Kibo Energy Share Discussion Threads

[frankandbeans] 31/1/2022 18:24

DPR the capital investment I was referring to was for KAT, and as for MAST as I have mentioned they haven’t published the debt contained within the SPVs so how can any real value be calculated without knowing that?

KAT may one day after further capital raises being something to market, but again there’s a large question mark over this, especially after the recent ownership debacle.

You have already indicated the coal assets are zero in your mind, and you quite rightly point out the suitors for any coal to power plants willing to back this are very limited following the Paris agreement.

So KAT and MAST are in your mind all that they are holding in their hand, KAT a divested holding and MAST seemingly of no interest to the market FOR SOME REASON I WONDER WHAT THAT COULD BE.

[frankandbeans] 31/1/2022 18:17

Why on earth do you think I am responding to you, I replied to DPR, and posted a follow up.

That a little too difficult for you to grasp I see.

I have asked you several times to refrain from engaging with me as I have no desire to waste any more time being trolled by a freak.

“ Frankandbeans what you should know also is I have absolute no need to chat to you. It is you engaging me lol not other way around...”

[dpr1881] 31/1/2022 18:07

@Farnkandbeans

Just because Mast requires substantial capital investment in the future that does not make it any less valuable now than the current market cap. No one thought the whole strategy was going to be delivered from the IPO fund raising did they??

Even if Sanderson have or did decide to liquidate their position (which this would suggest not hxxps://kibo.energy/index.php/about-us/share-information/), what impact does that have on the intrinsic value of Kibo's assets if it was to be broken up?

Zero!

The only impact would be a short term hit to the share price.

If Mast and Kat actually deliver then the market will correct.

[frankandbeans] 31/1/2022 17:33

DPR

So that’s a reply to one of my questions, what value due you attribute to the coal “assets” and you have stated ZERO.

My other questions if you will.

KAT and MAST, their % in the former has been eroded, and will need significant investment for development, and the latter they have not published the debt contained within the SPVs, so how can this be fairly valued?

Theres a reason the market values this as it does, and why theres no significant buying, even from directors or LTH?

How many of the notifiable holders are still holding? Shumba were able to sell without notifying the market, as this Co is Irish registered holders dont need to notify when they fall below a threshold, so has Sanderson etc sold out also?

[dpr1881] 31/1/2022 17:29

@Frankandbeans

I take your point but other than the directors and the auditors who value the kibo coal assets at £25.5m what value do you think the rest of the world puts on them??

Zero in my opinion!

For me the value of Kibo does not lie in coal. Therefore any material return is a "windfall" at this stage.

The listed assets alone are valued and more than 1.5 times the market cap of kibo even after recent falls in the respective share prices of MED & KAT.

Both entities have significant potential.

[frankandbeans] 31/1/2022 17:20

And of course companies are queuing up for capital investment in Tanzania after mining act amendments aren’t they…

Totalities anyone?

Research.

[dpr1881] 31/1/2022 17:20

@short6

I agree with your sentiment.

To be fair to the Board, regardless of the economic merits of any coal project it will be difficult to find any serious investor outside of perhaps China, India or Australia who would in the "post COP 26 World" who would touch it with a barge pole !

This will obviously have a material impact on the price of the assets.

That said in my opinion any disposal which sees the company realise immediate material consideration for the assets and provides a future carried interest can only have a positive impact and make the company more investable in the brave new world

[frankandbeans] 31/1/2022 17:15

The point that some are glossing over, or just are obtusely overlooking.

They needed SML licence for the power plant. This was then hanged to 7 separate mining licences. They spent upwards of 20m proving up a THERMAL coal resource to feed a coal to power station. The government rejected it.

They are now selling the coal “assets” which haven’t been listed anywhere but would assume comprises of the 7 mining licences plus all the DFS data on the 7 licence areas, plus any preliminary work down on the power plant.

Who’s going to buy these “assets”?

