Kibo Energy PLC (LON:KIBO)

Kibo Energy PLC (LON:KIBO)


Share Price
1.73 p
Change
-0.125 (-6.76 %)
Market Cap
£11.04 m
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Kibo Energy PLC

Kibo Energy is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on the development of thermal coal power projects in Tanzania, Botswana and Mozambique. These jurisdictions provide a stable operating environment for Kibo and all share an acute need for consistent power. Recently, the Company also finalised an agreement  with a UK company for an...

EPIC: KIBO
Market: LSE:KIBO
JSE:KBO
52-week High/Low: 7.38p / 1.43p
Sector: Mining
Market Cap: 11.04M
Website: kibo.energy
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Kibo Energy PLC Snapshot

Kibo Energy is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on the development of thermal coal power projects in Tanzania, Botswana and Mozambique. These jurisdictions provide a stable operating environment for Kibo and all share an acute need for consistent power. Recently, the Company also finalised an agreement  with a UK company for an acquisition that, will give Kibo an entry into the UK Reserve Power market. In time it plans to introduce the Reserve Power market model to its operations in Africa.

Kibo’s flagship project is the Mbeya Coal to Power Project in southern Tanzania which involves the development of the Mbeya Coal Mine, a 1.5Mt p/a mining operation and the Mbeya Power Plant, a 300 MW mine-mouth thermal power station.

In April 2018, the Company completed its acquisition of an 85% interest in the Mabesekwa Coal Independent Power Project (Mabesekwa Project) in Botswana via an all share transaction. The Mabesekwa Project is at the feasibility stage – a completed Mining Scoping Study highlighted a 30-year Life of Mine with a Power Pre–Feasibility Study indicating maximum power capacity of 600 MW based on a coal delivery rate of 3.2 Mt p/a.

Kibo announced in June 2018 that it had signed a Joint Venture Agreement with Mozambique energy company Termoeléctrica de Benga S.A. to participate in the further assessment and potential development of the Benga Independent Power Project (Benga Project) including the right to construct and operate a 150-300 MW coal-fired power station. The Benga Project currently holds a suite of authorisations and agreements in addition to lease title over land on which a coal-fired power station may be built near various thermal coal producers which could be a source of feedstock.

In October 2018, the Company announced that it had  acquired a 60% equity interest in Mast Energy Development (MED), a private UK registered company targeting the development and operation  of flexible power plants to service the Reserve Power generation market. Under the terms of the deal, the Company acquired a 60% shareholding in MED for a consideration of £300,000 payable to existing MED shareholders in new Kibo shares and a share of future project revenue royalties which will be reinvested in the Company in the short term to an amount of £2.2 million.

Mbeya Coal to Power Project (“MCPP”)
 

Key Facts

 
 
  • Project Type | Development of coal mine and associated thermal power plant

  • Location | Songwe Region, Tanzania

  • Development Stage | Integrated Bankable Feasibility Study completed

  • Kibo’s Interest | 97.5%

  • Resource | Kibo has 97.5% interest in a 120 Mt Coal Resource (Rukwa)

  • Technical Partners | SEPCOIII (EPC power plant & power transmission contracts awarded), GE (collaborative agreement), Tractebel & Minxcon

  • Next Steps |

    1. Finalise Power Purchase Agreement and achieve Financial Close
    2. Commence construction phase of Project
       

    Project Details

     
     

    The Mbeya Project is located in the Songwe Region of Tanzania and covers approximately 2000 sq. km with Kibo holding a 97.5% interest in the project. An EPC contactor, SEPCOIII, is already in place and the Power Purchase Agreement is currently being negotiated.

    The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal Coal Resource. A Definitive Feasibility Study has been conducted on the mining project which underpins its value with an indicated IRR of 69.2%. The 300 MW mouth-of-mine thermal power station has long term scalability to 1000MW, with a full Power Feasibility Study that has been completed, highlighting an annual power output target of 1840 GWh based on annual average coal consumption of approximately 1.5 Mt. An Integrated Bankable Feasibility Study report for the entire project indicated total potential revenues of US$ 7.5-8.5 billion over an initial 25-year mine life, post tax equity IRR between 21-22%, debt pay-back period of 11-12 years and a construction period of 36 months.

