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CLON Clontarf Energy Plc

0.037
0.001 (2.78%)
Last Updated: 08:28:15
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Clontarf Energy Plc LSE:CLON London Ordinary Share GB00B09WLX62 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.001 2.78% 0.037 0.035 0.039 0.037 0.036 0.036 122,591,025 08:28:15
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gold Ores 0 -4.77M -0.0009 -0.44 2.08M

Clontarf Energy PLC Preliminary Results for the Year Ended 31/12/19 (7827N)

26/05/2020 7:00am

UK Regulatory


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TIDMCLON

RNS Number : 7827N

Clontarf Energy PLC

26 May 2020

26(th) May 2020

Clontarf Energy plc

("Clontarf" or "the Company")

Preliminary Results for the Year Ended 31 December 2019

Clontarf Energy, the oil and gas exploration company focused on Ghana and Bolivia today announces its preliminary results for the year ending 31 December 2019.

The Company expects to shortly publish its 2019 Annual Report & Accounts and a further update will be made in this regard as and when appropriate.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014 .

   For further information please visit http://clontarfenergy.com   or contact: 
 
 Clontarf Energy 
  John Teeling, Chairman 
  David Horgan, Director                  +353 (0) 1 833 2833 
 
 Nominated & Financial Adviser 
  Strand Hanson Limited 
  Rory Murphy 
  Ritchie Balmer 
  Georgia Langoulant                     +44 (0) 20 7409 3494 
 
 Broker 
  Novum Securities Limited 
  Colin Rowbury                          +44 (0) 207 399 9400 
 
 Public Relations 
  Blytheweigh                            +44 (0) 207 138 3206 
  Megan Ray                              +44 (0) 207 138 3204 
  Madeleine Gordon-Foxwell               +44 (0) 207 138 3208 
 
 Teneo 
  Luke Hogg 
  Alan Tyrrell                            +353 (0) 1 661 4055 
  Thomas Shorthall                        +353 (0) 1 661 4055 
 

Statement Accompanying the Final Results

The world is currently a very unstable place. Health, society, the economy and the financial system are having to deal with unknown unknowns. Those of us who studied economics and finance in the 1960's would have dealt with the concept of uncertainty. Uncertainty was, and is, not knowing about variables which impact on outcomes. It is not risk. Risk can be assessed. Not so uncertainty. You really don't know what you don't know. In recent decades academics have either ignored uncertainty or lumped it with risk. They developed models to predict outcomes in almost all areas of life. The era of Big Data, Analytics and Artificial Intelligence promised to reduce or eliminate risk. Billions upon billions have been made by quantitative funds using Algorithms to make investment decisions but they ignored uncertainty. Models are the gospels of the 2020's. No one talks about - GIGO garbage in, garbage out.

Modellers ignore the effect of variables which are not in their models. When uncertainty appears they talk about deviations from the expected outcome e.g. a 6 Standard deviation event or I have seen a 25 Standard deviation event, or a Black Swan event. Well the world is now experiencing a Black and White Swan event. Predictions are not only wrong but out of date before the models run the data. The "Butterfly Effect" is ignored or paid lip service only.

The medical models on which social and economic decisions are being made have already had massive social impact, a catastrophic economic effect and an unknown future financial impact. What is certain is that current and future borrowings can never be repaid. There are only two possible outcomes. Inflate away the value of the borrowings or default - simply don't repay.

Why do I spend time on this? Because I really do not know when the world economy will restart and what it will look like when it does but our business must survive and continue.

The business we are in, Energy Production, will recover and will continue to grow as the vast percentage of the world's population strive to have "The Good Things in Life". Note I say Energy rather than Hydrocarbon Production. There is no doubt but that fossil fuel generation is a Sunset industry. But for the immediate coming decades Oil, Gas and even Coal will continue to be the main part of Energy Production. Yet the focus has already moved to Alternative Sources of Power such as Wind, Solar, Tidal, Wave, Hydrogen and even Nuclear, are seeing more and more research funds being ploughed into developing commercial technologies. Major advances are being made, costs are falling rapidly and should continue to do so but most are not viable yet.

Where does Clontarf Energy fit into this scenario? We are working on both strands. Lithium in Bolivia and Hydrocarbons in Ghana.

