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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Altona | LSE:ANR | London | Ordinary Share | GB00BFZNKV91 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 16.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMANR
RNS Number : 7672Q
Altona Energy PLC
02 December 2016
Embargoed until 7am 2 December 2016
Altona Energy plc
("Altona", "the Company" or "the Group")
Final Results
Altona (AIM: ANR) is pleased to announce its final results for the year ended 30 June 2016 and gives notice that its Annual General Meeting is to be held at the offices of Leander PR, Adam House, 7-10 Adam Street, London, WC2N 6AA on 29 December 2016 at 1.00 p.m.
Highlights
-- Revised JV Agreement entered into with Sino-Aus Energy Group ("Sino-Aus") and Wintask Limited ("Wintask") in November 2015 to complete a bankable feasibility study for Underground Coal Gasification at the Arckaringa Project
-- Subscription funds received from both Sino-Aus and Wintask in accordance with revised JV terms
-- Appointed Parsons Brinckerhoff to project manage the Arckaringa Project -- Reduction of 50% in Company overheads compared to year ended 30 June 2015 -- Sino-Aus representative, Mr Chi Ma, appointed as a Non-Executive Director
Post Period
-- Arckaringa Coal Chemical Joint Venture Company Pty Ltd ("JV Company") applied to the South Australian Government for a Petroleum Exploration Licence ("PELA 604")
-- Agreed terms for second tranche contributions by JV Partners into JV Company and by Sino-Aus for Altona shares in September 2016
Qinfu Zhang, Altona's Executive Chairman, commented, "I can confirm that the South Australian Government has registered the JV Company's Petroleum Exploration Licence Application over the ground we require in order to advance our project. The government has advised that our application is the next to be assessed in the event the new owner of PELA 604 has no interest in the licence or is unable to satisfy the licence requirements. We understand the government anticipates being in a position to engage with the new owner of PELA 604 early in the New Year.
"The South Australian region is currently experiencing an economic downturn and power shortages are a regular occurrence. We therefore continue to believe the Arckaringa Project will be a high priority for the government given its potential to provide a large number of new jobs and a source of long-term energy supply for the state."
For further information, please visit www.altonaenergy.com or contact:
Altona Energy plc Qinfu Zhang, Executive Chairman Nicholas Lyth, Non-Executive +44 7769 906 Director 686 Leander (Financial PR) +44 7795 168 Christian Taylor- Wilkinson 157 Northland Capital Partners Ltd (Nomad and Broker) Matthew Johnson / Gerry Beaney (Corporate Finance) John Howes (Corporate Broking) +44 20 3861 6625
About Altona Energy
Altona is listed on the London Stock Exchange's AIM market. Along with its JV Partners, Sino-Aus and Wintask, it is focused on the evaluation and development of the Company's Arckaringa Project to exploit the significant coal resources of approximately 7.8 billion tonnes (non-JORC). The project area is covered by three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia.
Chairman's Statement
The 12 months under review was a period of mixed fortunes for the Company, with a number of important milestones reached, offset against the delay caused by the need for the JV Company to obtain a Petroleum Exploration Licence ("PEL") before work can commence at the Arckaringa Project. The JV Company submitted the relevant application after the year end on 17 October 2016.
The Company's main investment in the Arckaringa Basin, South Australia, remains a world class coal asset, exceeding 7.8 billion tonnes of coal (1.3 billion tonnes JORC compliant) and the Company, along with Sino-Aus and Wintask (together the "JV Partners") continue to have the support of The Honourable Tom Koutsantonis MP, the South Australian Minister for Mineral Resources and Energy, and Minister for State Development.
The past 12 months have been focused on securing adequate funding for the project and by engaging with the appropriate experts who will work alongside the JV Company to ensure a timely delivery of the test drilling programme and bankable feasibility study ("BFS"), once all approvals are received from the South Australian Government.
Following an agreement by the JV Partners in April of this year to commence the BFS, the JV Company appointed mining engineering specialists, WSP-Parsons Brinckerhoff (Australia), tasking them to develop a programme to assess the quantum and quality of the coal resource at varying depths and also to undertake a technology review to determine the best Underground Coal Gasification ("UCG") technology available and applicable to the project, once it commences. These reports were completed over the summer leaving the JV Company in a position of immediate readiness, once the PEL is granted.
As per the Deed of Variation, which was signed on 5 November 2015, and is an amendment to the original Joint Venture Agreement, Sino-Aus completed a subscription for GBP0.5 million of Altona shares on 28 January 2016. Further, Sino-Aus completed its first tranche financial contribution to the JV Company between 12 and 21 April 2016, of AUD$5.4 million. Due to the delays mentioned above associated with the PEL application, on 28 July 2016 the JV Company agreed that Sino-Aus could remove AUD$5 million from the JV bank account, to invest in short-term instruments, until the PEL is granted.
On 24 March 2016, Mr Chi Ma, a representative of Sino-Aus was appointed to the board of Altona, strengthening the ties between the two companies.
Financial Review
During the period under review the Group made a profit of GBP38,000 (2015: loss GBP1,312,000), which was principally created by two non-cash credits to the income statement. The first followed the confirmation from HMRC that its enquires, in relation to potentially underpaid tax estimated at approximately GBP790,000 concerning fees paid on a gross basis to a company controlled by a previous board member, have concluded with the Company having no outstanding liabilities to HMRC in the matter. Accordingly the Company has released the provision in full resulting in a non-cash credit to the income statement.
Eliminating this non-cash entry results in an adjusted loss for the year ended 30 June 2016 of GBP765,000 (2015: loss of GBP1,312,000). This was in line with expectations having initiated cost cutting initiatives during the year that were planned to ensure shareholder's funds stretch as far as possible. As at 30 June 2016, the Group had cash of GBP362,000 (2015: GBP543,000).
