Embargoed until
7am
19
December 2017
Altona Energy
plc
(“Altona” or “the Company”)
Final Results
Altona (AIM: ANR), a coal exploration company in South Australia, announces its audited results
for the year ended 30 June 2017 and
that its Annual General Meeting is to be held at 30 Percy Street,
Fitzrovia, London W1T 2DB on
Wednesday 10 January 2018 at
11.30 am.
Highlights (post period end)
- Commissioned Strategic Report to identify suitable areas on the
Company’s tenements for coal extraction
- Placings raised a total of £1,095,000 before expenses
- Henry Kloepper appointed to the
Board as a non-Executive Director
- Nick Lyth and Phil Sutherland appointed as Chief Executive and
Operations Director (Australia)
respectively
- Refocusing of the business on conventional coal extraction
- Administrative expenses reduced by £424,000 to £341,000 for the
year ended 30 June 2017
Nick Lyth, CEO of Altona,
commented, “I am delighted to be able to report to shareholders
that Altona has a focused strategy for the identification of
suitable coal deposits for conventional extraction and sufficient
funding to prosecute the initial phases of the exploration process.
The target is to proceed with exploration only in areas which
we believe have a high probability of delivering suitable coal
deposits. In doing so, we de-risk the opportunity with a view
to a profitable exit once the necessary exploration phases have
been completed. The reconstituted Board is motivated to
deliver this strategy and, in doing so, deliver value to our
shareholders.”
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy
plc
Nicholas Lyth, Chief Executive Officer |
+44 7769 906 686 |
Leander (Financial
PR)
Christian Taylor- Wilkinson |
+44 7795 168 157 |
Northland Capital
Partners Ltd (Nomad and Broker)
Matthew Johnson / Gerry Beaney (Corporate Finance)
John Howes (Corporate Broking) |
+44 20 3861 6625 |
About Altona Energy
Altona is listed on the London Stock Exchange’s AIM
market. Its principal focus is on the evaluation and
development of the Company’s flagship Arckaringa Project to exploit
the significant coal resources contained in three exploration
licences covering 2,500 sq. kms in the northern portion of the
Permian Arckaringa Basin in South Australia. The Project is
designed to produce either coal or syngas products for the
Australian market and export from an historic resource exceeding
7.8 billion tonnes of coal (1.3 billion tonnes historic JORC (2004)
compliant).
CHIEF EXECUTIVE OFFICER’S
STATEMENT
Overview
The Group’s strategy remains focused on its investment in the
Arckaringa Project, South
Australia, a world class coal resource exceeding 7.8 billion
tonnes (1.3 billion tonnes historic JORC compliant) and we continue
to have the support of the South Australian Government’s Mining
Department, with whom we work closely.
As a result of Altona being unable to secure the necessary
Petroleum Exploration Licence (“PEL”) required to pursue an
Underground Coal Gasification (“UCG”) strategy, the Board agreed,
at the end of reporting period, to refocus on conventional coal
extraction methods. The economics of conventional extraction
have improved considerably in the past 22 months as the price of
coal has almost doubled in that period.
Therefore, in July 2017, the Group
formulated a new strategy with its mining engineering consultants,
WSP Australia PTY Ltd (“WSP”); the first step being to identify
coal deposits within its three tenements which would be suitable
for the new strategy.
Review of the Year
On 28 July 2016, the Group
announced that it had been informed by the South Australian
Government that in order to commence test drilling for its UCG
project at its Arckaringa site it required a PEL.
Subsequently it was established that an application for the
relevant PEL had been made by another company, Linc Energy Limited
(“Linc”) which was, at that time, in administration. The
Group made representations to the administrators [and South
Australian government] in an attempt to secure this licence for the
Group.
On 16 May 2017, the Group
announced that Tri-Star Petroleum Company Inc (“Tri-Star”) had
acquired the entire assets from the administrator of Linc,
including the application for PEL 604, which overlaps the Group’s
own tenements. The Group began the process of establishing contact
with Tri-Star to establish its intentions for the PEL
application.
As a result of the ongoing PEL application no share capital was
issued to the parties referenced in the Joint Venture arrangement
and therefore the position remains unchanged from the prior
year.
The current licence applications expired in June 2017 and renewal applications have been
submitted to the South Australian government. The minimum
expenditure commitments in the period were not met. Discussions
with the tenement manager have not indicated an issue with licence
renewal.
Negotiations ended in early July
2017 with the Group unable to purchase the licence
application from Tri-Star.
Post Balance Sheet Events
On 10 August 2017, the Board
announced a change in its strategy, following discussions with WSP,
to focus on a conventional coal extraction project for the
exploitation of its coal assets at Arckaringa.
WSP was engaged to produce a desk top report based on historic
data and findings at the three tenements owned by the Group. The
report was to establish the existence of “dry” coal deposits within
the Wintinna, Murloocoppie and Westfield tenements, or if found not
to be economically viable, then to investigate the probability of
low environmental impact “less dry” or “wet” coal deposits which
could be used for the production of electricity and/or ethanol or
methanol. WSP were also tasked with recommending the size of power
plant (MW capacity) that would be needed to make the project
commercially viable and the coal capacity required.
The Group advised its shareholders on 25
September 2017 that the findings of the report were
inconclusive and that a further, more focused report would be
needed. This report was subsequently commissioned, and the
Group also engaged the services of Runge Pinock Minarco Global
(“RPM”), a specialist professional mining consultant with previous
experience of the coal deposits at the Arckaringa site.
Initially, the report was to concentrate on the Group’s Westfield
tenement, using seismic, water table and other data to provide
accurate analysis and mapping ahead of a possible drilling
programme, and on 30 November 2017,
the report was expanded to explore areas of the Wintinna and
Murloocoppie tenements, which are known to be potentially
prospective for accessible coal.
Technical Report
Extensive and thick Permian coal exists in a number of
geological basins in South
Australia including the Arckaringa Basin. Permian
coals range from being deeply buried in some basins (from
1,110m) to mineable depths (from
30m depth) in the Arckaringa Basin
which is the focus of the Group. The Arckaringa Basin
contains an estimated 10 billion tonnes of coals. Within the
basin the Group has control of three deposits (tenements). Historic
exploration has revealed the following:
Wintinna Deposit - Thickness of overburden to top coal seam
ranges are 220m to 300m. Six to seven flat lying coal seams
have been delineated, with a cumulative thickness of 20m over a stratigraphic interval of 60m.