Lithium in Bolivia

The explosive growth in Electric Vehicles offers a major opportunity in Lithium, a critical element in batteries. Bolivia, where Clontarf has maintained a presence for over 30 years, holds half of the world's known deposits of Lithium. These deposits are in remote Andean salt pans, have technical issues, but some are good grade, with manageable impurities. Clontarf was active in Bolivia in the years 2008 -2011 in a joint venture with the armed forces to look at developing Lithium deposits, Changes in Bolivian laws made it impossible to continue. Since 2018, we are again active in this space. We have recruited a Bolivian based director to progress our interests. We have examined and analysed a number of the salt pans to determine what best suits a company like Clontarf and, significantly, we have made proposals to the authorities to work with them within the existing legal parameters. We are hopeful.

Hydrocarbons in Ghana

Clontarf holds a 60% interest in the Tano 2A concession offshore Ghana (the remaining interest is held by Petrel Resources PLC: 30% and Abbey Oil and Gas: 10%). By now, after a decade of frustration, shareholders are well aware of the position. We have an agreement with the Ghanaian National Petroleum Committee over 1500 plus sq kms in the shallow waters of the Tano Basin. In recent months there has been renewed motivation among the parties involved to seek a solution for Clontarf. World lockdowns have effectively stopped all international travel and meetings but once travel is possible these meetings will take place.

Future

In these turbulent times it may be very hard to look ahead with any real confidence. We will strive to progress our interests in both Bolivia and Ghana. Uncertainty throws up opportunities. We will see some of them. We have funds to continue operating for at least the next twelve months.

John Teeling

Chairman

22(nd) May 2020

CLONTARF ENERGY PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEARED 31 DECEMBER 2019

 
 
                                                                                  2019                            2018 
                     CONTINUING OPERATIONS                                         GBP                             GBP 
 
 
 
 Administrative expenses                                                     (308,535)                       (238,871) 
 
 Impairment of exploration and evaluation assets                                     -                       (111,682) 
 
                     LOSS FOR THE YEAR BEFORE TAXATION                       (308,535)                       (350,553) 
 
                     Income tax expense                                              -                               - 
 
                     LOSS AFTER TAX AND TOTAL 
                     COMPREHENSIVE INCOME FOR THE YEAR                       (308,535)                       (350,553) 
 
 
                     Loss per share - basic and 
                      diluted                                                  (0.04p)                         (0.06p) 
 
 

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2019

 
                                                                               2019                               2018 
                                                                                GBP                                GBP 
 
 ASSETS: 
 NON CURRENT ASSETS 
 
                     Intangible assets                                      850,789                            817,865 
 
                                                                            850,789                            817,865 
 
 CURRENT ASSETS 
                     Other receivables                                        3,344                              3,909 
                     Cash and cash equivalents                              301,292                            511,564 
 
                                                                            304,636                            515,473 
 
                     TOTAL ASSETS                                         1,155,425                          1,333,338 
 
 
 LIABILITIES: 
 
 CURRENT LIABILITIES 
                     Trade payables                                        (56,195)                           (56,138) 
                     Other payables                                     (1,180,567)                        (1,070,567) 
 
                                                                        (1,236,762)                        (1,126,705) 
 
                     TOTAL LIABILITIES                                  (1,236,762)                        (1,126,705) 
 
                     NET LIABILITIES                                       (81,337)                            206,633 
 
 
                     EQUITY 
                     Called-up share capital                              1,792,450                          1,792,450 
                     Share premium                                       10,900,373                         10,900,373 
                     Retained deficit                                  (12,795,775)                       (12,677,836) 
                     Share based payment 
                      reserves                                               21,615                            191,646 
 
                     SHAREHOLDERS DEFICIT                                  (81,337)                            206,633 
 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARED 31 DECEMBER 2019

 
                                                          Called-up                                                        Share Based 
                                                              Share                            Share                           Payment                           Retained 
                                                            Capital                          Premium                           Reserve                            Deficit                           Total 
                                                                GBP                              GBP                               GBP                                GBP                             GBP 
 
                     At 1 January 
                      2018                                1,454,612                       10,773,211                           191,646                       (12,327,283)                          92,186 
 
                     Issue of 
                      shares                                337,838                          162,162                                 -                                  -                         500,000 
 
                     Share issue 
                      expenses                                    -                         (35,000)                                 -                                  -                        (35,000) 
 
                     Loss for the 
                     year and 
                     total 
                      comprehensive 
                      income                                      -                                -                                 -                          (350,553)                       (350,553) 
 
                     At 31 December 
                      2018                                1,792,450                       10,900,373                           191,646                       (12,677,836)                         206,633 
 
                     Share options 
                      vested                                      -                                -                            20,565                                  -                          20,565 
 
                     Share options 
                      expired                                     -                                -                         (190,596)                            190,596                               - 
 
                     Loss for the 
                     year and 
                     total 
                      comprehensive 
                      income                                      -                                -                                 -                          (308,535)                       (308,535) 
 
                     At 31 December 
                      2019                                1,792,450                       10,900,373                            21,615                       (12,795,775)                        (81,337) 
 
 

Share premium

The share premium reserve comprises of a premium arising on the issue of shares. Share issue expenses are deducted against the share premium reserve when incurred.

