10 Dec 2014 11:08
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773
10th December 2014
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 2014 of A$4,538,212 (2013 A$289,639), after providing $4,249,592 (2013: $ nil) for a diminution in value of the Salmon Gums tenements. The Group benefited from interest received of A$143,897 (2013 A$220,495). Operating costs were reduced to A$432,517 (2013 A$510,136). In addition, A$194,039 (2013 A$21,656) was incurred and capitalised on licence fees and tenement management.
On 29th December 2013 16,666,667 shares in the Company held by Griffin Mining Limited were repurchased for cancellation at 5 pence per share, representing a discount of 13.0% to the closing share price of a Spitfire share on 27 December 2013 of 5.75 pence. Following this repurchase, the Company has 25,884,001 shares in issue.
Operations
The Salmon Gums Lignite Project remains on hold and the Retention Licence on which it occurs has been renewed for a further year until October 2015.
The directors continue to pursue potential joint ventures for the development of facilities to process the Salmon Gums lignite.
Although a resource has been defined, and title to the Salmon Gums mineral tenements has been secured for the foreseeable future, with active exploration work now suspended and having considered market prices for fuel products, the directors are of the opinion that provision be made against the carrying value of the Salmon Gums mineral tenements to $4,340,000.
The Company has continued to keep its running costs to a minimum while reviewing possible new projects. A number have been considered during the year but have so far not met requirements.
Chairman's Statement:
Mladen Ninkov, Chairman, commented: "I am certain that it has not escaped anyone's attention that the oil price has taken a substantial and, it some respect, unprecedented fall during 2014. It has, and will continue to have, long term consequences for the hydrocarbon extraction industries. With the cost of exploration, the relative new, easy supply of hydrocarbons through fracking and the stubbornness of any real recovery in the global economy since the global financial crisis, it seems unlikely that a sustainable increase in the oil price will appear in the near future. Still, it is at such times that opportunities present themselves which would have been unobtainable at a higher oil price which, with patience and sufficient working capital, may pay significant dividends if, and when, a recovery occurs. The Company is focused on achieving just that goal and continues to review numerous acquisition opportunities in the hope of acquiring just such an opportunity.
The Salmon Gums project continues to be the major asset of the Company, hamstrung by the low oil price and the absence of a low capital cost method of extracting distillate from the massive lignite resource at Salmon Gums. In the mean time the project remains covered by retention licences.
The Company continues to preserve its cash holdings by keeping its overheads to the barest minimum, having no full time employees and relying on the goodwill of the directors to manage, undertake all project reviews and acquisition due diligence. It is with you, our shareholders, always in the forefront of our minds that we continue to strive for progress in 2015."
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
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 Statement of Profit or Loss and Other Comprehensive Income All amounts presented in Australian dollars. |
YEAR ENDED 30 JUNE 2014 | 2014 | 2013 | |
A$ | A$ | ||
OTHER INCOME | 143,897 | 220,495 | |
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EXPENDITURE | |||
Corporate expenses | (341,776) | (414,483) | |
Other expenses | (90,741) | (95,651) | |
OPERATING LOSS | (288,620) | (289,639) | |
Impairment - exploration and evaluation costs | (4,249,592) | - | |
LOSS BEFORE INCOME TAX | (4,538,212) | (289,639) | |
INCOME TAX | - | - | |
LOSS AFTER INCOME TAX | (4,538,212) | (289,639) | |
OTHER COMPREHENSIVE INCOME, NET OF TAX | - | - | |
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED | (4,538,212) | (289,639) | |
