13 Dec 2019 15:13
54 Jermyn Street, London SW1Y 6LX, United Kingdom
Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773
13th December 2019
PRELIMINARY RESULTS
Financial
Spitfire Oil Limited ("the Company") and its wholly owned subsidiary, Spitfire Oil Pty Ltd ("Spitfire"), together ("the Group"), recorded a loss before tax for the year ended 30th June 2019 of A$936,103 (2018: A$1,350,901), after providing $763,507 (2018: $1,116,767) for diminution in value of the Salmon Gums tenements. The Group benefited from interest receivable of A$26,610 (2018: A$63,405). Operating costs of A$199,206 (2018: A$297,539) were incurred. A$313,507 (2018: A$316,767) was incurred and capitalised on licence fees and tenement management.
On 30th August 2019, following a further review 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, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements and as a result all costs incurred in respect of the Salmon Gums lignite venture have been written off and charged to profit and loss.
Operations
Following the renewal of the retention licence over the Salmon Gums lignite deposits in September 2018, the Group continued to explore the feasibility of extracting liquid hydrocarbons from the Salmon Gums lignite deposits on a commercial basis. Despite these efforts and in seeking joint venture partners to further develop the venture, on 30th August 2019, following a further review 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, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements.
With the relinquishment of the retention licence, the Company becomes an AIM Rule 15 cash shell. As such, the Company is required to make an acquisition (or acquisitions) which constitutes a reverse takeover under AIM Rule 14 on or before 29 February 2020. If no such acquisition is completed by 29 February 2020, the Company's shares would then be suspended from trading on AIM pursuant to AIM Rule 40.
The Group has continued to keep its running costs to a minimum while reviewing possible new projects.
Chairman's Statement
During the 2018/19 financial year all efforts were made to commercially advance the Salmon Gums lignite deposits either through new technology, partnership or sale. Against a background of relatively low oil prices and significant anti fossil fuel sentiment, it was concluded it was no longer prudent to maintain the expenditure required to retain the Salmon Gum's retention licence and consequently it was relinquished on the 30th August 2019.
With the relinquishment of the retention licence, the Company is now an AIM Rule 15 cash shell. The directors continue to be focused and motivated on acquiring another company, project or venture which has the potential to bring significant value to shareholders. Whilst a number of such ventures have been identified or forwarded to the Company, none have reached a stage where it will be likely to conclude an acquisition by the 29th February 2020, the date at which the Company's shares will be suspended from trading on AIM pursuant to AIM Rule 40.
Thereafter, as soon as an acquisition can be made the directors will seek the re admission of the Company's shares onto AIM, however, if an acquisition cannot be successfully completed in a reasonable period of time, then the Company may be liquidated and surplus funds returned to shareholders.
Further information
Spitfire Oil Ltd: Telephone: +44 (0)20 7629 7774
Mladen Ninkov - Chairman
Roger Goodwin - Director
Panmure Gordon (UK) Limited: Telephone: +44 (0)20 7886 2500
Dominic Morley
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014.