Share based payment reserve

The share based payment reserve arises on the vesting of share options under the share option plan. Share options expired are reallocated from share based payment reserve to retained deficit at their grant date fair value.

Retained deficit

Retained deficit comprises of losses incurred in the current and prior years.

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEARED 31 DECEMBER 2019

 
                                                                                  2019                            2018 
                                                                                   GBP                             GBP 
 
                     CASH FLOW FROM OPERATING 
                     ACTIVITIES 
 
                     Loss for the year                                       (308,535)                       (350,553) 
                     Impairment of exploration and 
                      evaluation assets                                              -                         111,682 
                     Share options vested                                       20,565                               - 
                     Foreign exchange gains                                      4,697                           2,705 
 
                                                                             (283,273)                       (236,166) 
 
                     MOVEMENTS IN WORKING CAPITAL 
 
                     Increase in trade and other 
                      payables                                                  80,057                          48,379 
                     Decrease/(increase) in trade and 
                      other receivables                                            565                           (100) 
 
                                                                             (202,651)                       (187,887) 
 
                     NET CASH USED IN OPERATING 
                      ACTIVITIES                                             (202,651)                       (187,887) 
 
 
                     CASH FLOWS FROM INVESTING 
                     ACTIVITIES 
 
                     Additions to exploration and 
                      evaluation assets                                        (2,924)                       (196,524) 
 
                     NET CASH FROM INVESTING 
                      ACTIVITIES                                               (2,924)                       (196,524) 
 
 
                     CASH FLOWS FROM FINANCING 
                     ACTIVITIES 
 
                     Proceeds from share issue                                       -                         500,000 
                     Share issue costs                                               -                        (35,000) 
 
                     NET CASH GENERATED BY FINANCING 
                      ACTIVITIES                                                     -                         465,000 
 
 
                     NET (DECREASE)/INCREASE IN CASH 
                      AND CASH EQUIVALENTS                                   (205,575)                          80,589 
 
                     Cash and cash equivalents at 
                      beginning of the financial year                          511,564                         433,680 
 
                     Effect of foreign exchange rate 
                      changes                                                  (4,697)                         (2,705) 
 
                     CASH AND CASH EQUIVALENTS AT 
                      OF THE FINANCIAL YEAR                                    301,292                         511,564 
 
 

Notes:

   1.    ACCOUNTING POLICIES 

There were no changes in accounting policies from those used to prepare the Group's Annual Report for financial year ended 31 December 2018. The financial statements have been prepared in accordance with International Financial Reporting Standards and IFRSs as adopted by the European Union and in accordance with the Companies Act 2006.

   2.    LOSS PER SHARE 

Basic loss per share is computed by dividing the loss after taxation for the year available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.

The following table sets out the computation for basic and diluted earnings per share (EPS):

 
                                                                             2019                              2018 
                                                                              GBP                               GBP 
                     Numerator 
                     For basic and diluted EPS                          (308,535)                         (350,553) 
 
 
                     Denominator 
                     For basic and diluted EPS                        716,979,964                       619,608,620 
 
 
                     Basic EPS                                            (0.04p)                           (0.06p) 
                     Diluted EPS                                          (0.04p)                           (0.06p) 
 
 

The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of shares for the purpose of the diluted earnings per share:

          No.                                        No 

Share options

40,500,000                           8,900,000 
   3.    GOING CONCERN 

The Group and Company incurred a loss for the year of GBP308,535 (2018: GBP350,553) and the Group and Company had net current liabilities of GBP932,126 (2018: GBP611,232) and GBP473,091 (2018: GBP182,197) respectively at the balance sheet date. These conditions represent a material uncertainty that may cast doubt on the Group and Company's ability to continue as a going concern.

Included in current liabilities is an amount of GBP1,180,567 (2018: GBP1,070,567) for the Group and GBP671,527 (2018: GBP591,527) for the Company owed to directors in respect of directors' remuneration due at the balance sheet date. The directors have confirmed that they will not seek settlement of these amounts in cash for a period of at least one year after the date of approval of the financial statements or until the Group and Company has generated sufficient funds from its operations after paying its third party creditors.

