Company")
Half year results for the period ended 31 March 2012
Dated: 21 June 2012
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 unaudited half year results for the period ended 31 March 2012.
Louis Coetzee, CEO of the Company, commented today:
"These interim accounts show an increase in our issued share capital following an equity investment by Mzuri Gold Limited during February. Subsequent to 31 March 2012 the Company announced the signing of two definitive corporate acquisition agreements which will significantly expand and diversify our mineral project portfolios in Tanzania. Most significantly, these agreements provide for the Company to acquire a minimum of 51% interest in a JORC-compliant 109 million tonne (Mt) thermal coal resource for which a Memorandum of Understanding (MOU) with an Asian Conglomerate is in place for the development of a 250-350 megawatt (MW) mine mouth coal fired power station"
Highlights from the Chairman, Christian Schaffalitzky's statement:
- .....further significant progress in the development of your Company in terms of funding, corporate acquisition, exploration and joint venture activity;
- Successful placing in February raised GBP750,000;
- MEL and Mayborn acquisitions will re-position Kibo as a major multi-commodity mineral explorer and developer in Tanzania;
- Promising results from its Stage 1 exploration programme are being reported in a separate Operational Update which is being released to coincide with these interim results.
Chairman's Statement
Dear Shareholder,
I am pleased to present our accounts for the six month period ending 31 March 2012. This period has marked further significant progress in the development of your Company in terms of funding, corporate acquisition, exploration and joint venture activity.
In February the Company undertook a placing for GBP750,000 to fund its on-going exploration programmes in Tanzania. This placing was fully subscribed to by Mzuri Gold Limited, the Company's largest shareholder. In early April the Company announced that it had signed agreements to acquire a minimum of 51% interest in Canadian company, Mzuri Energy Limited ("MEL") and South African company Mayborn Resource Investments (Pty) Limited ("Mayborn"). These acquisitions, which are currently being completed, bring with them substantial Tanzanian coal and uranium mineral assets and will re-position Kibo as a major multi-commodity mineral explorer and developer in the country. In tandem with these acquisitions, MEL's wholly owned subsidiary, Mzuri Coal Limited ("MCL") has signed an MOU with a major Asian conglomerate for the development of a coal mine and mouth-of- mine coal fired power plant based on the 109 Mt Rukwa coal resource, the major asset in MEL to be acquired by Kibo. In a separate arrangement, Kibo has also entered an MOU with a subsidiary of the major Brazilian Industrial group, Votorantim, for the continuing exploration of its Haneti project. Also on the exploration front, Kibo has been very active during the period and promising results from its Stage 1 exploration programme are being reported in a separate Operational Update being released to coincide with these interim results.
Corporate
I believe that the acquisition of MEL and Mayborn ("the acquisitions") provides the Company with attractive mineral assets that will allow it to generate significant value for shareholders over the next few years. The major asset in the portfolio, the Rukwa coal resource, has a JORC-compliant resource of 109 Mt (71 Mt Indicated & 38 Mt Inferred) and is located in an area of southern Tanzania for which the Government is prioritising energy-related mineral project development and associated infrastructure to address the insufficient power generating capacity in the country. This region has seen significant recent investment in coal resources and associated thermal coal power generation, including a US$3 billion investment by Chinese group Sichuan Hongda in September 2011 (the investment also includes a nearby iron ore mine). The MOU signed between MCL and an Asian Conglomerate, who wishes to remain anonymous pending finalisation of a definitive agreement, represents strong confidence in the development potential of the Rukwa coal resource. The MOU provides for the development of a 250-350 MW coal-fired mouth-of-mine plant which will be constructed over a 3 year period.
The acquisitions also provide Kibo with approx.18,000 km2 of early stage uranium and coal prospective tenements ("Pinewood project") in this region which is experiencing high levels of exploration activity for uranium (as well as coal) following the success of Mantra Resources Mkuju River discovery (now operated by Uranium One). A welcome addition to the Pinewood project is that it comes with GBP0.7M of exploration funding for initial aerial geophysical surveys. I believe this asset can bring significant additional value to the Company and supports its diversification into the burgeoning energy mineral sector in Tanzania.
On a separate front, the Votorantim MOU is also a welcome development and, contingent on proceeding to a definitive agreement, will allow the Company to accelerate exploration over its nickel- PGM-gold prospective Haneti project for which results to date have been very encouraging. A key provision in the MOU requires Votorantim to expend up to GBP2.7M on exploration over a three year earn-in phase to earn a 50% interest in the project with an initial spend of GBP0.5M required by the end of 2012.
