LONDON (Alliance News) - Mining-focused investment firm Spitfire Oil Ltd denied it was dormant Friday after 2018 results showed its loss narrowed amid cost cuts, as it continues to seek out opportunities.
For the six months ended December 2018, pretax loss improved to AUD325,594 - or GBP176,300 - from AUD444,354 the year prior. This was after operating costs fell 62% to AUD86,680 from AUD228,510 the year before.
Spitfire did not generate revenue in either year. Other income, however, fell 23% to AUD11,715 from AUD15,267 the year before.
"The superficial view of the company's six month operating performance shows a company with no operations and overheads cut to the bare bone, including all directors fees suspended and administrative costs cut to the barest minimum," Spitfire Chair Mladen Ninkov said.
"But it would be a mistake to assume the company is dormant," Ninkov added. "Poor, uneconomic and unmineable assets are always available. But this is the road to nowhere and leads to a waste of shareholders fund and the eventual dilution of the company's share capital."
"That is why the company continues to search, investigate, evaluate and attempts to negotiate transactions which will add real value to the company and its shareholders," Ninkov continued. "It is not easy and it takes an incredibly long time to consummate such a transaction. When it eventually occurs, hopefully, the wait will have been worthwhile."
Shares in Spitfire were untraded, last closing at 2.75 pence on Friday.
