ENP Newswire -
Release date- 27062014 -
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 end of July, will be announced shortly.
Highlights from the Chairman,
Key appointments to Rukwa Coal to
RCPP included in
Completion of successful field programmes at Imweru (gold) and Haneti (nickel-PGM) including drilling and gold resource update at the former
Board re-organisation including appointment of
I am pleased to introduce Kibo's 2013 Annual Report which records significant progress in our strategy of moving Kibo (the 'Company') from a junior explorer to a mineral development company. This progress is seen in the milestones we have reached in relation to both the Rukwa Coal to
On the RCPP, during the reporting period, we have acquired support from both the Tanzanian Government and major global energy producers for the development of this much needed power generating capacity in
The inclusion of the project in the Tanzanian National Strategic Energy Plan and the strengthening of our project team will allow us to develop rapidly the planned Rukwa Development Programme. I would like to welcome
We also announced the engagement of
In addition to the RCPP, your Company made steady progress across its other commodity streams, notably in gold and base metals. In regard to gold, we were able to take advantage of a distressed asset disposal by one of our competitors to acquire a high quality gold exploration portfolio in northern
The portfolio included brownfields projects with pre-defined resources at Imweru and Lubando where Kibo holds a 90% interest, as well as earlier stage projects with some well-defined drill ready gold targets from exploration by previous operators. A drill programme was carried out towards the end of 2013 at the Imweru property with the objective of increasing the quality and quantity of the pre-existing NI 43-101 resource estimate of 629,600 oz. (19.5 million tonnes at 1.1 gram per tonne).
The eastern part of the pre-existing NI 43-101 Imweru resource was re-stated to a lower value as it partly falls within a licence no longer part of the Imweru project block. However, the net effect of theincrease in estimated resource over the recently drilled central zone of the resource is 550,000 oz. of which 495,000 oz, or 90% is attributable to Kibo.
Taken together with the estimated gold resource at Lubando of 160,000 oz., of which 144,000 oz or 90% is attributable to Kibo. Kibo's combined gold resource estimate for its projects in the
It is encouraging that our independent technical consultant, Tetra Tech EBA, has acknowledged in its report the potential to materially increase the resource by further drilling at Imweru and on a number of other proximal targets within the project region that remain to be tested.
On the base metal front, we implemented a comprehensive field exploration programme at our Haneti nickel-PGM project during 2013, funded by Brazilian multi-national
On the Corporate side, we implemented a capital re-organisation during the early part of 2013 which was approved by shareholders at an EGM on
During the audit and in finalisation of the Annual Report the auditors drew the board's attention to the requirements of IAS36 of the International Financial Reporting Standards ('IFRS') which requires that the board undertakes a regular review, at least annually, of the value of the assets as disclosed in the Financial Statements so as to disclose all assets at their fair value taking the current state of affairs of the world economy and the stage of development of the various projects into account.
This has required that certain assets be impaired to the extent necessary. The major adjustments were made against the Company's Rukwa coal and Pinewood uranium assets. Adoption of this policy will require an annual review and adjustment as to the value of assets as and when new information comes to hand or circumstances surrounding the assets change.
In summary, our capital re-organisation, board changes and new appointments for RCPP implemented during 2013 and early 2014 give us the appropriate corporate structure to face the challenges ahead. I am confident that these changes will enhance our ability to deliver on the RCPP in particular. It only remains for me to thank our CEO
I also wish to thank my fellow board members for their valuable insights, our advisors for their on-going guidance and the Tanzanian Government for their support of our development plans. We hope to repay this support with the completion of the RCPP, a much needed energy project development which will substantially benefit the country and in particular local communities in southern
Notes to the condensed consolidated financial results for the year ended
1. General information
2. Statement of Compliance and basis of preparation
The condensed consolidated financial results are for the year ended
They do not include all the information required for full financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the period ended
All monetary information is presented in the functional currency of the Company being Great British Pound. The Company's financial statements are prepared on the historical cost basis, other than goodwill and intangible assets which are measured at fair value. The accounting policies have been applied consistently by Group entities. The Group financial results have been prepared on a going concern basis. These unaudited 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
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.
5. Audit opinion
The consolidated financial statements were audited by the Company's auditors, LHM Casey McGrath. The modified auditors report together with the financial statements is available for inspection at the Company's register office. The modified auditors' report contains an emphasis of matter with regard to the going concern of the Group, 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 10, 11, 12 and 18 to the financial statements concerning the valuation of intangible assets, amounts due from Group undertakings and investments in Group undertakings.
The realisation of intangible assets of
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.
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 financial results.
There have been no dividends declared or paid during the current financial period.
9. Going Concern
The condensed consolidated 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.
As the exercise price of the share options and warrants in issue is considerably 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.
During the current period the Company entered into a capital re-organisation transaction whereby every 15 shares previously held were converted into 1 ordinary share. In accordance with IAS 33, the number of ordinary shares outstanding before the event is adjusted for the proportionate change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period presented. Thus the number of shares per the above comparative period has been rested in accordance with IAS 33 in order to accurately present the earnings, dilutive and headline earnings per share.
The Company resolved to decrease the number of shares in issue as well as increase the nominal value of each share, through a capital re-organisation whereby every ordinary shareholder would receive 1 new ordinary share for every 15 previously held ordinary shares, at the revised nominal value of
The total number of existing ordinary shares in the Company on issue as at
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.
Changes to the board of
Chief Executive Officer
Tel: 27 (0)83 2606126
Kibo was established in early 2008 to explore and develop mineral deposits in
Its projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern
This will be achieved primarily through exploration of its own projects and leveraging the Company's experience in
Updates on the Company's activities are regularly posted on its website www.kibomining.com
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