The Group and Company had a cash balance of GBP301,292 at the balance sheet date. The directors have prepared cashflow projections for a period of at least twelve months from the date of approval of these financial statements. The cashflow projections include any anticipated impacts of the Covid-19 pandemic on the Group and Company . As the Group and Company are not revenue or cash generating it relies on raising capital from the public market. The Group and Company completed a capital raising during the prior year and the cash flow projections prepared by the Group and Company indicate that the funds available are sufficient to meet the obligations of the Group and Company for a period of at least twelve months from the date of approval of these financial statements.

As in previous years the Directors have given careful consideration to the appropriateness of the going concern basis in the preparation of the financial statements and believe the going concern basis is appropriate for these financial statements. The financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern.

   4.    INTANGIBLE ASSETS 
 
                                                                                  2019                            2018 
                                                                                 Group                           Group 
                                                                                   GBP                             GBP 
                     Exploration and evaluation 
                     assets: 
 
                     Cost: 
                     At 1 January                                            8,528,077                       8,301,553 
                     Additions during the year                                  32,924                         226,524 
 
                     At 31 December                                          8,561,001                       8,528,077 
 
                     Impairment: 
                     At 1 January                                            7,710,212                       7,598,530 
                     Impairment during the year                                      -                         111,682 
 
                     At 31 December                                          7,710,212                       7,710,212 
 
                     Carrying Value: 
                     At 1 January                                              817,865                         703,023 
 
                     At 31 December                                            850,789                         817,865 
 
 
 
                     Segmental analysis                                           2019                            2018 
                                                                                 Group                           Group 
                                                                                   GBP                             GBP 
                     Bolivia                                                    16,225                          16,225 
                     Ghana                                                     834,564                         801,640 
 
                                                                               850,789                         817,865 
 
 

Exploration and evaluation assets relate to expenditure incurred in prospecting and exploration for lithium, oil and gas in Bolivia and Ghana. The directors are aware that by its nature there is an inherent uncertainty in exploration and evaluation assets and therefore inherent uncertainty in relation to the carrying value of capitalised exploration and evaluation assets.

An impairment charge of GBP111,682 was recorded by the Group in the prior year in respect of Equatorial Guinea licences which were fully impaired during 2018.

During 2018 the Group resolved the outstanding issues with the Ghana National Petroleum Company (GNPC) regarding a contract for the development of the Tano 2A Block. The Group has signed a Petroleum Agreement in relation to the block and this agreement awaits ratification by the Ghanian government.

The directors believe that there were no facts or circumstances indicating that the carrying value of intangible assets may exceed their recoverable amount and thus no impairment review was deemed necessary by the directors. The realisation of these intangibles assets is dependent on the successful discovery and development of economic deposit resources and the ability of the Group to raise sufficient finance to develop the projects. It is subject to a number of potential significant risks, as set out below:

   --        licence obligations 
   --        requirement for further funding 
   --        geological and development risks 
   --        title to assets 
   --        political risk 

Included in the additions for the year are GBP30,000 (2018: GBP30,000) of directors remuneration. The remaining balance pertains to the amounts capitalised to the respective licences held by the entity.

   5.    TRADE PAYABLES 
 
                                                             2019                         2018 
                                                            Group                        Group 
                                                              GBP                          GBP 
 
                     Trade payables                        38,195                       40,138 
                     Other accruals                        18,000                       16,000 
 
                                                           56,195                       56,138 
 
 

It is the Company's normal practice to agree terms of transactions, including payment terms, with suppliers and provided suppliers perform in accordance with the agreed terms, payment is made accordingly. In the absence of agreed terms it is the Company's policy that payment is made between 30 - 40 days. The carrying amount of trade and other payables approximates to their fair value.

   6.    OTHER PAYABLES 
 
                                                                          2019                            2018 
                                                                         Group                           Group 
                                                                           GBP                             GBP 
 
                     Amounts due to directors                        1,180,567                       1,070,567 
 
                                                                     1,180,567                       1,070,567 
 
 

Other payables relate to amounts due for directors' remuneration of GBP1,180,567 (2018: GBP1,070,567) accrued but not paid at year end.

