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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Argos Resources Limited | LSE:ARG | London | Ordinary Share | FK0114538241 | ORD 2P (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.35 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMARG
RNS Number : 4200E
Argos Resources Ltd
28 February 2020
28 February 2020
ARGOS RESOURCES LIMITED
("Argos" or "the Company")
2019 Financial Results
Highlights
Argos Resources Ltd (AIM: ARG.L), the Falkland Islands based exploration company focused on the North Falkland Basin, is pleased to announce its financial results for the year ended 31 December 2019.
Hot Features
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* US$401,000 loss (2018: profit of US$406,000)
* US$768,000 cash reserves at 31 December 2019 (31
December 2018: US$788,000)
* The Working Interest in the Licence was transferred
back to Argos in February 2019
* The current Second Phase of the Licence, which was
due to expire in November 2019, was extended by the
Falkland Islands Government until 1 May 2021, with no
additional work commitments
* The Group continued to receive quarterly cash
payments from Noble and Edison of GBP75,000 per
quarter, which were recognised as income in 2018
until 27 December 2019, under the termination terms
of the Participation Agreement
The full Annual Report and Consolidated Financial Statements can be read and downloaded from the Company website: http://www.argosresources.com/news.php?page=regulatory-news
Argos Resources Limited (+500 22685)
www.argosresources.com
Ian Thomson, Chairman
John Hogan, Managing Director
Cenkos Securities plc (Nomad & Broker)
Derrick Lee (+44 131 220 9100)
Neil McDonald (+44 131 220 6939)
Joint Chairman's statement and Managing Director's review
In October 2018, Noble Energy Falklands Limited ("Noble") and Edison International S.p.A ("Edison") served notice of their intention to withdraw from Production Licence PL001 (the "Licence") in the North Falkland Basin, in which Argos held a 5% Overriding Royalty Interest under a Participation Agreement. Noble and Edison's Working Interests in the Licence were transferred back to Argos in February 2019. The Licence covers an area of approximately 1,126 square kilometres in the North Falkland Basin.
Under the terms of a Participation Agreement between the Company, Noble and Edison, the Company continued to receive quarterly cash payments from Noble and Edison of GBP75,000 per quarter during 2019, up until 27 December 2019. These payments contributed to a cash balance of $768,000 at year end 2019, leaving the Group adequately financed for at least twelve months beyond sign-off. In order to continue as a going concern beyond that point the Company will need to raise further finance, either through a new partner or by raising funds in an equity issue. Further details on going concern are contained in the note below.
The Company has successfully extended the Second Phase of the Licence from November 2019 to 1 May 2021, thereby creating additional time to secure new partners in the Licence. A further extension may be sought to allow adequate time for drilling within the Licence area.
The Company is actively seeking other partners to participate in the development of the Licence.
Results and dividend
The results for the year and the Group's financial position as at the year-end are shown in the attached financial statements. The directors have not recommended a dividend for the year (2018: $nil).
Business review
The Group has returned a loss for the year ended 31 December 2019 of $401,000 (2018: profit of $406,000) which equates to a loss per share of 0.18 cents (2018: profit of 0.18 cents). The loss in 2019 reflects the administration cost of operating the Group following the withdrawal of Noble and Edison. The profit in 2018 was due to the recognition of the full amount of the income due under the termination terms of the Participation agreement.
Administration expenses were $433,000 in 2019 compared to $334,000 in 2018, due largely to the $88,000 share based payment charge for the extension of the options scheme.
Shareholders' equity has decreased from $29.9 million to $29.5 million in the year since 31 December 2018, reflecting the administration costs. Cash in the year decreased from $788,000 to $768,000.
Outlook for the next financial year
Argos continued to receive quarterly cash payments from Noble and Edison until 27 December 2019, following their withdrawal from the Participation Agreement. The cash available will fund the Group in its search for a farmout partner.
Going concern
The financial statements have been prepared on the going concern basis as, in the opinion of the directors, there is a reasonable expectation that the Group and the Company will continue in operational existence for the foreseeable future.
At 31 December 2019, the Group had sufficient cash resources to continue for a period in excess of 12 months beyond sign off.
The Company's ability to achieve its long term strategy of developing its exploration projects is dependent on finding an exploration partner and discussions are underway with interested parties to achieve that. In order to continue as a going concern beyond the 12 month horizon the company will also need to raise further finance either through such a partner or by raising funds in an equity issue.
