Share Name Share Symbol Market Type Share ISIN Share Description
Altona Energy Plc NEX:ANR NEX Ordinary Share GB00BFZNKV91
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  +0.00p +0.00% 10.50p 8.00p 13.00p 10.50p 10.50p 10.50p 0 07:45:18
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Altona Energy Plc Interim Results

27/03/2019 7:00am

UK Regulatory (RNS & others)


 
TIDMANR 
 
Embargoed until 
7am 
27 March 2019 
 
                               Altona Energy plc 
 
                          ("Altona" or "the Company") 
 
                                Interim Results 
 
Altona (NEX: ANR.PL), is an emerging energy company focused on developing its 
coal assets located in South Australia. The Company, which also has interests 
in mining for industrial metals in China, announces its unaudited interim 
results for the six months ended 31 December 2018. 
 
Operational Highlights (Pre and Post Period End) 
 
  * Underground Coal Gasification project in South Australia being evaluated 
 
  * Possible investment in a Chinese vanadium mine under consideration 
 
  * Restructured board focused on shareholder value and corporate governance 
 
  * GBP500,000 loan note subscribed for by joint venture partner, Sino-Aus Energy 
    Ltd 
 
  * Total assets are GBP11.2 million, with GBP19.8 million of tax losses which 
    could be applied against future profits 
 
Qinfu Zhang, Executive Chairman of Altona, commented, "Following a challenging 
2018, the current board of Altona is focused on the creation of value for 
shareholders. This is being approached in two ways; firstly, by the 
re-evaluation of our existing coal assets in Australia, with the view to 
gaining the necessary licences during the course of 2019, which will allow us 
to start the coal extraction within the next two years; and secondly, through 
the investment in a Chinese vanadium mining company, which the board is 
currently considering, and which is dependent upon the Chinese government 
granting the necessary permit to allow the deal to progress." 
 
For further information, please visit www.altonaenergy.com or contact: 
 
Altona Energy plc 
Qinfu Zhang, Executive Chairman                     +44 (0) 7795 168 157 
 
Alfred Henry Corporate Finance Ltd (NEX 
Corporate Adviser) 
Jon Isaacs / Nick Michaels                          +44 (0) 20 3772 0021 
 
Leander (Financial PR) 
Christian Taylor- Wilkinson                         +44 (0) 7795 168 157 
 
Company Information 
 
Altona is an exploration company focused on the evaluation and development of 
its significant coal resource exceeding 7 billion tonnes (1.3 billion tonnes 
historic JORC compliant) in the northern portion of the Permian Arckaringa 
Basin in South Australia.  Through its wholly owned Australian subsidiary 
Arckaringa Energy Pty Ltd, Altona holds a 100% interest in three exploration 
licences covering 1,944 sq. kms in the northern portion of the Permian 
Arckaringa Basin in South Australia including three coal deposits - Westfield 
(EL5676), Wintinna (EL5677) and Murloocoppie (EL5678).  All three deposits lie 
close to the Adelaide to Darwin railroad and the Stuart Highway. 
 
The Company is currently evaluating an investment in a Chinese vanadium mining 
company. 
 
The Company was admitted to trading on AIM on 10 March 2005 and transferred its 
listing to NEX Exchange Growth Market on 1 February 2019.  A copy of its 
admission documents dated 4 March 2005 can be accessed on its website, 
www.altonaenergy.com.  This website is where items can be inspected under Rule 
75 of the NEX Rules for Issuers. 
 
EXECUTIVE CHAIRMAN'S STATEMENT 
 
The six-month period under review from 1 July 2018 was a challenging period for 
the Company as is set out in recent announcements. With these issues now 
resolved the board of Altona is now fully focused on achieving shareholder 
value. The challenges referred to include a third-party pyrolysis licencing 
agreement entered into in August 2018, and which the board is no longer 
pursuing as it falls outside the core interest of the business and its current 
management. 
 
However, at the Company's Arckaringa project, in South Australia, where Altona 
owns the mining exploration licences to three sizeable tenements, progress was 
made with the receipt of a licence to construct water wells from the 
environmental regulator. The Company has been reviewing its strategy going 
forward which has included reassessing the extensive geological and 
hydrological data base at its disposal. Based on this data and other historical 
information and experience a cogent cost effective and achievable plan for the 
development of the coal assets is being formulated. 
 
In October, the Company proposed and subsequently executed a capital 
reorganisation of the shares, resulting in a thousand to one consolidation. The 
current board believes that this action has been partly responsible for the 
significant decline in the share price in the latter part of 2018 and first 
month of 2019 and is also confusing for shareholders. The new Board, in 
conjunction with its advisors, is considering whether remedial action is 
required and would have the desired effect to bring the share price more 
closely in-line with its original value. 
 
