29 Mar 2018 07:00
29 March 2018
Altona Energy plc
("Altona" or "the Company")
Interim Results
Altona (AIM: ANR) is pleased to announce its unaudited interim results for the six months ended 31 December 2017.
Highlights
Changed focus to conventional coal mining projectCommissioned new reports focused on identifying coal seams in less-wet areasPlacings raised a total of £1,095,000 before expensesNick Lyth appointed as Chief Executive and Philip Sutherland appointed as Director of Operations (Australia)Administrative overheads tightly controlledCash in bank £756,000
For further information, please visit www.altonaenergy.com or contact:
Altona Energy plc Qinfu Zhang, Executive Chairman Nicholas Lyth, Non-Executive Director
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+44 7769 906 686
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Leander (Financial PR) Christian Taylor- Wilkinson
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+44 7795 168 157 |
Northland Capital Partners Ltd (Nomad and Broker) Matthew Johnson / Gerry Beaney (Corporate Finance) John Howes (Corporate Broking)
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+44 20 3861 6625 |
About Altona Energy
Altona is listed on the London Stock Exchange's AIM market. Its principal focus is on the evaluation and development of the Company's flagship Arckaringa Project to exploit the significant coal seams contained in three exploration licences in the northern portion of the Permian Arckaringa Basin in South Australia.
CHAIRMAN'S STATEMENT
The period under review saw a major change in the strategy of the Company, to focus on conventional coal mining techniques, rather than progress with an underground coal gasification (UCG) project.
This change in strategy was announced on 10 August 2017, with the Company appointing its Australian consulting engineers to conduct a desk-top report on the three tenements which it owns; namely, Westfield (EL 5676), Wintinna (EL 5677) and Murloocoppie (EL 5678). Further reports were commissioned on 25 September and 30 November 2017, to extend the focus of the surveys to try and identify commercially economical less-wet/drier coal seams. The result of these investigations was to identify the Willoughby seam in the Westfield tenement as a strong possibility, being that it is 3-6m in thickness and running at a depth of 80m or less in certain areas.
The Company completed a number of successful placings during the second half of the year, raising in total £1,095,000, to help prosecute its new strategy and provide a comfortable level of funding for the initial drilling programme, as announced on 20 March 2018.
On 3 November, Henry Kloepper was appointed as a Non-Executive Director, bringing to the board a wealth of experience in the resources sector.
On 23 November, Nick Lyth was appointed as Chief Executive and Philip Sutherland as Director of Operations (Australia). These changes reflected the change in strategy and focus of the Company.
Financial Review
The financial loss of the Group for the six months ended 31 December 2017 was £258,000 (H1 2016: £241,000). Cash in bank at 31 December 2017 of £756,000.
Outlook
The Board is optimistic that it can successfully execute its tight and focused strategy to exploit the Willoughby seam in the Westfield tenement. With its joint venture partners, Sino-Aus Energy Group and Wintask Group, the Company's vision for 2018 is to move the project along through the necessary test drilling phases and begin the bankable feasibility study in 2019.
Whilst the coal price in Australia remains at a nine-year high and demand for coal from Asia is at a record level, the Board is cognisant that it needs to move the project along quickly and find a suitable buyer for the Arckaringa Project, to ensure the best returns are made to shareholders.
Nick Lyth
Chief Executive Officer
28 March 2018
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2017
| Notes | Unaudited Half-year ended 31 Dec 2017 | Unaudited Half-year ended 31 Dec 2016 | Audited Year ended 30 June 2017 |
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| £'000 | £'000 | £'000 |
Total administrative expenses and loss from operations |
| (258) | (241) | (341) |
Finance income |
| - | - | - |
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Loss before taxation |
| (258) | (241) | (341) |
Tax | 2 | - | - | - |
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Loss for the financial period |
| (258) | (241) | (341) |
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Other comprehensive income |
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Exchange differences on translating foreign operations maybe subsequently reclassified to profit or loss |
| (258) | (1) | 537 |
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Total comprehensive profit/(loss) attributable to the equity holders of the parent |
| (516) | (242) | 196 |
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Loss per share |
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- Basic and diluted | 3 | (0.02p) | (0.03p) | (0.04p) |
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2017
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| Unaudited 31 Dec 2017 £'000 | Unaudited 31 Dec 2016 £'000 | Audited 30 June 2017 £'000 |
ASSETS |
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Non-current assets |
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Intangible assets |
| 11,541 | 11,221 | 11,801 |
Other receivables |
| 3 | 3 | 3 |
Total Non-current assets |
| 11,544 | 11,224 | 11,804 |
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Current assets |
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Trade and other receivables |
| 23 | 14 | 14 |
Cash and cash equivalents |
| 756 | 142 | 15 |
Total Current assets |
| 779 | 156 | 29 |
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Total assets |
| 12,323 | 11,380 | 11,833 |
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LIABILITIES |
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Current liabilities |
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Provisions | 5 | - | - | - |
Trade and other payables | 4 | 60 | 87 | 102 |
Total Current liabilities |
| 60 | 87 | 102 |
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Total liabilities |
| 60 | 87 | 102 |
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NET ASSETS |
| 12,263 | 11,293 | 11,731 |