In addition to the cost cutting initiatives undertaken in the year, the Group has reviewed its cost base and has cut further cost from the business in order to allow the Group to continue to meet its obligations whilst it secures the necessary PEL. The impact of these cost cutting measures is expected to result in a business that is appropriately structured to continue to control and influence its interest in the activities of the joint venture project.
Post Balance Sheet Events
A new Deed of Variation was signed by the JV Partners on 6 September 2016, providing revised terms for Sino-Aus to subscribe for a second tranche of Altona shares and also return AUD$5 million of funding into the JV Company. Both events will be triggered by the granting of the PEL, confirmation from WSP-Parson Brinckerhoff that all permits necessary to commencing a UCG test drilling project have been received, and consent from the South Australian Government. A second tranche contribution by Sino-Aus (AUD$ 5.4 million) and Wintask (AUD$ 600,000) into the JV Company will happen within 180 days following the above actions.
Outlook
The Altona board, despite the setback to the JV Company in the year, remain confident that it will be granted the necessary PEL by the South Australian Government. The region is currently undergoing an economic downturn and regularly experiences power shortages, suggesting that a significant asset such as Arckaringa would be given high priority by the government in order to provide a large number of new jobs for the lifetime of the project and to provide a long-term energy supply for the region.
While the board is unable to provide an accurate timetable of events for the next six months, it is hopeful that by the end of Q1 2017 it will be in a position to update shareholders with a plan for the initial test drilling programme at Arckaringa.
Qinfu Zhang
Executive Chairman
1 December 2016
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2016
Group 2016 2015 Notes GBP'000 GBP'000 Revenue - - Administrative expenses (765) (1,313) Reversal of provision 14 790 - Total administrative expenses and profit/(loss) from operations 5 25 (1,313) Finance income 4 1 1 ---------- ---------- Profit/(loss) before taxation 26 (1,312) Tax credit 9 12 - ---------- ---------- Profit/(loss) for the year attributable to the equity holders of the parent 38 (1,312) Other comprehensive income
Exchange differences on translating foreign operations that may be subsequently reclassified to profit or loss 1,471 (1,341) Total comprehensive income attributable to the equity holders of the parent 1,509 (2,653) ========== ========== Earnings per share expressed in pence per share - Basic attributable to the equity holders of the parent 8 0.005p (0.17p) ========== ========== - Diluted attributable to the equity holders of the parent 8 0.005p (0.17p) ========== ==========
All of the above operations during the year are continuing.
STATEMENTS OF FINANCIAL POSITION
As at 30 June 2016
Group Group Company Company 2016 2015 2016 2015 Notes GBP'000 GBP'000 GBP'000 GBP'000 ASSETS Non-current assets Intangible assets 10 11,221 9,739 - Investment in subsidiaries 11 - - 1,432 1,432 Other receivables 12 3 2 10,712 9,091 ---------- ---------- ---------- ---------- Total non-current assets 11,224 9,741 12,144 10,523 ---------- ---------- ---------- ---------- Current assets Trade and other receivables 12 17 122 16 58 Cash and cash equivalents 362 543 357 509 Total current assets 379 665 373 567 ---------- ---------- ---------- ---------- TOTAL ASSETS 11,603 10,406 12,517 11,090 ========== ========== ========== ========== LIABILITIES Current liabilities Provisions 14 - 790 - 790 Trade and other payables 13 68 108 55 94 Total current liabilities 68 898 55 884 ---------- ---------- ---------- ---------- TOTAL LIABILITIES 68 898 55 884 ========== ========== ========== ========== NET ASSETS 11,535 9,508 12,462 10,206 ========== ========== ========== ========== EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT Share capital 15 892 792 892 792 Share premium 15 18,178 17,778 18,178 17,778 Merger reserve 2,001 2,001 2,001 2,001 Foreign exchange reserve 1,449 (22) - - Retained deficit (10,985) (11,041) (8,609) (10,365) ---------- ---------- ---------- ---------- TOTAL EQUITY 11,535 9,508 12,462 10,206 ========== ========== ========== ==========
STATEMENTS OF CASH FLOWS
For the year ended 30 June 2016
Group Company 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Operating activities Profit/(Loss) for the year before taxation 26 (1,312) 1,738 (2,590) Income tax 12 - - - Finance income (1) (1) (1) (1) Share based payments 18 (128) 18 (128) Foreign exchange on loans to controlled entities - - (1,592) 1,439 Decrease in receivables 43 113 42 113 (Decrease) / increase in payables (40) (47) (40) 25 (Decrease) / increase in provisions (790) - (790) - ---------- ---------- ---------- ---------- Cash used in operations (733) (1,375) (625) (1,142) Income tax benefit received 63 43 - - ---------- ---------- ---------- ---------- Net cash used in operating activities (670) (1,332) (625) (1,142) Investing activities Payments to acquire intangible - (35) - - assets Loans to subsidiaries - - (28) (219) Interest received 1 1 1 1 Net cash generated from/(used in) investing activities 1 (34) (27) (218) ---------- ---------- ---------- ---------- Financing activities Proceeds from issue of shares 500 - 500 - Net cash inflow from financing 500 - 500 - ---------- ---------- ---------- ---------- Net decrease in cash and cash equivalents (169) (1,366) (152) (1,360) Cash and cash equivalents at beginning of the year 543 1,913 509 1,869 Effect of exchange rate changes on cash and cash equivalents (12) (4) - - ---------- ---------- ---------- ---------- Cash and cash equivalents at 30 June 362 543 357 509 ========== ========== ========== ==========
STATEMENTS OF CHANGES IN EQUITY
For the year ended 30 June 2016
All attributable to equity holders of the parent
Foreign Share Share Merger exchange Retained Total capital Premium reserve reserve deficit equity Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 As at 1 July 2014 792 17,778 2,001 1,319 (9,601) 12,289 Loss for the year - - - - (1,312) (1,312) Other comprehensive income - - - (1,341) - (1,341) Share based payments - - - - (128) (128) ---------- ---------- ---------- ----------- ---------- --------- Balance at 30 June 2015 792 17,778 2,001 (22) (11,041) 9,508 ---------- ---------- ---------- ----------- ---------- --------- Profit for the year - - - - 38 38 Other comprehensive income - - - 1,471 - 1,471 Issue of share capital 100 400 - - - 500 Share based payments - - - - 18 18 Balance at 30 June 2016 892 18,178 2,001 1,449 (10,985) 11,535 ---------- ---------- ---------- ----------- ---------- --------- Company GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Balance at 1 July 2014 792 17,778 2,001 - (7,647) 12,924 Loss for the year - - - - (2,590) (2,590) Share based payments - - - - (128) (128) Balance at 30 June 2015 792 17,778 2,001 - (10,365) 10,206 -------- -------- -------- -------- --------- -------- Profit for the year - - - - 1,738 1,738 Issue of share capital 100 400 - - - 500 Share based payments - - - - 18 18 Balance at 30 June 2016 892 18,178 2,001 - (8,609) 12,462 -------- -------- -------- -------- --------- --------
The following described the nature and purpose of each reserve within owners' equity:
Reserve Description and Purpose Share Capital Amount subscribed for share capital at nominal value Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Reserve created on issue of shares on acquisition of subsidiaries in prior years. Foreign exchange Cumulative translation differences of reserve net assets of subsidiaries. Retained deficit Cumulative net gains and losses recognised in the consolidated statement of comprehensive income
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
GENERAL INFORMATION
Altona Energy PLC is a public company which is listed on the Alternative Investment Market ('AIM') and is incorporated and domiciled in England & Wales, with registered number 05350512. The Company's financial statements for the year ended 30 June 2016 were authorised for issue by the Board on 1 December 2016 and the Statements of Financial Position were signed on the Board's behalf by Mr Nicholas Lyth.
