Kibo Energy : Annual Report 2020

KIBO ENERGY PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR

THE YEAR ENDED 31 DECEMBER 2020

KIBO ENERGY PLC	ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
CONTENTS
CORPORATE DIRECTORY		1
CHAIRMAN'S REPORT		3
REVIEW OF ACTIVITIES		5
CORPORATE GOVERNANCE REPORT	7
DIRECTOR'S REPORT		14
AUDIT COMMITTEE REPORT		25
INDEPENDENT AUDITOR'S REPORT	27
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	33
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	34
COMPANY STATEMENT OF FINANCIAL POSITION	35
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	36
COMPANY STATEMENT OF CHANGES IN EQUITY	37
CONSOLIDATED STATEMENT OF CASH FLOWS	38
COMPANY STATEMENT OF CASH FLOWS	39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	40
NOTES TO THE CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS	50
ANNEXURE 1: HEADLINE EARNINGS PER SHARE	81

KIBO ENERGY PLC ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CORPORATE DIRECTORY

BOARD OF DIRECTORS:	Christian Schaffalitzky	Chairman (Non-Executive Chairman)
	Louis Coetzee	Chief Executive Officer
	Noel O'Keeffe	Technical Director (Non-Executive Director)
	Andreas Lianos	Financial Director (Non-Executive Director)
	Lukas Maree	Non-Executive Director
	Wenzel Kerremans	Non-Executive Director
	Christiaan Schutte	Executive Director Capital Projects
COMPANY SECRETARY:	Noel O'Keeffe
REGISTERED OFFICE:	17 Pembroke Street Upper
	Dublin 2, Ireland
BUSINESS ADDRESS - IRELAND:	Gray Office Park
	Galway Retail Park
	Headford Road
	Galway, Ireland
AUDITORS	Crowe Ireland
	Marine House
	Clanwilliam Place
	Dublin
	D02 FY24
STOCK EXCHANGE LISTING:	London Stock Exchange: AIM - (Share code: KIBO) - Primary
	Johannesburg Stock Exchange: JSE Alt X - (Share Code: KBO) - Secondary
SHARE REGISTRARS:	Ireland
	Link Registrars Ltd
	2 Grand Canal Square
	Dublin 2
	D02 A342
	South Africa
	JSE Investor Services (Pty) Ltd
	13th Floor
	19 Ameshoff Street
	Braamfontein
	South Africa
PRINCIPAL BANKERS:	Allied Irish Banks Plc
	Tuam Road
	Galway
	Ireland
BROKER:	Hybridan LLP
	2 Jardine House
	The Harrovian Business Village
	Bessborough Road
	Harrow, Middlesex HA1 3EX
UK PUBLIC RELATIONS:	St. Brides Partners Ltd
	Claydons Barns
	11 Towcester Road
	Whittlebury
	Northants NN12 8XU

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KIBO ENERGY PLC	ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
CORPORATE DIRECTORY
SOLICITORS:	As to Irish Law:
	OBH Partners
	17 Pembroke Street Upper
	Dublin 2
	Ireland
	As to English Law:
	Druces LLP
	Salisbury House
	London Wall
	London EC2M 5PS
UK NOMINATED ADVISER:	RFC Ambrian Limited
	Level 48, Central Park
	152-158 St Georges Terrace
	Perth, WA 6000
JSE DESIGNATED ADVISER:	River Group
	Unit 2, 211 Kloof Street
	Waterkloof
	Pretoria, South Africa
WEBSITE:	www.kibo.energy
CONTACT:	[e-mail]
DATE OF INCORPORATION:	17 January 2008
REGISTERED NUMBER:	451931

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KIBO ENERGY PLC

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHAIRMAN'S REPORT

I am pleased to provide a review of our activities during the period and to present our full-year audited accounts for 2020.

Kibo's strategy remains to develop utility-level and standalone, sustainable, affordable energy solutions through the design, build, construction and operation of clean energy solutions, integrated with renewable and intelligent storage solutions. A cornerstone of this strategy is the integration of suitable, sustainable renewable technologies with proven clean low-cost coal base load technology in all our project development plans, with the assumption that base load energy plays a very important role in addressing the increasing demand for affordable, reliable and sustainable electricity in our geographic focus areas.

As we support the global strategic concept of sustainability, we continue to seek best of breed environmentally friendly technological solutions, working with our strategic development partners through existing collaboration agreements.

In this regard, during the year, we advanced the development of our key projects: the Benga Power Plant Project ("BPPP" or "Benga Project") in Mozambique; the Mabesekwa Coal Independent Power Project ("MCIPP" or "Mabesekwa Project") in Botswana; and the Mbeya Coal to Power Project ("MCPP") in Tanzania.

A key focus area, the entry into the UK's Reserve Power Market, has taken shape with the recent listing of MAST Energy Developments Plc ("MED") on the 14 April 2021. We have now sent MED off on its own path, as we did with Katoro Gold some years ago.

As we look back on 2020, while we set a solid platform for continued work in FY 2021, we were undoubtedly impacted by the ongoing impact of Covid-19. While the MCPP and MCIPP projects were most materially impacted, they remain in good standing and we continue to explore how we can extract best value from them.

In Mozambique, we made great strides developing the Benga Project, increasing our future off take potential by more than 100% through the inclusion of the Baobab development in the Benga portfolio.

We were also pleased with the progress of MED, and with its IPO and admission now completed, and Kibo's retention of the majority shareholding it continues to provide, now more than ever the prospect of short term revenue and real opportunities to participate in the development of alternative energy solutions.

On the corporate side, keeping the Company funded presented on-going challenges due to the low share price and the general uncertainty created by the Covid-19 pandemic. We have however steadied the ship and can see clearer waters ahead in 2021. In this regard, a £1 million convertible loan note facility with a first drawdown tranche of £300,000 in August was replaced with a broker sponsored placing with ETX Capital Limited in September for total proceeds of £1,450,000, meeting our working capital requirement to allow us to reach key development milestones, particularly for the Benga and MED projects, during the second half of 2020.

Being able to secure funding during this difficult period is testament to the belief in our company by investors and other stakeholders.

The result for the reporting period amounted to a loss of £6,417,237 for the year ended 31 December 2020 (31 December 2019: £3,903,116) as detailed further in the Statement of Profit or Loss and Other Comprehensive Income, and further details on financial activities are detailed elsewhere in the Annual Report.

In addition to our interest of c. 55.4% in MED, I would also like to mention our investment in Katoro Gold PLC (AIM: KAT/www.katorogold.com), which currently stands at 25.37%. Katoro is making excellent advances pursuing robust development opportunities in battery base metals and gold projects.

Both of these companies have a short term view to production and revenue and we look forward to their accelerated project plans for FY 2021.

We are optimistic and positive about the Kibo Group of companies. We have used 2020 to consolidate and refine planning and look forward to a year of success in FY 2021.

In closing, I would like to acknowledge the support of our shareholders, especially those who have helped the Company directly through the past year. Also I would like to thank our Board and management under the strong leadership of our CEO, Louis Coetzee, for their hard work in guiding the Company through this challenging period.

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