As described above, the Directors expect to be able to find an exploration partner, given previous interest and the significant prospectivity within the Licence area, and the Company's history of raising funds through the issue of equity, the directors also consider that the Company is likely to be able to raise the required capital. However, there are currently no binding agreements in place. Should the Directors be unable to raise sufficient funds or find an exploration partner, the Company may be unable to realise its assets and discharge its liabilities in the normal course of business.
These factors indicate the existence of a significant material uncertainty which may cast doubt over the Group's and Company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Group or Company were unable to continue as a going concern.
Ian Thomson John Hogan
Chairman Managing Director
Consolidated statement of comprehensive income
Year ended 31 December 2019
Year Year
ended ended
31 December 31 December
2019 2018
$'000 $'000
Other income - 784
Administrative expenses (433) (334)
Finance income 4 4
Foreign exchange gains/(losses) 28 (48)
--------------------------------------------- -------------- --------------
(Loss)/profit for the year
attributable to owners of
the parent (401) 406
--------------------------------------------- -------------- --------------
Total comprehensive (loss)/income
for the
period attributable to owners
of the parent (401) 406
Basic and diluted (loss)/
earnings per share (cents) (0.18) 0.18
--------------------------------------------- -------------- --------------
Consolidated statement of financial position
As at 31 December 2019
2019 2018
$'000 $'000
Assets
Non-current assets
Exploration intangible assets 28,737 28,749
28,737 28,749
Current assets
Other receivables 86 392
Cash and cash equivalents 768 788
------------------------------------- -------- ---------
Total current assets 854 1,180
------------------------------------- -------- ---------
Total assets 29,591 29,929
Liabilities
Current liabilities
Trade and other payables 58 61
Total liabilities 58 61
Total net assets 29,533 29,868
------------------------------------- -------- ---------
Capital and reserves attributable
to
equity holders of the Company
Share capital 6,696 6,696
Share premium 30,071 30,071
Retained losses (7,234) (6,899)
Total shareholders' equity 29,533 29,868
------------------------------------- -------- ---------
Consolidated statement of cash flows
Year ended 31 December 2019
Year Year
ended ended
31 December 31 December
2019 2018
$'000 $'000
Cash flows from operating activities
(Loss)/profit for period before
taxation (401) 406
Adjustments for:
Finance income (4) (4)
Foreign exchange (gain)/loss (28) 50
Share based remuneration expensed 89 -
Net cash (outflow)/inflow from
operating activities
before changes in working capital (344) 452
------------------------------------------------ -------------- --------------
Decrease/(increase) in other receivables 377 (378)
(Decrease)/increase in other payables (3) 2
------------------------------------------------ -------------- --------------
Net cash inflow from operating
activities 30 76
------------------------------------------------ -------------- --------------
Investing activities
Interest received 4 4
Exploration and development expenditure (82) -
Net cash (used)/generated in investment
activities (78) 4
------------------------------------------------ -------------- --------------
Net (decrease)/increase in cash
and cash equivalents (48) 80
Cash and cash equivalents at beginning
of period 788 758
Exchange (gains/losses) on cash
and cash equivalents 28 (50)
------------------------------------------------ -------------- --------------
Cash and cash equivalents at end
of the year 768 788
------------------------------------------------ -------------- --------------
Consolidated statement of changes in equity
Year ended 31 December 2019
Share Share Retained Total
capital premium losses equity
$'000 $'000 $'000 $'000
At 1 January 2018 6,696 30,071 (7,305) 29,462
Total comprehensive
income for the year - - 406 406
At 31 December 2018
And 1 January 2019 6,696 30,071 (6,899) 29,868
-------------------------------- --------- --------- --------- --------
Total comprehensive
income for the year - - (401) (401)
Share based income expense - - 89 89
Share based income adjustment
for expired options - - (23) (23)
At 31 December 2019 6,696 30,071 (7,234) 29,533
-------------------------------- --------- --------- --------- --------
In preparing the financial information in this statement the Group, which consists of the Company Argos Resources Ltd, and its wholly owned subsidiary Argos Exploration Ltd, has applied policies in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS"). The financial information has been prepared under the historical cost convention.
The financial information set out above does not constitute the company's statutory accounts for 2018 or 2019. Statutory accounts for 2018 and 2019 have been reported on by the Independent Auditors. The Independent Auditors' Reports on the Annual Report and Financial Statements for 2018 was unqualified and for 2019 was unqualified with an emphasis of matter paragraph included highlighting the material uncertainty relating to going concern.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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(END) Dow Jones Newswires
February 28, 2020 02:00 ET (07:00 GMT)
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