The principal accounting policies are summarised below. They have been applied consistently throughout the year. The financial statements have been prepared on the historical cost basis.
BASIS OF PREPARATION
The financial statements are presented in Sterling, being the presentational currency of the Group and the functional and presentational currency of the Company. All values are rounded to the nearest thousand pounds (GBP'000) unless otherwise stated.
These financial statements have been prepared in accordance with IFRS as adopted for use in the European Union (EU), and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
GOING CONCERN
The Company raises money for exploration and capital projects as and when required. There can be no assurance that the Group's projects will be fully developed in accordance with current plans or completed on time or to budget. Future work on the development of these projects, the levels of production and financial returns arising therefrom may be adversely affected by factors outside the control of the Group.
On 5 November 2015 the Company announced that the Group had entered into a conditional agreement for Sino-Aus and Wintask to enter into a joint venture for the development of the Arckaringa project, whereby they undertake to fund the BFS for the Arckaringa Project and thereby the Group's licence commitments up to A$33million, and to subscribe to acquire up to 100,000,000 shares to raise an additional GBP0.75million. As at the date of the approval of these financial statements, the ability of the Company, and therefore the Group, to continue as a going concern is dependent on securing shareholder approval for this transaction and completing the process to obtain the necessary regulatory and government approvals ensuring that there are sufficient funds in place for the interim period. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the ability of the Group to continue as a going concern. However, the Directors are confident that the necessary shareholder approval will be secured and fundraising will therefore complete as anticipated and, alongside existing working capital, the resources at the Company's disposal will be sufficient for the Company to be able to meet its working capital requirements for a period of not less than 12 months from the date of the approval of this report.
The financial statements have therefore been prepared on a going concern basis and do not include the adjustments that would result if the Group was unable to continue in operation.
NEW STANDARDS AND INTERPRETATIONS
The financial statements have been drawn up on the basis of accounting standards, interpretations and amendments effective at the beginning of the accounting period.
(i) The following new standards, interpretations and amendments to published standards effective in the year have been adopted by the Group and Company:
International Accounting Standards (IAS/IFRS) Effective date IAS 27 Separate Financial Statements 1 Jan 2015 (2011) IAS 28 Investments in Associates and 1 Jan 2015 Joint Ventures (2011) IFRS 10 Consolidated Financial Statements 1 Jan 2015 IFRS 11 Joint Arrangements 1 Jan 2015 IFRS 12 Disclosure of Interests in Other 1 Jan 2015 Entities
The adoption of these new standards did not have an impact on the financial statements other than in respect of disclosure.
(ii) Standards, amendments and interpretations, which are effective for reporting periods beginning after the date of these financial statements and which have not been adopted early:
Standard Impact on initial application Effective date IAS 1 (Amendments) Presentation of Financial *1 January Statements - Disclosure 2016 Initiative IAS 16 (Amendments) Property, plant and equipment *1 January - Clarification of Acceptable 2016 Methods of Depreciation IAS 27 (Amendments) Separate Financial Statements *1 January 2016 IAS 28 (Amendments) Investments in Associates *1 January and Joint Ventures 2016 IAS 28 (Amendments) Accounting for Investments *1 January - Applying the Consolidation 2016 Exception IAS 38 (Amendments) Intangible Assets - Clarification *1 January of Acceptable Methods of 2016 Amortisation IFRS 9 (Amendments) Financial Instruments 1 January 2018 IFRS 10 (Amendments) Consolidated Financial Statements *1 January - Investments in Associates 2016 and Joint Ventures IFRS 10 (Amendments) Consolidated Financial Statements: *1 January Applying the Consolidation 2016 Exception IFRS 11 (Amendments) Joint Arrangements - Accounting *1 January for Acquisition of Interests 2016 in Joint Operations IFRS 12 (Amendments) Disclosure of Interests *1 January in Other Entities: Applying 2016 the Consolidation Exception IFRS 15 (Amendments) Revenue from Contracts with *1 January Customers 2018 Annual Improvements 2012 - 2014 Cycle *1 January 2016 IFRS 16 Leases *1 January 2019
* Not yet endorsed by European Union.
