| Thu 21 Jun 2012, 9:07 | | KBO - Kibo Mining Plc - Half year results for the period ended 31 March 2012 |
|
KBO
KBO
KBO - Kibo Mining Plc - Half year results for the period ended 31 March 2012
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
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.
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
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
Date: 21/06/2012 09:07:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