Murloocoppie Deposit - Eight persistent seams within a
70m stratigraphic interval are
recognised. Cumulative coal thickness averages 20m with overburden to the top of mineable coal
varying between 140m and 230m.
Westfield Deposit - Two persistent seams occur about
30m apart. The upper seam
ranges in thickness from 6m to
9m and occurs at depths between
145m and 215m. The lower seam averages 1m to 2m in
thickness.
Current Group efforts are focused on identifying dry coal or
‘less wet’ coal at mineable depths. When the Group has
identified coal suitable for extraction, the evaluation of the coal
quality and location will inform the Group’s decision making on a
‘best return on investment’ and low environmental impact basis in
respect to the method of extraction.
Group decisions will also be informed by the infrastructure
necessary to process the coal either at surface/on-site or
transport coal to market for use elsewhere. Coal
characteristics requiring consideration include coal seam depth,
thickness, continuity, maturity, vertical distance to aquifers,
organic (maceral) content, gas content indications based on water
geochemistry, and coal seam permeability. In respect of
moving coal product to market the three Group tenements are
fortunately in close proximity to road and rail (north and south of
the continent) transport infrastructure.
The type of extraction and post-extraction use of the coal will
be driven by market demand and prices. It is noted that the
price of coal has increased over the last 12 months and appears to
be sustainable. A conventional coal mining technique (as
opposed to a non-conventional technique) is most likely to be
selected by the Group to undertake the extraction of the coal. In
this respect open pit coal mining is the least costly, most timely
and least technically problematic. Subjecting the coal to a coal
conversion technology (at surface) including gasification to
produce one or more products such as oil, diesel, jet fuel, gas,
fertilizer and road slurry will all be considered based on their
economics. Extracting and transporting the coal to market without
processing will also be considered.
Unconventional mining techniques such as Underground Coal
Gasification (UCG) and Coal Seam Methane (CSM) are unlikely now to
be considered by the Company as they are early stage technologies
and subject to a number of environmental and other problems. The
Company at this time does not have the licences necessary to
explore for coal for these
purposes.
Board Changes
Henry Kloepper was appointed as a
Non-Executive Director on 3 November
2017, bringing to the Board a wealth of experience in the
resources sector over a 30 year career.
Nick Lyth was made Chief
Executive Officer and Phillip
Sutherland was made Director of Operations (Australia) on 23
November 2017. On the same day, options were granted to the
members of the board under two performance indicators; the first
being when the share price reaches 2.5
pence; the second being split into two tranches, when the
Group commences a drilling programme and when it completes a
pre-feasibility study. Both indicators provide high incentive to
the Company to succeed in its new
strategy.
Financial Review
During the period under review the Group made a loss before
taxation of £341,000 (2016: profit £38,000, due to a reversal of a
provision against a former director’s tax liability of £790,000).
Like for like the Group reduced losses by £411,000, mainly due to
the decrease in administrative expenses to £341,000 (2016:
£765,000).
As at 30 June 2017, the Group had
cash of £15,000 (2016: £362,000).
After the year end, the Group raised £1,095,000 through three
separate placings as follows: on 7 July it raised £150,000 at a
price of 0.15p per share, on 13 October it raised £210,000 at a
price of 0.05p per share, and on 23 November it raised £735,000,
before expenses, at a price of 0.5p per share.
Outlook
Altona is a small company with a potentially very large coal
asset and the Board is now embarked on a tight and focused strategy
to identify and exploit this asset in 2018. Starting with
further exploration in new areas of the tenements for which renewal
applications have been made, the Group hopes to take advantage of
the high coal price, by proving-up its plan in order to provide a
possible exit within a reasonable time frame. The Board will visit
Adelaide in January 2018 to meet with the South Australian
government and WSP to discuss the exploration programme and planned
expenditure for the project.
The Board expects the costs of the initial exploration phase to
be kept to a practical level. The Company will work together with
WSP to estimate cost levels for a modest open pit mining operation
with the capacity to scale-up operations in the future.
The South Australian region has for some time now, had issues
with its regional power supply. Although there has been a
trend towards renewable power in recent years, this is starting to
lose momentum as it has not provided the same reliable base load
support as fossil fuels are able to do.
Therefore, the Board remains confident that a significant asset
such as Arckaringa would be given high priority by the government,
who remains supportive of Altona’s project, in order to provide a
long-term energy supply for the region.
Nick
Lyth
Chief Executive Officer
18 December 2017
STATEMENT OF CONSOLIDATED
COMPREHENSIVE INCOME
For the year ended 30 June 2017
|
|
|
Group |
|
|
|
Notes |
2017
£’000 |
2016
£’000 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
- |
- |
Administrative expenses |
|
(341) |
(765) |
Reversal
of provision |
|
- |
790 |
Operating (loss) /
profit |
4 |
(341) |
25 |
Finance income |
|
- |
1 |
(Loss) /
profit before taxation |
|
(341) |
26 |
Tax credit |
7 |
- |
12 |
(Loss) /
profit for the year attributable to the
equity holders of the parent |
|
(341) |
38 |
|
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
Exchange
differences on translating foreign operations that may be
subsequently reclassified to profit or loss |
|
537 |
1,471 |
Total comprehensive
income attributable to the equity holders of the parent |
|
196 |
1,509 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share (expressed in pence per share)
- Basic attributable to the equity holders of the parent |
6 |
(0.04)p |
0.005p |
- Diluted
attributable to the equity holders of the parent |
6 |
(0.04)p |
0.005p |
|
|
|
|
|
|
All of the above operations during the year are continuing.
