(“Altona” or “the Company”)
For the Year Ended
-- Non-renewal of historic Arckaringa mining tenements significantly reducing commitments -- Leading to a one-off Impairment Charge of £11 million for the year -- Negotiating the acquisition of new Petroleum Exploration Licence in
South Australia-- 2020 strategy to commence In-Situ Gasification project once funding is in place -- Open Offer announced on 11 March 2020to fund new operations
For further information, please visit www.altonaenergy.com or contact:
Altona Energy plc Qinfu Zhang, Executive Director +44 (0) 7795 168 157 Philip Sutherland, Non-Executive Director +61 (0)402 440 339 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
Altona is an exploration company focused on the evaluation, development and extraction of coal assets in
The Company was admitted to trading on AIM on
EXECUTIVE CHAIRMAN’S STATEMENT
The year under review, to
A number of initiatives which were started in 2018, were subsequently cancelled at the start of 2019, following the resignation and dismissal of a number of directors from the board, at the Annual General Meeting held on
Further, the year in general was harmful for both the profile and valuation of the Company, where we saw the share price fall from 325p on
In the first half of 2019, the board explored the possibility of an investment into an operational vanadium mining company in the
Also in the first half of 2019, the Company continued to look to further its interests in the in-situ gasification (“ISG”) sector in
was reappointed as a non-Executive Director on
The Directors appreciate that the current board make-up is smaller than many listed companies. With this is mind we are currently meeting with individuals who have a good knowledge of the mining and energy sectors, as well as those with connections to the capital markets in
During the period under review the Group made a loss before taxation of £11,657,000 (2018: loss £645,000). The majority of the loss before tax relates to the impairment of the intangibles assets of £11,033,000, due to the Company relinquishing its ownership of its three historic Exploration Licences in the
The Company has focused on reducing unnecessary costs from the business, by streamlining the board and closing its office in
The Company was admitted to trading on the NEX Exchange Growth Market on
Post Balance Sheet Events – Negotiations to acquire PELA 517
As mentioned above, the Company is now in exclusive talks with a third party,
The new tenement covered by the PELA is close to the Company’s historic Arckaringa tenements and covers 5,000 sq kms, twice the size of the existing tenements. The tenement is divided into two areas; a smaller northern area which overlaps the Company’s historic Exploration Licences at Westfield and Murloocoppie to the north and west, respectively, and a significantly sized southern area (over 4,000 sq km), of which 50% crucially sits outside the environmentally sensitive
The more significant and potentially more rewarding southern area of the PELA, whilst never having been tested for deep coal deposits suitable for the ISG process is, however, situated between other major coal bearing tenements, providing enough evidence for WSP to warrant further investigation. Should this exploration be successful (i.e. by finding at least two coal bearing deposits between 100m and 1,400m – the depth most suitable for ISG), the Company will look to quickly move towards obtaining the necessary permits and funding to start a test production facility, within 2-3 years.
It has been suggested by
The Company will need to raise funds in order to acquire the new PELA and to pay for the initial exploration work, as well as for general working capital purposes.
The Company is now poised to begin new explorations on PELA 517, should a successful fund raising be completed and the licence acquired. The short-term work plan is then to appoint WSP to carry out the first stages of investigation, ahead of a drilling programme which could begin as soon as early 2021.
Therefore, I think it is fair and only right to now draw a line under the past 18 months and start looking forward to the potential benefits of this new ISG project, which has the strong likelihood of increasing shareholder value, in a market where the end products are much in demand.
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME
For the year ended
Group Notes 2019 2018 GBP’000 GBP’000 Administrative expenses (624) (645) Impairment expense 8 (11,033) - Operating loss 4 (11,657) (645) Loss before taxation (11,657) (645) Tax (charge) / credit 7 - - Loss for the year attributable to the (11,657) (645) equity holders of the parent Other comprehensive income Exchange differences on translating foreign operations (187) (575) that may be subsequently reclassified to profit or loss Total comprehensive income attributable to the equity (11,844) (1,220) holders of the parent Earnings per share (expressed in pence per share) (894.84)p (63.05)p - Basic attributable to the equity holders of the 6 parent - Diluted attributable to the equity holders of the 6 (894.84)p (63.05)p parent
All of the above operations during the year are continuing.
STATEMENTS OF FINANCIAL POSITION
Notes Group Group Company Company 2019 2018 2019 2018 GBP’000 GBP’000 GBP’000 GBP’000 ASSETS Non-current assets Intangible assets 8 - 11,219 - - Investment in subsidiaries 9 - - - 1,432 Other receivables 10 3 3 - 11,096 Total non-current assets 3 11,222 - 12,528 Current assets Trade and other receivables 10 32 38 32 37 Cash and cash equivalents - 391 - 211 Total current assets 32 429 32 248 TOTAL ASSETS 35 11,651 32 12,776 Current liabilities Trade and other payables 11 310 91 310 84 Total current liabilities 310 91 310 84 TOTAL LIABILITIES 310 91 310 84 NET ASSETS (275) 11,560 (278) 12,692 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT Share capital 12 1,431 1,427 1,431 1,427 Share premium 18,697 18,692 18,697 18,692 Merger reserve 2,001 2,001 2,001 2,001 Foreign exchange reserve 1,224 1,411 - - Retained deficit (23,628) (11,971) (22,407) (9,428) TOTAL EQUITY (275) 11,560 (278) 12,692
The loss within the parent company financial statements for the year was £12,979,000 (2018: £489,000).
