Embargoed until
7am
19 June 2020
Altona Energy plc
(“Altona” or “the Company”)
Interim
Results
Altona (AQSE: ANR.PL), a mining exploration company, announces
its unaudited interim results for the six months ended 31 December 2019.
Christian Taylor-Wilkinson,
Interim CEO of Altona, commented, “The period under review for
these results was one of transition for the Company, as while the
strategy remained that of finding a mining project suitable for
increasing shareholder value, the evaluation of a vanadium project
in China (June 2019) as well as the attempt to acquire a
new Petroleum Exploration Licence in South Australia (December 2019) were both discarded by the board,
as projects not suited to achieve the desired results.
“In May of 2020, outside the review period, the Company engaged
with a Malawian mining consultancy, which is in the process of
acquiring the mining rights over a Rare Earth Element project in
southern Malawi. The board
believes that this project has a high degree of merit and we are
currently carrying out due diligence, which we believe will take
less than three months.
“We are also speaking with owners of other mining assets, whilst
assessing the potential of alternative projects, should a more
suitable investment be found, or should the project in Malawi not be able to move forward for
whatever reason.
“We also continue to search for realistic funding solutions for
the Company, so as to provide the necessary capital for the Company
to remain solvent until we find our next project, and to ensure our
shareholders do not face excessive dilution. It has become a
delicate balancing act, but ultimately the board is trying to
ensure the Company survives in its current form and therefore, we
may have to face tough choices in the next few months in order to
raise the right amount of funds at the right price which will
enable us to finally move ahead and put the last few years behind
us.
“The shares in the Company remain suspended and may do so until
new funds have been raised. This, we hope, will be in conjunction
with the Company finalising a deal to acquire a new mining asset.
The timeline for any fund raise and completion of an acquisition,
if one is to happen, we envisage, will be within the next four
months.
“We will continue to update the market as and when we have
developments to report and we once more thank our shareholders for
their ongoing support.”
Financial Review
The financial loss of the Group for the six months ended
31 December 2019 was £78,000 (H1
2018: £366,000), due to the strict cost cutting exercise
implemented by the new board.
The Company had total liabilities of £377,000 at 31 December 2019 (H1 2019: £310,000), being made
up of a bank overdraft facility of £100,000 and £162,000 of accrued
expenses, the majority of which relate to deferred salaries of Mr
Zhang, Mr Taylor-Wilkinson and Mr Sutherland; these amounts will be
settled either, once the Company has suffient cash reserves, or
converted into Altona shares. Any payment of these accrued salaries
will not be made to the detriment of the business’s planned future
operations.
-ends-
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy
plc
Christian Taylor-Wilkinson, Interim CEO
Philip Sutherland, Non-Executive Director |
+44 (0) 7795 168 157
+61 (0)402 440 339 |
Alfred Henry
Corporate Finance Ltd (AQSE Corporate Adviser)
Jon Isaacs / Nick Michaels |
+44 (0) 20 3772 0021 |
Leander (Financial
PR) |
+44 (0) 7795 168
157 |
Company Information
Altona is a mining exploration company focused on the
evaluation, development and extraction of minerals.