The adoption of IFRS 9 will eventually replace IAS 39 in its entirety and consequently may have a material effect on the presentation, classification, measurement and disclosures of the Group's and Company's financial instruments; however its impact on the financial statements has not yet been assessed. The Group and Company are evaluating the impact of the remaining new and amended standards above. The Directors believe that these new and amended standards are not expected to have a material impact on the Group's and Company's results or shareholders' funds.
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) as if they formed a single entity. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
-- The contractual arrangement with the other vote holders of the investee; -- Rights arising from other contractual arrangements; and -- The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies. Transactions and balances between group companies are eliminated.
BUSINESS COMBINATIONS
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost of a business combination is measured as the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 Revised Business Combinations are recognised at their fair values at the acquisition date.
FOREIGN CURRENCIES
The presentation currency of the Group is UK Pounds Sterling. The functional and presentation currency of the Company is UK Pounds Sterling whereas the functional currencies of all other subsidiaries is Australian Dollars. Transactions entered into by Group entities in currency other than the currency of the primary economic environment in which they operate (the "functional" currency) are recorded at rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
On consolidation, the results of the operations are translated into Pounds Sterling at average rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at closing rate are recognised directly in equity (the "foreign exchange reserve").
Exchange differences recognised in the statement of comprehensive income of Group entities' separate financial statements on the translation of long-term monetary items forming part of the Group's net investment in the overseas operation concerned are reclassified to the foreign exchange reserve if the item is denominated in the functional currency of the Company or the overseas operation concerned.
TAXATION
Current and deferred tax is charged or credited in the profit or loss, except when it relates to items charged or credited directly to equity, in which case the related tax is also dealt with in equity. Current tax is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date in the countries where the Company and its subsidiaries operate.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised, except for differences arising on investments in subsidiaries where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.
Recognition of the deferred tax assets is restricted to those instances where it is probable that A taxable profit will be available against which the difference can be utilised.
Deferred tax is calculated based on rates enacted or substantively enacted at the reporting date and expected to apply when the related deferred tax asset is realised or liability settled.
PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
INTANGIBLE ASSETS - EXPLORATION AND EVALUATION ASSETS
Exploration and evaluation expenditure in relation to each separate area of interest is recognised as an exploration and evaluation asset in the year in which it is incurred where the following conditions are satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
a) the exploration and evaluation expenditure is expected to be recovered through successful development and exploration of the area of interest, or alternatively, by its sale, or
b) Exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include the acquisition of rights to exploration, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation of assets used in exploration and evaluation activities. General, administrative and share based payment costs are only included in the measurement of exploration and evaluation costs where they are related directly to exploration and evaluation activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts or circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (or the cash-generating unit(s) ('CGU') to which it has been allocated, being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any).
Leasing
Where substantially all of the risks and rewards incidental to ownership are not transferred to the Group (an 'operating lease'), the total rentals payable under the lease are charged to profit or loss on a straight-line basis over the lease term. The aggregate benefit of lease incentives is recognised as a reduction of the rental expense over the lease term on a straight-line basis. The land and buildings elements of property leases are considered separately for the purposes of lease classification.
FINANCIAL ASSETS
The only financial assets currently held by the Group are classified as loans and receivables and cash and cash equivalents. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For receivables which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in profit or loss. On confirmation that the receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.
Loans and receivables comprise trade and other receivables and cash and cash equivalents in the statement of financial position.
Cash and cash equivalents include cash in hand and other short term highly liquid investments with a maturity of three months or less. Any interest earned is accrued monthly and classified as finance income. Short term deposits comprise deposits made for varying periods of between one day and three months.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the asset and substantially all the risk and rewards of ownership of the asset to another entity.
FINANCIAL LIABILITIES
The Group classifies its financial liabilities into one category being other financial liabilities. At present, the Group does not have any liabilities classified as fair value through profit or loss or any of the other categories.
The Group's accounting policy for the other financial liabilities category is as follows:
Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. All interest and other borrowing costs incurred in connection with the above are expensed as incurred and reported as part of financing costs in profit or loss.
Derecognition
Financial liabilities
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire.
INVESTMENTS IN SUBSIDIARIES
In its separate financial statements the Company recognises its investments in subsidiaries at cost, less any provision for impairment. The cost of acquisition includes directly attributable professional fees and other expenses incurred in connection with the acquisition. It also includes share based payments issued to employees of the Company for services provided to subsidiaries.
FINANCE INCOME
Finance income is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial assets and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
MERGER RESERVE
The difference between the fair value of an acquisition and the nominal value of the shares allotted in a share exchange has been treated in accordance with the merger relief provisions of the Companies Act 2006 and accordingly no share premium for such transactions was required to be recognised, resulting in a credit to the merger reserve.
SHARE BASED PAYMENTS
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant. The equity-settled share-based payments are expensed to profit or loss or capitalised to investments or intangibles in the statement of financial position over a straight line basis over the vesting period based on the Group's estimate of shares that will eventually vest.
Where equity instruments are granted to persons other than employees, the profit or loss is charged with the fair value of goods and services received over a straight line basis over the vesting period based on the Group's estimate of shares that will eventually vest, except where it is in respect to costs associated with the issue of securities, in which case it is charged to the share premium account.
JOINT ARRANGEMENTS
Joint arrangements are when there is a contractual arrangement that conifers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries.
The Group classifies its interest in joint arrangements as either:
-- Joint ventures: where the group has rights to only the net assets of the joint arrangement;
-- Joint operations: where the Group has both the rights to assets and obligations for the liabilities of the joint arrangement.
In assessing the classification of interests in joint arrangements, the following are considered:
-- The structure of the joint arrangement; -- The legal form of the joint arrangements structure through a separate vehicle; -- The contractual terms of the joint arrangement agreement; and -- Any other facts and circumstances (including any other contractual arrangements).