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share) | (13.3) | (0.7) |
Spitfire Oil Limited Consolidated Statement of Financial Position All amounts presented in Australian dollars. |
AS AT 30 JUNE 2014 | 2014 | 2013 | |
A$ | A$ | ||
CURRENT ASSETS | |||
Cash and cash equivalents | 5,049,361 | 7,110,136 | |
Trade and other receivables | 890 | 1,242 | |
Other current assets | 16,021 | 14,179 | |
TOTAL CURRENT ASSETS | 5,066,272 | 7,125,557 | |
NON‑CURRENT ASSETS | |||
Capitalised exploration and evaluation costs | 4,340,000 | 8,395,553 | |
Office equipment | 1,145 | - | |
Other non-current assets | 45,000 | 45,000 | |
TOTAL NON‑CURRENT ASSETS | 4,386,145 | 8,440,553 | |
TOTAL ASSETS | 9,452,417 | 15,566,110 | |
CURRENT LIABILITIES | |||
Trade and other payables | 51,634 | 61,987 | |
TOTAL CURRENT LIABILITIES | 51,634 | 61,987 | |
TOTAL LIABILITIES | 51,634 | 61,987 | |
NET ASSETS | 9,400,783 | 15,504,123 | |
EQUITY | |||
Issued capital | 19,289,284 | 20,854,412 | |
Reserves | - | 321,600 | |
Accumulated losses | (9,888,501) | (5,671,889) | |
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT | 9,400,783 | 15,504,123 |
Spitfire Oil Limited Consolidated Statement of Changes in Equity All amounts presented in Australian dollars. |
YEAR ENDED 30 JUNE 2014 | Issued Capital | Options Reserve | Accumulated Losses | Total |
A$ | A$ | A$ | A$ | |
BALANCE AT 1 JULY 2012 | 20,854,412 | 281,853 | (5,382,250) | 15,754,015 |
Loss for the year | - | - | (289,639) | (289,639) |
TOTAL COMPREHENSIVE INCOME | - | - | (289,639) | (289,639) |
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS | ||||
Cost of share based payments | - | 39,747 | - | 39,747 |
BALANCE AT 30 JUNE 2013 | 20,854,412 | 321,600 | (5,671,889) | 15,504,123 |
Loss for the year | (4,538,212) | (4,538,212) | ||
TOTAL COMPREHENSIVE INCOME | (4,538,212) | (4,538,212) | ||
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS | ||||
Purchase of shares for cancellation | (1,565,128) | - | - | (1,565,128) |
Transfer on expiry of options | (321,600) | 321,600 | - | |
Transaction with owners | (1,565,128) | (321,600) | 321,600 | (1,565,128) |
BALANCE AT 30 JUNE 2014 | 19,289,284 | - | (9,888,501) | 9,400,783 |
Spitfire Oil Limited Consolidated Statement of Cash Flows All amounts presented in Australian dollars. |
YEAR ENDED 30 JUNE 2014 | 2014 | 2013 |
A$ | A$ | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Payments to suppliers and employees | (448,714) | (451,906) |
Interest received | 143,897 | 220,495 |
NET CASH OUTFLOW FROM OPERATING ACTIVITIES | (304,817) | (231,411) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Payments for exploration and evaluation expenditure | (194,039) | (21,655) |
Payments for equipment | (1,636) | - |
NET CASH OUTFLOW FROM INVESTING ACTIVITIES | (195,675) | (21,655) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Purchase of shares for cancellation | (1,565,128) | - |
NET CASH OUTFLOW FROM FINANCING ACTIVITIES | (1,565,128) | - |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (2,065,620) | (253,066) |
Cash and cash equivalents at the beginning of the financial year | 7,110,136 | 7,367,957 |
Effects of exchange rate changes on cash and cash equivalents | 4,845 | (4,755) |
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR | 5,049,361 | 7,110,136 |
Spitfire Oil Limited
Notes to the preliminary results to 30th June 2014
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 2014 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 2014 statutory financial statements upon which the auditors' opinion is unqualified. The statutory financial statements for the year to 30 June 2014 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 2013 have been extracted from the statutory accounts for that period, which contain an unqualified auditors' report.
3. The annual report and accounts for 2014 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, 6th Floor, 60 St James's Street, London, SW1A 1LE and on the Company's web site.
4. The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$4,538,212 divided by the weighted average number of shares in issue during the year of 34,103,179. There is no dilutive effect of share purchase options.