TIDMSRO
RNS Number : 5523Y
Spitfire Oil Limited
06 December 2017
Spitfire Oil Limited
54 Jermyn Street, London SW1Y 6LX, United Kingdom
Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629
7773
6th December 2017
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
2017 of A$3,759,741 (2016 A$623,614), after providing $3,376,906
(2016: $275,194) for diminution in value of the Salmon Gums
tenements. The Group benefited from interest receivable of A$81,588
(2016 A$125,328). Operating costs of A$464,423 (2016 A$473,748)
were incurred. A$286,906 (2016 A$275,194) 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 $1,250,000,
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 Spitfire Oil Pty Limited applied for a renewal of the
retention licence over the Salmon Gums Tenements for a further five
years. New regulations were introduced and became effective from 1
December 2013, requiring inter alia a JORC resource report under
the 2012 rules, which has been prepared and submitted to the
Western Australia Department of Mines and Petroleum. Whilst the
directors believe the application for a new retention licence is
fully compliant and are confident that a new retention licence will
be granted, to date a new retention licence has yet to be
granted.
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
The environment for junior oil companies continues to be
extraordinarily difficult and vindicates the decision made last
year by the Company to expand its search for new projects in the
gas and hard rock mining sectors. Nevertheless, the Company has
re-applied to extend its Retention Licence over the Salmon Gums
project. It is a significant ground holding and an asset worth
retaining. The extension licence application is pending but it is
envisioned that it will be extended in due course.
The focus of the Company during the year has been the
investigation of many and varied gas and mining projects in
multiple jurisdictions. The vast majority are grass roots
exploration assets with little or no hope of exploration success
and others are old assets exhausted of resources with no hope of
any further exploration potential. A number have resources which,
at first glance, look promising, but on further due diligence are
uneconomic on any reasonable economic assumptions. Nevertheless,
the Company continues to evaluate multiple projects in multiple
jurisdictions, remaining hopeful that a transaction may be
undertaken to breathe new life into the Company.
Of course, the Company is well aware of the overheads required
to maintain a listing and operating costs of a listed company. To
enable the Company to retain enough working capital to be able
evaluate available projects, the directors have agreed to forgo
their directors' fees or consultancy fees until a project is
successfully acquired by the Company. The directors remain fully
committed to ensuring such a transaction occurs.
All that remains to be added is that everyone involved with
Spitfire is singularly committed with forging ahead with a new and
exciting chapter in the Company's life. All our efforts are
directed in striving towards that day.
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
YEARED 30 JUNE 2017 2017 2016
A$ A$
----------------------------------- ----------- ---------
OTHER INCOME 81,588 125,328
EXPITURE
Corporate expenses (353,675) (346,012)
Other expenses (110,748) (127,736)
OPERATING LOSS (382,835) (348,420)
Impairment - exploration and
evaluation costs (3,376,906) (275,194)
LOSS BEFORE INCOME TAX (3,759,741) (623,614)
INCOME TAX - -
----------- ---------
LOSS AFTER INCOME TAX (3,759,741) (623,614)
OTHER COMPREHENSIVE INCOME,
NET OF TAX - -
----------- ---------
LOSS AND TOTAL COMPREHENSIVE
INCOME FOR THE YEAR ATTRIBUTABLE
TO OWNERS OF SPITFIRE OIL LIMITED (3,759,741) (623,614)
=========== =========
Basic and diluted loss per share
for loss attributable to the
ordinary equity holders of the
Company (cents per share) (14.5) (2.4)
=========== =========
Spitfire Oil Limited
Consolidated Statement of Financial Position
AS AT 30 JUNE 2017 2017 2016
A$ A$
CURRENT ASSETS
Cash and cash equivalents 3,170,851 3,840,977
Trade and other receivables - 798
Accrued revenues 10,512 63,887
