News Column

Kibo Mining Pretax Loss Widens On Impairment Charge

June 27, 2014

Tom McIvor

LONDON (Alliance News) - Kibo Mining PLC Friday said its pretax loss widened significantly in 2013 due mainly to large impairment charges for the company's Rukwa coal and Pinewood uranium assets.

The Tanzania-focused mineral exploration and development company, which is yet to produce any revenues, said its pretax loss widened to GBP15.6 million from GBP4.5 million the previous year.

The company saw a GBP14.8 million impairment charge, based on fair value losses at both its Rukwa coal and Pinewood uranium assets following a regular review of operations.

Kibo Mining also noted that its exploration expenses increased during the period as it implemented a comprehensive field exploration programme on its Haneti nickel-PGM project, and developed both its Rukwa Coal to Power project and Imweru gold project.

However the company managed to drop its administrative expenses by 74% during the period, reducing some of its losses.

"Kibo has made significant progress during 2013-4 despite the challenging environment, most notably at Rukwa and Imweru," Chief Executive Louis Coetzee said in a statement.

"The Rukwa Coal to Power Project is essential to support the growth of the Tanzanian power sector and I look forward to reporting further progress building on our success to date. Imweru has been a great addition to our asset portfolio which takes us closer to our goal of being a mineral development company," Coetzee added.

Kibo shares were down 8.8% to 1.83 pence on Friday.

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Source: Alliance News

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