7 Dec 2009 07:00
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773
7th December 2009
PRELIMINARY RESULTS
Spitfire Oil Limited ("Spitfire Oil" or the "Company"), has today published its results for the period ended 30 June 2009, 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$1,437,020 in the year to 30th June 2009. (A$2,828,901 in the period from incorporation to 30 June 2008.)
Chairman's Statement
I think it is fair to say that the second half of 2008 and the beginning of 2009 will be remembered as a difficult and challenging year for all those involved in the natural resources, financial and industrial sectors. Spitfire has been well placed to weather this uncertain economic environment and hopefully prosper in the years ahead.
During the financial year to 30th June 2009, Spitfire continued to progress its proprietary L2VTM lignite-to-liquid
process and extended its lignite resource at Salmon Gums. With additional data from drilling at Salmon Gums, Spitfire was able, on 16th July 2009, to report a 69% increase in the Salmon Gums JORC indicated and inferred resource from
519 million tonnes to 876 million tonnes, with a potential increase in the in situ oil from 200 million barrels to about 330 million barrels.
Significant progress was also made in advancing key environmental, hydro-geological, mining and other studies. This enabled Spitfire to update its economic models and continued its path towards a feasibility study for a pilot plant.
Unfortunately, in the third quarter of 2009, ongoing test work and investigations highlighted the expanding complexity and growth in the scope of research required in refining and finalising the proprietary L2VTM lignite-to-liquid process to
extract an economic distillate from the Salmon Gums lignite. Consequently a complete re-appraisal of the project was instigated including the evaluation of processing the lignite at Salmon Gums with other coal to liquids technologies. All other options are also being canvassed including the acquisition of other energy related projects in which the Company has previous expertise. Discussions are also continuing with Curtin University and other parties as to how best to further progress and finance the future development of the project.
During the year, Spitfire noted a number of significant mining companies pegging ground in and around the area surrounding Salmon Gums. A geological assessment of the gold prospectively of Spitfire's tenements has shown that the tenements host the intersection of two regional prospective gold trends and the intersection of two regional faults. Regional geological interpretations indicate a greenstone belt crossing the tenements. Consequently, the Company has recently commenced a gold exploration program including 171 air core holes into the granite basement on a 200m x 800m grid covering the intersection of the two faults. This program is expected to be completed early next year.
There is no question that the past few months have been challenging, but the Company will not rest until these challenges have been met and an economically successful way is found to move both Salmon Gums and the future of the Company forward.
Further information
Spitfire Oil Ltd
Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7774
Roger Goodwin - Director
Investec Investment Banking:
Stephen Cooper +44 (0)20 7597 5104
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
Income Statement
For the year ended 30 June 2009
(expressed in Australian dollars)
| Consolidated Group | Parent Entity | Consolidated Group | Parent Entity | ||||
| 2009 | 2009 | 2008 | 2008 | ||||
| A$ | A$ | A$ | A$ | ||||
| Other Revenue | 1,208,333 | 356,519 | 1,251,885 | 949,590 | |||
| Corporate expenses | (1,651,427) | (834,052) | (1,410,557) | (1,035,345) | |||
| Impairment of financial assets | - | (862,142) | (534,439) | (2,636,793) | |||
| Technology and development | (697,216) | - | (1,883,681) | - | |||
| Other expenses | (296,710) | (97,345) | (252,109) | (106,353) | |||
| Loss before income tax | (1,437,020) | (1,437,020) | (2,828,901) | (2,828,901) | |||
| Income tax expense | - | - | - | - | |||
| Loss for the period | (1,437,020) | (1,437,020) | (2,828,901) | (2,828,901) | |||
| Basic loss per share (cents per share) | (3.38) | (7.06) | |||||
| Diluted loss per share (cents per share) | (3.38) | (7.06) | |||||
Spitfire Oil Limited
Balance Sheet
As at 30 June 2009
(expressed in Australian dollars)
| Consoliodated Group 2009 | Parent Entity 2009 | Consolidated Group 2008 | Parent Entity 2008 | |||||
| A$ | A$ | A$ | A$ | |||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | 10,019,229 | 58,013 | 14,100,639 | 14,037,046 | ||||
| Trade and other receivables | 14,077 | - | 194,553 | - | ||||
| Other current assets | 15,037 | 14,287 | 36,270 | 36,270 | ||||
| TOTAL CURRENT ASSETS | 10,048,343 | 72,300 | 14,331,462 | 14,073,316 | ||||
| NON-CURRENT ASSETS | ||||||||
| Trade and other receivables | - | 17,374,375 | - | 2,556,540 | ||||
| Other assets | - | 1,465 | - | 1,465 | ||||
| Property, plant and equipment | 13,906 | - | 41,220 | - | ||||