Interests in joint operations are accounted forby accounting for the assets, liabilities, revenues and expenses relating to its involvement in a joint operation in accordance with the relevant IFRSs.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below:
1. Joint Arrangements
During the year the Group transferred its interest in its Arckaringa Coal Project tenements to a 100% owned entity called Arckaringa Coal Chemical Joint Venture Company Pty Limited ("Joint venture company"), which followed the signing of the reviseded joint venture agreement in November 2015 with Sino-Aus and Wintask ("the joint venture partners") to develop the Arckaringa coal project, pending receipt of the Petroleum Exploration License from the South Australian Government.
Also during the year under review, the joint venture company received the initial cash contributions from the joint venture partners but had not yet issued shares to the joint venture partners and at the year-end Altona continued to own 100% of the shares in the joint venture Company. As a result of this it was not considered that the joint venture has been formed as the required conditions had not been met. Therefore, the joint arrangement has been accounted for as a joint operation at the year end and the Group has accordingly not de-recognised the intangible assets held whilst at the same time it has not recognised its share of the cash contributions by the other parties.
2. Impairment of intangibles
In order for work to commence on the Arckaringa Project (the Group' key asset) a Petroleum Exploration Licence is required. The Group has not received any indication that they will not be successful in its application and develop this project. As such, the intangible assets capitalised in respect of this asset continue to be recognised in full and the Directors do not believe that an impairment charge is required.
2. FINANCIAL INSTRUMENTS - RISK MANAGEMENT The financial instruments Other financial were categorised as follows: liabilities Loans and at amortised receivables cost Total Group 30 June 2016 GBP'000 GBP'000 GBP'000 Assets as per statement of financial position Trade and other receivables 2 - 2 Cash and cash equivalents 362 - 362 -------------- ----------------- --------- 364 - 364 -------------- ----------------- --------- Liabilities as per statement of financial position Trade and other payables - 68 68 -------------- ----------------- --------- - 68 68 -------------- ----------------- --------- Group 30 June 2015 Other financial liabilities Loans and at amortised receivables cost Total Assets as per statement of GBP'000 GBP'000 GBP'000 financial position Trade and other receivables 45 - 45 Cash and cash equivalents 543 - 543 -------------- ----------------- --------- 588 - 588 -------------- ----------------- --------- Liabilities as per statement of financial position Other financial liabilities - non-current - 790 790 Trade and other payables - 108 108 -------------- ----------------- --------- - 898 898 -------------- ----------------- --------- Other financial liabilities Company 30 June 2016 Loans and at amortised receivables cost Total Assets as per statement of GBP'000 GBP'000 GBP'000 financial position Trade and other receivables 2 - 2 Cash and cash equivalents 357 - 357 -------------- ----------------- --------- 359 - 359 -------------- ----------------- --------- Liabilities as per statement of financial position Trade and other payables - 55 55 -------------- ----------------- --------- - 55 55 -------------- ----------------- --------- Other financial liabilities Company 30 June 2015 Loans and at amortised receivables cost Total Assets as per statement of GBP'000 GBP'000 GBP'000 financial position Trade and other receivables - - - Cash and cash equivalents 509 - 509 -------------- ----------------- --------- 509 - 509 -------------- ----------------- --------- Liabilities as per statement of financial position Provisions - 790 790 Trade and other payables - 13 13 -------------- ----------------- --------- - 803 803
-------------- ----------------- ---------
The Group's financial instruments comprise cash and sundry receivables and payables that arise directly from its operations.
The main risks arising from the Group's financial instruments are credit risk, liquidity risk and currency risk. The Directors review and agree policies for managing these risks and these are summarised below. There have been no substantial changes to the Group's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.
There is no significant difference between the carrying value and fair value of receivables, cash and cash equivalents and payables.
Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties, as assessed by the Directors using relevant available information.
Credit risk also arises on cash and cash equivalents and deposits with banks and financial institutions. The Group's cash deposits are only held in banks and financial institutions which are independently rated with a minimum credit agency rating of A.
There were no bad debts recognised during the year and there is no such provision required at the reporting date.
Liquidity risk
Liquidity risk arises from the Group's management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. Short term payables are classified as those payables that are due within 30 days. The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, it seeks to maintain liquid cash balances (or agreed facilities) to meet expected requirements for a period of at least 45 days.
Currency risk
The functional currencies of the companies in the Group are Pounds Sterling and Australian Dollars. The Group does not hedge against the effects of movements in exchange rates. These risks are monitored by the Board on a regular basis.
The following table discloses the year end rates applied by the Group for the purposes of producing the financial statements:
Australian Foreign currency units to GBP1.00 Dollar GBP -------------------------------------- ------------ At 30 June 2016 1.79 --------------------------------------- ------------ At 30 June 2015 2.05 --------------------------------------- ------------
The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
Liabilities Assets 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Australian Dollar 14 95 8 46 ========== ========== ========== ==========
The impact of a 20% (2015: 20%) fluctuation in the value of the Australia Dollar would result in net translation gains or losses of GBP1,200 (2015: GBP9,800) movement in profit or loss and net assets of the Group.
The only monetary asset the Company has is the intercompany loan. The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
Assets 2016 2015 GBP'000 GBP'000 Australian Dollar 11,144 9,826 ========== ==========
A 20% (2015: 20%) fluctuation in the value of the Australian Dollar would result in a net translation gain or loss of GBP2,229,000 (2015: GBP1,638,000).
Interest rate risk
The Group and Company finance operations through the issue of equity share capital.
The Group and Company manages the interest rate risk associated with the Group and Company cash assets by ensuring that interest rates are as favourable as possible, whether this is through investment in floating or fixed interest rate deposits, whilst managing the access the Group and Company requires to the funds for working capital purposes.
