Our opinion on the current state of KIBO(KBO)Kibo (KBO) is an African-oriented energy exploration company listed on the AIM (Alternative Investment Market) on the London Stock Exchange and on the Alt-X (Alternative Exchange) on the JSE. The company began exploration activities in Tanzania (100% of the Mbeya project in coal and other minerals which has been disappointing) but has since expanded to have interests in Mozambique (65% of the Benga coal power station, which they said in announcements on 30th January 2019 and 9th May 2019 was progressing well) and Botswana (85% interest in the Mabasekwa coal power project).
In its results for the six months to 30th June 2023, the company reported a loss of GBP1.8 million compared to a loss of GBP1.9 million in the previous period. The company said, "During July 2023, MED finalised and entered into a definitive and binding Joint Venture Agreement (‘JVA’) with an institutional investor-led consortium, with an initial expected total investment value of c. £5.9 million. The completion date of the JVA has since been extended twice due to unforeseen circumstances."
The main problem with this share is that it is extremely thinly traded, which precludes it for private investors. It is also in one of the riskiest areas of investment—energy exploration—and it is running at a loss. We can see no benefit in buying this penny stock unless you want to speculate.
On 7th June 2024, the company announced, "Partly conditional fundraise with gross proceeds of £500,000 raised at a placing price of 0.015p. Mohammed Ashraf proposed to join Kibo as Executive Director and Chief Executive Officer."
Overall, Kibo presents a high-risk investment opportunity in a volatile and speculative sector. The lack of liquidity in the share and ongoing financial losses make it unsuitable for most private investors. However, those with a high risk tolerance and an interest in speculative opportunities might consider it, keeping in mind the significant risks involved.
