28 Mar 2013 07:00
28 March 2013
Altona Energy Plc
Interim Results for the six months ended 31 December 2012
Altona Energy Plc ('Altona' or 'the Company'), the AIM-quoted energy company, today announces its results for the six month period ended 31 December 2012.
Highlights
·; Received WAA Permit -required to cover the hydro-geological test and other drill holes, pursuant to the terms of the PEPR - granted by the South Australian Arid Lands Natural Resources Management Board
·; Formal acceptance by the Native Title claimant group, AMYAC, that the drilling programme design and drill hole locations meet the terms of the Work Area Clearance as required under the PEPR granted by DMITRE
·; Parsons Brinckerhoff's Global Mining Business group appointed as Project Management Contractor to oversee the Arckaringa Mine development and the design-build activities for the project
·; Financial Loss for the Group of £885,000 (2011: Loss of £795,000).
Post Period highlights
·; Scope of Work for the test drilling program and associated technical analysis work at Arckaringa has been completed and incorporated into bidding documents for the selection of a Drilling Services Provider. The program is an important step in the Bankable Feasibility Study
·; Mining Licence application in respect of our conditional Chinese acquisition ('Project Dragon') has been fully prepared with all supporting technical and mine planning information, and has now been submitted to the Xinjiang Regional Government for final written approval, which is now expected to be received prior to 30 June 2013
·; Completion of equity placing for gross proceeds of £1.35m.
For further information, please visit www.altonaenergy.com or contact:
Altona Energy Plc Christopher Lambert, Chairman Christopher Schrape, Managing Director Peter Fagiano, Executive Director
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+44 (0) 20 7024 8391
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WH Ireland Ltd Adrian Hadden James Bavister
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+44 (0) 20 7220 1666 |
Old Park Lane Capital Plc Michael Parnes Luca Tenuta
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+44 (0) 20 7493 8188 |
Tavistock Communications Simon Hudson Mike Bartlett |
+44 (0) 20 7920 3150 |
Chairman's Statement
The period has seen further progress made at the Arckaringa project. We have secured some crucial approvals that enable the test drilling program - a key element of the Bankable Feasibility Study - to proceed and our Project Management Contractor, Parsons Brinckerhoff, is in place. In addition, ongoing review of the project reinforces our confidence that, even in the face of global economic uncertainty and a slowdown in China, the project's economics and fundamentals remain strong.
In the light of growing interest globally the company is actively promoting coal gasification for the production of Synfuels, with senior management involved in a number of initiatives. Chris Schrape is an active member of the South Australian committee on determining the Roadmap for unconventional gas in SA and continues to conduct regular briefings for government, industry and community groups with an interest in the Arckaringa Project's potential impact on the SA economy. Peter Fagiano recently gave a technical presentation to a very well attended and enthusiastic Oilbarrel Conference in London. And I recently chaired a session at the World Coals to Liquid (CTL) 2012 India Summit in New Delhi, at which I met a number of highly influential industry representatives who were interested in Altona's projects and the prospects of the CTL market more generally.
A great deal of work is going on, although of course there remains much more to do and whilst our Project Dragon initiative has been frustrated by some regulatory delays at a local Government level, we remain confident in the project and of its ability to provide the company with sustained working capital, as we continue to work with our Joint Venture partner CNOOC-NEIA and the South Australian Government to bring the Arckaringa project on-stream."
Arckaringa project update
The focus of activity has been completing the Scope of Work for a test drilling program and associated technical analysis on the Wintinna coal resource. The Scope has been incorporated into bidding documents for the tender and selection of a company for the role of Drilling Services Provider. The program is an important step in the Bankable Feasibility Study for the Arckaringa project.
Five companies, each with Australian and international experience in managing coal drilling programs and associated analytical work have attained pre-qualification under CNOOC's rigorous internal evaluation procedures. The Invitation to Bid ("ITB") has a particular emphasis on ensuring that the technical requirements for the drilling program are consistent with exploration industry standards under Australian and South Australian conditions.
All the necessary regulatory approvals for the program have been received from South Australian authorities, with the programme for environment protection and rehabilitation (PEPR) from the Department of Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) recently extended to November 2013 and the Water Affecting Activity (WAA) Permit from the Arid Lands Natural Resources Management Board (SAALRM) already in place. A Work Area Clearance (WAC) from the relevant Native Title Claimant Group, Antakarinji Matu-Yankunytjatjara Aboriginal Corporation (AMYAC) has also been granted.
The issue of the ITB is subject to final internal CNOOC approval and the start of fieldwork, expected in the second quarter of 2013, is subject to the normal Notices of Entry to landowners and lease holders in the Arckaringa area.
The fieldwork covers a program comprising up to 8 boreholes, focusing on hydro-geological test and observation wells, to enable refinement of the existing hydro-geological model, and the extraction of coal and overburden core for geotechnical and coal quality analysis. This work is the first stage of a larger program of more than 30 boreholes already covered by the regulatory approvals. Decisions concerning the implementation and function of the remainder of the larger program will depend on the results of the first stage work.
