25th Mar 2019 14:29
LONDON (Alliance News) - Kibo Energy PLC Chief Executive Louis Coetzee said the company's strategy remains unchanged despite "much change" since the start of the year.
Coetzee, in a letter to shareholders, said the value of the company's four key projects - two thermal projects in Botswana and Mozambique, a UK energy portfolio and a coal to power project in Tanzania - are not reflected in the company's share price.
Coetzee said its Mozambique Benga independent power project is "progressing rapidly" with the feasibility study ahead of schedule and currently 98% complete. Kibo is now finalising the coal supply agreement and the power purchase agreement with private off-takers.
The agreements are expected to be finished in April 2019.
In Botswana, the company is awaiting a mining license for the Mabesekwa coal mine. Coetzee said: "Like Benga, Mabesekwa is on a clear development path with visible deliverables that we believe, when reached, will increase the inherent value of the project."
Coetzee believes the company's 60% owned UK subsidiary, Mast Energy Development Ltd, is "making great strides".
Kibo is close to completing the acquisition of its first sites and due diligence on "several more" is close to finishing which site acquisitions "will in all likelihood follow".
In Tanzania, Coetzee said its assets "should not be written off" despite a "disappointing" outcome to the tender process at the Mbeya coal to power project. Kibo is currently "still pursuing clarification" for why the project did not receive qualification.
Coetzee added: "Our projects haven't been pulled out of a hat; they have been chosen for specific reasons after extensive evaluation. Africa represents a rapidly growing market economy with an acute power deficit."
"Our projects are positioned to address these concerns. However, these are major projects that aren't going to evolve overnight; it takes time to navigate the intricate agreements needed to bring them to commercialisation. We have, and continue to, hit all our targets in a timely manner, and whilst we have good relationships with the various governments and international organisations, we cannot dictate their timetables or actions."
Shares in Kibo Energy were flat in Johannesburg and London Monday at ZAR0.08 and 0.75 pence each, respectively.
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