Exploration
As well as being very active on the corporate acquisition and joint venture negotiation fronts during the period, Kibo completed its Stage 1 exploration programme on its projects at Lake Victoria, Haneti and Morogoro. I am delighted to report that results are very encouraging and provide the Company with some drill targets for testing during early Stage 2 work which is to commence shortly. The results have also resolved areas for follow up with more detailed surface exploration in order to identify further targets that may warrant drilling in due course. An Operations Update which is being released in conjunction with these Interim Results provides detailed information on the Stage 1 exploration and the results obtained.
In conclusion, I wish to thank Shareholders for their support while we implement the corporate restructuring currently underway that is necessitated by our acquisition of MEL and Mayborn. As you are aware, the Company's shares remain suspended on AIM to allow us complete this work which I am glad to report is near completion and I anticipate that share trading will recommence before the end of July 2012 with re-admission of the Company to AIM.
Christian Schaffalitzky
Chairman
Unaudited condensed consolidated interim statement of comprehensive income
For the six months ended 31 March 2012
| 6 months to | 6 months to | 12 months to |
| 31 March | 31 March | 30 September |
| 2012 | 2011 | 2011 |
|
|
|
|
Continuing Operations | GBP | GBP | GBP |
Administrative expenses | (245,410) | (421,132) | (831,342) |
Write down of exploration costs | - | - | (2,442,897) |
Share based payments | - | - | (424,570) |
Operating Loss | (245,410) | (421,132) | (3,698,809) |
Finance income | 2,372 | - | 7,248 |
Loss on ordinary activities | |||
before tax for the period | (243,038) | (421,132) | (3,691,561) |
Tax | - | - | - |
Loss for the period | (243,038) | (421,132) | (3,691,561) |
Other comprehensive income: |
|
|
|
Exchange differences on | |||
translating foreign operations | (11,988) | (3,657) | (74,656) |
Other comprehensive income for the |
|
|
|
period, net of tax | (11,988) | (3,657) | (74,656) |
Total comprehensive income for the |
|
|
|
period | (255,026) | (424,789) | (3,766,217) |
Loss for the period attributable to |
|
|
|
Owners of the parent | (243,038) | (421,132) | (3,691,561) |
Total comprehensive income | |||
attributable to |
|
|
|
Owners of the parent | (255,026) | (424,789) | (3,766,217) |
Loss per share (pence) | 0.06 | 0.15 | 1.12 |
Headline Loss per share (pence) | 0.06 | 0.15 | 1.12 |
Unaudited condensed consolidated interim statement of financial position
As at 31 March 2012
| 6 months to | 6 months to | 12 months to |
| 31 March | 31 March | 30 September |
| 2012 | 2011 | 2011 |
| GBP | GBP | GBP |
Assets |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment | - | 743 | - |
Intangible assets | 4,391,056 | 6,223,672 | 3,853,550 |
Total non-current assets | 4,391,056 | 6,224,415 | 3,853,550 |
Current assets |
|
|
|
Trade and other receivables | 108,532 | 30,996 | 52,965 |
Cash and cash equivalents | 862,562 | 568,243 | 937,084 |
Total current assets | 971,094 | 599,239 | 990,049 |
Total assets | 5,362,150 | 6,823,654 | 4,843,599 |
Equity |
|
|
|
Called up share capital | 3,545,915 | 2,903,439 | 3,231,898 |
Share premium | 6,285,809 | 5,211,929 | 5,887,327 |
Translation reserve | (97,152) | (14,165) | (85,164) |
Share options | 456,820 | 32,250 | 456,820 |
Retained earnings | (4,997,717) | (1,484,250) | (4,754,679) |
Total equity | 5,193,675 | 6,649,203 | 4,736,202 |
Liabilities |
|
|
|
Current liabilities |
|
|
|
Trade and other payables | 168,475 | 174,451 | 107,397 |
Total current liabilities | 168,475 | 174,451 | 107,397 |
Total equity and liabilities | 5,362,150 | 6,823,654 | 4,843,599 |
Unaudited condensed consolidated interim statement of changes in equity
For the six months ended 31 March 2012
|
|
| Share |
|
|
| based |
| Share | Share | payment |
| capital | premium | reserve |
| GBP | GBP | GBP |
Balance at 1 October 2010 | 2,132,295 | 3,533,115 | 32,250 |
Other comprehensive income - |
|
|
|
exchange differences on translating |
|
|
|
foreign operations | - | - | - |
Loss for the period | - | - | - |
Total comprehensive income | - | - | - |
Issue of share capital |
|
|
|
(net of expenses) | 771,144 | 1,678,814 | - |
Balance at 31 March 2011 | 2,903,439 | 5,211,929 | 32,250 |
Balance at 1 April 2011 | 2,903,439 | 5,211,929 | 32,250 |
Other comprehensive income - |
|
|
|
exchange differences on translating |
|
|
|