The Company was admitted to trading on AIM on 10 March 2005 and was subsequently admitted to
Aquis Stock Exchange (Formerly NEX Exchange for Growth Companies)
on 1 February 2019. A copy of its admission documents dated
4 March 2005 can be accessed on its
website, www.altonaenergy.com. This website is where items
can be inspected under Rule 75 of the Aquis Stock Exchange Rules
for Issuers, from 1 February
2019.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER
2019
|
Notes |
Unaudited
Half-year ended
31 Dec 2019 |
Unaudited
Half-year
ended
31 Dec 2018 |
Audited
Year ended
30 June 2019 |
|
|
£’000 |
£’000 |
£’000 |
Total
administrative expenses and loss from operations |
|
(78) |
(366) |
(624) |
Impairment
expense |
|
- |
- |
(11,033) |
|
|
|
|
|
Loss before
taxation |
|
(78) |
(366) |
(11,657) |
Tax |
2 |
- |
- |
- |
|
|
|
|
|
Loss for the
financial period |
|
(78) |
(366) |
(11,657) |
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
Exchange differences
on translating foreign operations maybe subsequently reclassified
to profit or loss |
|
- |
(148) |
(187) |
|
|
|
|
|
Total comprehensive
profit/(loss) attributable to the equity holders of the parent |
|
(78) |
(514) |
(11,844) |
|
|
|
|
|
Loss per share |
|
|
|
|
- Basic and
diluted |
3 |
(4.87p) |
(23.51p) |
(894.84p) |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
|
|
Unaudited
31 Dec 2019
£’000 |
Unaudited
31 Dec 2018
£’000 |
Audited
30 June 2019
£’000 |
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
|
- |
11,074 |
- |
Other receivables |
|
3 |
3 |
3 |
Total Non-current assets |
|
- |
11,077 |
3 |
|
|
|
|
|
Current assets |
|
|
|
|
Trade and other receivables |
|
21 |
77 |
32 |
Cash and cash equivalents |
|
- |
19 |
- |
Total Current assets |
|
21 |
96 |
32 |
|
|
|
|
|
Total assets |
|
24 |
11,173 |
35 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
4 |
377 |
127 |
310 |
Total Current liabilities |
|
377 |
127 |
310 |
|
|
|
|
|
Total liabilities |
|
377 |
127 |
310 |
|
|
|
|
|
NET ASSETS |
|
(353) |
11,046 |
(275) |
|
|
|
|
|
Capital and reserve attributable
to the equity holders of the Parent |
|
|
|
|
Share capital |
|
1.431 |
1,427 |
1.431 |
Share premium |
|
18,697 |
18,692 |
18,697 |
Merger reserve |
|
2,001 |
2,001 |
2,001 |
Foreign exchange reserve |
|
1,224 |
1,263 |
1,224 |
Retained losses |
|
(23,706) |
(12,337) |
(23,628) |
TOTAL EQUITY |
|
(353) |
11,046 |
(275) |
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER
2019
|
Unaudited
Half-year
ended
31 Dec 2019 |
Unaudited
Half-year ended
31 Dec 2018 |
Audited
Year ended
30 June 2019 |
|
£’000 |
£’000 |
£’000 |
|
|
|
|
Operating activities |
|
|
|
Loss before taxation |
(78) |
(366) |
(11,657) |
Share based payments |
- |
- |
9 |
Impairment of intangibles |
- |
- |
11,033 |
(Increase)/ decrease in
receivables |
11 |
(39) |
6 |
Increase / (decrease) in payables
and provisions |
67 |
36 |
123 |
Cash used in operations |
- |
(369) |
(486) |
Income tax benefit received |
- |
- |
- |
Net cash outflow used in
operating activities |
- |
(369) |
(486) |
|
|
|
|
Investing activities |
|
|
|
Interest received |
- |
- |
- |
Net cash outflow from investing
activities |
- |
- |
- |
|
|
|
|
Financing activities |
|
|
|
Proceeds from bank overdraft |
- |
- |
96 |
Proceeds from issue of shares |
- |
- |
- |
Costs of issue |
|
|
- |
Net cash inflow from financing
activities |
- |
- |
96 |
|
|
|
|
Increase/decrease in cash and
cash equivalents in period/ year |
- |
(369) |
(390) |
Cash and cash equivalents at
beginning of period / year |
- |
391 |
391 |
Effect of exchange rate changes on
cash and cash equivalents |
- |
(3) |
(1) |
Cash and cash equivalents at end
of period / year |
- |
19 |
- |
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER
2019
|
Share capital |
Share premium |
Merger reserve |
Foreign exchange reserve |
Retained losses |
Total
shareholders’ equity |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
Balance at 30 June
2018 |
1,427 |
18,692 |
2,001 |
1,411 |
(11,971) |
11,560 |
Total comprehensive
loss for the period |
- |
- |
- |
(148) |
(366) |
(514) |
Issue of share
capital |
- |
- |
- |
- |
- |
- |
Balance at 31 December
2018 |
1,427 |
18,692 |
2,001 |
1,263 |
(12,337) |
11,046 |
Total comprehensive
loss for the period |
- |
- |
- |
(39) |
(11,291) |
(11,330) |
Issue of share
capital |
4 |
5 |
- |
- |
- |
9 |
Balance at 30 June
2019 |
1,431 |
18,697 |
2,001 |
1,224 |
(23,628) |
(275) |
Total comprehensive
loss for the period |
- |
- |
- |
- |
(78) |
(78) |
Issue of share
capital |
- |
- |
- |
- |
- |
- |
Balance at 31
December 2019 |
1,431 |
18,697 |
2,001 |
1,224 |
(23,706) |
(353) |
NOTES TO THE INTERIM REPORT
FOR THE HALF YEAR ENDING 31 DECEMBER 2018
1. GENERAL
INFORMATION
Altona Energy Plc (the “Company”) is a company registered in
England and Wales. The
condensed consolidated interim financial statements of the Company
for the six months ended 31 December
2019 comprise the result of the Company and its subsidiaries
(together referred to as the “Group”) and have been prepared in
accordance with the Aquis Stock Exchange Growth Market Rules for
Issuers. As permitted, the Company has chosen not to adopt IAS 34
“Interim Financial Statement” in preparing these interim financial
statements.
