Half Year Results for period ended 31 March 2011

RNS Number : 3526J

Kibo Mining Plc

29 June 2011

 

Kibo Mining Plc

Half year results for the period ended 31 March 2011

Dated: 29 June 2011

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO) the mineral exploration and development company focused on gold and nickel projects in Tanzania, is pleased to announce its unaudited half year results for the period ended 31 March 2011.

Noel O'Keeffe, CEO of the Company, commented today:

"These interim accounts show an increase in our issued share capital following acquisition by the Company of Morogoro Gold Limited and an accompanying equity investment by Mzuri Gold Limited during the period.  Subsequent to 31 March 2011 the Company has completed a listing on AltX of the JSE Limited ("JSE") and completed an additional placing of ZAR12,002,200 (~£1.1 million) with South African investors. I now look forward to a successful exploration programme over the remainder of 2011 which I am confident will continue to increase value in our Tanzanian assets."

Highlights from the Chairman, Christian Schaffalitzky's statement:

·      Recently completed Kibo-Mzuri transaction represents a " significant development for the Company";

·      Successful placing in South Africa raised ~£1.1 million in new funding;

·      Continuing good results from the Haneti nickel project during period and metallurgical testing of ore at the Itetemia project  is now  in progress;

·      Field exploration programmes for 2011 have commenced; and

·      New Tanzanian Mining Act passed during period.

Chairman's Statement

Dear Shareholder,

I am pleased to present our accounts for the six month period ending 31 March 2011. During this period the Company signed an agreement with Cyprus based, Mzuri Gold Limited, which represented a significant development for your Company and provided for new investment, new projects, a dual listing on AltX of the JSE and the appointment of new directors to the Board. I am pleased to report that all the terms of the Kibo-Mzuri Agreement have been completed following the Company's listing on AltX on 30 May 2011 and a placing with South African investors on the 1 June 2011 which raised ZAR12 million ( ~£1.1 million) in new funding. I would like to use this opportunity to welcome Tinus Maree and Wenzel Kerremans to the Board. I know that their experience in the mineral resource sector particularly in finance and operations in Africa will be of great benefit to the Company as we progress. During the reporting period, we reduced our field exploration activity to accommodate the negotiation and completion of the Kibo-Mzuri agreement. However, we completed some field work at our Haneti and Itetemia projects during the period with encouraging results as discussed under "Exploration" below. Following completion of our corporate transaction we have commenced our 2011 field programmes and we look forward to reporting on activities and results over the coming months.

Corporate

I believe that completion of the Kibo-Mzuri agreement marks a significant event in the development of your Company. It has brought on board a strategic partner with previous investment success in Tanzania and who has proven capabilities in the areas of operations and mineral resource financing in Africa. Our expanded ground position gives us access to one of the largest mineral licence portfolios in Tanzania strategically located close to producing mines in the Lake Victoria region of northern Tanzania and within the newly emerging gold areas of central and eastern Tanzania. Our listing on AltX raises our visibility in Africa, provides an additional market through which our projects can be funded and facilitates acquisitions of additional assets in Africa.

Exploration

A field programme was conducted at our Haneti project during the reporting period with results released to the market in early April 2011. The programme comprised follow-up trenching and soil sampling on previously generated high nickel and gold soil anomalies on prospects east of Haneti village. The trenching confirmed anomalous nickel up to 0.4% with associated cobalt over significant widths at the Mwaka and Mihanza hill targets. At Kwahemu Hill infill soil sampling produced a coherent nickel and gold anomaly over 1.5 km and open ended to the west. During 2011, an aerial geophysical survey will be undertaken over the entire prospective nickel belt with drilling to follow on priority targets. At Itetemia, we have continued to investigate mine development options and conducted an on-site assessment during the period with an African mine engineer experienced in small scale mine commissioning and operations. Metallurgical test sampling of Itetemia ore is currently being conducted at Mintek in South Africa and results are expected shortly. Following our successful drilling at Luhala during 2010, we are now planning for follow up drilling at the project during 2011.

