Spitfire Oil Limited Preliminary Results (0739I)

TIDMSRO

RNS Number : 0739I

Spitfire Oil Limited

04 December 2015

Spitfire Oil Limited

60 St James's Street, London SW1A 1LE, United Kingdom

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

4th December 2015

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 2015 of A$596,094 (2014 A$4,538,212), after providing $288,217 (2014: $4,249,592) for diminution in value of the Salmon Gums tenements. The Group benefited from interest received of A$144,291 (2014 A$143,897). Operating costs of A$452,168 (2014 A$432,517) were incurred. In addition, A$288,217 (2014 A$194,039) was incurred and capitalised on licence fees and tenement management.

Operations

The Salmon Gums Lignite Project remains on hold and the Retention Licence on which it occurs has been renewed for a further year until September 2016.

The directors continue to pursue potential joint ventures for the development of facilities to process the Salmon Gums lignite.

Although a resource has been defined, and title to the Salmon Gums mineral tenements has been secured for the foreseeable future, with active exploration work now suspended and with due consideration to market prices for fuel products the directors are of the view that the carrying value of the Salmon Gums mineral tenements continues to be $4,340,000, in conformity with a review undertaken by independent consultants for the purposes of this report.

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:

To say that it has been yet another difficult year for the oil & gas industry, and by definition Spitfire, would be a massive understatement. The dramatic fall in oil and gas prices have severely, if not mortally, injured the junior oil & gas market

Nevertheless, the Company has continued its extensive search for acquisitions in the oil & gas sector with no success primarily due to the uneconomic nature of any proven, probable or otherwise oil and gas fields at the current low US$40+ barrel oil price coupled with the evaporation of the capital equity markets for junior oil & gas companies.

It is in this environment that the Company has decided to look further afield at base and precious metals and minerals projects that may provide the economic return over a long period of time that may be attractive to finance, construct and commission in this difficult part of the commodities curve.

In the interim, the Retention Licence remains in place over the Salmon Gums project and the directors continue to originate and evaluate opportunities whilst keeping operating expenses and overheads to the barest possible minimum.

As always, the Company's core value remains to originate, nurture and generate exceptional returns for its shareholders. May the years ahead bring that statement to fruition?

Further information

Spitfire Oil Ltd: Telephone: [phone]

Mladen Ninkov - Chairman

Roger Goodwin - Director

Panmure Gordon (UK) Limited: Telephone: [phone]

Dominic Morley

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 
 Statement of Profit or Loss and Other Comprehensive 
 Income 
 
 
YEAR ENDED 30 JUNE 2015                     2015               2014 
                                             A$                 A$ 
-----------------------------------  ------------------  ----------------- 
OTHER INCOME                                    144,291            143,897 
 
EXPENDITURE 
Corporate expenses                            (369,325)          (341,776) 
Other expenses                                 (82,843)           (90,741) 
OPERATING LOSS                                (307,877)          (288,620) 
Impairment - exploration and 
 evaluation costs                             (288,217)        (4,249,592) 
LOSS BEFORE INCOME TAX                        (596,094)        (4,538,212) 
INCOME TAX                                            -                  - 
                                     ------------------  ----------------- 
LOSS AFTER INCOME TAX                         (596,094)        (4,538,212) 
OTHER COMPREHENSIVE INCOME, 
 NET OF TAX                                           -                  - 
                                     ------------------  ----------------- 
LOSS AND TOTAL COMPREHENSIVE 
 INCOME FOR THE YEAR ATTRIBUTABLE 
 TO OWNERS OF SPITFIRE OIL LIMITED            (596,094)        (4,538,212) 
                                     ==================  ================= 
 
Basic and diluted loss per share 
 for loss attributable to the 
 ordinary equity holders of the 
 Company (cents per share)                        (2.3)             (13.3) 
 
 
 