     

    Mabesekwa Coal Independent Power Project (“MCIPP”)

    Key Facts

     
     
    • Project Type | Development of coal mine and associated thermal power plant
    • Location | Central District, Botswana

    • Development Stage | Definitive Feasibility Study has commenced

    • Kibo’s Interest | 85%

    • Resource | Kibo has 85% interest 303 Mt Coal Resource (Mabesekwa)

    • Major Partners & Contractors | SEPCOIII, GE

    • Next Steps |

      1. Complete Definitive Feasibility Studies (Mine & Power Plant)
      2. Complete Integrated Bankable Feasibility Study (whole project)

    Project Details

     
     

    The Mabesekwa Project is located approximately 40km west of the village of Tonata and approximately 50km south of Francistown, Botswana’s second largest city. Kibo envisages the Project as a coal-based integrated mine-mouth power plant, with potential for incorporation of a solar component as part of the further studies to be conducted on the Project by Kibo. Certain aspects of the Projects have been advanced previously, including water and land use permits and environmental certification which are now in place.

    The power plant fuel source is envisaged to be drawn from the Mabesekwa Coal Resource. The Project will consist of a 300Mt subset of this 777Mt Coal Resource. On 21 Jun 2018, Kibo announced a Maiden Coal Resource Statement for the MCIPP indicating total a mineable In-situ Coal Resource of 302.9 million tonnes (257.5 Mt attributable to Kibo on an 85% basis) as per the SAMREC categories below (Refer Table 1 below for Coal Resource Statement summary:

    Resource Category Mineable In-Situ Tonnes
    (100% basis)
    Mineable In-Situ Tonnes
    (85% attributable)
    % of Total
    Measured 56.2 47.8 18.6
    Indicated 187.0 159.0 61.7
    Inferred 59.7 50.7 19.7
    Total 302.9 257.5 100
     
     

    The SAMREC compliant 303Mt coal Resource and a confirmed coal quality completes a key pillar for the BFS for the MCIPP. With water and land use permits and environmental certification in place, as well as a PFS on the coal mine and scoping study on the power plant, a clear development path with deliverables that will increase the inherent value of the Project is visible.

    Benga Independent Power Project (“BIPP”)

    Key Facts

     
     

     

    • Project Type | Development of thermal coal plant

    • Location | Tete Region, Mozambique

    • Development Stage | Pre-Feasibility Study in progress

    • Kibo’s Interest | 65% with option to go to 85%

    • Resource | n/a – coal for power plant to be sourced from local mines

    • Major Partners & Contractors | SEPCOIII, GE, Termoeléctrica

    • Next Steps |

      1. Completion of Pre-Feasibility study
      2. Commence Definitive Feasibility Study

     

    Project Details

     
     

    Kibo holds an 85% interest in the Benga Power Project which is located in the Tete province of Mozambique. Benga is the Company’s first pure energy project and the intention is to develop a coal-fired power station with feedstock provided by regional coal producers.

    In place already is authorisation by the Mozambique Ministry of Mineral Resources and Energy to proceed with the final feasibility on the Benga Project as well as an MoU with Electricidade de Moçambique (“EDM”); the major public company in Mozambique for the generation, transmission and distribution of electricity, to collaborate in the development of a coal-fired power plant.

    The JV holds a preliminary five-year lease title over 59 hectares of unimproved land that is expected to become a definitive for 50 years once a power plant is under construction.

