Quarterly Report • Jun 14, 2016
Quarterly Report
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RNS Number : 0369B
Kibo Mining Plc
14 June 2016
Kibo Mining Plc
(Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on AIM: KIBO
Share code on the AltX: KBO
ISIN: IE00B97C0C31
("Kibo" or "the Company" or together with its subsidiaries "the Group")
Condensed Consolidated Annual Financial Results of for the year ended 31 December 2015
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the mineral exploration and development company focused on coal, gold, nickel, and uranium projects in Tanzania is pleased to release its condensed consolidated annual financial results for the year ended 31 December 2015. The Company's Annual Report, which contains the full financial statements accompanying this announcement, is in the process of being printed and mailed to shareholders. A copy of this Annual Report will also be available from the Company's website at www.kibomining.com. Details of the date and venue for this year's AGM, which will take place towards the middle of July, will be announced shortly.
Louis Coetzee, CEO of the Kibo, commented today:
"We are pleased to present positive 2015 financial results at a pivotal time in Kibo's development. We are well on the way towards completing our Integrated Bankable Feasibility Study on the flagship Mbeya Coal to Power Project ("MCPP") in co‐operation with our joint development partner, SEPCO III. The positive results from the reports completed during 2015 as outlined in our Annual Report, not only secured a Joint Development Agreement with SEPCO III, but moved Kibo towards becoming a more mature development company. This is well demonstrated by the Company's MCPP Project which has progressed to advanced feasibility status in less than a year. The Company also succeeded in getting all its remaining exploration projects back into active exploration status, and this includes the commencement of two Joint Ventures during 2015."
Comments from the Chairman, Christian Schaffalitzky:
"2015 saw our Company achieve several important milestones that I believe lay the foundations for us to graduate as a mining company from our formative years in exploration. We have reached this critical stage despite another tough year for commodities and a depressed market for mining equities.
The Company's main achievements are:
· The near completion of definitive feasibility studies (DFS) on both the proposed coal mine and its dedicated power plant at our Mbeya Coal to Power Project (MCPP); and
· The completion of a Preliminary Economic Assessment on our Imweru gold project.
In parallel, we continued with exploration at Haneti, where the prospectivity for nickel, copper and platinum group metals was enhanced; and work commenced on our Morogoro gold and Pinewood uranium projects, with our joint venture partner, Metal Tiger plc.
Furthermore, the increase in the carrying value of intangible assets from GBP14.4 million at 31 December 2014 to GBP17.6 million at 31 December 2015 as a result of a reversal of previously recognised impairment reflects the significant progress made with regard to the MCPP." .
Condensed Consolidated Financial Results for the year ended 31 December 2015
Condensed Consolidated Statement of Comprehensive Income
| Year ended 31 December 2015 |
Year ended 31 December 2014 |
|
| Audited | Audited | |
| Continuing operations | £ | £ |
| Revenue | 44,181 | - |
| Administrative expenses | (1,791,358) | (1,500,757) |
| Reversal of impairment of intangible assets | 3,182,240 | 4,695,356 |
| Exploration expenditure | (1,454,216) | (1,073,022) |
| Operating (loss)/ profit | (19,153) | 2,121,577 |
| Investment and other income | 196,315 | 3,427 |
| Profit from ordinary activities before tax | 177,162 | 2,125,004 |
| Taxation | - | - |
| Profit for the period | 177,162 | 2,125,004 |
| Other comprehensive gain: | ||
| Exchange differences on translation of foreign operations | 16,366 | 193,550 |
| Other Comprehensive gain for the period net of tax | 16,366 | 193,550 |
| Total comprehensive profit for the period | 193,528 | 2,318,554 |
| Profit for the period attributable to the owners of the parent | 177,162 | 2,125,004 |
| Total comprehensive profit attributable to the owners of the parent | 193,528 | 2,318,554 |
| Earnings/ (Loss) Per Share | ||
| Basic earnings per share | 0.001 | 0.01 |
| Diluted earnings per share | 0.001 | 0.01 |
| Headline (loss) per share | (0.010) | (0.013) |