Financial Review 
 
The financial loss of the Group for the six months ended 31 December 2018 was GBP 
366,000 (H1 2017: GBP258,000).  Cash in bank at 31 December 2018 was GBP19,000 and 
the Company has total assets of GBP11,173,000, which includes GBP11,074,000 of 
intangible exploration and evaluation costs. 
 
The Group has in excess of GBP19.8 million of tax losses carried forward which it 
hopes to be able to be offset against future profits. 
 
An Australian Government Resource Development Grant of the order of AUD104,000 
is being actively sought. 
 
Following the board changes subsequent to period end, the current board and 
management are implementing policies and procedures to dramatically improve the 
financial stewardship of the Company moving forward. 
 
Post Balance Sheet Events 
 
Following a requisition for a general meeting on 14 December 2018, the 
shareholders met on 14 January and voted against the resolutions to remove 
Qinfu Zhang and Ma Chi from the board. Subsequently, Nick Lyth, Chief Executive 
and Henry Kloepper, Non-Executive Director resigned from the board with 
immediate effect on 24 January 2019. At the Company AGM on 25 January 2019, 
shareholders voted against the re-election of Timothy Jones and Robert Hales, 
as Non-Executive Chairman and Non-Executive Director respectively. 
 
Qinfu Zhang resumed his role as Executive Chairman of the Company and Philip 
Sutherland, who had resigned his role as Operations Director (Australia) in 
December 2018, was re-appointed to the board as Non-Executive Director on 1 
March to continue his key role as Company representative in South Australia. 
Christian Taylor-Wilkinson was appointed Non-Executive Director on 1 February, 
as well as being reappointed as financial PR consultant to Altona, a role his 
company Leander, had carried out between 2014 and 2018. A highly experienced UK 
non-executive director has provisionally accepted a position on the board, 
conditional to funding being received by Altona. 
 
Alfred Henry Corporate Finance Ltd was appointed as Corporate Adviser on 1 
February, following the Company's change in listing from AIM to NEX Exchange 
Growth Market on the same day. 
 
Also, on 1 February, the Company announced that its long-term joint venture 
partner, Sino-Aus Energy Group Ltd (Sino-Aus), had subscribed GBP500,000 for a 
convertible unsecured loan note, due to be redeemed on 31 July 2020. Sino-Aus 
is in the process of obtaining a permit from the Chinese government to transfer 
the funds out of China. 
 
Arckaringa UCG Project 
 
The board has revived its focus on its coal assets in South Australia and is 
currently in meetings with the Mining and Energy Department of the South 
Australian government to assess the Company's requirements for 2019. Further, 
the Company is monitoring the successes of Leigh Creek Energy, which owns the 
neighbouring mining tenements, and which has now commenced its commercial 
underground coal gasification ("UCG") project. Leigh Creek Energy, which is 
listed on the Australian Stock Exchange ("ASX") has seen its share price rise 
by almost 200% since it announced its successful syngas test burn in October 
2018. Whilst Altona faces a more challenging environment with its own 
tenements, the board is positive that a similar achievement can be made in the 
long-term. 
 
With this in mind, the board is reviewing its position with the South 
Australian government as to the Petroleum Exploration Licence Application 
("PELA") 604, a licence which covers the majority of the mining tenements the 
Company owns, and which is currently owned by Tri Star Energy, an American 
mining company. Primarily, the board is reviewing whether it can work around 
PELA 604 (in the non-overlapping areas of the tenements) or acquire the Licence 
from Tri Star Energy or, enter a co-operative agreement with Tri Star Energy 
or, request the South Australian government to not grant PELA 604 (the 
application was lodged by Tri-Star on 14 March 2016 and remains under 
consideration by the regulator) and grant the Company PELA 666, which was filed 
by Altona on 25 October 2016 and covers the same geographical area. 
 
Sino-Aus remains committed to its AUD30 million investment into the Arckaringa 
project, conditional upon the correct licences being granted. 
 
Possible Vanadium Mine Investment 
 
As announced on 14 January 2019, the Company is evaluating an investment into a 
Chinese vanadium mining company, in which Qinfu Zhang and his business 
associates own a 40% stake. The process is following the strict regulations set 
by the Chinese government, the first of which is for the company to obtain a 
permit to allow it to enter into a joint venture agreement with a non-Chinese 
company. Whilst this process is being negotiated, the company is conducting a 
detailed exploration survey which will be followed by a JORC evaluation report. 
 
The mine's main product is Vanadium Pentoxide (V2O5) which is currently in very 
high demand in many industries, including steel strengthening, energy storage 
in industrial batteries, thermal imaging equipment, nano-fibre applications and 
as a catalyst in many industrial chemical reactions. 
 