STATEMENTS OF FINANCIAL POSITION
As at 30 June
2017
|
Notes |
Group
2017
£’000 |
Group
2016
£’000 |
Company
2017
£’000 |
Company
2016
£’000 |
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Intangible assets |
8 |
11,801 |
11,221 |
- |
- |
Investment in subsidiaries |
9 |
- |
- |
1,432 |
1,432 |
Other receivables |
10 |
3 |
3 |
10,772 |
10,712 |
Total non-current assets |
|
11,804 |
11,224 |
12,204 |
12,144 |
Current
assets |
|
|
|
|
|
Trade and other receivables |
10 |
14 |
17 |
13 |
16 |
Cash and cash equivalents |
|
15 |
362 |
10 |
357 |
Total current assets |
|
29 |
379 |
23 |
373 |
|
|
|
|
|
|
TOTAL ASSETS |
|
11,833 |
11,603 |
12,227 |
12,517 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
11 |
102 |
68 |
95 |
55 |
Total current liabilities |
|
102 |
68 |
95 |
55 |
|
|
|
|
|
|
TOTAL LIABILITIES |
|
102 |
68 |
95 |
55 |
|
|
|
|
|
|
NET ASSETS |
|
11,731 |
11,535 |
12,132 |
12,462 |
|
|
|
|
|
|
EQUITY ATTRIBUTABLE
TO EQUITY HOLDERS OF THE PARENT |
|
|
|
|
|
Share capital |
12 |
892 |
892 |
892 |
892 |
Share premium |
12 |
18,178 |
18,178 |
18,178 |
18,178 |
Merger reserve |
|
2,001 |
2,001 |
2,001 |
2,001 |
Foreign exchange reserve |
|
1,986 |
1,449 |
- |
- |
Retained deficit |
|
(11,326) |
(10,985) |
(8,939) |
(8,609) |
TOTAL EQUITY |
|
11,731 |
11,535 |
12,132 |
12,462 |
The loss within the parent company financial statements for the
year was £330,000 (2016: profit of £1,738,000)
STATEMENTS OF CASH FLOWS
For the year ended 30 June 2017
|
|
Group |
Company |
|
|
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
Cash flows from
Operating activities |
|
|
|
|
|
(Loss)/profit for the
year before taxation |
|
(341) |
26 |
(330) |
1,738 |
Income tax |
|
- |
12 |
- |
- |
Finance income |
|
- |
(1) |
- |
(1) |
Share
based payments |
- |
18 |
- |
18 |
Foreign
exchange on loans to controlled entities |
(43) |
- |
- |
(1,592) |
Decrease in
receivables |
|
3 |
43 |
3 |
42 |
Increase/(decrease) in
payables |
|
34 |
(40) |
40 |
(40) |
Decrease in
provisions |
|
- |
(790) |
- |
(790) |
Cash used in
operations |
|
(347) |
(733) |
(287) |
(625) |
Income tax benefit
received |
|
- |
63 |
- |
- |
Net
cash used in operating activities |
(347) |
(670) |
(287) |
(625) |
|
|
|
|
|
|
Cash flows from Investing
activities |
|
|
|
|
|
Loans to subsidiaries |
|
- |
- |
(60) |
(28) |
Interest received |
|
- |
1 |
- |
1 |
Net cash generated
from/(used in) investing activities |
- |
1 |
(60) |
(27) |
|
|
|
|
|
|
Cash flows from Financing
activities |
|
|
|
|
|
Proceeds from issue of shares |
|
- |
500 |
- |
500 |
Net cash inflow from
financing |
|
- |
500 |
- |
500 |
|
|
|
|
|
|
Net decrease in cash and
cash equivalents |
(347) |
(169) |
(347) |
(152) |
Cash and
cash equivalents at beginning of the year |
362 |
543 |
357 |
509 |
Effect of exchange rate
changes on cash and cash equivalents |
- |
(12) |
- |
- |
Cash and cash
equivalents at 30 June |
15 |
362 |
10 |
357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF CHANGES IN EQUITY
For the year ended 30 June 2017
Attributable to equity holders of the
parent
|
Share
capital |
Share
Premium |
Merger
reserve |
Foreign exchange
reserve |
Retained
deficit |
Total
equity |
Group |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
As at 1 July
2015 |
792 |
17,778 |
2,001 |
(22) |
(11,041) |
9,508 |
Profit for the
year |
- |
- |
- |
- |
38 |
38 |
Other comprehensive
income |
- |
- |
- |
1471 |
- |
- |
Total comprehensive
income |
- |
- |
- |
1,471 |
38 |
1,509 |
Issue of share capital |
100 |
400 |
- |
- |
- |
500 |
Share based payments |
- |
- |
- |
- |
18 |
18 |
Total transactions with owners,
recognised directly in equity |
100 |
400 |
- |
- |
18 |
518 |
Balance at 30 June 2016 |
892 |
18,178 |
2,001 |
1,449 |
(10,985) |
11,535 |
Profit/(loss) for the year |
- |
- |
- |
- |
(341) |
(341) |
Other comprehensive income |
- |
- |
- |
537 |
- |
537 |
Total comprehensive income |
- |
- |
- |
537 |
(341) |
196 |
Balance at 30 June 2017 |
892 |
18,178 |
2,001 |
1,986 |
(11,326) |
11,731 |
|
|
|
|
|
|
|
|
Company |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
Balance
at 1 July 2015 |
792 |
17,778 |
2,001 |
- |
(10,365) |
10,206 |
Profit for the year |
- |
- |
- |
- |
1,738 |
1,738 |
|
Other comprehensive
income |
- |
- |
- |
- |
- |
- |
|
Total comprehensive
income |
- |
- |
- |
- |
1,738 |
1,738 |
|
Issue of share
capital |
100 |
400 |
- |
- |
- |
500 |
|
Share based
payments |
- |
- |
- |
- |
18 |
18 |
|
Total transactions with
owners, recognised directly in equity |
100 |
400 |
- |
- |
18 |
518 |
|
|
Balance at 30 June
2016 |
892 |
18,178 |
2,001 |
- |
(8,609) |
12,462 |
Loss for the year |
- |
- |
- |
- |
(330) |
(330) |
|
Other comprehensive
income |
- |
- |
- |
- |
- |
- |
|
Total comprehensive
income |
- |
- |
- |
- |
(330) |
(330) |
|
|
Balance at 30 June
2017 |
892 |
18,178 |
2,001 |
- |
(8,939) |
12,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 THE CONSOLIDATED FINANCIAL
STATEMENTS
- ACCOUNTING POLICIES
GENERAL INFORMATION
Altona Energy PLC is a public company which is listed on the
Alternative Investment Market (‘AIM’) and is incorporated and
domiciled in England &
Wales, with registered number
05350512. The Group’s and Parent Company’s financial
statements for the year ended 30 June
2017 were authorised for issue by the Board on 18 December 2017 and the Statements of Financial
Position were signed on the Board’s behalf by Mr Nicholas Lyth.
The principal activity of the Company during the year was that
of a holding company for a group engaged in the identification,
evaluation, acquisition and development of the Ackaringa coal
project in South Australia.
The principal accounting policies are summarised below. They
have been applied consistently throughout the year. The financial
statements have been prepared on the historical cost basis.
