TIDMSRO

RNS Number : 2756K

Spitfire Oil Limited

13 December 2018

Spitfire Oil Limited

54 Jermyn Street, London SW1Y 6LX, United Kingdom

Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773

13(th) 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 
 
 
YEARED 30 JUNE 2018                            2018         2017 
                                                    A$           A$ 
---------------------------------------------   -----------  ----------- 
OTHER INCOME                                         63,405       81,588 
 
EXPITURE 
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 
 
 
YEARED 30 JUNE 2018                              Accumulated 
                                     Issued Capital     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 30(th) 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 30(th) 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 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 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, 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$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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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