25th Sep 2014 15:34
LONDON (Alliance News) - Kibo Mining PLC Thursday reported a widened pretax loss and low cash balance for the first-half as it continues to "wait for the best deal" for its Rukwa project.
It widened its pretax loss to GBP1.1 million in the six months ended June 30, from a GBP693,466 loss in the first-half of 2013. The company generates no revenue and reported a cash balance of GBP68,783 at June 30, down from the GBP337,742 recorded in the comparable period last year.
The widened loss is primarily down to a GBP800,819 gain arising on the acquisition of a subsidiary in the first-half of 2013, said Kibo. The company did cut administrative costs to GBP665,708 in the first-half of 2014, compared to GBP1.2 million in the same period in 2013.
"During the period the company has continued to focus on its two most advanced projects, the Rukwa Coal to Power project and the Imweru gold project, both of which we believe have the capacity to move Kibo from an exploration to a development and mining company in the short term," said Chairman Christian Schaffalitzky.
Initial results from its feasibility study at Rukwa exceeded expectations and demonstrate the economic and technical robustness of the coal resource, said Kibo in a statement, as well as its potential to sustain a 300 megawatt power plant over a minimum mine life of 40 years.
"The potential opportunity to generate early cash-flows from this gold asset makes Kibo an attractive investment and the company has therefore made the decision to prioritise implementing a fast-track mine development at Imweru," he added.
Kibo said the complexity of the Rukwa project has resulted in a longer process than Kibo anticipated, as well as the significant financial investment required and the challenges of dealing with large transnational investors, said the company.
"Despite this delay, the interest from a number of investors remains robust and the board is prepared to wait in order to successfully negotiate the best deal for shareholders," said Schaffalitzky.
Kibo Mining's shares closed 8.6% lower at 1.85 pence per share Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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