Tanzania

The new Tanzanian Mining Act was passed in November 2011 with an increase in mineral royalties (increase from 3% to 4% for gold) and provision for a negotiated free carried interest on projects with capital development costs exceeding USD100 million being the headline changes. There is on-going discussion between the mineral exploration companies and the Government on clarifying some of the issues arising from the transition from the old to the new Mining Act but I believe these are being successfully addressed. There is discussion in Tanzanian Government circles of imposing a super-profit tax on mining companies similar to what is being implemented in Australia. This reflects recent moves by many countries both developed and developing to higher state participation and levying of higher taxes on mining companies encouraged by rising commodity prices. Kibo together with its peers in Tanzania continue to advocate to the Tanzanian Government the implications of endangering foreign investment in the country's mineral resource sector by progressive increases in mining taxes. I am optimistic that the Tanzanian authorities will be sensitive to not compromising the country's status as one of the most attractive mineral exploration destinations in Africa and consider all the issues carefully before implementing further tax increases.

In conclusion, I wish to thank shareholders for their support while we re-structured the Company over the last six months as we now look forward to getting our feet on the ground and implementing our exploration plans in order to unlock the value in our Tanzanian assets.

Christian Schaffalitzky

Chairman

Kibo Mining plc

Unaudited condensed consolidated half yearly statement of comprehensive income

For the six months ended 31 March 2011

		6 months to 31 March 2011	6 months to 31 March 2010	12 months to 30 September 2010
Continuing Operations		£	£	£
Administrative expenses		(421,132)	(347,797)	(478,047)
Operating Loss		(421,132)	(347,797)	(478,047)
Finance income		-	2,947	2,957
Loss on ordinary activities before tax for the period		(421,132)	(344,850)	(475,090)
Tax		-	-	-
Loss for the period		(421,132)	(344,850)	(475,090)
Other comprehensive income:
Exchange differences on translating foreign operations		(3,657)	(28)	(3,296)
Other comprehensive income for the period, net of tax		(3,657)	(28)	(3,296)
Total comprehensive income for the period		(424,789)	(344,878)	(478,386)
Loss for the period attributable to  Owners of the parent		(421,132)	(344,850)	(475,090)
Total comprehensive income attributable to:  Owners of the parent		(424,789)	(344,878)	(478,386)
Loss per share (pence)		0.15	0.21	0.23

 

Unaudited condensed consolidated half yearly statement of financial position

As at 31 March 2011

		6 months to 31 March 2011	6 months to 31 March 2010	12 months to    30 September  2010
		£	£	£
Assets
Non-current assets
Land, property, plant and equipment		743	352	1,306
Intangible assets		6,223,672	4,043,578	4,266,063
Total non-current assets		6,224,415	4,043,930	4,267,369
Current assets
Trade and other receivables		30,996	87,847	22,981
Cash and cash equivalents		568,243	877,076	421,359
Total current assets		599,239	964,923	444,340
Total assets		6,823,654	5,008,853	4,711,709
Equity
Called up share capital		2,903,439	2,132,295	2,132,295
Share premium		5,211,929	3,533,316	3,533,115
Translation reserve		(14,165)	(7,240)	(10,508)
Share options		32,250	-	32,250
Retained earnings		(1,484,250)	(932,878)	(1,063,118)
Total equity		6,649,203	4,725,493	4,624,034
Liabilities
Current liabilities
Trade and other payables		174,451	283,360	87,675
Total current liabilities		174,451	283,360	87,675
Total equity and liabilities		6,823,654	5,008,853	4,711,709

 

Unaudited condensed consolidated half yearly statement of changes in equity

For the six months ended 31 March 2011

	Share  capital	Share premium	Share based payment reserve	Translation reserve	Retained earnings	Total
	£	£	£	£	£	£
Balance at 1 October 2009	1,282,767	2,983,803	-	(7,212)	(588,028)	3,671,330
Other comprehensive income - exchange differences on translating foreign operations	-	-	-	(28)	-	(28)
Loss for the period	-	-	-	-	(344,850)	(344,850)
Total comprehensive income	-	-	-	(28)	(344,850)	(344,878)
Issue of share capital  (net of expenses)	849,528	549,513	-	-	-	1,399,041
Balance at 31 March 2010	2,132,295	3,533,316	-	(7,240)	(932,878)	4,725,493