Altona believes the rationale for the development of the Arckaringa project remains as compelling as ever. The project's strong fundamentals include the size of the resource (7.8 Billion tonnes, including 1.3 Billion tonnes JORC compliant), a coal quality which is suitable for gasification and synthetic fuels production, attractive economics, combined with a very supportive South Australian government and a location which favours both domestic use and international export.
Project Dragon Update
On 7 December 2012 the parties amended the sale and purchase agreement, principally to extend the timeline for the Seller to convert EL1 to a mining licence (the "EL1 Conversion Period") from 15 December 2012 to 30 June 2013. The extension of the EL1 Conversion Period was necessary because of a hiatus in decision making by national and regional authorities, pending the lead up to and outcomes of the recent 18th Party Congress in Beijing, which affected many areas of regulation including mining licensing and administration.
Since the year end the Mining Licence application in respect of Project Dragon has been fully prepared with all supporting technical and mine planning information, and has now been submitted to the Xinjiang Regional Government for final written approval, which is expected to be received prior to 30 June 2013
Financial results
The financial loss of the Group for the six months ended 31 December 2012 was £885,000 (2011: £795,000). Cash and cash equivalents for the Group at 31 December 2012 totalled £213,000 (2011: £467,000).
Post reporting date events - Fund-raising
Since the period end the Company has raised gross proceeds of £1.35million to fund working capital by way of an equity placing.
Outlook
2013 is set to be a watershed year for Altona Energy. We expect to receive written approval for our Project Dragon Mining Licence application by 30 June this year and I look forward to being able to further update shareholders in the near future on progress in this regard and in respect of the BFS on Arckaringa.
Finally I would like to thank both the Board and our shareholders for their ongoing commitment, patience and support for the Company.
Chris Lambert
Chairman
Consolidated Statement of Comprehensive Income
For the half year ended 31 December 2012
Notes | Unaudited Half-year ended 31 Dec 2012 | Unaudited Half-year ended 31 Dec 2011 | Audited Year ended 30 June 2012 | |
£'000 | £'000 | £'000 | ||
Total administrative expenses and loss from operations |
(886) |
(797) |
(1,915) | |
Finance income | 1 | 2 | 4 | |
Loss before taxation | (885) | (795) | (1,911) | |
Tax | 3 | - | - | 50 |
Loss for the financial period | (885) | (795) | (1,861) | |
Other comprehensive income | ||||
Exchange differences on translating foreign operations | (165) | (83) | (203) | |
Total comprehensive (loss) attributable to the equity holders of the parent |
(1,050) |
(878) |
(2,064) | |
Loss per share | ||||
- Basic and diluted | 4 | (0.19p) | (0.18p) | (0.42p) |
Consolidated Statements of financial position
At 31 December 2012
Unaudited 31 Dec 2012 £'000 | Unaudited 31 Dec 2011 £'000 | Audited 30 June 2012 £'000 | ||
ASSETS | ||||
Non-current assets | ||||
Intangible assets | 12,422 | 12,382 | 12,424 | |
Plant and equipment | - | 7 | - | |
Other receivables | 3 | 3 | 79 | |
12,425 | 12,392 | 12,503 | ||
Current assets | ||||
Trade and other receivables | 200 | 179 | 160 | |
Cash and cash equivalents | 213 | 467 | 1,252 | |
413 | 646 | 1,412 | ||
Total assets | 12,838 | 13,038 | 13,915 | |
LIABILITIES | ||||
Non-current liabilities | ||||
Provisions | 300 | 300 | 300 | |
Current liabilities | ||||
Trade and other payables | 224 | 108 | 251 | |
224 | 108 | 251 | ||
Total liabilities | 524 | 408 | 551 | |
NET ASSETS | 12,314 | 12,630 | 13,364 | |
Capital and reserve attributable to the equity holders of the Parent | ||||
Share capital | 472 | 432 | 472 | |
Share premium | 13,810 | 11,930 | 13,810 | |
Merger reserve | 2,001 | 2,001 | 2,001 | |
Foreign exchange reserve | 3,050 | 3,335 | 3,215 | |
Retained losses | (7,019) | (5,068) | (6,134) | |
TOTAL EQUITY | 12,314 | 12,630 | 13,364 | |
Consolidated Statement of Cashflows
For the half year ended 31 December 2012
Unaudited Half-year ended 31 Dec 2012 | Unaudited Half-year ended 31 Dec 2011 | Audited Year ended 30 June 2012 | |
£'000 | £'000 | £'000 | |
Operating activities | |||
Loss before taxation | (885) | (795) | (1,861) |
Finance income | (1) | (2) | (4) |
Depreciation | - | 4 | 11 |
(Increase)/ decrease in receivables | (36) | 13 | (74) |
(Decrease) / increase in payables | (28) | (91) | 62 |
Cash used in operations | (950) | (871) | (1,866) |
Income tax benefit received | 50 | - | 14 |
Net cash outflow used in operating activities | (900) | (871) | (1,852) |
Investing activities | |||
Payments to acquire intangible fixed assets | (140) | (227) | (383) |
Interest received | 1 | 2 | 4 |
Net cash outflow from investing activities | (139) | (225) | (379) |
Financing activities | |||
Proceeds from issue of shares | - | - | 2,000 |
Issue costs paid | - | - | (80) |
Net cash inflow from financing | - | - | 1,920 |
Decrease in cash in period | (1,039) | (1,096) | (311) |
