9 Mar 2012 07:00
Spitfire Oil Limited
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773
9th March 2012
INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31st DECEMBER 2011
Spitfire Oil Limited ("Spitfire" or "the Company") is pleased to publish a copy of its unaudited interim results for the six months ended the 31st December 2011, a summary of which is attached.
Introduction
Spitfire and its subsidiaries (together "the Group") recorded a loss before tax for the six months ended the 31st December 2011 of A$211,889 (2010: A$189,684). With cash balances of A$7.5m, the Group has benefited from interest receipts of A$181,000 in the period.
Spitfire has continued to monitor the technologies available for processing the Salmon Gums lignite into a saleable gas or distillate. Several proposals have been investigated during the year but the Board is yet to be convinced that any are commercially viable. However, as world fuel prices continue to rise, several technologies are emerging. The Company remains convinced that being patient until a suitable process is developed is the prudent course of action. Accordingly, Spitfire has continued conducting work to maintain the exploration licences in good standing while looking at other investment proposals and maintaining its cash funds. Several new proposals were progressed during the year but they either failed to meet the Company's investment criteria or failed to come to fruition.
Licence Management
As outlined in the 2010 Annual Report, the Salmon Gums exploration licences were successfully extended until the 6th July 2012. Application for a retention licence over the area of the defined lignite resource was applied for on the 20th October 2011 and covers an area of 23,749 hectares. Retention licences are granted where a mineral resource has been identified but where the mining and processing is not currently viable. They are issued for a period of 5 years, are renewable and, apart from annual rent, have minimal expenditure requirements.
The following table shows the current status of the Salmon Gums Project licences pending grant of a retention licence.
Lease | Project | Locality | Status | Area | Applic | Grant | Expiry | EXP $ | Rent $ |
E63/934 | Salmon Gums | WA | Granted | 15 Blocks | 27/01/2004 | 07/07/2005 | 06/07/2012 | $50,000.00 | $3,592.50 |
E63/935 | Salmon Gums | WA | Granted | 21 Blocks | 27/01/2004 | 07/07/2005 | 06/07/2012 | $50,000.00 | $5,029.50 |
E63/947 | Salmon Gums | WA | Granted | 52 Blocks | 20/10/2004 | 07/07/2005 | 06/07/2012 | $104,000.00 | $12,454.00 |
E63/961 | Salmon Gums | WA | Granted | 21 Blocks | 29/12/2004 | 06/10/2005 | 05/10/2012 | $50,000.00 | $5,029.50 |
R63/3 | Marda | WA | Application | 23748.7 H | 20/10/2011 | $0.00 | $0.00 |
Note: Rent and expenditure commitments for the Retention Licence Application cannot be set until approved
Gold Programme
Following the successful identification of an area of anomalous gold mineralization in the project area in 2009-2010, an attempt was made to locate a suitable joint venture partner to share the risk of ongoing exploration. With no suitable partner found, Spitfire continued with further gold exploration during 2011 as part of the minimum expenditure requirements of the licences.
The gold exploration program consisted of drilling further reconnaissance holes over theoretical targets in each of the licences, although one area was omitted due to logistical concerns. The results were disappointing in that most of the anomalous indicators were found to be insignificant. Given these results, it was decided that Spitfire should discontinue further gold exploration in the area.
Further Information
Spitfire Oil Limited
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7774
Roger Goodwin - Director
Panmure Gordon (UK) Limited Telephone: +44 (0)20 7459 3600
Dominic Morley
Hannah Woodley
Spitfire Oil Limited's shares are quoted on the Alternative Investment Market (AIM)
of the London Stock Exchange (symbol SRO).