The financial statements were approved by the Board and authorised for issue on
STATEMENTS OF CASH FLOWS
For the year ended
Group Company 2019 2018 2019 2018 GBP’000 GBP’000 GBP’000 GBP’000 Cash flows from Operating activities (Loss)/profit for the year (11,657) (645) (12,979) (489) before taxation Shares issued for services 9 - 9 - Impairment of intangibles 11,033 - - - Impairment of i/c loan / investment in - - 12,434 - subsidiary (Increase)/decrease in 6 (24) 6 (24) receivables Increase/(decrease) in 123 (11) 129 (11) payables Cash used in operations (486) (680) (401) (524) Income tax benefit received - - - - Net cash used in operating activities (486) (680) (401) (680) Cash flows from Investing activities Loans (to) / from - - 94 (324) subsidiaries Interest received - - - - Net cash generated from/(used in) investing - - 94 (324) activities Cash flows from Financing activities Proceed from bank overdraft 96 - 96 - Proceeds from issue of - 1,095 - 1,095 shares Costs of issue - (46) - (46) Net cash inflow from 96 1,049 96 1,049 financing Net increase/(decrease) in cash and cash (390) 369 (211) 201 equivalents Cash and cash equivalents at beginning of the 391 15 211 10 year Effect of exchange rate changes on cash and (1) 7 - - cash equivalents Cash and cash equivalents at 30 June - 391 - 211
STATEMENTS OF CHANGES IN EQUITY
For the year ended
Attributable to equity holders of the parent
Share capital Share Merger Foreign Retained Total equity Premium reserve exchange deficit reserve Group GBP’000 GBP’000 GBP’000 GBP’000 GBP’000 GBP’000 As at 1 July 892 18,178 2,001 1,986 (11,326) 11,731 2017 Profit/(loss) - - - - (645) (645) for the year Other - - - (575) - (575) comprehensive income Total - - - (575) (645) (1,220) comprehensive income Issue of 535 560 - - - 1,095 shares Cost of share - (46) - - - (46) issue Balance at 30 1,427 18,692 2,001 1,411 (11,971) 11,560 June 2018 Profit/(loss) - - - - (11,657) (11,657) for the year Other - - - (187) - (187) comprehensive income Total - - - (187) (11,657) (11,844) comprehensive income Issue of 4 5 - - - 9 shares Cost of share - - - - - - issue Balance at 30 1,431 18,697 2,001 1,224 (23,628) (275) June 2019
Company GBP’000 GBP’000 GBP’000 GBP’000 GBP’000 GBP’000 Balance at 1 July 2017 892 18,178 2,001 - (8,939) 12,132 Loss for the year - - - - (489) (489) Other comprehensive income - - - - - - Total comprehensive income - - - - (489) (489) Issue of shares 535 560 - - - 1,095 Cost of share issue - (46) - - - (46) Balance at 30 June 2018 1,427 18,692 2,001 - (9,428) 12,692 Loss for the year - - - - (12,979) (12,979) Other comprehensive income - - - - - - Total comprehensive income - - - - (12,979) (12,979) Issue of shares 4 5 - - - 9 Cost of share issue - - - - - - Balance at 30 June 2019 1,431 18,697 2,001 - (22,407) (278)
The following describe the nature and purpose of each reserve within owners’ equity:
Reserve Description and Purpose Share capital Amount subscribed for share capital at nominal value Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Reserve created on issue of shares on acquisition of subsidiaries in prior years. Foreign exchange reserve Cumulative translation differences of net assets of subsidiaries. Retained deficit Cumulative net gains and losses recognised in the consolidated statement of comprehensive income
NOTES TO PRELIMINARY RESULTS FOR THE YEAR ENDED
1. The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006.The financial information has been extracted from the statutory accounts of
Altona energy Plcand is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, and on which the auditors gave an adverse opinion on 11 March 2020. Below we have reproduced the qualification contained with the audit report. “Adverse Opinion We have audited the Financial Statements of Altona Energy Plc(the ‘Parent Company’) and its subsidiaries (‘the Group’) for the year ended 30 June 2019which comprise the Statement of Consolidated Comprehensive Income, the Consolidated and Parent Company Statements of Financial Position, the Consolidated and Parent Company Statements of Cash Flows, the Consolidated and Parent Company Statements of Changes in Equity and the related notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Unionand as regards the Parent Company Financial Statements, as applied in accordance with the provisions of the Companies Act 2006. In our opinion, because of inappropriate use of the going concern basis for the preparation of the financial statements referred to in the Basis for adverse opinion section of our report, the financial statements: 2. do not give a true and fair view of the state of the Group’s and the Parent Company’s affairs as at 30 June 2019and of the Group’s and Parent Company’s loss for the year then ended; 3. have not been prepared in accordance with IFRSs as adopted by the European Union; and 4. have not been prepared in accordance with the requirements of the Companies Act 2006.
Basis for adverse opinion
As explained in the Material uncertainty related to going concern paragraph, at the date of signing of these accounts, the Group does not have sufficient resources to continue trading for the foreseeable future. The Company is currently at the ceiling of its overdraft facility with its current bankers and the facility is due for renewal in
We conducted our audit in accordance with International Standards on Auditing (
The financial statements of the Group and the Company for the year ended
Material uncertainty related to going concern
We draw attention to note 1 in the Financial Statements, which identifies conditions that may cast significant doubt on the Group’s and Company’s ability to continue as a going concern. The Group incurred a net loss of £11.6 million during the year ended
The preliminary announcement of the results for the year ended
2. EARNINGS PER SHARE
The loss for the year attributed to shareholders is £11,657,000 (2018: loss £645,000).
This is divided by the weighted average number of Ordinary shares outstanding calculated to be 1.602 million (2018: 1.023 million) to give a basic loss per share of
In the current and prior year there were no potentially dilutive ordinary shares at the year end because the share price at year end was below the strike price of the potentially dilutive options and warrants. The potential future share issues that may dilute the profit/(loss) per share relate to options in issue disclosed at note 16.