BASIS OF PREPARATION
The financial statements are presented in Sterling, being the
presentational currency of the Group and the functional and
presentational currency of the Company. All values are rounded to
the nearest thousand pounds (£’000) unless otherwise stated.
These financial statements have been prepared in accordance with
IFRS as adopted for use in the European Union (EU), and with those
parts of the Companies Act 2006 applicable to companies reporting
under IFRS.
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) as if they formed a single entity. Control
is achieved when the Group is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability
to affect those returns through its power over the investee.
Generally, there is a presumption that a majority of voting
rights result in control. To support this presumption and when the
Group has less than a majority of the voting or similar rights of
an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee,
including:
- The contractual arrangement with the other vote holders of the
investee;
- Rights arising from other contractual arrangements; and
- The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one or
more of the three elements of control. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control ceases.
Assets, liabilities, income and expenses of a subsidiary acquired
or disposed of during the year are included in the consolidated
financial statements from the date the Group gains control until
the date the Group ceases to control the subsidiary.
When necessary, amounts reported by subsidiaries have been
adjusted to conform with the Group’s accounting
policies.Transactions and balances between group companies are
eliminated in full.
BUSINESS COMBINATIONS
Acquisitions of subsidiaries and businesses are accounted for
using the acquisition method. The cost of a business combination is
measured as the aggregate of the fair values (at the date of
exchange) of assets given, liabilities incurred or assumed, and
equity instruments issued by the Group in exchange for control of
the acquiree. The acquiree’s identifiable assets, liabilities and
contingent liabilities that meet the conditions for recognition
under IFRS 3 Revised Business Combinations are recognised at their
fair values at the acquisition date.
FOREIGN CURRENCIES
The presentation currency of the Group is UK Pounds Sterling.
The functional and presentation currency of the Company is UK
Pounds Sterling whereas the functional currencies of all other
subsidiaries is Australian Dollars. Transactions entered into
by Group entities in currency other than the currency of the
primary economic environment in which they operate (the
“functional” currency) are recorded at rates ruling when the
transactions occur. Foreign currency monetary assets and
liabilities are translated at the rates ruling at the reporting
date.
Non–monetary assets and liabilities that are measured in terms
of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction.
On consolidation, the results of the operations are translated
into Pounds Sterling at average rates approximating to those ruling
when the transactions took place. All assets and liabilities of
overseas operations are translated at the rate ruling at the
reporting date. Exchange differences arising on translating the
opening net assets at closing rate are recognised directly in
equity (the “foreign exchange reserve”).
Exchange differences recognised in the statement of
comprehensive income of Group entities' separate financial
statements on the translation of long-term monetary items forming
part of the Group's net investment in the overseas operation
concerned are reclassified to the foreign exchange reserve if the
item is denominated in the functional currency of the Company or
the overseas operation concerned.
TAXATION
Current and deferred tax is charged or credited in profit or
loss, except when it relates to items charged or credited directly
to equity, in which case the related tax is also dealt with in
equity. Current tax is calculated on the basis of the tax laws
enacted or substantively enacted at the reporting date in the
countries where the Company and its subsidiaries operate.
Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are generally
recognised for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against
which those deductible
temporary differences can be utilised, except for differences
arising on investments in subsidiaries where the Group is able to
control the timing of the reversal of the difference and it is
probable that the difference will not reverse in the foreseeable
future.
Recognition of the deferred tax assets is restricted to those
instances where it is probable that a taxable profit will be
available against which the difference can be utilised.
Deferred tax is calculated based on rates enacted or
substantively enacted at the reporting date and expected to apply
when the related deferred tax asset is realised or liability
settled.
INTANGIBLE ASSETS - EXPLORATION AND
EVALUATION ASSETS
Exploration and evaluation expenditure in relation to each
separate area of interest is recognised as an exploration and
evaluation asset in the year in which it is incurred where the
following conditions are satisfied:
- the rights to tenure of the area of interest are current;
and
- at least one of the following conditions is also met:
- the exploration and evaluation expenditure is expected to be
recovered through successful development and exploration of the
area of interest, or alternatively, by its sale, or
- Exploration and evaluation activities in the area of interest
have not, at the reporting date, reached a stage which permits a
reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or
in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost
and include the acquisition of rights to exploration, studies,
exploratory drilling, trenching and sampling and associated
activities and an allocation of depreciation and amortisation of
assets used in exploration and evaluation activities.
General, administrative and share based payment costs are only
included in the measurement of exploration and evaluation costs
where they are related directly to exploration and evaluation
activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment
when facts or circumstances suggest that the carrying amount of an
exploration and evaluation asset may exceed its recoverable
amount. The recoverable amount of the exploration and
evaluation asset (or the cash-generating unit(s) (‘CGU’) to which
it has been allocated, being no larger than the relevant area of
interest) is estimated to determine the extent of the impairment
loss (if any).
FINANCIAL ASSETS
The financial assets currently held by the Group and Company are
classified as loans and receivables and cash and cash
equivalents. These assets are non-derivative financial assets
with fixed or determinable payments that are not quoted in an
active market. They are initially recognised at fair value plus
transaction costs that are directly attributable to their
acquisition or issue, and are subsequently carried at amortised
cost using the effective interest rate method, less provision for
impairment.
Impairment provisions are recognised when there is objective
evidence (such as significant financial difficulties on the part of
the counterparty or default or significant delay in payment) that
the Group and Company will be unable to collect all of the amounts
due under the terms receivable, the amount of such a provision
being the difference between the net carrying amount and the
present value of the future expected cash flows associated with the
impaired receivable. For receivables which are reported net, such
provisions are recorded in a separate allowance account with the
loss being recognised within administrative expenses in profit or
loss. On confirmation that the receivable will not be collectable,
the gross carrying value of the asset is written off against the
associated provision.
Loans and receivables comprise trade and other receivables in
the statement of financial position.
Cash and cash equivalents include cash in hand and amounts held
on short term deposit. Any interest earned is accrued monthly and
classified as finance income. Short term deposits comprise deposits
made for varying periods of between one day and three months.
For the purposes of the statement of cash flows, cash and cash
equivalents consist of cash and cash equivalents as defined
above.
Derecognition
Financial assets
The Group and Company derecognise a financial asset when the
contractual rights to the cash flows from the asset expire, or it
transfers the asset and substantially all the risk and rewards of
ownership of the asset to another entity.
FINANCIAL LIABILITIES
The Group and Company classifiy their financial liabilities into
one category, being other financial liabilities.