The Company's news releases are available on the Company's web site: www.spitfireoil.com
SPITIFIRE OIL LIMITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (expressed in Australian dollars) |
Half-year | Full-year | |||
Note | 31 December 2011 Unaudited A$ | 31 December 2010 Unaudited A$ | 30 June 2011 Audited A$ | |
REVENUE | 180,660 | 177,970 | 570,879 | |
EXPENDITURE | ||||
Technology and development | - | (10,045) | - | |
Corporate expenses | (331,357) | (257,407) | (691,630) | |
Other expenses | (61,192) | (100,202) | (151,676) | |
LOSS BEFORE INCOME TAX | (211,889) | (189,684) | (272,427) | |
Income tax benefit / (expense) | - | - | - | |
LOSS FOR THE HALF-YEAR | (211,889) | (189,684) | (272,427) | |
OTHER COMPREHENSIVE INCOME | - | - | - | |
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO MEMBERS OF SPITFIRE OIL LIMITED | (211,889) | (189,684) | (272,427) | |
Basic and diluted loss per share (cents) | 6 | (0.5) | (0.4) | (0.6) |
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
SPITFIRE OIL LIMITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 31 December 2011 (expressed in Australian dollars) |
31 December | 31 December | 30 June | ||
Note | 2011 Unaudited A$ | 2010 Unaudited A$ | 2011 Audited A$ | |
CURRENT ASSETS | ||||
Cash and cash equivalents | 7,519,328 | 7,996,690 | 7,985,012 | |
Trade and other receivables | 3,266 | 3,876 | 8,051 | |
Other current assets | 71,128 | 76,757 | 67,268 | |
TOTAL CURRENT ASSETS | 7,593,722 | 8,077,323 | 8,060,331 | |
NON-CURRENT ASSETS | ||||
Plant and equipment | 1,085 | 4,925 | 2,432 | |
Intangible assets | 8,332,730 | 7,942,618 | 8,034,656 | |
TOTAL NON-CURRENT ASSSETS | 8,333,815 | 7,947,543 | 8,037,088 | |
TOTAL ASSETS | 15,927,537 | 16,024,866 | 16,097,419 | |
CURRENT LIABILITIES | ||||
Trade and other payables | 6,909 | 38,974 | 44,333 | |
TOTAL CURRENT LIABILITIES | 6,909 | 38,974 | 44,333 | |
TOTAL LIABILITIES | 6,909 | 38,974 | 44,333 | |
NET ASSETS | 15,920,628 | 15,985,892 | 16,053,086 | |
EQUITY | ||||
Issued capital | 5 | 20,854,412 | 20,854,412 | 20,854,412 |
Reserves | 229,368 | 790,001 | 149,937 | |
Accumulated losses | (5,163,152) | (5,658,521) | (4,951,263) | |
TOTAL EQUITY | 15,920,628 | 15,985,892 | 16,053,086 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
SPITFIRE OIL LIMITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (expressed in Australian dollars) |
Contributed Equity | Options Reserve | Accumulated Losses | Total | |
A$ | A$ | A$ | A$ | |
BALANCE AT 1 JULY 2010 | 20,854,412 | 790,001 | (5,468,837) | 16,175,576 |
Total comprehensive loss for the period | - | - | (189,684) | (189,684) |
BALANCE AT 31 DECEMBER 2010 | 20,854,412 | 790,001 | (5,658,521) | 15,985,892 |
Total comprehensive loss for the period | - | - | (82,743) | (82,743) |
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS | ||||
Transfer of reserve upon expiry of options | - | (790,001) | 790,001 | - |
Issuance of employee share options | - | 149,937 | - | 149,937 |
BALANCE AT 30 JUNE 2011 | 20,854,412 | 149,937 | (4,951,263) | 16,053,086 |
Total comprehensive loss for the period | - | - | (211,889) | (211,889) |
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS | ||||
Vesting of employee share options | - | 79,431 | - | 79,431 |
BALANCE AT 31 DECEMBER 2011 | 20,854,412 | 229,368 | (5,163,152) | 15,920,628 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
SPITFIRE OIL LIMITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (expressed in Australian dollars) |
Half-year | Full-year | ||
31 December 2011 Unaudited A$ | 31 December 2010 Unaudited A$ | 30 June 2011 Audited A$ | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Payments to suppliers and employees | (335,362) | (394,869) | (720,027) |
Interest received | 180,660 | 178,265 | 364,757 |
R&D tax concession received | - | - | 206,417 |
Net cash outflow from operating activities | (154,702) | (216,604) | (148,853) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Refund of tenement rents | - | 348,865 | 348,865 |
