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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: 0.225 GBX

LSE:KIBO
Market: LSE
Market Cap: £2.98 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% in the coal resource 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.

Kibo retains an 85% stake in the original power station development MCIIP/KP2.

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 that 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.

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

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

In December, the company said it would complete the purchase by paying 10mln shares to Bordersley's original vendors at an issue price of 5.25p per share, with trading expected to begin on or around 19 December.

Kibo also updated shareholders on further progress at the site, saying it had agreed the site work scope, as well as an advanced engineering, procurement, and construction solution (EPC), and a financing agreement for Bordersley's construction and commissioning, set to begin at the end of the first quarter of 2020.

What the boss says: Louis Coetzee, chief executive

 “Being part of several much larger projects naturally provides many benefits and advantages to the company and its shareholders. 

"We can now fully leverage our coal resource at Mabesekwa by providing and fast-tracking three different revenue streams, which would give Kibo access to a revenue stream from an estimated annual coal production of 7.5Mt coal p/a. compared to producing 1.5Mt p/a for its own consumption at the MCIPP power plant. 

“There is no funding impact in addition to what Kibo currently has for the development of the MCIPP power plant other than we may have to nominally increase our operational capacity to meet the additional operational / management demands for the development of two 300MW power plants.” 

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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
  • Completion of the restructuring of Mabesekwa

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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