The Group's accounting policy for the other financial
liabilities category is as follows:
Trade payables and other short-term monetary liabilities are
initially recognised at fair value and subsequently carried at
amortised cost using the effective interest method. All
interest and other borrowing costs incurred in connection with the
above are expensed as incurred and reported as part of financing
costs in profit or loss.
Derecognition
Financial liabilities
The Group and Company derecognise financial liabilities when,
and only when, the obligations are discharged, cancelled or they
expire.
INVESTMENTS IN SUBSIDIARIES
The Company recognises its investments in subsidiaries at cost,
less any provision for impairment. The cost of acquisition includes
directly attributable professional fees and other expenses incurred
in connection with the acquisition. It also includes share
based payments issued to employees of the Company for services
provided to subsidiaries.
MERGER RESERVE
The difference between the fair value of an acquisition and the
nominal value of the shares allotted in a share exchange has been
treated in accordance with the merger relief provisions of the
Companies Act 2006 and accordingly no share premium for such
transactions was required to be recognised, resulting in a credit
to the merger reserve.
SHARE BASED PAYMENTS
The Group issues equity-settled share-based payments to certain
employees. Equity-settled share-based payments are measured
at fair value at the date of grant. The equity-settled
share-based payments are expensed to profit or loss or capitalised
to investments or intangibles in the statement of financial
position over a straight line basis over the vesting period based
on the Group’s estimate of shares that will eventually vest.
Where equity instruments are granted to persons other than
employees, the profit or loss is charged with the fair value of
goods and services received over a straight line basis over the
vesting period based on the Group’s estimate of shares that will
eventually vest, except where it is in respect to costs associated
with the issue of securities, in which case it is charged to the
share premium account.
JOINT ARRANGEMENTS
Joint arrangements are when there is a contractual arrangement
that conifers joint control over the relevant activities of the
arrangement to the Group and at least one other party. Joint
control is assessed under the same principles as control over
subsidiaries.
The Group classifies its interest in joint arrangements as
either:
- Joint ventures: where the group has rights to only the net
assets of the joint arrangement;
- Joint operations: where the Group has both the rights to assets
and obligations for the liabilities of the joint arrangement.
In assessing the classification of interests in joint
arrangements, the following are considered:
- The structure of the joint arrangement;
- The legal form of the joint arrangements structure through a
separate vehicle;
- The contractual terms of the joint arrangement agreement;
and
- Any other facts and circumstances (including any other
contractual arrangements).
Interests in joint operations are accounted for by accounting
for the assets, liabilities, revenues and expenses relating to its
involvement in a joint operation in accordance with the relevant
IFRSs.
CRITICAL ACCOUNTING ESTIMATES AND
JUDGEMENTS
The key assumptions concerning the future and other key
judgments at the reporting date, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are discussed
below:
- Impairment of intangibles
The Group follows the guidance of IAS 36 to determine when an
intangible asset is impaired. This determination requires
significant judgement. The Group’s current licences for the
Arckaringa Project (the Groups’ key asset) expired in June 2017 and, whilst renewal applications have
been submitted, the renewal process is ongoing and formal
notification of their renewal has not yet been received from the
South Australia state. Whilst
there is no indication at the date of signing these financial
statements that these renewals will not be successful, there is no
absolute certainty of this. As a result management have exercised
their judgement on this matter and continue to carry the intangible
assets within the financial statements at the value of historic
exploration and evaluation costs. Failure to renew the licences may
result in a full impairment of this asset to profit or loss.
2. FINANCIAL INSTRUMENTS –
RISK MANAGEMENT
The financial
instruments were categorised as follows: |
Loans and receivables |
Other
financial liabilities at amortised cost |
Total |
Group 30 June 2017 |
£’000 |
£’000 |
£’000 |
Assets as per
statement of financial position |
|
|
|
Trade and other
receivables |
7 |
- |
12 |
Cash and cash
equivalents |
15 |
- |
15 |
|
27 |
- |
27 |
|
|
|
|
Liabilities as per
statement of financial position |
|
|
|
Trade and other
payables |
- |
102 |
102 |
|
- |
102 |
102 |
Group 30 June 2016 |
Loans and
receivables |
Other financial
liabilities at amortised cost |
Total |
Assets as per
statement of financial position |
£’000 |
£’000 |
£’000 |
Trade and other
receivables |
2 |
- |
2 |
Cash and cash
equivalents |
362 |
- |
362 |
|
364 |
- |
364 |
|
|
|
|
Liabilities as per
statement of financial position |
|
|
|
Trade and other
payables |
- |
68 |
68 |
|
- |
68 |
68 |
Company 30 June 2017 |
Loans
and receivables |
Other
financial liabilities at amortised cost |
Total |
Assets as per
statement of financial position |
£’000 |
£’000 |
£’000 |
Trade and other
receivables |
4 |
- |
9 |
Cash and cash
equivalents |
10 |
- |
10 |
|
19 |
- |
19 |
|
|
|
|
Liabilities as per
statement of financial position |
|
|
|
Trade and other
payables |
- |
95 |
95 |
|
- |
95 |
95 |
Company 30 June 2016 |
Loans
and receivables |
Other
financial liabilities at amortised cost |
Total |
Assets as per
statement of financial position |
£’000 |
£’000 |
£’000 |
Trade and other
receivables |
2 |
- |
2 |
Cash and cash
equivalents |
357 |
- |
357 |
|
359 |
- |
359 |
|
|
|
|
Liabilities as per
statement of financial position |
|
|
|
Trade and other
payables |
- |
55 |
55 |
|
- |
55 |
55 |
The Group’s financial instruments comprise cash and sundry
receivables and payables that arise directly from its
operations.
The main risks arising from financial instruments are credit
risk, liquidity risk and currency risk. The Directors review
and agree policies for managing these risks and these are
summarised below. There have been no substantial changes to
the Group’s or Company’s exposure to financial instrument risks,
its objectives, policies and processes for managing those risks or
the methods used to measure them from previous periods unless
otherwise stated in this note.
There is no significant difference between the carrying value
and fair value of receivables, cash and cash equivalents and
payables.
Credit Risk
Credit risk refers to the risk that a counter party will default
on its contractual obligations resulting in financial loss.
The Group has adopted a policy of only dealing with creditworthy
counterparties, as assessed by the Directors using relevant
available information.
