worth a look12 Jun 2014 23:10
The Company has continued to keep its running costs to a minimum while reviewing possible new projects. A number have been considered during the year but have so far not met requirements. As the market has declined, extra efforts are now being made to acquire a suitable new project.
Chairman's Statement:
It has been an uneventful year. This has been primarily due to the junior oil & gas and mining equity markets severely contracting and, in essence, forcing these companies into "survival mode." Very few quality opportunities were offered for sale, joint venture or relinquishment, and those that were, failed to meet any of the primary economic hurdles required for an investment or acquisition by Spitfire. The time may well be approaching when junior resource companies may encounter such unavoidable financial distress, unable to be alleviated by raising equity or debt capital, that quality assets will be offered for sale or joint venture. It is that time that the Company will have the greatest opportunity of acquiring a long life, sizeable project capable of delivering the economic returns expected by the Company. Nevertheless, the Company has not been dormant in investigating, researching and evaluating acquisitions in preparation for such a time. The Company continues to assess a number of acquisition opportunities which, if consummated, would have a significant and long lasting impact on the future direction of the Company. As always in such cases, the chances of success are small, but they still need to be continually monitored in the hope that they may be consummated one day.
The Salmon Gums project continues to be governed by retention licences and awaits the day when technology and costs will enable the project to be developed.
The Company continues to keep costs to the barest of minimum, conserving cash to enable opportunities to be pursued, due diligence to be undertaken and acquisitions hopefully completed. As always, the Company is driven by completing the right acquisition to ensure the largest and longest returns to shareholder. May it be this year.
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