Condensed Consolidated Statement of Financial Position
| 31 December 2015 |
31 December 2014 |
|||||
| Audited | Audited | |||||
| £ | £ | |||||
| Assets | ||||||
| Non‑Current Assets | ||||||
| Property, plant and equipment | 7,182 | 3,761 | ||||
| Intangible assets | 17,596,105 | 14,413,865 | ||||
| Total non-current assets | 17,603,287 | 14,417,626 | ||||
| Current Assets | ||||||
| Trade and other receivables | 550,692 | 11,557 | ||||
| Cash and cash equivalents | 189,435 | 186,447 | ||||
| Total current assets | 740,127 | 198,004 | ||||
| Total Assets | 18,343,414 | 14,615,630 | ||||
| Equity and Liabilities | ||||||
| Equity | ||||||
| Called up share capital | 13,210,288 | 12,591,750 | ||||
| Share premium account Treasury Shares |
25,782,519 (44,464) |
23,903,307 - |
||||
| Share based payment reserve | 514,279 | 510,978 | ||||
| Translation reserve | (384,619) | (400,985) | ||||
| Retained deficit | (21,541,386) | (22,229,526) | ||||
| Total Equity | 17,536,617 | 14,375,524 | ||||
| Liabilities | ||||||
| Current Liabilities | ||||||
| Trade and other payables | 306,797 | 240,106 | ||||
| Borrowings | 500,000 | - | ||||
| Total Current Liabilities | 806,797 | 240,106 | ||||
| Total Equity and Liabilities | 18,343,414 | 14,615,630 | ||||
Condensed Consolidated Statement of Changes in Equity
| Share Capital |
Share premium |
Treasury shares | Total share capital | Share based payment reserve | Foreign currency translation reserve | Total reserves |
Retained deficit | Total | ||||||||
| All figures are stated in Sterling | £ | £ | £ | £ | £ | £ | £ | £ | £ | |||||||
| Balance as at 1 January 2014 | 10,998,282 | 23,398,853 | - | 34,397,135 | 977,543 | (594,535) | 383,008 | (24,821,095) | 9,959,048 | |||||||
| Profit for the year | - | - | - | - | - | - | - | 2,125,004 | 2,125,004 | |||||||
| Other comprehensive income- exchange differences on translating foreign operations | - | - | - | - | - | 193,550 | 193,550 | - | 193,550 | |||||||
| Reclassification of share based payment reserve on expired share options issued | - | - | - | - | (466,565) | - | (466,565) | 466,565 | - | |||||||
| Proceeds of share issue of share capital | 1,593,468 | 504,454 | - | 2,097,922 | - | - | - | - | 2,097,922 | |||||||
| 1,593,468 | 504,454 | - | 2,097,922 | (466,565) | 193,550 | (273,015) | (2,591,569) | 4,416,476 | ||||||||
| Balance as at 31 December 2014 | 12,591,750 | 23,903,307 | - | 36,495,057 | 510,978 | (400,985) | 109,993 | (22,229,526) | 14,375,524 | |||||||
| Profit for the year | - | - | - | - | - | 177,162 | 177,162 | |||||||||
| Other comprehensive income - exchange differences on translating foreign operations | - | - | - | - | - | 16,366 | 16,366 | - | 16,366 | |||||||
| Share options and warrants expired or cancelled during the period | - | - | - | - | (510,978) | - | (510,978) | 510,978 | - | |||||||
| Share options issued during the current period | - | - | - | - | 514,279 | - | 514,279 | - | 514,279 | |||||||
| Proceeds of share issue of share capital | 574,074 | 1,879,212 | - | 2,453,286 | - | - | - | - | 2,453,286 | |||||||
| Issue of treasury shares | 44,464 | - | (44,464) | - | - | - | - | - | - | |||||||
| 618,538 | 1,879,212 | (44,464) | 2,453,286 | 3,301 | 16,366 | 19,667 | 688,140 | 3,161,093 | ||||||||
| Balance at 31 December 2015 | 13,210,288 | 25,782,519 | (44,464) | 38,948,343 | 514,279 | (384,619) | 129,660 | (21,541,386) | 17,536,617 | |||||||
Condensed consolidated Statement of Cash Flow
| year ended 31 December 2015 |
year ended 31 December 2014 |
|
| Audited | Audited | |
| £ | £ | |
| Net cash outflows from operating activities | (3,013,680) | (2,358,665) |
| Net cash proceeds from financing activities | 2,955,176 | 2,101,349 |
| Net cash used in investing activities | 61,492 | - |
| Net increase in cash and cash equivalents | 2,988 | (257,316) |
| Cash and cash equivalents at beginning of period | 186,447 | 443,763 |
| Cash and cash equivalents at end of the period | 189,435 | 186,447 |
Notes to the condensed consolidated financial results for the year ended 31 December 2015
1. General information
Kibo Mining Plc ("the Company") is a public limited company incorporated in Ireland. The consolidated annual financial statements consolidate those of the Company and its subsidiaries (together referred to as the "Group"). The Company's shares are listed on the AIM market ("AIM") of the London Stock Exchange plc and 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 coal and other minerals in Tanzania.