Other current assets 21,385 19,533
TOTAL CURRENT ASSETS 3,202,748 3,925,195
------------ ------------
NON--CURRENT ASSETS
Capitalised exploration and
evaluation costs 1,250,000 4,340,000
Office equipment 164 164
Other non-current assets 45,000 45,000
TOTAL NON--CURRENT ASSETS 1,295,164 4,385,164
------------ ------------
TOTAL ASSETS 4,497,912 8,310,359
------------ ------------
CURRENT LIABILITIES
Trade and other payables 76,578 129,284
TOTAL CURRENT LIABILITIES 76,578 129,284
------------ ------------
TOTAL LIABILITIES 76,578 129,284
------------ ------------
NET ASSETS 4,421,334 8,181,075
============ ============
EQUITY
Issued capital 19,289,284 19,289,284
Reserves - -
Accumulated losses (14,867,950) (11,108,209)
------------ ------------
TOTAL EQUITY ATTRIBUTABLE TO
THE EQUITY HOLDERS OF THE PARENT 4,421,334 8,181,075
============ ============
Spitfire Oil Limited
Consolidated Statement of Changes in Equity
YEARED 30 JUNE 2017 Issued Accumulated
Capital Losses Total
A$ A$ A$
---------- ------------ -----------
BALANCE AT 30 JUNE 2015 19,289,284 (10,484,595) 8,804,689
---------- ------------ -----------
Loss for the year - (623,614) (623,614)
---------- ------------ -----------
TOTAL COMPREHENSIVE LOSS - (623,614) (623,614)
---------- ------------ -----------
TRANSACTIONS WITH OWNERS
IN THEIR CAPACITY AS OWNERS
Transaction with owners - - -
---------- ------------ -----------
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
---------- ------------ -----------
Spitfire Oil Limited
Consolidated Statement of Cash Flows
YEARED 30 JUNE 2017 2017 2016
A$ A$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (459,221) (463,010)
Interest received 81,588 155,788
NET CASH FLOWS USED IN OPERATING
ACTIVITIES (377,633) (307,222)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and
evaluation expenditure (286,906) (275,194)
NET CASH OUTFLOWS USED IN INVESTING
ACTIVITIES (286,906) (275,194)
--------- ---------
NET DECREASE IN CASH AND CASH
EQUIVALENTS (664,539) (582,416)
Cash and cash equivalents at
the beginning of the financial
year 3,840,977 4,428,982
Effects of exchange rate changes
on cash and cash equivalents (5,587) (5,589)
CASH AND CASH EQUIVALENTS AT
THE OF THE FINANCIAL YEAR 3,170,851 3,840,977
========= =========
Spitfire Oil Limited
Independent Auditor's Report
To the Members of Spitfire Oil Limited
Qualified Opinion
We have audited the financial report of Spitfire Oil Limited
(the Company) and its subsidiaries (the Group), which comprises the
consolidated statement of financial position as at 30 June 2017,
the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended,
and notes to the consolidated financial statements, including a
summary of significant accounting policies, and the directors'
declaration.
In our opinion, except for the effects of the matter described
in the Basis for Qualified Opinion section of our report, the
accompanying financial report of Spitfire Oil Limited:
a. presents fairly, in all material respects, the consolidated
entity's financial position as at 30 June 2017 and of its
performance and cash flows for the year then ended; and
b. complies with International Financial Reporting Standards
(IFRSs) as issued by the International Accounting Standards Board
(IASB).
Basis for Qualified Opinion
We were unable to obtain sufficient appropriate audit evidence
concerning the carrying value of capitalised exploration and
evaluation costs totalling $4.340 million in relation to the Salmon
Gums Project for the year ended 30 June 2016 and we qualified our
prior year audit opinion accordingly. As a result of this matter,
we were unable to obtain sufficient appropriate audit evidence
concerning the opening balance for the current year as at 1 July
2016. Since opening capitalised exploration and evaluation costs
balance affects the determination of the profit or loss for the
year and cash flows, we were unable to determine whether
adjustments to the consolidated statement of profit or loss and
other comprehensive income, the consolidated statement of changes
in equity and the net cash flow from operating activities reported
in the consolidated statement of cash flows might be necessary for
the year ended 30 June 2017.