| Intangible assets | 7,590,913 | - | 3,416,172 | - | ||||
| TOTAL NON-CURRENT ASSETS | 7,604,819 | 17,375,840 | 3,457,392 | 2,558,005 | ||||
| TOTAL ASSETS | 17,653,162 | 17,448,140 | 17,788,854 | 16,631,321 | ||||
| LIABILITIES | ||||||||
| CURRENT LIABILITIES | ||||||||
| Trade and other payables | 202,299 | 14,377 | 1,172,319 | 14,786 | ||||
| Provisions | 17,100 | - | - | - | ||||
| TOTAL CURRENT LIABILITIES | 219,399 | 14,377 | 1,172,319 | 14,786 | ||||
|
|
| |||||||
| TOTAL LIABILITIES | 219,399 | 14,377 | 1,172,319 | 14,786 | ||||
| NET ASSETS | 17,433,763 | 17,433,763 | 16,616,535 | 16,616,535 | ||||
| EQUITY | ||||||||
| Issued capital | 20,854,412 | 20,854,412 | 20,854,412 | 20,854,412 | ||||
| Reserves | 845,272 | 845,272 | (1,408,976) | (1,408,976) | ||||
| Accumulated loss | (4,265,921) | (4,265,921) | (2,828,901) | (2,828,901) | ||||
| TOTAL EQUITY | 17,433,763 | 17,433,763 | 16,616,535 | 16,616,535 | ||||
Spitfire Oil Limited
Statement of Changes in Equity
For the year ended 30 June 2009
(expressed in Australian dollars)
| Consolidated Group | ||||||||
| Issued Capital | Foreign Currency Translation | Accumulated Losses | Share Based Remuneration | Total | ||||
| A$ | A$ | A$ | A$ | A$ | ||||
| Balance at 2 May 2007 | - | - | - | - | - | |||
| Shares issued | 23,300,973 | - | - | - | 23,300,973 | |||
| Share issuance costs | (2,446,561) | - | - | - | (2,446,561) | |||
| Share based remuneration | - | - | - | 592,667 | 592,667 | |||
| Translation of Foreign currency | - | (2,001,643) | - | - | (2,001,643) | |||
| Net (Loss) for the period | - | - | (2,828,901) | - | (2,828,901) | |||
| Balance at 30 June 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 | |||
| Parent Entity | ||||||||
| Issued Capital | Foreign Currency Translation | Accumulated Losses | Share Based Remuneration | Total | ||||
| A$ | A$ | A$ | A$ | A$ | ||||
| Balance at 2 May 2007 | - | - | - | - | - | |||
| Shares issued | 23,300,973 | - | - | - | 23,300,973 | |||
| Share issuance costs | (2,446,561) | - | - | - | (2,446,561) | |||
| Share based remuneration | - | - | - | 592,667 | 592,667 | |||
| Translation of Foreign currency | - | (2,001,643) | - | - | (2,001,643) | |||
| Net (Loss) for the period | - | - | (2,828,901) | - | (2,828,901) | |||
| Balance at 30 June 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 | |||
Spitfire Oil Limited
Cash Flow Statement
For the year ended 30 June 2009
(expressed in Australian dollars)
| Consolidated Group | Parent Entity | Consolidated Group | Parent Entity | ||||
| 2009 | 2009 | 2008 | 2008 | ||||
| A$ | A$ | A$ | A$ | ||||
| CASH FLOWS RELATED TO OPERATING ACTIVITIES | |||||||
| Payments to suppliers and employees | (2,621,682) | (712,490) | (2,818,468) | (570,515) | |||
| Interest received | 551,708 | 356,519 | 965,664 | 949,590 | |||
| R&D tax concession received | 656,096 | - | 277,788 | - | |||
| CASH FLOWS USED IN OPERATING ACTIVITIES | (1,413,878) | (355,971) | (1,575,016) | 379,075 | |||
| CASH FLOWS RELATED TO INVESTING ACTIVITIES |
|
| |||||
| Advances to subsidiary | - | (15,679,976) | - | (5,193,333) | |||
| Proceeds from sales of plant and equipment | 10,484 | - | |||||
| Payment for purchases of plant and equipment | (2,976) | - | (45,262) | - | |||
| Payment for purchases of equity investments | - | - | - | (1,465) | |||
| Exploration Expenditure | (4,731,954) | - | (3,131,852) | - | |||
| CASH FLOWS USED IN INVESTING ACTIVITIES | (4,724,446) | (15,679,976) | (3,177,114) | (5,194,798) | |||
| CASH FLOWS RELATED TO FINANCING ACTIVITIES |
|
| |||||
| Proceeds from issues of securities | - | - | 20,854,412 | 20,854,412 | |||
| CASH FLOW FROM FINANCING ACTIVITIES | - | - | 20,854,412 | 20,854,412 | |||
| NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS | (6,138,324) | (16,035,947) | 16,102,282 | 16,038,689 | |||
| Cash and cash equivalents at the beginning of the year | 14,100,639 | 14,037,056 | - | - | |||
| Effects of exchange rate changes on cash and cash equivalents | 2,056,914 | 2,056,914 | (2,001,643) | (2,001,643) | |||
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | 10,019,229 | 58,013 | 14,100,639 | 14,037,046 |
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 240 of the UK Companies Act 1985. The summarised consolidated and parent balance sheets at 30 June 2009 and the summarised consolidated and parent income statements, consolidated and parent statements of changes in equity and the summarised consolidated and parent cash flow statements for the period then ended have been extracted from the Group's 2009 statutory financial statements upon which the auditors' opinion is unqualified. The statutory financial statements for the year to 30 June 2009 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 period ended 30 June 2008 have been extracted from the statutory accounts for that period, which contain an unqualified auditors' report.
3. The annual report and accounts for 2009 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 losses per share is based on the loss attributable to ordinary shareholders of A$1,437,020 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.