The consolidated interim financial information for the period
1 July 2019 to 31 December 2019 is unaudited. In the opinion of
the Directors the condensed interim financial information for the
period presents fairly the financial position, and results from
operations and cash flows for the period in conformity with the
generally accepted accounting principles consistently applied. The
condensed interim financial information incorporates unaudited
comparative figures for the interim period 1
July 2018 to 31 December 2018
and extracts from the audited financial statements for the year to
30 June 2019.
The financial information contained in this interim report does
not constitute statutory accounts as defined by section 435 of the
Companies Act 2006.
The comparatives for the full year ended 30 June 2019 are not the Company’s full statutory
accounts for that year. A copy of the statutory accounts for that
year has been delivered to the Registrar of Companies. The
auditor’s report on those financial statements was unqualified but
did include a reference to the uncertainties surrounding going
concern, to which the auditors drew attention by way of emphasis of
matter and did not contain a statement under s498 (2) – (3) of
Companies Act 2006. The interim report has not been audited or
reviewed by the Company’s auditor. The key risks and uncertainties
and critical accountancy estimates remain unchanged from
30 June 2019 and the accountancy
policies adopted are consistent with those used in the preparation
of its financial statements for the year ended 30 June 2019.
2. TAXATION
The Group has recognised a £nil tax credit (31 December 2018: £nil and 30 June 2019: £nil) in respect of the concession
for research and development tax credits available to the Group. No
current taxation has been provided due to losses in the period.
3. LOSS PER
SHARE
The basic loss per share is derived by dividing the loss for the
period attributable to ordinary shareholders by the weighted
average number of shares in issue.
|
Unaudited
31 Dec 2019 |
Unaudited
31 Dec 2018 |
Audited
30 June 2019 |
|
|
|
|
Loss for the period (£’000) |
(78) |
(366) |
(11,657) |
Weighted average number of shares –
expressed in thousands |
1,602 |
1,559 |
1,602 |
Basic loss per share – expressed in
pence |
(4.87p) |
(23.51p) |
(894.84) |
As the inclusion of the potential ordinary shares would result
in a decrease in the loss per share they are considered to be
anti-dilutive and, as such, the diluted loss per share calculation
is the same as the basic loss per share.
4. TRADE AND OTHER
PAYABLES
|
Unaudited
31 Dec 2019
£’000 |
Unaudited
31 Dec 2018
£’000 |
Audited
30 June 2019
£’000 |
Trade payables |
115 |
60 |
132 |
Bank overdraft |
100 |
- |
96 |
Accruals and other payables |
162 |
67 |
82 |
|
377 |
127 |
310 |
5.
POST REPORTING DATE
EVENTS
The following events occurred subsequent to period end:
-
The company launched an Open Offer to existing shareholders with
an aim to raise up to £400,000 to pursue the acquisition of a
Petroleum Exploraiton Licence Application in South Australia, however took the decision to
cancel the open offer due to it not raising the minimum amount
required to acquire the PELA. Therefore, those shareholders who
subscribed for shares in the offer, were refunded the full amount
of their subscription monies in relation to the Open Offer.
-
The Company entered into a Memorandum of Understanding (“MoU”)
with mining consultancy company, Akatswiri Mineral Resources
(“Akatswiri”), to acquire a majority stake in a rare earth mining
project in the Chambe Basin, Mulanje in Southern Malawi.
Akatswiri is currently the 100% owner of Akatswiri Rare Earths
Pvt Ltd (“ARE”), a Malawi registered company, which has
applied for Exploration licence APL 0153 - the Chambe Rare Earth
Project (“Chambe”). It is expected that the licence will be granted
in June, following government final approval.
The terms of the MoU state Altona will initially acquire a 51%
holding in ARE, rising to 75% on certain project milestones being
met. Akatswiri will remain a 25% shareholder. The consideration for
the transaction will be Altona Energy ordinary shares if the
transaction proceeds.