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
Spitfire Oil Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income |
YEAR ENDED 30 JUNE 2019 |
| 2019 | 2018 |
|
| A$ | A$ |
OTHER INCOME |
| 26,610 | 63,405 |
|
|
|
|
EXPENDITURE |
|
|
|
Corporate expenses |
| (112,438) | (217,641) |
Other expenses |
| (86,768) | (79,898) |
OPERATING LOSS |
| (172,596) | (234,134) |
Impairment - exploration and evaluation costs |
| (763,507) | (1,116,767) |
LOSS BEFORE INCOME TAX |
| (936,103) | (1,350,901) |
INCOME TAX |
| - | - |
LOSS AFTER INCOME TAX |
| (936,103) | (1,350,901) |
OTHER COMPREHENSIVE INCOME, NET OF TAX |
| - | - |
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED |
| (936,103) | (1,350,901) |
|
|
|
|
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share) |
| (3.6) | (5.22) |
Spitfire Oil Limited Consolidated Statement of Financial Position |
AS AT 30 JUNE 2019 |
| 2019 | 2018 |
|
| A$ | A$ |
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
| 2,124,200 | 2,560,120 |
Trade and other receivables |
| 1,405 | - |
Accrued revenues |
| - | 23,229 |
Other current assets |
| 21,499 | 28,954 |
TOTAL CURRENT ASSETS |
| 2,147,104 | 2,612,303 |
NON‑CURRENT ASSETS |
|
|
|
Capitalised exploration and evaluation costs |
| - | 450,000 |
Office equipment |
| - | - |
Other non-current assets |
| 45,000 | 45,000 |
TOTAL NON‑CURRENT ASSETS |
| 45,000 | 495,000 |
TOTAL ASSETS |
| 2,192,104 | 3,107,303 |
CURRENT LIABILITIES |
|
|
|
Trade and other payables |
| 57,774 | 36,870 |
TOTAL CURRENT LIABILITIES |
| 57,774 | 36,870 |
TOTAL LIABILITIES |
| 57,774 | 36,870 |
NET ASSETS |
| 2,134,330 | 3,070,433 |
EQUITY |
|
|
|
Issued capital |
| 19,289,284 | 19,289,284 |
Reserves |
| - | - |
Accumulated losses |
| (17,154,954) | (16,218,851) |
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT |
| 2,134,330 | 3,070,433 |
Spitfire Oil Limited Consolidated Statement of Changes in Equity |
YEAR ENDED 30 JUNE 2019 |
| Issued Capital | Accumulated Losses | Total |
|
| A$ | A$ | A$ |
BALANCE AT 30 JUNE 2017 |
| 19,289,284 | (14,867,950) | 4,421,334 |
|
|
|
|
|
Loss for the year |
| - | (1,350,901) | (1,350,901) |
TOTAL COMPREHENSIVE LOSS |
| - | (1,350,901) | (1,350,901) |
|
|
|
|
|
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS |
|
|
|
|
Transaction with owners |
| - | - | - |
BALANCE AT 30 JUNE 2018 |
| 19,289,284 | (16,218,851) | 3,070,433 |
Loss for the year |
| - | (936,103) | (936,103) |
TOTAL COMPREHENSIVE LOSS |
| - | (936,103) | (936,103) |
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS |
|
|
|
|
Transaction with owners |
| - | - | - |
BALANCE AT 30 JUNE 2019 |
| 19,289,284 | (17,154,954) | 2,134,330 |
Spitfire Oil Limited Consolidated Statement of Cash Flows |
YEAR ENDED 30 JUNE 2019 |
| 2019 | 2018 |
|
| A$ | A$ |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Payments to suppliers and employees |
| (167,158) | (342,724) |
Interest received |
| 49,839 | 50,688 |
NET CASH FLOWS USED IN OPERATING ACTIVITIES |
| (117,319) | (292,036) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Payments for exploration and evaluation expenditure |
| (313,507) | (316,767) |
|
|
|
|
NET CASH OUTFLOWS USED IN INVESTING ACTIVITIES |
| (313,507) | (316,767) |
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
| (430,826) | (608,803) |
Cash and cash equivalents at the beginning of the financial year |
| 2,560,120 | 3,170,851 |
Effects of exchange rate changes on cash and cash equivalents |
| (5,094) | (1,928) |
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR |
| 2,124,200 | 2,560,120 |
Notes to the preliminary results to 30th June 2019
1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Group.
2. 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 summarised consolidated statement of financial position at 30 June 2019 and the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised 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' opinion is unqualified. The statutory financial statements for the year to 30 June 2019 have been prepared in accordance with the requirements of International Accounting Standard IAS1: Presentation of Financial Statements as adopted in Australia. The results for the year ended 30 June 2018 have been extracted from the statutory accounts for that period, upon which the auditors' opinion is qualified as to the inability to obtain sufficient audit evidence concerning the capitalised exploration and evaluation costs in respect of the Salmon Gums Project at 30th June 2016 and the consequent impact on the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows.
3. The annual report and accounts for 2019 are being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company's London correspondent office, 8th Floor, 54 Jermyn Street, London, SW1A 6LX and on the Company's web site www.spitfireoil.com.
4. The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$936,103 (2018 A$1,350,901) divided by the weighted average number of shares in issue during the year of 25,884,001 (2018 25,884,001). There is no dilutive effect of share purchase options.