Credit risk also arises on cash and cash equivalents and
deposits with banks and financial institutions. The Group’s
and Company’s cash deposits are only held in banks and financial
institutions which are independently rated with a minimum credit
agency rating of A.
There were no bad debts recognised during the year and there is
no such provision required at the reporting date.
Liquidity risk
Liquidity risk arises from the management of working capital. It
is the risk that the Group or Company will encounter difficulty in
meeting its financial obligations as they fall due. Short term
payables are classified as those payables that are due within 30
days. The Group’s and Company’s policy is to ensure that it
will always have sufficient cash to allow it to meet its
liabilities when they become due. To achieve this aim, it seeks to
maintain liquid cash balances (or agreed facilities) to meet
expected requirements for a period of at least 45 days.
Currency risk
The functional currencies of the companies in the Group are
Pounds Sterling and Australian Dollars. The Group does not
hedge against the effects of movements in exchange rates.
These risks are monitored by the Board on a regular
basis.
The following table discloses the year end rates applied by the
Group for the purposes of producing the financial statements:
Foreign currency units to £1.00 GBP |
|
Australian Dollar |
At 30 June 2017 |
|
1.69 |
At 30 June 2016 |
|
1.78 |
The carrying amounts of the Group’s foreign currency denominated
monetary assets and monetary liabilities at the reporting date are
as follows:
|
|
Liabilities |
Assets |
|
|
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
Australian Dollar |
|
8 |
14 |
7 |
8 |
The impact of a 20% (2016: 20%) fluctuation in the value of the
Australia Dollar would result in net translation gains or losses of
£197,187 (2016: £1,200) movement in profit or loss and net assets
of the Group.
The only monetary asset the Company has is the intercompany
loan. The carrying amounts of the Company’s foreign currency
denominated monetary assets and monetary liabilities at the
reporting date are as follows:
|
|
|
Assets |
|
|
|
|
2017
£’000 |
2016
£’000 |
Australian Dollar |
|
|
|
12,204 |
12,144 |
A 6% (2016: 20%) fluctuation in the value of the Australian
Dollar would result in a positive or negative movement in the
Foreign Exchange Reserve of £732,000 (2016: £2,229,000) in relation
to the monetary assets above.
Interest rate risk
The Group and Company finance operations through the issue of
equity share capital.
The Group and Company manages the interest rate risk associated
with the Group and Company cash assets by ensuring that interest
rates are as favourable as possible, whether this is through
investment in floating or fixed interest rate deposits, whilst
managing the access the Group and Company requires to the funds for
working capital purposes.
The interest rate profile of the Group’s cash and cash
equivalents was as follows:
30 June 2017 |
|
|
Pound
Sterling
£’000 |
Australian Dollar
£’000 |
Total
£’000 |
Cash at bank floating interest
rate |
|
|
10 |
5 |
15 |
30 June 2016 |
|
|
Pound
Sterling
£’000 |
Australian Dollar
£’000 |
Total
£’000 |
Cash at bank floating interest
rate |
|
|
357 |
5 |
362 |
At the reporting date, cash at bank floating interest rate is
accruing weighted average interest of 0.05% (2016: 0.05%) As
required by IFRS 7, the Group has estimated the interest rate
sensitivity on year end balances and determined that a two
percentage point increase or decrease in the interest rate earned
on floating rate deposits would have caused a corresponding
increase or decrease in net income in the amount of £300 (2016:
£7,000).
Capital Management
The Group considers its capital to comprise its ordinary share
capital, share premium and accumulated retained losses as well as
the reserves (consisting of the foreign currency translation
reserve and merger reserve).
The Group’s objective when maintaining capital is to safeguard
the entity's ability to continue as a going concern, so that it can
provide returns for shareholders and benefits for other
stakeholders.
The Company meets its capital needs by equity financing. The
Group sets the amount of capital it requires to fund the Group’s
project evaluation costs and administration expenses. The Group
manages its capital structure and makes adjustments to it in the
light of changes in economic conditions and the risk
characteristics of the underlying assets.
The Company and Group do not have any derivative instruments or
hedging instruments. It has been determined that a sensitivity
analysis will not be representative of the Company’s and Group’s
position in relation to market risk and therefore, such an analysis
has not been undertaken.
Fair values
The fair values of the Group and Company’s financial instruments
approximate to their carrying value.
3. REVENUE AND SEGMENTAL
INFORMATION
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating
decision?maker. The chief operating decision?maker, who is
responsible for allocating resources and assessing performance of
the operating segment and that make strategic decisions, has been
identified as the Board of Directors. The Group had no
revenue during the period.
During the year ended 30 June 2017
the Group operated in one segment, being the evaluation of the
Arckaringa coal project in South Australia. The Parent
Company serves as an administrative head office and is based in the
United Kingdom. During the year ended 30 June 2017 the Group's operations spanned
Australia and the United Kingdom.
Segment result |
|
Segment result |
Continuing operations |
|
|
2017
£’000 |
2016
£’000 |
Coal and Coal to
chemicals project (Australia) |
|
|
10 |
(109) |
Administration and Corporate (United Kingdom) |
330 |
178 |
|
|
|
340 |
69 |
Finance income |
|
|
- |
1 |
Profit/(Loss) before
tax |
|
|
340 |
70 |
Income tax credit |
|
|
- |
12 |
Profit/(Loss) after
tax |
|
|
340 |
82 |
The current and prior year share based payment charges are
included within the UK segment result.
Segment assets and liabilities
|
Non-Current Assets |
Non-Current Liabilities |
|
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
Coal and Coal to chemicals project
(Australia) |
11,804 |
11,224 |
- |
- |
Administration and Corporate (United
Kingdom) |
- |
- |
- |
- |
Total of all segments |
11,804 |
11,224 |
- |
- |
|
Total
Assets |
Total
Liabilities |
|
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
Coal and Coal to chemicals project
(Australia) |
11,810 |
11,229 |
7 |
13 |
Administration and Corporate (United
Kingdom) |
23 |
374 |
95 |
55 |
Total of all segments |
11,833 |
11,603 |
102 |
68 |
- PROFIT/LOSS FROM OPERATIONS
|
|
Group |
|
|
|
2017
£’000 |
2016
£’000 |
This has been arrived at after
charging/(crediting): |
|
|
|
|
|
|
|
|
|
Fees payable to the Company’s
auditor for the audit of the consolidated financial statements |
|
|
16 |
16 |
Fees payable to the
Company’s auditor for other services:
Audit of subsidiaries |
|
|
4 |
4 |
Share based payments – Staff and
Directors |
|
|
- |
18 |
Share based payments –
Consultants |
|
|
- |
- |
Staff
costs1/(credit) |
|
|
213 |
(367) |
1 Included in
Staff costs in 2016 is a credit for the reversal of the PAYE and
national insurance provision. Further details on this provision are
included in note 14.