   7.    CALLED-UP SHARE CAPITAL 

Allotted, called-up and fully paid:

 
                                                          Number                       Share Capital                       Share Premium 
                                                                                                 GBP                                 GBP 
 
                     At 1 
                      January 
                      2018                           581,844,829                           1,454,612                          10,773,211 
                     Issued 
                      during 
                      the year                       135,135,135                             337,838                             162,162 
                     Share 
                      issue 
                      expenses                                 -                                   -                            (35,000) 
 
                     At 31 
                      December 
                      2018                           716,979,964                           1,792,450                          10,900,373 
                     Issued                                    -                                   -                                   - 
                     during 
                     the year 
 
                     At 31 
                      December 
                      2019                           716,979,964                           1,792,450                          10,900,373 
 
 

Movements in issued share capital

On 20 September 2018 a total of 135,135,135 shares were placed at a price of 0.37 pence per share. Proceeds were used to provide additional working capital and fund development costs.

Share Options

A total of 40,500,000 share options were in issue at 31 December 2018 (2018: 8,900,000). These options are exercisable, at prices ranging between 0.70p and 0.725p, up to seven years from the date of granting of the options unless otherwise determined by the board.

   8.    SHARE BASED PAYMENTS 

The Group issues equity-settled share-based payments to certain directors and individuals who have performed services for the Group. Equity-settled share-based payments are measured at fair value at the date of grant.

Fair value is measured by the use of a Black-Scholes model.

The Group plan provides for a grant price equal to the average quoted market price of the ordinary shares on the date of grant.

 
                                               2019                    2018 
                                           Weighted                Weighted 
                              30/06/2019    average                 average 
                                 Options   exercise                exercise 
                                              price   30/06/2018      price 
                                           in pence      Options   in pence 
 
 Outstanding at beginning 
  of year                      8,900,000       4.25    8,900,000       4.25 
 Issued                       40,000,000        0.7            -          - 
 Expired                     (8,400,000)       4.25            -          - 
 
 Outstanding at end of 
  the year                    40,500,000        0.7    8,900,000       4.25 
 
  Exercisable at end of 
  the year                    13,833,333        0.7    8,900,000       4.25 
 
 
 

During the current year 40,000,000 options were granted with a fair value of GBP246,788. These fair values were calculated using the Black-Scholes valuation model. These options will vest over a 3 year period and will be capitalized or expensed on a straight line basis over the vesting period.

The options outstanding at 31 December 2019 had an average exercise price of 0.70p and a weighted average remaining contractual life of 6.75 years.

The inputs into the Black-Scholes valuation model were as follows:

Grant 2 October 2019

Weighted average share price at date of grant (in pence) 0.7p

Weighted average exercise price (in pence) 0.7p

Expected volatility 116.23%

Expected life 7 years

Risk free rate 1.3%

Expected dividends none

Expected volatility was determined by management based on their cumulative experience of the movement in share prices over a period of 3 years

The terms of the options granted do not contain any market conditions within the meaning of IFRS 2.

The Group capitalised expenses of GBPNil (2018: GBPNil) and expensed costs of GBP20,565 (2018: GBP Nil) relating to equity-settled share-based payment transactions during the year.

   9.    POST BALANCE SHEET EVENTS 

In the period since 31 December 2019, the emergence and spread of Covid-19 has not had a significant impact on the Group's operations. Although some high level discussions originally scheduled to take place in March in Ghana, Europe and Bolivia in relation to the Group's projects were postponed due to the Covid-19 pandemic, they are expected to be rescheduled over the coming months. The Group continues to progress its interests in Ghana and Bolivia and do not believe that its prospects will be negatively impacted by Covid-19.

10. ANNUAL GENERAL MEETING

The Company's Annual General Meeting will be held on Thursday 23rd July 2020 at Granite Exchange, 5-6 Kildare St, Newry BT34 1DQ at 11.00 am. Further information, including the Notice of AGM, will be provided shortly.

11. GENERAL INFORMATION

The financial information set out above does not constitute the Company's audited financial statements for the year ended 31 December 2019 or the year ended 31 December 2018. The financial information for 2018 is derived from the financial statements for 2018 which have been delivered to the Registrar of Companies. The auditors had reported on the 2018 statements; their report was unqualified with an emphasis of matter in respect of considering the adequacy of the disclosures made in the financial statements concerning the valuation of intangible assets, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial statements for 2019 will be delivered to the Registrar of Companies.

A copy of the Company's Annual Report and Accounts for 2019 will be mailed shortly only to those shareholders who have elected to receive it. Otherwise, shareholders will be notified that the Annual Report will be available on the website www.clontarfenergy.com . Copies of the Annual Report will also be available for collection from the Company's registered office, Suite 1, 3(rd) Floor, 11-12 St. James's Square, London, SW1Y 4LB.

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

FR BGGDUBUDDGGD

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