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Capital and reserve attributable to the equity holders of the Parent |
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Share capital |
| 1,427 | 892 | 892 |
Share premium |
| 18,691 | 18,178 | 18,178 |
Merger reserve |
| 2,001 | 2,001 | 2,001 |
Foreign exchange reserve |
| 1,728 | 1,448 | 1,986 |
Retained losses |
| (11,584) | (11,226) | (11,326) |
TOTAL EQUITY |
| 12,263 | 11,293 | 11,731 |
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CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017
| Unaudited Half-year ended 31 Dec 2017 | Unaudited Half-year ended 31 Dec 2016 | Audited Year ended 30 June 2017 |
| £'000 | £'000 | £'000 |
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Operating activities |
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Loss before taxation | (258) | (241) | (341) |
Finance income | - | - | - |
Share based payments | - | - | - |
Foreign exchange on loans to controlled entities | 2 |
| (43) |
(Increase)/ decrease in receivables | (9) | 3 | 3 |
(Decrease) / increase in payables and provisions | (42) | 19 | 34 |
Cash used in operations | (307) | (219) | (347) |
Income tax benefit received | - | - | - |
Net cash outflow used in operating activities | (307) | (219) | (347) |
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Investing activities |
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Interest received | - | - | - |
Net cash outflow from investing activities | - | - | - |
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Financing activities |
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Proceeds from issue of shares | 1,048 | - | - |
Net cash inflow from financing activities | 1,048 | - | - |
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Increase/decrease in cash and cash equivalents in period/ year | 741 | (219) | (347) |
Cash and cash equivalents at beginning of period / year | 15 | 362 | 362 |
Effect of exchange rate changes on cash and cash equivalents | - | (1) | - |
Cash and cash equivalents at end of period / year | 756 | 142 | 15 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2017
| Share capital | Share premium | Merger reserve | Foreign exchange reserve | Retained losses | Total shareholders' equity |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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Balance at 30 June 2016 | 892 | 18,178 | 2,001 | 1,449 | (10,985) | 11,535 |
Total comprehensive loss for the period | - | - | - | (1) | (241) | (242) |
Balance at 31 December 2016 | 892 | 18,178 | 2,001 | 1,448 | (11,226) | 11,293 |
Total comprehensive loss for the period | - | - | - | 538 | (100) | 438 |
Balance at 30 June 2017 | 892 | 18,178 | 2,001 | 1,986 | (11,326) | 11,731 |
Total comprehensive loss for the period | - | - | - | (258) | (258) | (516) |
Issue of share capital | 535 | 513 | - | - | - | 1,048 |
Balance at 31 December 2017 | 1,427 | 18,691 | 2,001 | 1,728 | (11,584) | 12,263 |
NOTES TO THE INTERIM REPORT
FOR THE HALF YEAR ENDING 31 DECEMBER 2017
1. GENERAL INFORMATION
Altona Energy Plc (the "Company") is a company registered in England and Wales. The condensed consolidated interim financial statements of the Company for the six months ended 31 December 2017 comprise the result of the Company and its subsidiaries (together referred to as the "Group") and have been prepared in accordance with the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statement" in preparing these interim financial statements.
The consolidated interim financial information for the period 1 July 2017 to 31 December 2017 is unaudited. In the opinion of the Directors the condensed interim financial information for the period presents fairly the financial position, and results from operations and cash flows for the period in conformity with the generally accepted accounting principles consistently applied. The condensed interim financial information incorporates unaudited comparative figures for the interim period 1 July 2016 to 31 December 2016 and extracts from the audited financial statements for the year to 30 June 2017.
The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006.
The comparatives for the full year ended 30 June 2017 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those financial statements was unqualified but did include a reference to the uncertainties surrounding going concern, to which the auditors drew attention by way of emphasis of matter and did not contain a statement under s498 (2) - (3) of Companies Act 2006. The interim report has not been audited or reviewed by the Company's auditor. The key risks and uncertainties and critical accountancy estimates remain unchanged from 30 June 2017 and the accountancy policies adopted are consistent with those used in the preparation of its financial statements for the year ended 30 June 2017.
2. TAXATION
The Group has recognised a £Nil tax credit (31 December 2016: £nil and 30 June 2017: £nil) in respect of the concession for research and development tax credits available to the Group. No current taxation has been provided due to losses in the period.
3. LOSS PER SHARE
The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue.
| Unaudited 31 Dec 2017
| Unaudited 31 Dec 2016
| Audited 30 June 2017
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Loss for the period (£'000) | (258) | (241) | (341) |
Weighted average number of shares - expressed in millions | 1,181 | 892 | 892 |
Basic loss per share - expressed in pence | (0.02p) | (0.03p) | (0.04p) |
As the inclusion of the potential ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive and, as such, the diluted loss per share calculation is the same as the basic loss per share.
4. TRADE AND OTHER PAYABLES
| Unaudited 31 Dec 2017 £'000 | Unaudited 31 Dec 2016 £'000 | Audited 30 June 2017 £'000
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Trade payables | 22 | 56 | 66 |
Accruals and other payables | 38 | 31 | 36 |
| 60 | 87 | 102 |
5. PROVISIONS
| Unaudited 31 Dec 2017 £'000 | Unaudited 31 Dec 2016 £'000 | Audited 30 June 2017 £'000 |
Current provision |
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Taxes & Social Security | - | - | - |
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Following the conclusion of HMRC's enquiries in respect of potentially underpaid tax the provision was released during the previous period.
6. POST REPORTING DATE EVENTS
There were no material post reporting date events.