A representative of Altona's board will visit the mine in April to meet with 
the company and commence due diligence. While the investment cannot move 
forward until a permit from the Chinese government has been granted, the board 
and its advisers are establishing a plan of action so it can move forward 
quickly, upon a successful issue of the required permit. 
 
Outlook 
 
The Company is focused on two potentially significant projects; coal-to-syngas 
in South Australia, through is its Arckaringa licences, and vanadium in China, 
through a possible joint venture agreement and investment. The board is aware 
that both projects require the granting of licences and permits from third 
parties and that much work will need to be done to bring either to fruition. 
However, following the poor strategic decisions of 2018, the board realises 
that the need for a successful investment must be achieved in order to start 
returning value to shareholders and, with this in mind, is fully committed to 
both projects. 
 
Qinfu Zhang 
 
Executive Director 
 
26 March 2019 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
FOR THE HALF YEARED 31 DECEMBER 2018 
 
                                       Notes     Unaudited     Unaudited       Audited 
                                                 Half-year     Half-year          Year 
                                                     ended         ended         ended 
                                               31 Dec 2018        31 Dec       30 June 
                                                                    2017          2018 
 
                                                     GBP'000         GBP'000         GBP'000 
 
Total administrative expenses and                    (366)         (258)         (645) 
loss from operations 
 
Finance income                                           -             -             - 
 
Loss before taxation                                 (366)         (258)         (645) 
 
Tax                                      3               -             -             - 
 
Loss for the financial period                        (366)         (258)         (645) 
 
Other comprehensive income 
 
Exchange differences on translating                  (148)         (258)         (575) 
foreign operations maybe subsequently 
reclassified to profit or loss 
 
Total comprehensive profit/(loss)                    (514)         (516)       (1,220) 
attributable to the equity holders of 
the parent 
 
Loss per share 
 
- Basic and diluted                      4        (23.51p)      (21.85p)      (63.05p) 
 
 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
 
AS AT 31 DECEMBER 2018 
 
                                                 Unaudited     Unaudited       Audited 
                                               31 Dec 2018        31 Dec  30 June 2018 
                                                     GBP'000          2017         GBP'000 
                                                                   GBP'000 
 
ASSETS 
 
Non-current assets 
 
Intangible assets                                   11,074        11,541        11,219 
 
Other receivables                                        3             3             3 
 
Total Non-current assets                            11,077        11,544        11,222 
 
Current assets 
 
Trade and other receivables                             77            23            38 
 
Cash and cash equivalents                               19           756           391 
 
Total Current assets                                    96           779           429 
 
Total assets                                        11,173        12,323        11,651 
 
LIABILITIES 
 
Current liabilities 
 
Trade and other payables                 5             127            60            91 
 
Total Current liabilities                              127            60            91 
 
Total liabilities                                      127            60            91 
 
NET ASSETS                                          11,046        12,263        11,560 
 
Capital and reserve attributable to 
the equity holders of the Parent 
 
Share capital                                        1,427         1,427         1,427 
 
Share premium                                       18,692        18,692        18,692 
 
Merger reserve                                       2,001         2,001         2,001 
 
Foreign exchange reserve                             1,263         1,727         1,411 
 
Retained losses                                   (12,337)      (11,584)      (11,971) 
 
TOTAL EQUITY                                        11,046        12,263        11,560 
 
 
CONSOLIDATED STATEMENT OF CASHFLOWS 
 
FOR THE HALF YEARED 31 DECEMBER 2018 
 
                                                Unaudited    Unaudited            Audited 
                                                Half-year    Half-year               Year 
                                                    ended        ended              ended 
                                                   31 Dec       31 Dec            30 June 
                                                     2018         2017               2018 
 
                                                    GBP'000        GBP'000              GBP'000 
 
Operating activities 
 
Loss before taxation                                (366)        (258)              (645) 
 
Finance income                                          -            -                  - 
 
Share based payments                                    -            -                  - 
 
Foreign exchange on loans to controlled                 -            2                  - 
entities 
 
(Increase)/ decrease in receivables                  (39)          (9)               (24) 
 
Increase / (decrease) in payables and                  36         (42) 
provisions                                                                           (11) 
 
Cash used in operations                             (369)        (307)              (680) 
 
Income tax benefit received                             -            -                  - 
 
Net cash outflow used in operating                  (369)        (307)              (680) 
activities 
 
Investing activities 
 
Interest received                                       -            -                  - 
 
Net cash outflow from investing activities              -            -                  - 
 
Financing activities 
 
Proceeds from issue of shares                           -        1,048              1,095 
 
Costs of issue                                                       -               (46) 
 
Net cash inflow from financing activities               -        1,048              1,049 
 
Increase/decrease in cash and cash                  (369)          741                369 
equivalents in period/ year 
 
Cash and cash equivalents at beginning of             391           15                 15 
period / year 
 