The interest rate profile of the Group's cash and cash equivalents was as follows:
Pound Australian Total Sterling Dollar GBP'000 GBP'000 GBP'000 30 June 2016 Cash at bank floating interest rate 357 5 362 =========== ============ ========== Pound Australian Total Sterling Dollar GBP'000 GBP'000 GBP'000 30 June 2015 Cash at bank floating interest rate 509 34 543 =========== ============ ==========
At the reporting date, cash at bank floating interest rate is accruing weighted average interest of 0.05% (2015: 0.05%) As required by IFRS 7, the Group has estimated the interest rate sensitivity on year end balances and determined that a two percentage point increase or decrease in the interest rate earned on floating rate deposits would have caused a corresponding increase or decrease in net income in the amount of GBP7,000 (2015: GBP27,000).
Capital Management
The Group considers its capital to comprise its ordinary share capital, share premium and accumulated retained losses as well as the reserves (consisting of the foreign currency translation reserve and merger reserve).
The Group's objective when maintaining capital is to safeguard the entity's ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders.
The Company meets its capital needs by equity financing. The Group sets the amount of capital it requires to fund the Group's project evaluation costs and administration expenses. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
The Company and Group do not have any derivative instruments or hedging instruments. It has been determined that a sensitivity analysis will not be representative of the Company's and Group's position in relation to market risk and therefore, such an analysis has not been undertaken.
Fair values
The fair values of the Group and Company's financial instruments approximates to their carrying value.
3. REVENUE AND SEGMENTAL INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision--maker. The chief operating decision--maker, who is responsible for allocating resources and assessing performance of the operating segment and that make strategic decisions, has been identified as the Board of Directors. The Group had no revenue during the period.
During the year ended 30 June 2016 the Group operated in one segment, being the evaluation of the Arckaringa coal to chemicals project in South Australia. The Parent Company serves as an administrative head office and is based in the United Kingdom. During the year ended 30 June 2016 the Group's operations spanned three countries, Australia, China and the United Kingdom. Included within the results of the administrative and corporate operations are the results of the Chinese branch. The activity of the Chinese branch did not breach the 10% level required to be separately analysed. As at 30 June 2016 the Chinese branch had closed.
Segment result Segment result 2016 2015 GBP'000 GBP'000 Continuing operations Coal and Coal to chemicals project (Australia) (109) (160) Administration and Corporate (United Kingdom) 178 (2,245) ---------- ---------- 69 (1,313) Finance income 1 1 Profit/(Loss) before tax 70 (1,312) Income tax credit 12 - ---------- ---------- Profit/(Loss) after tax 82 (1,312) ---------- ----------
The current and prior year share based payment charges are included within the UK and China segment result.
Segment assets and liabilities
Non-Current Assets Non-Current Liabilities 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Coal and Coal to chemicals project (Australia) 11,224 9,741 - - Administration and Corporate - - - - (United Kingdom) ---------- ---------- ---------- ---------- Total of all segments 11,224 9,741 - - ---------- ---------- ---------- ---------- Total Assets Total Liabilities 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Coal and Coal to chemicals project (Australia) 11,229 9,839 13 13 Administration and Corporate (United Kingdom) 374 567 55 885 ---------- ---------- ---------- ---------- Total of all segments 11,603 10,406 68 898 ---------- ---------- ---------- ----------
Other segment information
Depreciation Capital expenditure and amortisation 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Continuing operations Coal and Coal to chemicals project (Australia) - - - 35 Administration and Corporate - - - - (United Kingdom) ----------- ----------- ------------ ---------- - - - 35 ----------- ----------- -------------------------------------------- ---------- 4. FINANCE INCOME Group 2016 2015 GBP'000 GBP'000 Bank interest receivable 1 1 ========== ========== 5. PROFIT/LOSS FROM OPERATIONS Group 2016 2015 GBP'000 GBP'000 This has been arrived at after charging/(crediting): Fees payable to the Company's auditor for the audit of the consolidated financial statements 16 16 Fees payable to the Company's auditor for other services: Audit of subsidiaries 4 4 Share based payments - Staff and Directors 18 (85) Share based payments - Consultants - (2) Staff (credit)/costs(1) (367) 653 Operating lease charges - land and buildings - 111
(1) Included in Staff costs is a credit for the reversal of the PAYE and national insurance provision . Further details on this provision are included in note 14.
6. STAFF COSTS (INCLUDING DIRECTORS) Group Company 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Salaries and fees 412 637 412 637 Release provision for PAYE/NIC (790) - (790) - National insurance 11 16 11 16 Total staff costs (367) 653 367 653 ---------- ---------- ---------- ----------
The Group averaged 7 employees during the year ended 30 June 2016 (2015:7 employees). The Company averaged 7 employees during the year (2015: 7 employees). Directors have been assessed as the only key management of the Group.
Total Short Share term based National benefits payments insurance 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ----------- ----------- ------------ --------- --------- Former Directors: Michael Zheng(1) - - - - 132 Christopher Lambert (2) - - - - 51 Current Directors: Qinfu Zhang (5) 180 7 - 187 128 Phillip Sutherland (5) 60 3 - 63 67 Nicholas Lyth (3) 30 7 3 40 2 Chi Ma (4) 8 - - 8 - ----------- ----------- ------------ --------- --------- Total Key Management 2016 278 17 3 267 - ----------- ----------- ------------ --------- --------- Total Key Management 2015 467 (87) - - 380 ----------- ----------- ------------ --------- ---------
(1) Michael Zheng resigned as a Director on 17 April 2015; accordingly his share options were cancelled
(2) Christopher Lambert resigned as a Director 14 October 2014; accordingly his share options were cancelled
(3) Nick Lyth was appointed as a Director on 15 June 2015
(4) Chi Ma was appointed as a Director on 24 March 2016
(5) Options granted in 2014 to Phil Sutherland and Qinfu Zhang were cancelled in the year resulting in a share based payment credit in the current year in respect of those cancelled options of GBP11,230 and GBP16,429 respectively.
The total amount payable to the highest paid director in respect of emoluments was GBP180,000 (2015: GBP132,000). No Directors exercised any share options during the year. The pension expense relates to compulsory superannuation in Australia.