Balance at 1 April  2010	2,132,295	3,533,316	-	(7,240)	(932,878)	4,725,493
Other comprehensive income - exchange differences on translating foreign operations	-	-	-	(3,268)	-	(3,268)
Loss for the period	-	-	-	-	(130,240)	(130,240)
Total comprehensive income	-	-	-	(3,268)	(130,240)	(133,508)
Share based payments	-	-	32,250	-	-	32,250
Issue of share capital (net of expenses)	-	(201)	-	-	-	(201)
Balance at 30 September 2010	2,132,295	3,533,115	32,250	(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)	771,144	1,678,814	-	-	-	2,449,958
Balance at 31 March 2011	2,903,439	5,211,929	32,250	(14,165)	(1,484,250)	6,649,203

Unaudited consolidated half yearly statement of cash flow

For the six months ended 31 March 2011

		6 months to 31 March 2011	6 months to 31 March 2010	12 months to 30 September 2010
		£	£	£
Operating loss for the period		(421,132)	(344,850)	(475,090)
Adjusted for:
Depreciation		563	1,067	426
Investment revenue		-	(2,947)	(2,957)
Foreign exchange (loss)/gain		(3,657)	-	(3,296)
Share based payments		-	-	32,250
Operating income before working capital changes
Change in trade and other receivables		(8,015)	(85,788)	(20,922)
Change in trade and other payables		86,777	56,703	(138,982)
Foreign exchange differences		-	(28)	-
		_______	_______	________
Cash generated from Group operations		(345,464)	(375,843)	(608,571)
		_______	__________	___________
Cash flows from investing activities
Purchase of intangible assets		(1,957,609)	(215,569)	(438,367)
Interest received		-	2,947	2,957
Net cash used in investing activities		(1,957,609)	(212,622)	(435,410)
Cash flows from financing activities
Proceeds from issue of share capital		2,449,957	1,399,041	1,398,840
Net cash proceeds from financing activities		2,449,957	1,399,041	1,398,840
Net increase in cash and cash equivalents		146,884	810,576	354,859
Cash and cash equivalents at beginning of period		421,359	66,500	66,500
Cash and cash equivalents at end of period		568,243	877,076	421,359

Notes to the unaudited consolidated half yearly financial statements

For the six months ended 31 March 2011

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 on the AltX of the JSE.  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 2011.  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 2010, 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 2010.  These extracts do not constitute statutory accounts in accordance with the Irish Companies Acts 1963 to 2009.

3.   Basic and headline 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 31 March 2011	6 months to 31 March 2010	12 months to 30 September 2010
	£	£	£
Loss for the year attributable to equity holders of the parent	(421,132)	(344,850)	(475,090)
Weighted average number of ordinary shares for the purposes of basic earnings per share	279,596,711	167,179,947	210,675,850
Basic and headline loss per ordinary share (pence)	0.15	0.21	0.23
	_______________	_______________	_______________

 

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	Nominal Value	Share Premium
	Ordinary shares of €0.01 each	£	£
At 1 October 2009	159,477,696	1,282,767	2,983,803
Shares issued in the period (net of expenses) for cash	94,448,178	849,528	549,513
Balance at 31 March 2010	253,925,874	2,132,295	3,533,316
Shares issued in period (net of expenses) for cash	-	-	(201)
Balance at 30 September 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 period 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

5.   Post Balance Sheet events

During May 2011, subsequent to the period end,, Kibo Mining plc was admitted to the ALTX of the JSE ,where it also completed a placing and raised ZAR 12m.

Enquiries:

Noel O'Keeffe	[phone]	Kibo Mining plc	Chief Executive Officer
John Simpson	020 7776 6550	Daniel Stewart & Company Plc	Nominated Adviser
Andrew Lianos	[phone]	River Group	Designated Adviser - JSE
Fiona Kinghorn	020 7448 9820	Alexander David Securities Limited	Joint Broker
Anthony Kluk	020 7628 1128	Loeb Aron & Company Limited	Joint Broker

Updates on the Company's activities are regularly posted on its website www.kibomining.com

 

END

 

 

IR SEIFSUFFSESM