- STAFF COSTS (INCLUDING DIRECTORS)
|
Group |
Company |
|
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
Salaries and fees |
210 |
412 |
210 |
412 |
Release provision for
PAYE/NIC |
- |
(790) |
- |
(790) |
Social security
costs |
3 |
11 |
3 |
11 |
Total staff costs |
213 |
(367) |
213 |
(367) |
The Group and Company averaged 6 employees during the year ended
30 June 2017 (2016: 7 employees).
Directors have been assessed as the only key management of the
Group.
|
Short term benefits |
Share based payments |
National insurance |
Total |
|
2017 |
2016 |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
Current Directors: |
|
|
|
|
|
Qinfu Zhang |
98 |
- |
- |
90 |
187 |
Phillip Sutherland |
27 |
- |
- |
24 |
63 |
Nicholas Lyth |
25 |
- |
3 |
27 |
40 |
Chi Ma |
25 |
- |
- |
24 |
8 |
Total Key Management
2017 |
175 |
- |
3 |
178 |
- |
Total Key Management 2016 |
278 |
17 |
3 |
- |
298 |
The total amount payable to the highest paid director in respect
of emoluments was £90,000 (2016: £187,000). No Directors
exercised any share options during the year. The pension
expense relates to compulsory superannuation in Australia.
- EARNINGS PER SHARE
The loss for the year attributed to shareholders is £341,000
(2016: profit £38,000).
This is divided by the weighted average number of Ordinary
shares outstanding calculated to be 891.9 million (2016: 835.1
million) to give a basic loss per share of 0.04 pence (2016: basic earnings per share of
0.005 pence).
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.
- TAX
|
|
Group |
|
|
|
|
2017
£’000 |
2016
£’000 |
|
Current taxation |
|
|
|
|
|
Tax credit
Deferred taxation |
|
|
-
- |
12
- |
|
Total tax credit |
|
|
- |
12 |
|
|
|
|
|
|
|
Factors affecting the
tax charge for the year |
|
|
|
|
(Loss)/profit on ordinary activities
before tax |
|
|
(341) |
38 |
|
|
|
|
|
|
|
Loss on ordinary activities at the
Group standard rate of 20.09% (2016: 22.40%) |
|
|
(69) |
9 |
|
Effects of: |
|
|
|
|
|
Non-deductible expenses |
|
|
- |
(5) |
|
Difference in overseas tax
rates |
|
|
- |
(8) |
|
Tax concession (research &
development) |
|
|
- |
12 |
|
Tax losses (utilised)/ carried
forward |
|
|
69 |
4 |
|
Total tax credit for the
year |
|
|
- |
12 |
|
Unprovided deferred tax
asset: |
|
|
|
|
Group tax losses carried
forward of £19,209,000 (2016: £18,868,000) multiplied by the
standard rate of corporation tax 20.09% (2016: 22.40%) are
recognised when it is probable that sufficient taxable profit will
be available in the foreseeable future. In view of the uncertainty
as to future profits, no deferred tax asset has been recognised as
at 30 June 2017 (30 June 2016: nil) due to uncertainty as to when
profits will be generated. |
3,841 |
3,773 |
Changes in tax rates and factors
affecting the future tax charge
The Finance Act 2016 includes legislation reducing the main rate
of UK corporation tax from 20% to 19% from 1
April 2017.
- INTANGIBLE
ASSETS
|
|
Group |
|
|
|
2017
£’000 |
2016
£’000 |
Exploration and
evaluation |
|
|
|
|
Cost |
|
|
|
|
At beginning of
year |
|
|
11,221 |
9,739 |
Currency translation
adjustment |
|
|
580 |
1,482 |
Carrying value at 30 June |
|
|
11,801 |
11,221 |
The Group’s interest in its Arckaringa Coal Project tenements is
held within a 100% owned entity called Arckaringa Coal Chemical
Joint Venture Company Pty Limited (“Joint venture company”).
During the year under review, the joint venture company has not
issued shares to the joint venture partners as these partners have
not met their capital contribution requirements obligations.
Accordingly at the year-end Altona continued to own 100% of the
shares in the joint venture Company. Because the shares had
not yet been issued to partners as at 30
June 2017, management consider that the appropriate
accounting is to treat the joint arrangement as a joint
operation.
Potential impairment
Intangible assets relate solely to the Arckaringa coal project.
Before work can commence at this project the Exploration Licence
must be renewed. In the event that this is unsuccessful, there may
be an indication of impairment of capitalised expenditure which
could significantly reduce the carrying amount of this asset. As at
the date of signing the Financial Statements the Exploration
Licenses are in the process of being renewed following their expiry
in June 2017. However, this delay
between expiration and renewal has been normal for the Company in
previous years and as such the Directors do not propose any
impairment to the Intangible Assets. Moreover, the Group has
recently undertaken a new strategy, starting with the commissioning
of further coal studies to realise value of the licences.
- INVESTMENTS IN SUBSIDIARIES
|
|
Company |
|
|
|
2017
£’000 |
2016
£’000 |
Cost
Investments in subsidiaries – opening and closing balance |
|
|
1,432 |
1,432 |
|
|
|
|
|
Subsidiaries of Altona Energy Plc |
Country of Registration |
Holding |
Nature of Business |
|
|
|
2017
% |
2016
% |
|
Direct |
|
|
|
|
Altona Australia Pty
Ltd |
Australia |
100 |
100 |
Dormant
holding Company |
|
|
|
|
|
Indirect |
|
|
|
|
Arckaringa Energy Pty
Ltd |
Australia |
100 |
100 |
Prior year
evaluation of the Arckaringa Project |
Arckaringa Coal
Chemical Joint Venture Co Pty Ltd |
Australia |
100 |
100 |
Current
year evaluation of the Arckaringa Project |
|
|
|
|
|
|
|
|
- TRADE AND OTHER RECEIVABLES
|
Group |
Company |
|
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
Current |
|
|
|
|
Taxes & Social
security receivable |
5 |
7 |
4 |
7 |
Prepayments and other
receivables (i) |
9 |
10 |
9 |
9 |
|
14 |
17 |
13 |
16 |
Non-current |
|
|
|
Loans due from Group companies
(ii) |
- |
- |
10,772 |
10,712 |
Tenement bond |
3 |
3 |
- |
- |
|
3 |
3 |
10,772 |
10,712 |
- Other receivables are non-interest bearing and generally
repayable between 30-60 days. Included within other receivables is
an amount for rent deposit which is refundable upon expiry of the
lease.