7. PROFIT FOR THE FINANCIAL YEAR
The Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own statement of comprehensive income in these financial statements. The Company's profit for the year was GBP1,738,000 (2015: loss of GBP2,590,000).
8. EARNINGS PER SHARE
The profit for the year attributed to shareholders is GBP38,000 (2015: loss of GBP1,312,000).
This is divided by the weighted average number of Ordinary shares outstanding calculated to be 835.1 million (2015: 792.0 million) to give a basic earnings per share of 0.005 pence (2015: basic loss per share of 0.17 pence).
In the current YEAR there were no potentially dilutive ordinary shares at the year end because the share price at year end was below the strike price of the potentially dilutive options and warrants. The potential future share issues that may dilute the profit/(loss) per share relate to options in issue disclosed at note 16.
In the prior year the inclusion of the potential ordinary shares would result in a decrease in the loss per share, which would be anti-dilutive and, as such, the effect of the dilution has not been applied in the calculation.
9. TAX Group 2016 2015 GBP'000 GBP'000 Current taxation Tax credit 12 - Deferred taxation - - ---------- ---------- Total tax credit 12 - ========== ========== Factors affecting the tax charge for the year Profit/(loss) on ordinary activities before tax 38 (1,312) ---------- ---------- Loss on ordinary activities at the Group standard rate of 22.40% (2015: 21.22%) 9 (278) Effects of: Non-deductible expenses (5) (23) Difference in overseas tax rates (8) (14) Tax concession (research 12 - & development) Tax losses (utilised)/ carried forward 4 315 ---------- ---------- Total tax credit for the 12 - year ========== ========== Unprovided deferred tax asset: Group tax losses carried forward of GBP18,868,000 (2015: GBP18,895,000) multiplied by the standard rate of corporation tax 20% (2015: 20%) when it is probable that a taxable profit
will be available in the foreseeable future, but in view of the uncertainty as to future profits, no deferred tax asset has been recognised as at 30 June 2016 (30 June 2015: nil). 3,773 3,779 ========= =========
Changes in tax rates and factors affecting the future tax charge
The Finance Act 2016 includes legislation reducing the main rate of corporation tax from 21% to 20% from 1 April 2016.
10. INTANGIBLE ASSETS Group 2016 2015 GBP'000 GBP'000 Exploration and evaluation Cost At beginning of year 9,739 11,040 Additions - 35 Currency translation adjustment 1,482 (1,336) ---------- ---------- Carrying value at 30 June 11,221 9,739 ========== ==========
During the year the Group transferred its interest in its Arckaringa Coal Project tenements to a 100% owned entity called Arckaringa Coal Chemical Joint Venture Company Pty Limited ("Joint venture company"), which followed the signing of the modified joint venture agreement in November 2015 with Sino-Aus and Wintask ("the joint venture partners") to develop the Arckaringa Coal Project.
During the year under review, the joint venture company received the initial cash contributions from the joint venture partners but had not yet issued shares to the joint venture partners. Accordingly at the year-end Altona continued to own 100% of the shares in the joint venture Company. Accordingly because the shares had not yet been issued to partners as at 30 June 2016, management consider that the appropriate accounting is to treat the joint arrangement as a joint operation.
Potential impairment
Intangible assets relate solely to the Arckaringa coal project. Before work can commence at this project a Petroleum Exploration Licence must be obtained. In the event that this is unsuccessful, there may be an indication of impairment of capitalised expenditure which could significantly reduce the carrying amount of this asset.
11. INVESTMENTS IN SUBSIDIARIES Company 2016 2015 GBP'000 GBP'000 Cost Investments in subsidiaries - opening and closing balance 1,432 1,432 ========== ========== Subsidiaries of Country Holding Nature of Business Altona Energy of Registration Plc 2016 2015 % % Direct Altona Australia Dormant holding Pty Ltd Australia 100 100 Company Indirect Prior year evaluation Arckaringa Energy of the Arckaringa Pty Ltd Australia 100 100 Project Arckaringa Coal Current year Chemical Joint evaluation of Venture Co Pty the Arckaringa Ltd Australia 100 100 Project 12. TRADE AND OTHER RECEIVABLES Group Company 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Current Tax credit receivable - 63 - - Taxes & Social security receivable 7 12 7 11 Prepayments and other receivables (i) 10 47 9 47 ---------- ------------ ---------- ---------- 17 122 16 58 ========== ============ ========== ========== Non-current Loans due from Group companies (ii) - - 10,712 9,091 Tenement bond 3 2 - - --- --- -------- ------- 3 2 10,712 9,091 === === ======== =======
(i) Other receivables are non-interest bearing and generally repayable between 30-60 days. Included within other receivables is an amount for rent deposit which is refundable upon expiry of the lease.
(ii) The loans to wholly owned subsidiaries are non-interest bearing and are repayable on demand, however payment is not anticipated to be within one year.
The other receivables remain within their contractual maturity at 30 June 2016 (30 June 2015).
13. TRADE AND OTHER PAYABLES Group Company 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Trade payables 37 78 31 70 Accruals and other payables 31 30 24 24 68 108 55 94 ========== ========== ========== ==========
Trade and other payables are non-interest bearing and are normally settled on terms of 30 days from month end. The trade and other payables remain within their contractual maturity at 30 June 2016 and 30 June 2015.
14. PROVISIONS Group Company 2016 2015 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Current provision Taxes & Social Security - 790 - 790 ----------- ---------- ---------- ----------
Following the cancellation of the enquiries with HMRC in respect of potentially underpaid tax the provision was released during the period.