2. Statement of Compliance and basis of preparation
The condensed consolidated annual financial results are for the year ended 31 December 2015 are prepared in accordance with framework concepts and the recognition and measurement criteria of International Financial Reporting Standards (IFRS and IFRC interpretations) issued by the International Accounting Standards Board (IASB) as adopted for use in the EU (IFRS, including the SAICA financial reporting guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council, IAS 34 - Interim Financial Reporting), the Listings Requirements of the JSE Limited and the provisions of the Irish Companies Acts, 1963 to 2014 ('the Companies Acts').
These condensed consolidated annual financial results do not include all the information required for full financial statements and should be read in conjunction with the consolidated annual financial statements of the Group for the period ended 31 December 2015, which is available for inspection at the Company's registered offices.
The comparative amounts included in these condensed consolidated financial results include extracts from the consolidated annual financial statements for the period ended 31 December 2014.
All monetary information is presented in the functional currency of the Company being pound Sterling.
The Company's financial statements are prepared on the historical cost basis, other than intangible assets which is measured at fair value. The accounting policies have been applied consistently by Group entities and are similar to those applied in the prior period. The Group financial results have been prepared on a going concern basis.
These condensed consolidated financial results have been extracted from the audited financial statements, but are not itself audited.
3. Statement of Accounting Policies
The accounting policies have been applied consistently to all periods presented in these condensed consolidated financial results using the accounting policies applied by the Group in its 31 December 2014 report, updated for any new accounting standards which became effective in the current year.
4. Responsibility Statement
The directors take full responsibility for the preparation of the report and that the financial information has been correctly extracted from the underlying financial statements. These financial results were prepared under the supervision of the Chief Financial Officer, Andreas Lianos.
5. Audit opinion
The consolidated annual financial statements were audited by the Company's auditors, Saffery Champness. The modified auditors report together with the financial statements is available for inspection at the Company's register offices. The modified auditors' report contains an emphasis of matter with regard to the realisation of certain assets, as follows:
Emphasis of Matter - Realisation of Assets
In forming our opinion on the financial statements, which is not modified, we considered the adequacy of disclosures made in Notes 11, 12 and 20 to the financial statements concerning the valuation of intangible assets, and investments in Group undertakings. The realisation of intangible assets of £17,596,105 (2014: £14,413,865), amounts due from Group undertakings of £27,712,269 (2014: £26,047,465) and investments in Group undertakings of £1,700,000 (2014: £1,700,000) included in the Company Statement of Financial Position are dependent on the discovery and economic exploitation of reserves including the ability of the Group to raise sufficient finance to develop the projects.
6. Subsequent events
The directors are not aware of any matter or circumstance arising since the reporting date which would have a material effect on the consolidated financial results.
7. Litigation
There are currently no arbitration proceedings against the Group, or of which the Group is aware, which may have, or have had in the 12 months preceding the date of this report, a material effect on the consolidated annual financial results.
8. Dividends
There have been no dividends declared or paid during the current financial period.
9. Going Concern
The consolidated annual financial results have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The directors constantly review the business models of the Group and its operating subsidiaries to ensure sustainability and the ability to operate profitably and generate positive cash flows. Funding facilities are also reviewed regularly to ensure that the Group has sufficient facilities in place to finance its operations.
10. Basic, Dilutive and Headline Earnings per share
The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share is as follows:
| Year ended 31 December 2015 (£) |
Year ended 31 December 2014 (£) |
|
| Profit/ (Loss) for the period attributable to equity holders of the parent | 177,162 | 2,125,004 |
| Weighted average number of ordinary shares for the purposes of basic and dilutive loss per share (revised) | 316,986,334 | 193,400,160 |
| Basic earnings/ (loss) per share | 0.001 | 0.01 |
| Dilutive earnings/ (loss) per share | 0.001 | 0.01 |
As the exercise price of the share options and warrants in issue is higher than the current market value as at reporting date, these option and warrants do not have a dilutive impact. Thus there are no dilutive share options or warrants in issue as at year end which decreased the basic loss per share as indicated above.
