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Northland Capital Partners View on the City: Global Energy Development and Kibo Mining




  • Llanos Gross production is ahead of last year, though the easing of the oil price has offset some of the production gain. The company has also benefited from cost reductions due to lower water disposal costs.
  • In the Magdalena portfolio, farm-out talks are continuing for Bolivar. In Bocachico, the company successfully completed an intervention of its existing of Torcaz-2 well and achieved sustained production at 75 bopd which is material. 
  • No change to forecasts, price target or BUY rating.


NORTHLAND UK VIEW:  No news as yet on the farm-out process where talks continue but a pleasing rebound from last year’s operating difficulties at Llanos. The Rio Verde water disposal well and more consistent production (last year Tilodiran-2 experienced 120 days of downtime) should significantly enhance this year’s profitability as per our forecasts. The company remains inexpensive on earnings and robust given cash generation. On reserves metrics, the shares are exceptionally cheap and the Magdalena assets remain potentially high impact. We await further news as to the appraisal and farm out prospects in Bocachico and Bolivar respectively. 





  • 15 month results to 31/12/12, following a change in the Company’s financial year end from September to December.
  • LBT for 15m FY12 was £4.5m up from £2.4m for 12m FY11.
  • LPS for 15m FY12 increased to 0.83p per share from 0.74p per share for 12m FY11.
  • Cash and cash equivalents for 15m FY12 decreased to £0.1m from £0.9m for 12m FY11.
  • Since FY12 Kibo has raised £1.5m (gross).
  • Price target and forecasts under review.



NORTHLAND UK VIEW: Initial exploration work by Kibo conducted over the 15 months of FY12 have resulted in the definition of follow up trenching and drill targets at its Lake Victoria, Haneti and Morogoro projects. On the Haneti Ni-PGM-Au project JV partner Brazilian industrial group, Votorantim is expending £2.7m on exploration over three years to earn a 50% interest in the project. Kibo anticipates that £0.5m will be spent at Haneti during H213. At Lake Victoria, Morogoro and Pinewood Kibo is deferring all exploration work until 2014, to preserve funds. In H113, Kibo secured the Tanzanian Government’s support for its Rukwa Coal to Power project and selected Korean East West Power Co., owned by the Korean Government, as its preferred partner for the development of Rukwa. A scoping study is expected to commence at Rukwa during H213, likely to be a significant milestone for the company.





  • Revenue +133% to £12.1m but this included a full contribution from the 1Spatial acquisition (revenue of £9.7m) versus two months last time. Avisen division revenue -39.4% to £2.0m and Storage Fusion revenue flat at £0.4m. 
  • All trading businesses made positive adj. EBITDA contributions but overall an adj. LBITDA of £0.5m, reflecting central costs of £2.0m. There were also impairment charges of £2.5m associated with the Avisen and Storage Fusion goodwill.
  • During FY12 restructured and rebranded the 1Spatial business; launched 1Edit, a spatial editing tool; and won contracts with the US Census and Ordnance Survey Ireland (for new 1SMS product).
  • Post period end announced the placing to raise £17m to fund the acquisition  of 90% of Star-Apic, a European GIS business, for £5.2m; additional working capital; sales and support centre in the Middle East; product development, marketing and further potential acquisitions. 
  • Pro forma cash of £14m.



NORTHLAND UK VIEW: Focus of management is on the opportunity around spatial data and the extension into Big Data, a technology area generating considerable interest. In the 1Spatial business there is a strong competence in providing the tools for handling and analysing large volumes of data. This capability has been bolstered by the Star-Apic stake and with the recent placing, it has firepower to pursue the opportunity. The Avisen and Storage Fusion businesses look increasingly non-core.


1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.




This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at 

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