15. SHARE CAPITAL Group Company Allotted, called up 2016 2015 2016 2015 and fully paid GBP'000 GBP'000 GBP'000 GBP'000 891,956,853 ordinary shares of 0.1p each (2015: 791,956,853) 892 792 892 792 ========== ========== ========== ==========
During the year the Company issued the following Ordinary 0.1 pence fully paid shares:
Date Issue Price Number Nominal Share of Value premium Shares GBP'000 GBP'000 1 July 2014 and 2015 Closing balance 791,956,853 792 17,778 24 January Placing shares 2016 at 0.5p per share 100,000,000 100 400 30 June 2016 Closing balance 891,956,853 892 18,178 ============= ========== ========== 16. SHARE-BASED PAYMENTS
The Company periodically grants share options to employees, consultants and Directors, as approved by the Board. At 30 June 2016 and 30 June 2015, the following share options were outstanding in respect of the ordinary shares:
Year ended 30 June 2016
Grant Expiry Number Issued Forfeited Exercised Number Exercise Date Date of Options in Year / Expired in Year of Options Price Outstanding / Cancelled Outstanding per Option at beginning at end of the of the year year 28.01.13 28.01.18 4,515,000 - - - 4,515,000 1.50p(1) 08.04.13 08.04.16 4,500,000 - (4,500,000) - - 1.56p(1) 28.03.14 28.03.19 5,750,000 - (5,750,000) - - 1.50p(2) 28.03.14 28.03.19 5,750,000 - (5,750,000) - - 3.00p(2) 01.04.16 01.04.21 - 6,500,000 - - 6,500,000 1.50p(3) 01.04.16 01.04.21 - 6,500,000 - - 6,500,000 1.50p(3) 20,515,000 13,000,0000 (16,000,000) - 17,515,000 --------------- ------------- -------------- ----------- -------------- -------------
Year ended 30 June 2015
Grant Expiry Number Issued Forfeited Exercised Number Exercise Date Date of Options in Year / Expired in Year of Options Price Outstanding / Cancelled Outstanding per Option at beginning at end of the of the year year 30.03.10 29.03.15 1,300,000 - (1,300,000) - - 10.00p(1) 28.01.13 28.01.18 4,515,000 - - - 4,515,000 1.50p(1) 08.04.13 08.04.16 4,500,000 - - - 4,500,000 1.56p(1) 28.03.14 28.03.19 27,000,000 - (21,250,000) - 5,750,000 1.50p(2) 28.03.14 28.03.19 27,000,000 - (21,250,000) - 5,750,000 3.00p(2) 64,315,000 - (43,800,000) - 20,515,000 --------------- ---------- -------------- ----------- -------------- -------------
(1) - no vesting conditions or are fully vested at year end.
(2) - these options were subject to certain vesting conditions but were cancelled in the current year.
(3) - The first 6,500,000 options vest on the first anniversary after the date of grant and the second 6,500,000 vests on the second anniversary of the date of grant.
The weighted average contractual life of share options outstanding at the end of the period was 3.9 years (2015: 3.5 years).
The highest and lowest market price of the Company's shares during the year was 0.275p and 1.3p respectively (2015: 1.225p and 0.39p). The share price at year end was 0.75p (2015: 0.5p).
17. COMMITMENTS
As at 30 June 2016, the Group had the following material exploration commitments:
The Group has three exploration tenements in South Australia. The exploration commitments relating to EL 4512 Wintinna, to EL 4511 Westfield and to EL 4513 Murloocoppie were transferred to the joint venture company. Under its recently signed joint venture agreement the Group expects that the exploration commitments of the licences will continue to be met by the joint venture company in the coming financial year. The total commitment under the existing licences is AU$2,760,000.
18. RELATED PARTY TRANSACTIONS
The key management personnel are considered to be the Directors. Details of their remuneration are included in Note 6 to the financial statements.
19. CONTROLLING PARTY
The directors consider that there is no controlling party.
20. POST REPORTING DATE EVENTS
On 28 July 2016 the Company announced that the Joint Venture Partners have agreed not to proceed with the second subscription by Sino-Aus for 100 million ordinary shares of Altona at the subscription price of 0.75 pence per share (to raise GBP750,000). Furthermore it was agreed among the Joint Venture Partners to return to Sino-Aus its first tranche payment of AUD$5.4 million (less what has been already spent on the project). Sino-Aus will deposit the funds into short-term investment instruments, allowing it to generate a return.
On 6 September 2016 the Company entered into a deed of variation to the Joint Venture Agreement; the main amendments are detailed below.
Sino-Aus Second Tranche Subscription for Altona Shares
The JV Partners agreed that the second tranche subscription for Altona shares by Sino-Aus provides for Sino-Aus is to subscribe in cash 180 days from the Effective Date (as defined below) for 100 million Altona Shares:
(i) at the average market price per share during a specified period preceding the Effective Date; or
(ii) such other subscription price (if any) as shall have been agreed in writing between Sino-Aus and Altona.
Returned Funds
The AUD$5 million temporarily returned to Sino-Aus by the JV Company in July 2016 will be repaid to the JV Company within 90 days of the Effective Date. The Effective Date is the earliest date on which the following conditions precedent are satisfied:
(i) The continuance in force and effect of all necessary Australian Government consents which have been granted or issued prior to the date of the Deed of Variation and which relate to any of the transactions contemplated by the JV Agreement or the Arckaringa Project.
(ii) The acquisition by the JV Company by whatever means of a PEL applicable to the Licensed Area or such part or parts of it as the JV Company may accept.
(iii) Receipt by the parties of written confirmation from WSP-Parson Brinkerhoff that the JV Company has the necessary permits, including a PEL, to permit it to exploit coal deposits using UCG technology.
(iv) The grant or issue of any additional Australian Governmental consents which may be necessary to implement the Arckaringa Project.
Further Contributions to the JV Company
Subject to satisfaction of the conditions precedent, the Second Contribution by Sino-Aus (AUD $5.4 million, or such lesser figure as the Board of the JV Company may determine subject to a minimum of AUD $4.86 million) and the Second Contribution by Wintask (AUD $600,000), into the JV Company, will take place 180 days from the Effective Date or such earlier date as the Board of the JV Company may determine. The Third and Fourth Contributions by Sino-Aus and Wintask are payable in accordance with the current JV Agreement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
December 02, 2016 02:01 ET (07:01 GMT)
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