Exploration expenditure | (311,275) | (41,117) | (119,711) |
Net cash (outflow)/inflow from investing activities | (311,275) | 307,748 | 229,154 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net cash inflow/(outflow) from financing activities | - | - | - |
Net (decrease)/increase in cash and cash equivalents | (465,977) | 91,144 | 80,301 |
Cash and cash equivalents at the beginning of the period | 7,985,012 | 7,926,723 | 7,926,723 |
Effects of exchange rate changes on cash and cash equivalents | 293 | (21,177) | (22,012) |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 7,519,328 | 7,996,690 | 7,985,012 |
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
SPITFIRE OIL LIMITED
Notes to the CONDENSED CONSOLIDATED financial statements
NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT
This condensed consolidated interim financial report for the half-year reporting period ended 31 December 2011 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.
The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006. The condensed consolidated statement of financial position at 30 June 2011 and the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended have been extracted from the Group's 2011 statutory financial statements upon which the auditors' opinion is unqualified. The condensed consolidated statement of comprehensive income has been prepared using information extracted from the Group's 2011 statutory financial statements.
This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2011 and any public announcements made by Spitfire Oil Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company's London office, 60 St James's Street, London, SW1A 1LE.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
The Group has reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2011. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.
NOTE 2: SEGMENT INFORMATION
The Group operates in predominantly one operating segment, being the exploration and mining for valuable resources that produce energy in Australia.
NOTE 3: DIVIDENDS
The Company has not declared any dividends in the period ended 31 December 2011.
NOTE 4: CONTINGENCIES
There has been no change in contingent liabilities or contingent assets since the last annual reporting date.
SPITFIRE OIL LIMITED
Notes to the CONDENSED CONSOLIDATED financial statements
NOTE 5: ISSUED CAPITAL
31 December 2011 | 31 December 2010 | 30 June 2011 | ||||
No | A$ | No | A$ | No | A$ | |
Issued and Paid Up Capital | ||||||
Fully Paid Ordinary Shares | 42,550,668 | 20,854,412 | 42,550,668 | 20,854,412 | 42,550,668 | 20,854,412 |
Total Issued Capital | 20,854,412 | 20,854,412 | 20,854,412 | |||
NOTE 6: LOSS PER SHARE
31 December 2011 | 31 December 2010 | 30 June 2011 | |
Basic and diluted loss per share (cents) | (0.5) | (0.4) | (0.6) |
a) Net loss used in the calculation of basic and diluted loss per share | (211,889) | (189,684) | (272,427) |
b) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic and diluted loss per share | 42,550,668 | 42,550,668 | 42,550,668 |
Options that are considered to be potential ordinary shares are excluded from the weighted average number of ordinary shares used in the calculation of basic loss per share. Where dilutive, potential ordinary shares are included in the calculation of diluted loss per share.
All the options on issue do not have the effect to dilute loss per share. Therefore they have been excluded from the calculation of diluted loss per share. There have been no other conversions to, call of, or subscriptions for ordinary shares since the reporting date and before the completion of this report.
NOTE 7: NET TANGIBLE ASSETS
31 December 2011 | 31 December 2010 | 30 June 2011 | |
Net Tangible Assets (A$) | 7,587,898 | 8,043,274 | 8,018,430 |
Shares (No) | 42,550,668 | 42,550,668 | 42,550,668 |
Net Tangible Assets (cents) | 17.8 | 18.9 | 18.8 |
NOTE 8: SUBSEQUENT EVENTS
No matter or circumstance has arisen since 31 December 2011, which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years.