    The pre-feasibility study required by authorities is well advanced with over £230,000 spent to date. As well as obtaining Project land title this expenditure has gone towards studies on concept of constructing a 165 MW coal-fired power plant on the leased land using relocated assets from Europe, including the first phase of an environmental impact assessment and first phase grid integration study;

    Discussions with and formal letters of comfort received from:

    • Various power supply off-takers – indicating initial demand for up to approximately 150MW; and
    • Thermal coal producers stating willingness and intent to discuss terms and conditions for the supply of thermal coal as a feedstock for the planned power plant

 

Christian Schaffalitzky, BA (Mod), FIMMM, PGeo, CEng, Age 65

Chairman (Non-Executive)

Christian Schaffalitzky is managing director of Eurasia Mining plc a company trading on AIM. From 1984 to 1992, he founded and managed the international minerals consultancy, CSA Group, now CSA Global Pty Ltd. With over 30 years’ experience in minerals exploration, Christian Schaffalitzky was a founder of Ivernia West plc, where he led the exploration and was instrumental in the discovery and development of the Lisheen zinc deposit in Ireland. More recently, he was managing director of Ennex International plc an Irish quoted mineral exploration company, focused on zinc development projects. He has also been engaged in precious and base metal mineral exploration and development in the former Soviet Union and is a former independent director on the boards of Russian companies, Raspadskaya Coal Company and Chelyabinsk Zinc and a director of two other listed investment companies.

 
 

Louis Coetzee, BA, MBA, Age 54

CEO (Executive)

Louis Coetzee has 25 years experience in business development, promotion and financing in both the public and private sector. In recent years he has concentrated on the exploration and mining area where he has founded, promoted and developed a number of junior mineral exploration companies based mainly on Tanzanian assets. Louis has tertiary qualifications in law and languages, project management, supply chain management and a MBA from Bond University (Australia) specializing in entrepreneurship and business planning and strategy. He has worked in various project management and business development roles mostly in the mining industry throughout his career. Between 2007 and 2009, Louis held the position of Vice-President, Business Development with Canadian listed Great Basin Gold (TSX: CBG).

 
 

Noel O’Keeffe, BSc (Hons), Geology, MBA, Age 54

Technical Director (Non-Executive) & Secretary

Noel O’Keeffe has over 20 years experience in mineral exploration and has worked on a variety of base metal and gold projects in Ireland, Canada, Australia and Africa. Prior to co-founding Kibo in 2008 he worked as a quality coordinator with Boston Scientific (Ireland) Ltd, a multinational medical device company. He also worked part-time for Irish geological services group, Aurum Exploration Ltd during 2003 and early 2004. During the mid nineties he was exploration manager with Ormonde Mining plc in Tanzania, a company currently listed on the Irish Stock Exchange and on AIM. Previously Noel was a senior geological consultant with BDA Consultants Limited and worked on both government and private sector contracts. Earlier in his career, Noel worked as a geologist for Burmin Exploration and Development plc and for its Canadian and Australian subsidiaries.

 
 

Lukas Marthinus Maree, BLC, LLB, Age 56

(Executive)

Tinus Maree is a lawyer by profession. He has served on the boards of a number of public companies including Goldsource Mines Limited, Africo Resources Limited and Diamondworks Limited that have made significant successful investments in exploration projects in Africa and North America, and has more recently served as the CEO of private investment companies Rusaf Gold Limited and Mzuri Capital Group Limited, both of which have successfully developed and sold mineral projects in Russia and Tanzania in the last seven years. He was also a founder principal of River Group, Designated Advisors to the Listing of Kibo on the JSE, and was responsible for its Canadian office until his retirement from the group in 2013 to pursue personal interests.

 
 

Wenzel Kerremans, B.Proc, LLB, LLM, Adv. Dip. Age 60

(Non-Executive)

Wenzel Kerremans is a lawyer by profession with over 25 years international legal experience in mining, banking, project finance and international tax, advising clients who have invested in exploration and mining projects in Africa. He has also originated and succesfully sold Veremo Holdings Limited a billion ton titaniferous magnetite exploration project for the production of iron and titanium slag. Wenzel is also the principal and director of a gold, graphite and coal exploration project in Africa.