Cash at bank and cash equivalents at beginning of period / year | 1,252 | 1,563 | 1,563 |
Cash at bank and cash equivalents at end of period / year | 213 | 467 | 1,252 |
Consolidated Statement of Changes in Equity
For the half year ended 31 December 2012
Share capital | Share premium reserve | Merger reserve | Foreign exchange reserve | Retained losses | Total shareholders equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
As at 1 July 2011 | 432 | 11,930 | 2,001 | 3,418 | (4,273) | 13,508 |
Total comprehensive loss for the period | - | - | - | (83) | (795) | (878) |
Balance at 31 December 2011 | 432 3 | 11,930 | 2,001 | 3,335 | (5,068) | 12,630 |
Total comprehensive loss for the period | - | - | - | (120) | (1,066) | (1,186) |
Issue of share capital | 40 | 1,960 | - | - | - | 2,000 |
Costs of issue of share capital | - | (80) | - | - | - | (80) |
Balance at 30 June 2012 | 472 | 13,810 | 2,001 | 3,215 | (6,134) | 13,364 |
Total comprehensive loss for the period | - | - | - | (165) | (885) | (1,050) |
Balance at 31 December 2012 | 472 | 13,810 | 2,001 | 3,050 | (7,019) | 12,314 |
Notes to the Interim Report
For the half year ending 31 December 2012
1. GENERAL INFORMATION
Altona Energy Plc (the "Company") is a company domiciled in England. The condensed consolidated interim financial statements of the Company for the six months ended 31 December 2012 comprise the result of the Company and its subsidiaries (together referred to as the "Group").
The condensed interim financial information for the period 1 July 2012 to 31 December 2012 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 2011 to 31 December 2011 and extracts from the audited financial statements for the year to 30 June 2012.
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 2012 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 and did not contain a statement under s498 (2) - (3) of Companies Act 2006.
2. ACCOUNTING POLICIES
The condensed interim financial information has been prepared using International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU. The condensed interim financial information has been prepared using the accounting policies which will be applied in the Group's statutory financial information for the year ended 30 June 2013.
Basis of preparation
The accounts have been prepared on a going concern basis. Following a review of the Group's financial position and its budgets, plans and considering the recently completed share capital placing's, disclosed in note 5, the Directors remain confident that the Group's current cash position will enable the Group to fully finance its current commitments beyond the period of 12 months of the date of this report.
The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements, except as described below:
a) Standards, amendments and interpretations effective in 2013:
The following new standards and amendments to standards are mandatory for the first time for the Group for the financial year beginning 1 July 2012. Except as noted, the implementation of these standards did not have a material effect on the Group:
Standard | Impact on initial application | Effective date | |||
IAS 12 (Amendment) | Deferred tax: recovery of underlying assets | 1 January 2012*2 | |||
b) Standards, amendments and interpretations that are not yet effective and have not been early adopted:
Standard | Effective date | |
IFRS 10 | Consolidated financial statements | 1 January 2013*1 |
IFRS 11 | Joint arrangements | 1 January 2013*1 |
IFRS 12 | Disclosure of interest in other entities | 1 January 2013*1 |
IFRS 13 | Fair value measurement | 1 January 2013 |
IAS 19 (Amendment 2011) | Employee benefits | 1 January 2013*2 |
IAS 27 (Amendment 2011) | Separate financial statements | 1 January 2013*2 |
IAS 28 (Amendment 2011) | Investments in associates and joint ventures | 1 January 2013*1 |
IFRS 7 (Amendment 2011) | Disclosures - offsetting financial assets and financial liabilities | 1 January 2013 |
IAS 32 (Amendment 2011) | Offsetting financial assets and financial liabilities | 1 January 2014 |
IFRS 9 | Financial instruments | 1 January 2015*2 |
*1 Effective date 1 January 2014 for the EU. *2 Not yet endorsed by the EU
The Group is evaluating the impact of the above pronouncements and will consider the potential impact of IFRS 11. No other pronouncement is expected to have a material impact on the Group's earnings or shareholders' funds.
3. TAXATION
The Group has recognised a £Nil tax credit (31 December 2011: £Nil and 30 June 2012: £50,000) in respect of the concession for research and development available to the Group. No current taxation has been provided due to losses in the period.
4. 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 2012
| Unaudited 31 Dec 2011
| Audited 30 June 2012
| |
Loss for the period (£'000) | (885) | (795) | (1,861) |
Weighted average number of shares - expressed in millions | 471.7 | 431.7 | 445.2 |
Basic loss per share - expressed in pence | (0.19p) | (0.18p) | (0.42p) |
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.
5. POST REPORTING DATE EVENTS
Subsequent to the period end the Company raised £1.354million (gross) to fund working capital by way of equity placing's for 90.3 million shares at a price of 1.5 pence per share.