17 Mar 2020 09:48
SPITFIRE OIL LIMITED
8th Floor, Royal Trust House, 54 Jermyn Street, London SW1Y 6LX, United Kingdom
Telephone: + 44 (0)20 7629 7774. Facsimile: + 44 (0)20 7629 7773. E mail:spitfire@spitfireoil.com
Level 9, BGC Centre, 28 The Esplanade, Perth, WA 6000, Australia.
Telephone: + 61 (8)9321 0544. Facsimile: + 61 (8) 9321 7035
17th March 2020
INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31st DECEMBER 2019
Spitfire Oil Limited ("Spitfire" or "the Company") is pleased to publish a copy of its condensed consolidated unaudited interim results for the six months ended the 31st December 2019.
Spitfire and its subsidiaries (together "the Group") recorded a loss before tax for the six months ended the 31st December 2019 of A$113,324 (2018: A$325,594). With cash balances of A$2m, the Group has benefited from interest receipts of A$12,050 (2018 A$11,715) in the period. With all directors' fees suspended and other administration costs curtailed operating costs were A$102,527 (2018 A$86,680) and costs incurred prior to the relinquishment of the retention licence on the Salmon Gums lignite deposits of A$22,847 (2018 provision $250,620) have been written off.
Following the relinquishment of the Salmon Gums lignite tenement retention licence in September 2019 the directors have continued to review and investigate possible new projects and to revisit potential projects previously rejected, for acquisition by the Company. Unfortunately no potential projects have been identified that could bring value to the Company exacerbated by difficulties in raising finance for such projects in the markets at this time.
Chairman's Statement
Chairman Mladen Ninkov commented, "It has been a long and tortuous journey for the directors, management and shareholders of Spitfire. The dearth of projects and/or companies capable of being acquired, joint ventured or developed over the past decade has been frightening, not least for their lack of quality, resources or integrity of certain vendors. It has led to the inescapable conclusion that the Company should be suspended, delisted and liquidated and surplus funds returned to shareholders so that you may be able to deploy the capital in a more successful manner. I hope so in this particularly difficult world economic environment."
Further Information
Spitfire Oil Limited Mladen Ninkov - Chairman Roger Goodwin - Director
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Telephone: +44(0)20 7629 7774 |
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Panmure Gordon (UK) Limited Dominic Morley
| Telephone: +44 (0)20 7886 2500 |
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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
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014.
SPITIFIRE OIL LIMITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS OR OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 (expressed in Australian dollars) |
| Half-year | Full-year | ||
| Note | 31 December 2019 Unaudited A$ | 31 December 2018 Unaudited A$ | 30 June 2019 Audited A$ |
OTHER INCOME |
| 12,050 | 11,715 | 26,610 |
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EXPENDITURE |
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Corporate and other expenses |
| (102,527) | (86,680) | (199,206) |
OPERATING LOSS |
| (90,477) | (74,965) | ( 172,596) |
Imparment - exploration and evaluation costs |
| (22,847) | (250,629) | (763,507) |
LOSS BEFORE INCOME TAX |
| (113,324) | (325,594) | ( 936,103) |
INCOME TAX |
| - | - | - |
LOSS AFTER INCOME TAX |
| (113,324) | (325,594) | (936,103) |
OTHER COMPREHENSIVE INCOME, NET OF TAX |
| - | - | - |
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED |
| (113,324) | (325,594) | ( 936,103) |
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Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share). | 6 | (0.5) | (1.3) | ( 3.6) |
The above consolidated statement of profit or loss or other comprehensive income should be read in conjunction with the accompanying notes.
SPITFIRE OIL LIMITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 31 December 2019 (expressed in Australian dollars) |
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| 31 December | 31 December | 30 June |
| Note | 2019 Unaudited A$ | 2018 Unaudited A$ | 2019 Audited A$ |
CURRENT ASSETS |
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Cash and cash equivalents |
| 1,998,480 | 2,250,704 | 2,124,200 |
Accrued revenues |
| - | - | - |
Other current assets |
| 44,926 | 31,307 | 22,904 |
TOTAL CURRENT ASSETS |
| 2,043,406 | 2,282,011 | 2,147,104 |
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NON-CURRENT ASSETS |
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Capitalised exploration and evaluation costs |
| - | 450,000 | - |
Other non-current assets |
| - | 45,000 | 45,000 |
TOTAL NON-CURRENT ASSSETS |
| - | 495,000 | 45,000 |
TOTAL ASSETS |
| 2,043,406 | 2,777,011 | 2,192,104 |
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CURRENT LIABILITIES |
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Trade and other payables |
| 22,400 | 32,172 | 57,774 |
TOTAL CURRENT LIABILITIES |
| 22,400 | 32,172 | 57,774 |
TOTAL LIABILITIES |
| 22,400 | 32,172 | 57,774 |
NET ASSETS |
| 2,021,006 | 2,744,839 | 2,134,330 |
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EQUITY |
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Issued capital | 5 | 19,289,284 | 19,289,284 | 19,289,284 |
Accumulated losses |
| (17,268,278) | (16,544,445) | ( 17,154,954) |
TOTAL EQUITY |
| 2,021,006 | 2,744,839 | 2,134,330 |
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 SIX MONTHS ENDED 31 DECEMBER 2019 (expressed in Australian dollars) |
