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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 2021 to Apr 2024
TIDMARG
RNS Number : 2972A
Argos Resources Ltd
01 June 2021
1 June 2021
ARGOS RESOURCES LIMITED
("Argos" or "the Company")
2020 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 2020.
Hot Features
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* US$299,000 loss (2019: loss of US$401,000)
* US$438,000 cash reserves at 31 December 2020 (31
December 2019: US$768,000)
* In April 2021 the Falkland Islands Government agreed
to a 12 month extension of the Second Phase of the
Licence, with no additional work commitments. The
licence now expires on 1 May 2022
* $550,000 fund raising in April 2021 means the Group
is fully funded for at least 12 months from sign-off
of these accounts
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
During the reporting period Brent crude oil prices plummeted from over $65 per barrel at year-end 2019 to a low of $20 per barrel in April 2020. The fall in prices was driven initially by competition from OPEC for market share and then exacerbated later by the significant drop in global energy demand as a result of the Covid-19 pandemic supressing oil and gas consumption globally.
The industry was hit hard by this unexpected sharp drop in demand and commodity prices, and responded by reducing costs, cutting capital expenditure and delaying projects. Acknowledging this slowdown in activity, the Company requested an extension to the Licence term as more time will be required to recover from this downturn. In April 2021 the Falkland Islands government agreed to a twelve month extension to the Second Phase of the Licence to 1(st) May 2022.
In April 2021 the Company also announced that, subject to shareholder approval, it had raised $550,000 through the placing of new shares. Shareholder approval was obtained at a General Meeting on 30(th) April. The fund raise, when added to existing cash reserves, is sufficient to fund the Company's working capital requirements through the term of the Licence extension as well as costs expected to be incurred in technical work in furthering the Company's farmout efforts.
By the end of 2020 Brent crude oil prices had recovered to $50 per barrel and had fully recovered to the $65 per barrel range by April 2021. The oil industry is cautiously increasing activity in response to this recovery albeit still being hampered by operational and logistical difficulties caused by the continuing Covid-19 restrictions.
The Company continues to seek partners to participate in drilling on its Licence and is currently engaged with a number of counterparties who have expressed interest. Given the current challenging environment the Company believes it may be some time before any expressions of interest are translated into commitments.
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 (2019: $nil).
Business review
The Group has returned a loss for the year ended 31 December 2020 of $299,000 (2019: loss of $401,000) which equates to a loss per share of 0.14 cents (2019: loss per share of 0.18 cents).
Administration expenses were $303,000 in 2020 compared to $433,000 in 2019. The difference is due largely to a one off $88,000 share-based payment charge for the extension of the options scheme in 2019 and the slowdown and reduced travel in 2020, experienced by the sector due to Covid-19.
Shareholders' equity has decreased from $29.5 million to $29.2 million in the year since 31 December 2019, reflecting the administration costs. Cash in the year decreased from $768,000 to $438,000.
Outlook for the next financial year
The Group carried out a successful fund raise in April 2021 which will fund the continuing search for a farmout partner and means that the Group is fully funded for the period of the licence extension, and at least 12 months from sign-off of these accounts.
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.
On 7 April 2021 the Company announced that it had conditionally raised US$550,000 through a subscription by certain new shareholders and Ian Thomson, Executive Chairman of the Company and the Fundraise was ratified by the passing of the required Resolutions at a General Meeting held on 30 April 2021.
On 20 April 2021 the Falkland Islands Government agreed an extension the second term of the Company's PL001 Licence by twelve months, to 1 May 2022.
Following the successful fund raise in April 2021 the Group has sufficient cash resources to continue for at least 12 months from sign-off of these accounts.
The Group's ability to achieve its long term strategy of developing its exploration projects is dependent on finding an exploration partner. The Group continues to seek partners to participate in drilling on its Licence and is currently engaged with a number of counterparties who have expressed interest. However, given the current challenging environment the Group believes it may be some time before any expressions of interest are translated into commitments and further extensions to the Licence term may be required.
In order to continue as a going concern beyond the current Licence term, which expires on 1 May 2022, the Company will need to raise further finance, either through a farmout partner or by raising funds in an equity issue.
Should the Directors be unable to raise sufficient funds, find an exploration partner, or negotiate further Licence extensions the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.
These factors indicate the existence of a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.
Consolidated statement of comprehensive income
Year ended 31 December 2020
Year Year
ended ended
31 December 31 December
2020 2019
$'000 $'000
Administrative expenses (303) (433)
Finance income 1 4
Foreign exchange gains 3 28
--------------------------------------------- -------------- --------------
(Loss) for the year attributable
to owners of the parent (299) (401)
--------------------------------------------- -------------- --------------
Total comprehensive (loss)
for the
period attributable to owners
of the parent (299) (401)
Basic and diluted (loss) per
share (cents) (0.14) (0.18)
--------------------------------------------- -------------- --------------
Consolidated statement of financial position
As at 31 December 2020
2020 2019
$'000 $'000
Assets
Non-current assets
Exploration intangible assets 28,815 28,737
28,815 28,737
Current assets
Other receivables 40 86
Cash and cash equivalents 438 768
------------------------------------- -------- --------
Total current assets 478 854
------------------------------------- -------- --------
Total assets 29,293 29,591
Liabilities
Current liabilities
Trade and other payables 59 58
Total liabilities 59 58
Total net assets 29,234 29,533
------------------------------------- -------- --------
Capital and reserves attributable
to
equity holders of the Company
Share capital 6,696 6,696
Share premium 30,071 30,071
Retained losses (7,533) (7,234)
Total shareholders' equity 29,234 29,533
------------------------------------- -------- --------
Consolidated statement of cash flows
Year ended 31 December 2020
Year Year
ended ended
31 December 31 December
2020 2019
$'000 $'000
Cash flows from operating activities
(Loss) for period before taxation (299) (401)
Adjustments for:
Finance income (1) (4)
Foreign exchange (gains) (3) (28)
Share based remuneration expensed - 89
Net cash (outflow) from operating
activities
before changes in working capital (303) (344)
------------------------------------------------ -------------- --------------
Decrease in other receivables 1 377
Increase/(Decrease) in other payables 1 (3)
------------------------------------------------ -------------- --------------
Net cash outflow from operating
activities (301) 30
------------------------------------------------ -------------- --------------
Investing activities
Interest received 1 4
Exploration and development expenditure (33) (82)
Net cash (used) in investment activities (32) (78)
------------------------------------------------ -------------- --------------
Net (decrease) in cash and cash
equivalents (333) (48)
Cash and cash equivalents at beginning
of period 768 788
Exchange gains on cash and cash
equivalents 3 28
------------------------------------------------ -------------- --------------
Cash and cash equivalents at end
of the year 438 768
------------------------------------------------ -------------- --------------
Consolidated statement of changes in equity
Year ended 31 December 2020
Share Share Retained Total
capital premium losses equity
$'000 $'000 $'000 $'000
At 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
and 1 January 2020 6,696 30,071 (7,234) 29,533
-------------------------------- --------- --------- --------- --------
Total comprehensive
income for the year - - (299) (299)
At 31 December 2020 6,696 30,071 (7,533) 29,234
-------------------------------- --------- --------- --------- --------
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 2019 or 2020. Statutory accounts for 2019 and 2020 have been reported on by the Independent Auditors. The Independent Auditors' Reports on the Annual Report and Financial Statements for 2019 and 2020 were 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.
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END
FR UARVRABUVOAR
(END) Dow Jones Newswires
June 01, 2021 02:00 ET (06:00 GMT)
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