  Spitfire Oil Limited 
  Consolidated Statement of Financial Position 
 
 
AS AT 30 JUNE 2015                      2015         2014 
                                         A$           A$ 
CURRENT ASSETS 
Cash and cash equivalents              4,428,982    5,049,361 
Trade and other receivables                1,733          890 
Accrued revenues                          94,347            - 
Other current assets                      17,341       16,021 
TOTAL CURRENT ASSETS                   4,542,403    5,066,272 
                                    ------------  ----------- 
NON--CURRENT ASSETS 
Capitalised exploration and 
 evaluation costs                      4,340,000    4,340,000 
Office equipment                             164        1,145 
Other non-current assets                  45,000       45,000 
TOTAL NON--CURRENT ASSETS              4,385,164    4,386,145 
                                    ------------  ----------- 
TOTAL ASSETS                           8,927,567    9,452,417 
                                    ------------  ----------- 
CURRENT LIABILITIES 
Trade and other payables                 122,878       51,634 
TOTAL CURRENT LIABILITIES                122,878       51,634 
                                    ------------  ----------- 
TOTAL LIABILITIES                        122,878       51,634 
                                    ------------  ----------- 
NET ASSETS                             8,804,689    9,400,783 
                                    ============  =========== 
EQUITY 
Issued capital                        19,289,284   19,289,284 
Reserves                                       -            - 
Accumulated losses                  (10,484,595)  (9,888,501) 
                                    ------------  ----------- 
TOTAL EQUITY ATTRIBUTABLE TO 
 THE EQUITY HOLDERS OF THE PARENT      8,804,689    9,400,783 
                                    ============  =========== 
 
 
Spitfire Oil Limited 
 Consolidated Statement of Changes in Equity 
 
 
YEAR ENDED 30 JUNE 2015                 Issued      Options   Accumulated 
                                        Capital     Reserve      Losses        Total 
                                          A$          A$           A$           A$ 
                                      -----------  ---------  ------------  ----------- 
BALANCE AT 30 JUNE 2013                20,854,412    321,600   (5,671,889)   15,504,123 
 
Loss for the year                               -          -   (4,538,212)  (4,538,212) 
                                      -----------  ---------  ------------  ----------- 
TOTAL COMPREHENSIVE INCOME                      -          -   (4,538,212)  (4,538,212) 
                                      -----------  ---------  ------------  ----------- 
 
TRANSACTIONS WITH OWNERS IN 
 THEIR CAPACITY AS OWNERS 
Purchase of shares for cancellation   (1,565,128)          -             -  (1,565,128) 
Transfer on expiry of options                      (321,600)       321,600            - 
                                      -----------  ---------  ------------  ----------- 
Transaction with owners               (1,565,128)  (321,600)       321,600  (1,565,128) 
                                      -----------  ---------  ------------  ----------- 
BALANCE AT 30 JUNE 2014                19,289,284          -   (9,888,501)    9,400,783 
                                      -----------  ---------  ------------  ----------- 
 
Loss for the year                               -          -     (596,094)    (596,094) 
                                      -----------  ---------  ------------  ----------- 
TOTAL COMPREHENSIVE INCOME                      -          -     (596,094)    (596,094) 
                                      -----------  ---------  ------------  ----------- 
 
TRANSACTIONS WITH OWNERS IN 
 THEIR CAPACITY AS OWNERS 
Transaction with owners                         -          -             -            - 
                                      -----------  ---------  ------------  ----------- 
BALANCE AT 30 JUNE 2015                19,289,284          -  (10,484,595)    8,804,689 
                                      ===========  =========  ============  =========== 
 
 
Spitfire Oil Limited 
 Consolidated Statement of Cash Flows 
 
 
YEAR ENDED 30 JUNE 2015                  2015        2014 
                                          A$          A$ 
CASH FLOWS FROM OPERATING ACTIVITIES 
Payments to suppliers and employees    (371,524)    (448,714) 
Interest received                         49,944      143,897 
NET CASH OUTFLOW FROM OPERATING 
 ACTIVITIES                            (321,581)    (304,817) 
                                       ---------  ----------- 
CASH FLOWS FROM INVESTING ACTIVITIES 
Payments for exploration and 

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December 04, 2015 07:35 ET (12:35 GMT)