The government have turned down the coal plant, the whoever buys this will just be getting what, some mining licences over a proven up THERMAL resource, for a power plant the government have rejected?

Or perhaps to mine this THERMAL resource for domestic or export?

Why haven’t the co decided to do this themselves?

The obvious answer is that I suspect it’s not economically viable, there’s no domestic market for THERMAL coal, and the nearest port is hundreds of miles away.

Yet you are still expecting to see a buyer for this “asset”?

Oubliette.

And I still haven’t had answers to the other points I raised, that seems to be glossed over yet again.

What price do you put on the coal assets?

What even are these coal assets in any depth?

KAT and MAST, their % in the former has been eroded, and will need significant investment for development, and the latter they have not published the debt contained within the SPVs, so how can this be fairly valued?

There’s a reason the market values this as it does, and why there’s no significant buying, even from directors or LTH?

How many of the notifiable holders are still holding? Shumba were able to sell without notifying the market, as this Co is Irish registered holders donâ€â„;¢t need to notify when they fall bell a threshold, so has Sanderson etc sold out also?

So enough distraction, answer the questions if you can.

[short6] 31/1/2022 14:47

DPR1881 We were told the 750,000 ounces of gold KAT owned at Imweru and Lubando were worth £75 Million in the ground and £750 Million once dug up and processed.
Coetzee was happy to sell it all for £1 Million to LVG, so I doubt he will want much for the coal either.

[dpr1881] 31/1/2022 14:20

@Iamthebest

I agree the coal is an asset. The question is how do the directors intend to unlock the value and what is worth??

How the directors and auditors concluded that the appropriate carry value of these assets at 31 December 2020 was £25.5m and that the indicators of impairment set out in International Accounting Standard 36 had not been triggered, you can only wonder!

Why do you not think its time for an EGM?? Do you still have confidence in LC & CO??

[dpr1881] 31/1/2022 14:10

@Frankandbeans

I lost all confidence in the board on 7 January 2022.

The value here will be unlocked when the shareholders wake up and force the break up of Kibo before the directors announce more convertible loan transactions.

My mission is only just beginning.

[frankandbeans] 31/1/2022 10:35

DPR - when have I said that there was no value? The market doesn’t value this currently at zero does it? So please, when have I said that there was no value?

[dpr1881] 31/1/2022 10:27

@Frankandbeans

At this point the value of this shareholding has little to do with coal.

In my opinion only the Board and Crowe Ireland (the auditors)attribute any material value to these assets!

[frankandbeans] 31/1/2022 10:20

Oh and anyone that keeps going back in to their previous posts to redact and edit them, and then to subsequent refer to that edit “I told you so”, has a lot of time on their hands, and is rather indomitable, often a sign of a very fragile ego.

I wonder how long it took for them to change their posts from “assets” to “licences̶1;.

Either way, without a coal power plant why would a buyer need all those licences and data on thermal coal reserves, unless they were to build a coal power plant? Which was turned down by the government previously?

So either the government are going to do a major u turn in policy and go ahead after they have sold the coal “assets” on for a % of the development outlay ( nice write off ) or the buyer is just going to mine the resource for domestic sales or export.

Lots of competition there of course, though being THERMAL coal limited offtake options.

And if it’s just the mine being built, they won’t have a need for the coal plant part of the project, or any of the supporting data, or have a use for the amount of resource that would have been needed to support that, so why pay out for it?

Write off I suspect.

Discuss.

[dpr1881] 31/1/2022 10:15

@ Frankandbeans

The current market capitalisation of Mast Energy Developments Plc is £11.79m, valuing KIBO's investment based on the value of the shares rather than a consolidated accounting basis equates to £6.48m.


The current market capitalisation of Katoro Gold Plc is £2.99m, valuing KIBO's investment based on the value of the shares rather than a consolidated accounting basis equates to £747k.

How is there no value in the shares? I agree that the market has lost confidence in the Board but it is ultimately shareholders who appoint the Board.

Time to rise up!