Our opinion on the current year's financial statements is also
modified because of the possible effect of this matter on the
comparability of the current year's figures and the corresponding
figures.
We conducted our audit in accordance with International
Standards on Auditing and applicable law. Our responsibilities
under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the
independence requirements and the ethical requirements of the
Accounting Professional and Ethical Standards Board's APES 110 Code
of Ethics for Professional Accountants (the Code) that are relevant
to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the
Code.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a
basis for our qualified opinion.
Spitfire Oil Limited
Independent Auditor's Report
To the Members of Spitfire Oil Limited (continued)
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the
context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key audit matter How our audit addressed
the key audit matter
--------------------------------- ------------------------------------------------------------------
Exploration and Evaluation
Assets - valuation
Note 1(l) and 12
--------------------------------- ------------------------------------------------------------------
At 30 June 2017, the carrying Our procedures included,
value of Exploration and amongst others:
Evaluation Assets was -- Obtaining the management
$1.25 million. prepared reconciliation
of capitalised exploration
In accordance with IFRS and evaluation expenditure
6 Exploration for and and agreeing to the general
Evaluation of Mineral ledger;
Resources, the Group is -- Assessing management's
required to assess at area of interest considerations
each reporting date if against IFRS 6;
there are any triggers -- Conducting a detailed
for impairment which may review of management's
suggest the carrying value assessment of trigger
is in excess of the recoverable events prepared in accordance
value. with IFRS 6 including;
* Tracing projects to statutory registers, exploration
The process undertaken licenses and third party confirmations to determine
by management to assess whether a right of tenure existed;
whether there are any
impairment triggers in
each area of interest * Enquiry of management regarding their intentions to
involves an element of carry out exploration and evaluation activity in the
management judgement. relevant exploration area, including review of
managements' budgeted expenditure;
This area is a key audit
matter due to the valuation
of exploration and evaluation * Understanding whether any data exists to suggest that
assets being a significant the carrying value of these exploration and
risk. evaluation assets are unlikely to be recovered
through development or sale;
-- Assessing the accuracy
of impairment recorded
for the year as it pertained
to exploration interests;
and
-- Examining the appropriateness
of the related disclosures
within the financial statements.
--------------------------------- ------------------------------------------------------------------
Spitfire Oil Limited
Independent Auditor's Report
To the Members of Spitfire Oil Limited (continued)
Information Other than the Financial Report and Auditor's Report
Thereon
The Directors are responsible for the other information. The
other information comprises the information included in the Group's
annual report for the year ended 30 June 2017, but does not include
the financial report and our auditor's report thereon.
Our opinion on the financial report does not cover the other
information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial report, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this
regard.
Responsibilities of the Directors' for the Financial Report
The Directors of the Group are responsible for the preparation
of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and International
Financial Reporting Standards, and for such internal control as the
Directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible
for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors
either intend to liquidate the Group or to cease operations, or
have no realistic alternative but to do so.
The Directors are responsible for overseeing the Company's
financial reporting process.
Auditor's Responsibilities for the Audit of the Financial
Report
Our objectives are to obtain reasonable assurance about whether
the financial report as a whole is free from material misstatement,
whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in
accordance with the International Standards on Auditing will always
detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of
this financial report.
A further description of our responsibilities for the audit of
the financial report is located at the Auditing and Assurance
Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This
description forms part of our auditor's report.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
C A Becker
Partner - Audit & Assurance
Perth, 6 December 2017
Spitfire Oil Limited
Notes to the preliminary results to 30(th) June 2017
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
2017 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 2017
statutory financial statements upon which the auditors' opinion is
unqualified as to the financial position at 30(th) June 2017 but is
qualified as to the 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 ended
30(th) June 2017 due to the impact of any potential adjustment as
to the value of the Salmon Gums tenements at 30(th) June 2016 over
which the auditors had been unable to obtain sufficient evidence,
see below. The statutory financial statements for the year to 30
June 2016 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 2016 have been extracted from the statutory accounts for
that period, upon which the auditors opined that they were 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 2017 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, 8(th) 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$3,759,741 (2016 A$623,614) 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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