Headline loss per share
| Reconciliation of headline loss per share: | Year ended 31 December 2014 (£) |
Year ended 31 December 2013 (£) |
|
| Earnings for the period attributable to normal shareholders | 177,162 | 2,215,004 | |
| Loss on the disposal of subsidiaries | 5,762 | - | |
| Reversal of Impairment of Intangible Assets | (3,182,240) | (4,695,356) | |
| Bargain purchase from acquisition of Subsidiaries | (193,425) | - | |
| Impairment of goodwill on acquisition of Subsidiaries | 20,057 | - | |
| Headline (Loss) for the period attributable to normal shareholders | (3,172,687) | (2,570,352) | |
| Headline loss per ordinary share | (0.010) | (0.013) | |
| Dilutive headline loss per ordinary share | (0.010) | (0.013) |
11. Called up share capital and share premium
Details of authorised and issued capital are as follows:
| 2015 | 2014 | |
| Authorised equity | ||
| 800,000,000 Ordinary shares of €0.015 each (2014: 400,000,000 Ordinary shares of €0.015 each) 3,000,000,000 Deferred shares of €0.009 each |
€12,000,000 €27,000,000 |
€6,000,000 €27,000,000 |
| €39,000,000 | €33,000,000 | |
| Allotted, issued and fully paid shares | ||
| (2015: 330,928,714 Ordinary shares of €0.015 each | £3,953,213 | - |
| (2014: 274,238,757 Ordinary shares of €0.015 each) | - | £3,334,675 |
| 1,291,394,535 Deferred shares of €0.009 each | £9,257,075 | £9,257,075 |
| £13,210,288 | £12,591,750 | |
| Number of Shares | Ordinary Share Capital (£) |
Deferred Share Capital (£) |
Share Premium (£) |
Treasury shares (£) |
|
| Balance at 31 December 2014 | 274,238,757 | 12,591,750 | 9,257,075 | 23,903,307 | - |
| Shares issued during the period | 56,689,957 | 618,538 | - | 1,879,212 | (44,464) |
| Balance at 31 December 2015 | 330,928,714 | 13,210,288 | 9,257,075 | 25,782,519 | (44,464) |
12. Condensed Consolidated Segmental Analysis
Management currently identifies two divisions as operating segments - mining and corporate. These operating segments are monitored and strategic decisions are made based upon them together with other non-financial data collated from exploration activities. Principal activities for these operating segments are as follows.
| 2015 Group | Mining and Exploration | Corporate | 31 December 2015 (£) |
| Group | Group | Group | |
| Revenue | 44,181 | - | 44,181 |
| Administrative cost | - | (1,791,358) | (1,791,358) |
| Exploration expenditure | (1,454,216) | - | (1,454,216) |
| Net reversal of impairment of assets | 3,182,240 | - | 3,182,240 |
| Investment and other income | 2,890 | 193,425 | 196,315 |
| Tax | - | - | - |
| Profit/ (Loss) after tax | 1,775,095 | (1,597,933) | 177,162 |
| 2014 Group | Mining and Exploration | Corporate | 31 December 2014 (£) |
| Group | Group | Group | |
| Administrative cost | - | (1,500,757) | (1,500,757) |
| Exploration expenditure | (1,073,022) | - | (1,073,022) |
| Net reversal of impairment of assets | 4,695,356 | - | 4,695,356 |
| Investment and other income | 3,427 | - | 3,427 |
| Tax | - | - | - |
| Profit/ (Loss) after tax | 3,625,761 | (1,500,757) | (2,125,004) |
| 2015 Group | Mining | Corporate | 31 December 2015 (£) |
| Group | Group | Group | |
| Assets | |||
| Segment assets | 17,816,927 | 526,487 | 18,343,414 |
| Liabilities | |||
| Segment liabilities | 139,905 | 666,892 | 806,797 |
| Other Significant items | |||
| Depreciation | 21,685 | - | 21,685 |
| 2014 Group | Mining | Corporate | 31 December 2014 (£) |
| Group | Group | Group | |
| Assets | |||
| Segment assets | 14,417,626 | 198,004 | 14,615,630 |
| Liabilities | |||
| Segment liabilities | - | 240,106 | 240,106 |
| Other Significant items | |||
| Depreciation | 2,565 | - | 2,565 |
13. Changes to the board of Kibo Mining Plc
No changes were made to the board during the current financial year.
By order of the Board
8 June 2016
| Directors: | Christian Schaffalitzky | Chairman (Non-Executive) |
| Louis Coetzee | Chief Executive Officer (Executive) | |
| Noel O'Keeffe | Technical Director (Executive) | |
| Andrew Lianos | Finance Director (Executive) | |
| Lukas Marthinus Maree | Non-Executive Director | |
| Wenzel Kerremans | Non-Executive Director | |
| Company Secretary: | Noel O'Keeffe | |
| Auditors: | Saffery Champness |
Kibo Mining - Notes to editors
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The Company was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania's largest mineral right portfolios, including the Haneti (nickel, PGE and gold), Morogoro (gold), Lake Victoria (gold), and Pinewood (coal & uranium) projects.
Its projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has prioritised infrastructural development attracting significant recent investment in coal and uranium.
Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve whilst benefitting from strategic relationships with industry leaders with special skills and competencies within their chosen fields.
Updates on the Company's activities are regularly posted on its website www.kibomining.com
Johannesburg
14 June 2016
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
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