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Kibo Energy focused on four key power projects

Snapshot

  • Owns power generation assets in the UK and Africa
  • Company is expecting to publish DFS on Benga project in Mozambique shortly
  • Building a presence in UK intervention market 
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Quick facts: Kibo Energy PLC

Price: 0.41 GBX

LSE:KIBO
Market: LSE
Market Cap: £5.11 m
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We have four key projects which we are developing in parallel ... each holds significant value, which I don't believe is reflected in the current share price

 

Louis Coetzee, chief executive

What it is developing

Two thermal coal power projects in Botswana (Mabesekwa) and Mozambique (Benga).

A UK-focused flexible energy portfolio (MAST)

Advanced coal-to-power project in Tanzania (Mbeya).

Katoro Gold (57.6%), separately listed on AIM and a nickel explorer in Tanzania

 

How is it doing

Africa 

At Benga ( Mozambique, Kibo 65%) the company is now working on finalising the coal supply agreement and power purchase agreement with private off-takers.

Mabesekwa (Botswana, 35-40%) is at the feasibility stage, following the completion of a mining scoping study, which highlighted a 30-year life of mine, and a power pre-feasibility study indicating maximum power capacity of 600 megawatts (MW) based on a coal delivery rate of 3.2mln tonnes a year.

KIbo restructured its interest in September, reducing it to 35-40% while also taking a stake of the same size (35-40%) in a separate power plant to run a petrochemical plant in Botswana. Coal for that additional plant will also come from Mabesekwa.

At Mbeya in Tanzania, Kibo has received seven new mining rights subject to it remitting all required statutory payments and it is making progress securing offtake deals for any power from the plant.

Kibo also has a collaboration deal with STEAG which envisages a co-operation to develop the AIM-firm’s energy portfolio.

The company said that the partnership with the STEAG Energy Service (SES) group, as independent power producer, brings "world class operating and engineering expertise, experience and capability to Kibo's strategic development capacity". 


UK

Mast (60%) has identified various "shovel ready" sites capable of sustaining gas-fired power generators and ancillary structures from 20Mw upwards.

Kibo recently took 100% ownership of 5Mw Bordersley reserve power generation project.

Commercial production scheduled to begin at the end of the first quarter next year (2020).

In October, Mast signed a joint development agreement with Italian engineer AB Group.

What the boss says: Louis Coetzee, chief executive

"The comprehensive funding solution that forms part of the JDA provides Bordersley and MED with a unique opportunity to potentially have all sites approved for development, fully funded from the outset.

“This provides an opportunity to fast-track the parallel development of sites and simultaneously de-risk the MED overall development strategy.”

Financing

In October, Kibo launched a £1.5mln funding round comprising a placing at 0.45p per share to fund its work on power projects in southern Africa and the UK.

Of the total, £1mln was underwritten with directors and management subscribing for a chunk of the other £500,000.

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Inflexion points

  • The definitive feasibility study at Benga to be published after the company received a report earlier than expected in March
  • Power purchase agreements signed for Benga
  • Off-takers for Mbeya signed
  • Bordersley comes onstream in early 2020
  • A £1.5mln fund-raising in October with £1mln underwritten

Blue sky

Designs for Mbeya and Benga are chosen as a blueprint for other thermal power station developments in southern Africa

Intervention business in the UK to grow substantially

 

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