- The loans to wholly owned subsidiaries are non-interest bearing
and are repayable on demand, however payment is not anticipated to
be within one year.
The other receivables remain within their contractual maturity
at 30 June 2017 (30 June 2016).
- TRADE AND OTHER PAYABLES
|
Group |
Company |
|
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
Trade payables |
66 |
37 |
66 |
31 |
Accruals and other payables |
36 |
31 |
29 |
24 |
|
102 |
68 |
95 |
55 |
Trade and other payables are non-interest bearing and are
normally settled on terms of 30 days from month end. The
trade and other payables remain within their contractual maturity
at 30 June 2017 and 30 June 2016.
- SHARE CAPITAL
|
Group |
Company |
Allotted, called up
and fully paid |
2017
£’000 |
2016
£’000 |
2017
£’000 |
2016
£’000 |
891,956,853 ordinary shares of 0.1p
each (2016: 891,956,853) |
892 |
892 |
892 |
892 |
- SHARE-BASED PAYMENTS
The Company periodically grants share options to employees,
consultants and Directors, as approved by the Board. At
30 June 2017 and 30 June 2016, the following share options were
outstanding in respect of the ordinary shares:
Year ended 30
June 2017
Grant Date |
Expiry Date |
Number
of Options Outstanding at beginning of the year |
Issued
in Year |
Forfeited / Expired / Cancelled |
Exercised in Year |
Number
of Options Outstanding at end of the year |
Exercise
Price per Option |
28.01.13 |
28.01.18 |
4,515,000 |
- |
- |
- |
4,515,000 |
1.50p1 |
01.04.16 |
01.04.21 |
6,500,000 |
- |
- |
- |
6,500,000 |
1.50p3 |
01.04.16 |
01.04.21 |
6,500,000 |
- |
- |
- |
6,500,000 |
1.50p3 |
|
|
17,515,000 |
- |
- |
- |
17,515,000 |
|
Year ended 30
June 2016
Grant
Date |
Expiry
Date |
Number of Options Outstanding at beginning of the year |
Issued in Year |
Forfeited / Expired / Cancelled |
Exercised in Year |
Number of Options Outstanding at end of the year |
Exercise Price per Option |
28.01.13 |
28.01.18 |
4,515,000 |
- |
- |
- |
4,515,000 |
1.50p1 |
|
08.04.13 |
08.04.16 |
4,500,000 |
- |
(4,500,000) |
- |
- |
1.56p1 |
|
28.03.14 |
28.03.19 |
5,750,000 |
- |
(5,750,000) |
- |
- |
1.50p2 |
|
28.03.14 |
28.03.19 |
5,750,000 |
- |
(5,750,000) |
- |
- |
3.00p2 |
|
01.04.16 |
01.04.21 |
- |
6,500,000 |
- |
- |
6,500,000 |
1.50p3 |
|
01.04.16 |
01.04.21 |
- |
6,500,000 |
- |
- |
6,500,000 |
1.50p3 |
|
|
|
20,515,000 |
13,000,0000 |
(16,000,000) |
- |
17,515,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 – no vesting conditions or are fully vested at year
end.
2 –
these options were subject to certain vesting conditions but were
cancelled in the prior year.
3 –
The first 6,500,000 options vest on the first anniversary after the
date of grant and the second 6,500,000 vests on the second
anniversary of the date of grant.
The weighted average contractual life of share options
outstanding at the end of the period was 3.75 years (2016: 3.9
years).
The highest and lowest market price of the Company’s shares
during the year was 0.825p and 0.325p respectively (2016: 0.275p
and 1.3p). The share price at year end was 0.425p (2016:
0.75p).
- COMMITMENTS AND CONTINGENT LIABILITIES
As at 30 June 2017, the Group had
the following material exploration commitments:
The Group has three exploration tenements in South Australia. The exploration commitments
relating to EL 5677 Wintinna, to EL 5676 Westfield and to EL 5677
Murloocoppie. These exploration commitments are held by the joint
venture company. These licenses expired in June 2017 and are in the process of being
renewed. Under its joint venture agreement the Group expects
that the exploration commitments of the licences will continue to
be met by the joint venture company in the coming financial year.
The total commitment under the new licenses is not yet determined.
Under the previous licenses it was AUD2,760,000.
The Company has filed a defence to a claim brought by a former
director, who claims £225,000 plus interest and costs. The claim
concerns a settlement agreement entered into in 2014. The Company
maintains that the claimant breached the agreement, and is not
entitled to the sum claimed. The Company has issued a counterclaim
for approximately £30,000 regarding costs incurred in mitigating
the effects of the claimant’s actions whilst a director, and also
seeks a costs indemnity. No trial date has yet been fixed by the
court.
- RELATED PARTY TRANSACTIONS
The key management personnel are considered to be the Directors.
Details of their remuneration are included in Note 6 to the
financial statements.
- CONTROLLING PARTY
The directors consider that there is no controlling party.
- POST REPORTING DATE EVENTS
On 7 July 2017 the Company issued
100,000,000 new ordinary shares of 0.01p per share by way of a
placing, at a price of 0.15p per share raising gross proceeds of
£150,000.
On 13 October 2017 the Company
issued 420,000,000 new ordinary shares of 0.01p per share by way of
a placing, at a price of 0.05p per share raising gross proceeds of
£210,000.
On 3 November 2017 the Company
appointed Mr Henry Kloepper as a
Non-Executive Director.
On 22 November 2017 the Company
issued 147,000,000 new ordinary shares of 0.01p per share by way of
a placing, at a price of 0.5p per share raising gross proceeds of
£735,000.
On the same day the Company appointed previously Non-Executive
Directors, Nick Lyth and
Phil Sutherland to the Executive
Board as CEO and COO respectively.
In addition the Company granted options over a total of
270,000,000 ordinary shares to Qingfu
Zhang (Chairman), Nick Lyth
(CEO), Phil Sutherland (COO), and
Ma Chi (Non-Executive Director). The
options have a variety of stipulations attached but focus
predominantly on share price performance and operational
performance.
-ends-