Effect of exchange rate changes on cash and           (3)            - 
cash equivalents                                                               7 
 
Cash and cash equivalents at end of period /           19          756                391 
year 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
FOR THE HALF YEARED 31 DECEMBER 2018 
 
                              Share     Share   Merger    Foreign Retained         Total 
                            capital   premium  reserve   exchange   losses shareholders' 
                                                          reserve                 equity 
 
                              GBP'000     GBP'000    GBP'000      GBP'000    GBP'000         GBP'000 
 
Balance at 30 June 2016         892    18,178    2,001      1,986 (11,326)        11,731 
 
Total comprehensive loss          -         -        -      (259)    (258)         (517) 
for the period 
 
Issue of share capital          535       514        -          -        -         1,049 
 
Balance at 31 December        1,427    18,692    2,001      1,727 (11,584)        12,263 
2017 
 
Total comprehensive loss          -         -        -      (316)    (387)         (703) 
for the period 
 
Balance at 30 June 2018       1,427    18,692    2,001      1,411 (11,971)        11,560 
 
Total comprehensive loss          -         -        -      (148)    (366)         (514) 
for the period 
 
Issue of share capital            -         -        -          -        -             - 
 
Balance at 31 December        1,427    18,692    2,001      1,263 (12,337)        11,046 
2018 
 
NOTES TO THE INTERIM REPORT 
 
FOR THE HALF YEARING 31 DECEMBER 2018 
 
1.         GENERAL INFORMATION 
 
Altona Energy Plc (the "Company") is a company registered in England and 
Wales.  The condensed consolidated interim financial statements of the Company 
for the six months ended 31 December 2018 comprise the result of the Company 
and its subsidiaries (together referred to as the "Group") and have been 
prepared in accordance with the NEX Exchange Growth Market Rules for Issuers. 
As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial 
Statement" in preparing these interim financial statements. 
 
The consolidated interim financial information for the period 1 July 2018 to 31 
December 2018 is unaudited. In the opinion of the Directors the condensed 
interim financial information for the period presents fairly the financial 
position, and results from operations and cash flows for the period in 
conformity with the generally accepted accounting principles consistently 
applied. The condensed interim financial information incorporates unaudited 
comparative figures for the interim period 1 July 2017 to 31 December 2017 and 
extracts from the audited financial statements for the year to 30 June 2018. 
 
The financial information contained in this interim report does not constitute 
statutory accounts as defined by section 435 of the Companies Act 2006. 
 
The comparatives for the full year ended 30 June 2018 are not the Company's 
full statutory accounts for that year. A copy of the statutory accounts for 
that year has been delivered to the Registrar of Companies. The auditor's 
report on those financial statements was unqualified but did include a 
reference to the uncertainties surrounding going concern, to which the auditors 
drew attention by way of emphasis of matter and did not contain a statement 
under s498 (2) - (3) of Companies Act 2006. The interim report has not been 
audited or reviewed by the Company's auditor. The key risks and uncertainties 
and critical accountancy estimates remain unchanged from 30 June 2018 and the 
accountancy policies adopted are consistent with those used in the preparation 
of its financial statements for the year ended 30 June 2018. 
 
3.         TAXATION 
 
The Group has recognised a GBPNil tax credit (31 December 2017: GBPnil and 30 June 
2018: GBPnil) in respect of the concession for research and development tax 
credits available to the Group. No current taxation has been provided due to 
losses in the period. 
 
4.         LOSS PER SHARE 
 
The basic loss per share is derived by dividing the loss for the period 
attributable to ordinary shareholders by the weighted average number of shares 
in issue. 
 
                                         Unaudited     Unaudited       Audited 
                                       31 Dec 2018   31 Dec 2017  30 June 2018 
 
Loss for the period (GBP'000)                  (366)         (258)         (645) 
 
Weighted average number of shares -          1,559         1,181         1,023 
expressed in thousands 
 
Basic loss per share - expressed in       (23.51p)      (21.85p)      (63.05p) 
pence 
 
As the inclusion of the potential ordinary shares would result in a decrease in 
the loss per share they are considered to be anti-dilutive and, as such, the 
diluted loss per share calculation is the same as the basic loss per share. 
 
5.         TRADE AND OTHER PAYABLES 
 
                                         Unaudited     Unaudited       Audited 
                                       31 Dec 2018   31 Dec 2017  30 June 2018 
                                             GBP'000         GBP'000         GBP'000 
 
Trade payables                                  60            22            54 
 
Accruals and other payables                     67            38            37 
 
                                               127            60            91 
 
6.         POST REPORTING DATE EVENTS 
 
There were no material post reporting date events. 
 
 
 
END 
 

(END) Dow Jones Newswires

March 27, 2019 03:00 ET (07:00 GMT)

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