| Issued Capital | Accumulated Losses | Total |
| A$ | A$ | A$ |
BALANCE AT 31 DECEMBER 2017 | 19,289,284 | (15,312,484) | 3,976,800 |
Loss for the period | - | (906,367) | (906,367) |
TOTAL COMPREHENSIVE LOSS | - | (906,367) | (906,367) |
BALANCE AT 30 JUNE 2018 | 19,289,284 | (16,218,851) | 3,070,433 |
Loss for the period | - | (325,594) | (325,594) |
TOTAL COMPREHENSIVE LOSS | - | (325,594) | (325,594) |
BALANCE AT 31 DECEMBER 2018 | 19,289,284 | (16,544,445) | 2,744,839 |
Loss for the period | - | (610,509) | (610,509) |
TOTAL COMPREHENSIVE LOSS | - | (610,509) | (610,509) |
BALANCE AT 30 JUNE 2019 | 19,289,284 | (17,154,954) | 2,134,330 |
Loss for the period | - | (113,324) | (113,324) |
TOTAL COMPREHENSIVE LOSS | - | (113,324) | (113,324) |
BALANCE AT 31 DECEMBER 2019 | 19,289,284 | (17,268,278) | 2,021,006 |
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 SIX MONTHS ENDED 31 DECEMBER 2019 (expressed in Australian dollars) |
| Half-year | Full-year | |
| 31 December 2019 Unaudited A$ | 31 December 2018 Unaudited A$ | 30 June 2019 Audited A$ |
CASH FLOWS FROM OPERATING ACTIVITIES |
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Payments to suppliers and employees | (113,561) | (91,204) | (167,158) |
Interest received | 12,050 | 34,944 | 49,839 |
Net cash (outflow) from operating activities | (101,511) | (56,260) | (117,319) |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Payments for exploration and evaluation expenditure | (22,847) | (250,629) | (313,507) |
Net cash (outflow) from investing activities | (22,847) | (250,629) | (313,507) |
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NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (124,358) | (306,889) | (430,826) |
Cash and cash equivalents at the beginning of the period | 2,124,200 | 2,560,120 | 2,560,120 |
Effects of exchange rate changes on cash and cash equivalents | (1,362) | (2,527) | (5,094) |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 1,998,480 | 2,250,704 | 2,124,200 |
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 SIX MONTH FINANCIAL REPORT
This condensed consolidated interim financial report for the six month reporting period ended 31 December 2019 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting.
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 2019 and the condensed consolidated statement of profit or loss and other 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 2019 statutory financial statements upon which the auditors' report was unqualified.
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 2019 and any public announcements made by Spitfire Oil Limited during the interim reporting period in accordance with the continuous disclosure requirements.
Copies of this interim report are available from the Company's London office, 8th Floor, 54 Jermyn Street, London, SW1Y 6LX.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
Adoption of new and revised accounting standards
In the six months ended 31 December 2019, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2019.
It has been determined by the Group that, there is no material impact of the new and revised standards and interpretations on its business and therefore no change is necessary to the Group's accounting policies.
The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2019. 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.
SPITFIRE OIL LIMITED
Notes to the CONDENSED CONSOLIDATED financial statements.
NOTE 2: SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. For management purposes, the Group has identified only one reportable 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 2019.
NOTE 4: CONTINGENCIES
There has been no change in contingent liabilities or contingent assets since the last annual reporting date.
NOTE 5: ISSUED CAPITAL
| 31 December 2019 | 31 December 2018 | 30 June 2019 | |||
| No | A$ | No | A$ | No | A$ |
Issued and Paid Up Capital |
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Fully Paid Ordinary Shares | 25,884,001 | 19,289,284 | 25,884,001 | 19,289,284 | 25,884,001 | 19,289,284 |
Total Issued Capital |
| 19,289,284 |
| 19,289,284 |
| 19,289,284 |
NOTE 6: LOSS PER SHARE
| 31 December 2019 | 31 December 2018 | 30 June 2019 |
Basic and diluted loss per share (cents) | (0.4) | (1.3) | (3.6) |
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a) Net loss used in the calculation of basic and diluted loss per share (A$) | (113,324) | (325,594) | (936,103) |
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b) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic and diluted loss per share | 25,884,001 | 25,884,001 | 25,884,001 |
NOTE 7: SUBSEQUENT EVENTS
Since 31 December 2019, the directors have resolved that following the relinquishment of the Salmon Gums lignite tenement retention licence, as a result of; changes to the "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" requirements for the renewal of retention licences; a number of reviews of the economic feasibility of the Salmon Gums lignite project, in particular with consideration of the current and long term forecast for the continued relatively low oil prices; and the continuing costs of maintaining the retention licence over the Salmon Gums tenements; and despite substantial efforts by the directors and the Company's advisers to find another company, project or venture with the potential to bring value to Company, the Company is no longer serving any useful purpose and it is proposed that it be wound up by way of a Members' voluntary liquidation. Provision has not been made in the condensed financial statements to 31st December 2019 for ongoing costs to date of dissolution and liquidation costs.