 
 

Andreas Lianos, CA, ACMA, CIA. Age 51

Financial Director (Non-Executive)

Andrew is a chartered accountant who entered the corporate finance industry in 1994 by joining Deloitte & Touche Corporate Finance. In 1996 he joined Smith Borkum Hare/Merrill Lynch Corporate Finance, and was part of the team that founded Labyrinth Corporate Finance during 1997. He co-founded the River Group, Kibo’s JSE Designated and Corporate Advisor and is a director of River Capital Partners Ltd and River Sponsor Services (Pty) Ltd (Trading as River Group). He is also currently a director of Boudica Trust Co Limited (trading as Boudica Group) and a director of Mzuri Exploration Services Ltd and Mzuri Capital Group Ltd (trading as Mzuri Group), which was the largest shareholder in Kibo until December 2013 when it distributed all its shares to its shareholders as reported to the market on 20 December 2013.

Significant Shareholders

On the basis of notifiable shareholdings declared to the company, at this time the following shareholders have declared a shareholding in excess of 3% of issued share capital.  All shareholder notifications with such declarations will be promptly announced to market.

Shareholder Name # of shares %
Sanderson Capital Partners Ltd & Related Parties (as at 19 Oct. 2018) 52 764 905 8.24%
Sechaba Natural Resources Limited (as at 19 Oct. 2018) 153 710 030 24.02%
 
 

Directors’ Shareholdings

Shareholder Name # of shares %
Louis Coetzee (& related parties) 8 065 996 1.26%
Christian Schaffalitzky 2 119 842 0.33%
Tinus Maree 2 934 200 0.46%
Noel O’Keeffe 3 591 447 0.56%
Wenzel Kerremans 376 241 0.06%
Andrew Lianos 7 588 633 1.19%
Total 24 676 359 3.86%

 

Corporate Office in Ireland

Gray Office Park, Galway Retail Park, Headford Road, Galway, Ireland

+353 91 511463

+353 91 511463

[email protected]

 

Registered Office Ireland

17 Pembroke Street Upper, Dublin 2, Ireland D02 AT22

 

Operations Office Tanzania

10th floor, Amani Place, Ohio Street, Dar es Salaam, Tanzania

[email protected]

 

Media Contact

Gaby Jenner

St. Brides Partners Ltd

+44 (0) 207236 1177

  •  

Share Registrar (JSE)

Link Market Services South Africa (Pty) Ltd

13th Floor, 19 Ameshoff Street, Braamfontein 2001, Johannesburg, South Africa

PO Box 4844, Johannesburg, 2000, South Africa

 

Share Registrar (UK & Ireland)

Link Registrars Limited

2 Grand Canal Square
Dublin 2
D02 A342

 

Joint Broker

SVS Securities Limited

20 Ropemaker Street
London
EC2Y 9AR

 

UK Nominated Adviser

RFC Ambrian Limited

Level 28, QV1 Building
250 St Georges Terrace
Perth WA 6000

 

Joint Broker

First Equity Limited

Salisbury House
London Wall
London EC2M 5QQ

 

UK Public Relations

St. Brides Partners Ltd

3 St. Michael’s Alley
London
EC3V 9DS

 

JSE Designated Adviser

River Group

Unit 2, 211 Kloof Street
Waterkloof
0145 Pretoria
Republic of South Africa

 

Auditors & Reporting

Crowe U.K. LLP

St Bride’s House,
10 Salisbury Square,
London EC4Y 8EH, UK

 

Solicitors – Irish law

OBH Partners

17 Pembroke Street Upper
Dublin 2
Ireland, D02 AT22

 

Solicitors – English law

Druces LLP

Salisbury House
London Wall
London EC2M 5PS

 

Solicitors – Tanzanian law

ENSafrica Tanzania Attorneys

6th floor, International House
Cnr. Shaaban Robert Street and Garden Avenue
P.O. Box 7495, Dar es Salaam, Tanzania

 

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