foreign operations | - | - | - |
Loss for the period | - | - | - |
Total comprehensive income | - | - | - |
Share based options | - | - | 424,570 |
Issue of share capital (net of expenses) | 328,459 | 675,398 | - |
Balance at 30 September 2011 | 3,231,898 | 5,887,327 | 456,820 |
Other comprehensive income - |
|
|
|
exchange differences on translating |
|
|
|
foreign operations | - | - | - |
Loss for the period | - | - | - |
Total comprehensive income | - | - | - |
Issue of share capital (net of expenses) | 314,017 | 398,482 | - |
Balance at 31 March 2012 | 3,545,915 | 6,285,809 | 456,820 |
| Translation | Retained |
|
| reserve | earnings | Total |
| GBP | GBP | GBP |
Balance at 1 October 2010 | (10,508) | (1,063,118) | 4,624,034 |
Other comprehensive income - |
|
|
|
exchange differences on translating |
|
|
|
foreign operations | (3,657) | - | (3,657) |
Loss for the period | - | (421,132) | (421,132) |
Total comprehensive income | (3,657) | (421,132) | (424,789) |
Issue of share capital |
|
|
|
(net of expenses) | - | - | 2,449,958 |
Balance at 31 March 2011 | (14,165) | (1,484,250) | 6,649,203 |
Balance at 1 April 2011 | (14,165) | (1,484,250) | 6,649,203 |
Other comprehensive income - |
|
|
|
exchange differences on translating |
|
|
|
foreign operations | (70,999) | - | (70,999) |
Loss for the period | - | (3,270,429) | (3,270,429) |
Total comprehensive income | (70,999) | (3,270,429) | (3,341,428) |
Share based options | - | - | 424,570 |
Issue of share capital (net of | |||
expenses) | - | - | 1,003,857 |
Balance at 30 September 2011 | (85,164) | (4,754,679) | 4,736,202 |
Other comprehensive income - |
|
|
|
exchange differences on translating |
|
|
|
foreign operations | (11,988) | - | (11,988) |
Loss for the period | - | (243,038) | (243,038) |
Total comprehensive income | (11,988) | (243,038) | (255,026) |
Issue of share capital (net of |
|
|
|
expenses) | - | - | 712,499 |
Balance at 31 March 2012 | (97,152) | (4,997,717) | 5,193,675 |
Unaudited condensed consolidated interim statement of cash flow
For the six months ended 31 March 2012
| 6 months to | 6 months to | 12 months to |
| 31 March | 31 March | 30 September |
| 2012 | 2011 | 2011 |
| GBP | GBP | GBP |
|
|
|
|
Operating loss for the period | (243,038) | (421,132) | (3,691,561) |
Adjusted for: |
|
|
|
Depreciation | - | 563 | 1,306 |
Investment revenue | (2,372) | - | (7,248) |
Foreign exchange loss | (11,988) | (3,657) | (74,656) |
Share based payments | - | - | 424,570 |
Operating income before working | |||
capital changes |
|
|
|
Change in trade and other | |||
receivables | (55,568) | (8,015) | (29,984) |
Change in trade and other payables | 61,078 | 86,777 | 19,722 |
Write down of exploration costs | - | - | 2,442,897 |
Cash generated from Group | |||
operations | (251,888) | (345,464) | (914,954) |
Cash flows from investing activities |
|
|
|
Expenditure on exploration | |||
activities | (537,506) | (257,609) | (330,385) |
Net cash used in investing | |||
activities | (537,506) | (257,609) | (330,385) |
Cash flows from financing activities |
|
|
|
Proceeds from issue of share capital | 712,500 | 749,957 | 1,753,815 |
Investment Income | 2,372 | - | 7,249 |
Net cash proceeds from financing | |||
activities | 714,872 | 749,957 | 1,761,064 |
Net increase in cash and cash | |||
equivalents | (74,522) | 146,884 | 515,725 |
Cash and cash equivalents at | |||
beginning of period | 937,084 | 421,359 | 421,359 |
Cash and cash equivalents at end | |||
of period | 862,562 | 568,243 | 937,084 |
Notes to the unaudited condensed consolidated interim financial statements
For the six months ended 31 March 2012
1. General information
Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The Group financial statements consolidate those of the Company and its subsidiaries (together referred to as the "Group"). The Company's shares are listed on the Alternative Investment Market ("AIM") of the London Stock Exchange and from the 30 May 2011 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 gold and other minerals in Tanzania.
2. Statement of Compliance and basis of preparation
The Financial Statements are for the six months ended 31 March 2012. They do not include all the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the year ended 30 September 2011, which were prepared under International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").
The financial information is prepared under the historical cost convention and in accordance with the recognition and measurement principles contained within IFRS as endorsed by the EU.
