17 Dec 2010 09:16
Spitfire Oil Limited
17th December2010
PRELIMINARY RESULTS
Spitfire Oil Limited ("Spitfire Oil" or the "Company"), has today published its results for the period ended 30 June 2010, a summary of which is attached.
The Group's principal activity is the pursuance of the production of fuel oil and distillate from the Salmon Gums Lignite deposits in Western Australia.
The Group has reported a loss before tax of A$1,202,916 in the year to 30th June 2010. (2008/2009 A$1,437,020)
Chairman's Statement:
The past year's developments at Spitfire Oil Limited ("Spitfire" or the "Company") can safely be described as very disappointing. A thorough review of the Salmon Gums project (the "Project") concluded that a saleable distillate could not be produced economically at current world crude oil prices through the LV2 lignite to liquids process. As a consequence, a conscious decision was made to minimize all activities by the Company on the Project including suspending any further work on the L2V process, minimizing any additional geological work and reducing all overhead costs, including the redundancy of all personnel. These actions have stabilised the Company's finances whilst maintaining the security of its assets, allowing the directors time to pursue options for the development of the Company's Project and the investigation of other energy related projects.
In the later part of 2009, the potential for the occurrence of gold within Spitfire's tenements was recognised and the Company commissioned a reconnaissance gold exploration programme to test the north-eastern part of the Salmon Gums license areas. Desktop studies indentified a favourable target zone at the intersection of two regionally important faults. This was investigated with the drilling of 132 air core holes on a wide spaced 800 x 200 metre grid for a total of 7,706 metres. Sample results from these holes were encouraging with several zones of anomalous gold values delineated. These anomalies cover only some 10 kilometres of the 55 kilometres of the regional fault system. These encouraging results will require further drilling to ascertain the extent of the mineralization. The Company is currently investigating all options, including the identification of a joint venture partner, to identify the necessary significant resources required for this further exploration work.
As a result of the actions taken during 2009 and 2010, Spitfire's near term future has been assured. The challenge for the Company now is not only to realise the full potential of the Project, but also, in a world with exponentially increasing energy demands and declining fossil fuel resources, to expand and extend its reach into all facets of the energy sector. In 2011, the Company will strive to do so.
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 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
SPITFIRE OIL LIMITED
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2010
(expressed in Australian dollars)
| |||
2010 | 2009 | ||
A$ | A$ | ||
Other revenue | 649,451 | 1,208,333 | |
Expenditure | |||
Corporate expenses | (1,275,932) | (1,651,427) | |
Technology and development | (394,613) | (697,216) | |
Other expenses | (181,822) | (296,710) | |
Loss before income tax | (1,202,916) | (1,437,020) | |
Income tax expense | - | - | |
Loss for the year | (1,202,916) | (1,437,020) | |
Other comprehensive income | |||
Exchange differences on translation of foreign operations | (55,271) | 2,056,914 | |
Other comprehensive income for the year, net of tax | (55,271) | 2,056,914 | |
Total comprehensive (loss) / income for the year attributable to the owners of Spitfire Oil Limited | (1,258,187) | 619,894 | |
Basic and diluted loss per share attributable to the ordinary equity holders of the Company (cents per share) | (2.8) | (3.38) | |
Spitfire Oil Limited
Consolidated Statement of Financial Position
As at 30 June 2010
(expressed in Australian dollars)
2010 | 2009 | |||
A$ | A$ | |||
ASSETS | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 7,926,723 | 9,974,229 | ||
Trade and other receivables | 295 | 14,077 | ||
Other current assets | 64,705 | 60,037 | ||
TOTAL CURRENT ASSETS | 7,991,723 | 10,048,343 | ||
NON-CURRENT ASSETS | ||||
Plant and equipment | 7,954 | 13,906 | ||
Capitalised exploration and evaluation costs | 8,249,289 | 7,590,913 | ||
TOTAL NON-CURRENT ASSETS | 8,257,243 | 7,604,819 | ||
TOTAL ASSETS | 16,248,966 | 17,653,162 |
| |
LIABILITIES | ||||
CURRENT LIABILITIES | ||||
Trade and other payables | 73,390 | 202,299 | ||
Provisions | - | 17,100 | ||
TOTAL CURRENT LIABILITIES | 73,390 | 219,399 | ||
TOTAL LIABILITIES | 73,390 | 219,399 | ||
NET ASSETS | 16,175,576 | 17,433,763 | ||
EQUITY | ||||
Issued capital | 20,854,412 | 20,854,412 | ||
Reserves | 790,001 | 845,272 | ||
Accumulated loss | (5,468,837) | (4,265,921) | ||
TOTAL EQUITY | 16,175,576 | 17,433,763 | ||
Spitfire Oil Limited
Consolidated Statement of Changes in Equity
For the year ended 30 June 2010
(expressed in Australian dollars)
Issued Capital | Foreign Currency Translation | Accumulated Losses | Option reserve | Total | ||
A$ | A$ | A$ | A$ | A$ | ||
Balance at 1 July 2008 | 20,854,412 | (2,001,643) | (2,828,901) | 592,667 | 16,616,535 | |
Share based remuneration | - | - | - | 197,334 | 197,334 | |
Translation of Foreign currency | - | 2,056,914 | - | - | 2,056,914 | |
Net (Loss) for the period | - | - | (1,437,020) | - | (1,437,020) | |
Balance at 30 June 2009 | 20,854,412 | 55,271 | (4,265,921) | 790,001 | 17,433,763 | |
Translation of Foreign currency | - | (55,271) | - | - | (55,271) | |
Net (Loss) for the period | - | - | (1,202,916) | - | (1,202,916) | |
Balance at 30 June 2010 | 20,854,412 | - | (5,468,837) | 790,001 | 16,175,576 | |
Spitfire Oil Limited
Consolidated Statement of Cash Flows
For the year ended 30 June 2010
(expressed in Australian dollars)
2010 | 2009 | ||
A$ | A$ | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Payments to suppliers and employees | (1,464,319) | (2,621,682) | |
Interest received | 313,610 | 551,708 | |
R&D tax concession received | 324,688 | 656,096 | |
NET CASH OUT FLOW FROM OPERATING ACTIVITIES | (826,021) | (1,413,878) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sales of plant and equipment | - | 10,484 | |
Payment for purchases of plant and equipment | - | (2,976) | |
Exploration Expenditure | (1,213,195) | (4,731,954) | |
NET CASH OUT FLOW FROM INVESTING ACTIVITIES | (1,213,195) | (4,724,446) | |
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,039,216) | (6,138,324) | |
Cash and cash equivalents at the beginning of the year | 9,974,229 | 14,055,639 | |
Effects of exchange rate changes on cash and cash equivalents | (8,290) | 2,056,914 | |
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR |
7,926,723 |
9,974,229 |
Notes:
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 2010 and the summarised consolidated statement of 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 2010 statutory financial statements upon which the auditors' opinion is unqualified. The statutory financial statements for the year to 30 June 2010 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 2009 have been extracted from the statutory accounts for that period, which contain an unqualified auditors' report.
3. The annual report and accounts for 2010 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.
4. The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$1,202,916 divided by the weighted average number of shares in issue during the year of 42,550,668. There is no dilutive effect of share purchase options.