13 Dec 2018 07:00
Spitfire Oil Limited
54 Jermyn Street, London SW1Y 6LX, United Kingdom
Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773
13th December 2018
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 2018 of A$1,350,901 (2017 A$3,759,741), after providing $1,116,767 (2017: $3,376,906) for diminution in value of the Salmon Gums tenements. The Group benefited from interest receivable of A$63,405 (2017 A$81,588). Operating costs of A$297,539 (2017 A$464,423) were incurred. A$316,767 (2017 A$286,906) was incurred and capitalised on licence fees and tenement management.
Although a resource has been defined, and title to the Salmon Gums mineral tenements has been secured for the foreseeable future, with active development and exploration work now suspended and having considered market prices for fuel products, the directors are of the opinion that further provision be made against the carrying value of the Salmon Gums mineral tenements to $450,000, being in conformity with a review undertaken by independent consultants for the purposes of this report.
The directors, supported by independent advice, remain of the opinion that the recoverable amount of the Salmon Gums tenements is at least equal to the carrying value in the financial statements.
Operations
The Salmon Gums Lignite Project remains on hold. In September 2017 the Company renewed the retention licence over the Salmon Gums Tenements for a further two years. New regulations are being introduced which inter alia require a JORC resource under revised reporting rules. The revised JORC rules require a potentially viable operation to process the resource, without which the JORC rules require the resource to be downgraded putting at risk further renewal of the retention licence. The directors are investigating various processes to show that the resource can be processed when economic circumstances improve.
The directors continue to pursue potential joint ventures for the development of facilities to process the Salmon Gums lignite.
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
It has been another fruitless year in the attempt to acquire a significant and value enhancing asset for the Company.
The Company continues to hold a Retention Licence over the Salmon Gums project, which was extended for a further two years in 2017. A number of parties have shown an interest in conducting due diligence over the tenements with a view to moving to a joint venture. Time will tell whether this will end in a satisfactory conclusion.
Enormous time and effort has been extended by the directors, for no fees or any other form of compensation, examining and conducting due diligence over a number of, prima facie, promising assets. All such efforts have led to nothing, inevitably due to representations made not meeting reality.
Your directors have no interest in acquiring any asset which may provide market excitement but will inevitably lead to disappointment and financial loss. The Company remains committed to finding, acquiring and developing a long term asset which will provide real returns for shareholders. The patience of shareholders over the long years demands such a result.
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 2018 |
| 2018 | 2017 |
|
| A$ | A$ |
OTHER INCOME |
| 63,405 | 81,588 |
|
|
|
|
EXPENDITURE |
|
|
|
Corporate expenses |
| (217,641) | (353,675) |
Other expenses |
| (79,898) | (110,748) |
OPERATING LOSS |
| (234,134) | (382,835) |
Impairment - exploration and evaluation costs |
| (1,116,767) | (3,376,906) |
LOSS BEFORE INCOME TAX |
| (1,350,901) | (3,759,741) |
INCOME TAX |
| - | - |
LOSS AFTER INCOME TAX |
| (1,350,901) | (3,759,741) |
OTHER COMPREHENSIVE INCOME, NET OF TAX |
| - | - |
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED |
| (1,350,901) | (3,759,741) |
|
|
|
|
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share) |
| (5.22) | (14.5) |
Spitfire Oil Limited Consolidated Statement of Financial Position |
AS AT 30 JUNE 2018 |
| 2018 | 2017 |
|
| A$ | A$ |
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
| 2,560,120 | 3,170,851 |
Trade and other receivables |
| - | - |
Accrued revenues |
| 23,229 | 10,512 |
Other current assets |
| 28,954 | 21,385 |
TOTAL CURRENT ASSETS |
| 2,612,303 | 3,202,748 |
NON‑CURRENT ASSETS |
|
|
|
Capitalised exploration and evaluation costs |
| 450,000 | 1,250,000 |
Office equipment |
| - | 164 |
Other non-current assets |
| 45,000 | 45,000 |
TOTAL NON‑CURRENT ASSETS |
| 495,000 | 1,295,164 |
TOTAL ASSETS |
| 3,107,303 | 4,497,912 |
CURRENT LIABILITIES |
|
|
|
Trade and other payables |
| 36,870 | 76,578 |
TOTAL CURRENT LIABILITIES |
| 36,870 | 76,578 |
TOTAL LIABILITIES |
| 36,870 | 76,578 |
NET ASSETS |
| 3,070,433 | 4,421,334 |
EQUITY |
|
|
|
Issued capital |
| 19,289,284 | 19,289,284 |
Reserves |
| - | - |
Accumulated losses |
| (16,218,851) | (14,867,950) |
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT |
| 3,070,433 | 4,421,334 |
Spitfire Oil Limited Consolidated Statement of Changes in Equity |
YEAR ENDED 30 JUNE 2018 |
| Issued Capital | Accumulated Losses | Total |
|
| A$ | A$ | A$ |
BALANCE AT 30 JUNE 2016 |
| 19,289,284 | (11,108,209) | 8,181,075 |
|
|
|
|
|
Loss for the year |
| - | (3,759,741) | (3,759,741) |
TOTAL COMPREHENSIVE LOSS |
| - | (3,759,741) | (3,759,741) |
|
|
|
|
|
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS |
|
|
|
|
Transaction with owners |
| - | - | - |
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 |
Spitfire Oil Limited Consolidated Statement of Cash Flows |
YEAR ENDED 30 JUNE 2018 |
| 2018 | 2017 |
|
| A$ | A$ |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Payments to suppliers and employees |
| (342,724) | (459,221) |
Interest received |
| 50,688 | 81,588 |
NET CASH FLOWS USED IN OPERATING ACTIVITIES |
| (292,036) | (377,633) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Payments for exploration and evaluation expenditure |
| (316,767) | (286,906) |
|
|
|
|
NET CASH OUTFLOWS USED IN INVESTING ACTIVITIES |
| (316,767) | (286,906) |
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
| (608,803) | (664,539) |
Cash and cash equivalents at the beginning of the financial year |
| 3,170,851 | 3,840,977 |
Effects of exchange rate changes on cash and cash equivalents |
| (1,928) | (5,587) |
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR |
| 2,560,120 | 3,170,851 |
Spitfire Oil Limited
Notes to the preliminary results to 30th June 2018
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 2018 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 2018 statutory financial statements upon which the auditors' opinion is unqualified. The statutory financial statements for the year to 30 June 2018 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 2017 have been extracted from the statutory accounts for that period, upon which the auditors' opinion is unqualified as to the financial position at 30th June 2017 but is qualified as to the profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows for the year ended 30th June 2017 due to the impact of any potential adjustment as to the value of the Salmon Gums tenements at 30th June 2016 over which the auditors had been unable to obtain sufficient evidence to support the directors assessment of the recoverable amount the capitalised exploration and evaluation costs.
3. The annual report and accounts for 2018 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$1,350,901 (2017 A$3,759,741) divided by the weighted average number of shares in issue during the year of 25,884,001 (2016 25,884,001). There is no dilutive effect of share purchase options.