The comparative amounts in the Financial Statements include extracts from the Company's consolidated financial statements for the year ended 30 September 2011. These extracts do not constitute statutory accounts in accordance with the Irish Companies Acts 1963 to 2009.
3. Loss per share
Basic earnings per share
The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
| 6 months to | 6 months to | 12 months to |
| 31 March | 31 March | 30 September |
| 2012 | 2011 | 2011 |
| GBP | GBP | GBP |
Loss for the year attributable to | |||
equity holders of the parent | (243,038) | (421,132) | (3,691,561) |
Weighted average number of | |||
ordinary shares for the |
|
|
|
purposes of basic earnings | |||
per share | 388,490,167 | 279,596,711 | 331,040,217 |
Basic loss per ordinary share (pence) | 0.06 | 0.15 | 1.12 |
4. Called up share capital and share premium
Authorised share capital of the company is 800,000,000 ordinary shares of 0.01 euro each.
Details of issued capital are as follows:
|
|
|
|
| Number of |
|
|
| Shares |
|
|
| Ordinary | Nominal | Share |
| shares of | Value | Premium |
| EUR0.01 each | GBP | GBP |
|
|
|
|
At 1 October 2010 | 253,925,874 | 2,132,295 | 3,533,115 |
Shares issued in period (net of | |||
expenses) for cash | 30,666,667 | 269,491 | 480,466 |
Shares issued in the period (net of | |||
expenses) for acquisition of Morogoro | |||
Gold Limited | 56,666,667 | 501,653 | 1,198,348 |
Balance at 31 March 2011 | 341,259,208 | 2,903,439 | 5,211,929 |
Shares issued in period (net of | |||
expenses) for cash | 36,370,303 | 328,459 | 675,398 |
Balance at 30 September 2011 | 377,629,511 | 3,231,898 | 5,887,327 |
Shares issued in period (net of | |||
expenses) for cash | 37,500,000 | 314,017 | 398,482 |
Balance at 31 March 2012 | 415,129,511 | 3,545,915 | 6,285,809 |
Enquiries
Louis Coetzee | +27 (0)83 2606126 | Kibo Mining plc | Chief Executive Officer |
Stuart Laing | +61 8 9480 2506 | RFC Ambrian | Nominated Adviser |
|
| Limited | |
Andreas Lianos | +27 (0)83 4408365 | River Group | Corporate Adviser and |
|
|
| Designated Adviser |
|
|
| (AltX) |
Nick Bealer | +44 (0)207 7109612 | Cornhill | Broker (Corporate |
|
| Capital Ltd | Broking) |
Matthew Johnson | +44 (0)207 7968829 | Northland | Broker (Assistant |
|
| Capital | Director, Corporate |
|
|
| Finance) |
Matt Beale | +44 (0)7966 389196 | Fortbridge | Public Relations |
Review by Qualified Person
The information in this announcement that relates to mineral resources is based on information from a NI 43-101 compliant technical report with an effective date of 19 April 2012 authored by CD van Niekerk, Pr.Sci.Nat. of Gemecs (Pty) Limited in South Africa. CD van Niekerk has at least five years experience within the sector which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a qualified person under the AIM Rules. CD van Niekerk consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
General Background & Strategy
Kibo is a public company registered in Ireland (company number 451931). Its registered office is Kibo Mining plc, Suite 3, One Earlsfort Centre, Lower Hatch Street, Dublin 2, Ireland. Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM on 27 April 2010 and AltX in South Africa on 30 May 2011.
The Board of Kibo is composed of experienced professionals spanning mineral exploration, mine development, mining finance and financial control of public companies. It is supported by well trained and motivated Tanzanian staff that operates from Kibo's exploration offices in Dar es Salaam and Mwanza.
The mineral assets of the Company comprise three existing and two newly acquired projects in Tanzania - Haneti (nickel, platinoid elements and gold), Morogoro (Gold) and Lake Victoria (Gold) which give Kibo access to over 18,000 km2 of early stage exploration licences in Tanzania's premier gold mining region, the Lake Victoria Goldfield and within the newly emerging gold exploration regions in eastern Tanzania.
The Company has recently also acquired, subject to certain suspensive closing conditions and approvals, coal and uranium exploration projects as publicly announced on 2 April 2012 in accordance with its multi-commodity exploration strategy.
Kibo's objective is to enhance Shareholder value through acquisition, exploration and development of mineral assets in Tanzania. This objective will be pursued primarily through active exploration, particularly drilling on its current projects and by using the Company's experience in Tanzania to acquire further quality mineral projects on competitive terms that can be quickly evaluated and taken to the next stage of development. Kibo will undertake continual risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.
Updates on the Company's activities are regularly posted on its website www.kibomining.com
London
Corporate and Designated Advisor
River Group
21 June 2012