TIDMANR
RNS Number : 8480G
Altona Energy PLC
09 March 2015
9 March 2015
Altona Energy Plc
("Altona" or "the Company")
Interim Results
Altona (AIM: ANR), the AIM listed energy company, is pleased to
announce its interim results for the six months ended 31 December
2014.
HIGHLIGHTS
-- Joint Venture agreement signed with new joint venture partners contributing AUD$33 million
-- Arckaringa Coal Chemical Joint Venture Co Pty Ltd ("JV
Company") formed in November 2014 to develop the Arckaringa coal
project
-- JV Company received approval from the Australian Foreign Investment Review Board
-- Joint venture partners exploring various options for the
production of methanol and other syngas products
POST PERIOD HIGHLIGHTS
-- Mr Qinfu Zhang, representative of major shareholder Wintask
Group Limited, appointed Chairman and Michael Zheng appointed CEO
of Altona
-- Approval received from South Australian government for
transfer of exploration licences into JV Company
-- JV Company receives initial funding of AUD$2 million from Altona's joint venture partners
.
Michael Zheng, CEO of Altona Energy, commented:
"The latter part of 2014 was a significant period of evolution
for the Company with a new joint venture partnership being formed
with the sole purpose of producing a BFS on our Arckaringa site. We
continue to investigate the most suitable product for the site, as
well as the best method to extract it. As we move towards the
second quarter of 2015, we look forward to starting the initial
test drilling phase."
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy Plc
Michael Zheng, CEO +8610 596 96 162
Leander (Financial PR)
Christian Taylor- Wilkinson +44 7795 168 157
Northland Capital Partners Limited
(Nominated Adviser and Broker)
Gerry Beaney / Matthew Johnson (Corporate Finance) +44 20 7382 1100
John Howes / Alice Lane (Corporate Broking)
About Altona
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 coal-to-methanal, coal chemical and synthetic
gas 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 methanol and other
syngas products for the Australian market and export from a
resource exceeding 7.8 billion tonnes of coal (1.3 billion tonnes
JORC compliant).
CHIEF EXECUTIVE'S STATEMENT
The period under review saw the Company enter into a new Joint
Venture Agreement with two investment partners, thereby creating a
joint venture entity, Arckaringa Coal Chemical Joint Venture Co Pty
Ltd ("JV Company"), with the intention of completing a Bankable
Feasibility Study ("BFS") at its Arckaringa project in Southern
Australia within two years.
A milestone event was reached in February 2015 when the JV
Company received AUD$2 million from Altona's joint venture
partners. The importance of this cannot be underestimated, for
although we have engaged in a joint venture previously, it did not
reach the stage where funds had been advanced for the purpose of
commencing a test drilling programme at Arckaringa.
As I mentioned at the Company's AGM in December 2014, we are
investigating multiple options to find the most suitable method of
producing Coal-to-Methanol (CTM) and coal chemical products, which
are the preferred products following intensive research into the
suitability of the site and current market demand. As a proactive
partner in the JV Company it is our intention to hire a senior
mining engineer in 2015 to oversee the Company's interests in the
project.
Financial Review
Like-for-like losses for the Group for the six months ended 31
December 2014 was GBP819,000 (2013: GBP704,000). The Group had
one-off professional fees incurred in the connection with the joint
venture, totalling GBP130,000, as well as a provision for
GBP225,000 in respect of the termination of Christopher Lambert,
which as at 31 December 2014, had not been paid. Therefore, total
loss for the period was GBP1,174,000.
At 31 December, the Company had cash and cash equivalents
totalling GBP1,033,000 (30 June 2014: GBP1,913,000; 6 months ended
31 December 2013: GBP639,000). The Group incurred cash expenditure
totalling GBP880,000 in the period, comprising GBP750,000 in
respect of general running costs (6 months ended 31 December 2013:
GBP830,000), plus the GBP130,000 one-off costs mentioned above. The
principal components of the cash expenditure in the period related
to professional fees, office costs, travel and salaries.
As stated at the AGM, the Company performed a review of its
expenditure and overheads in the period which has resulted in a
number of cost saving initiatives being implemented, including the
downsizing of our London headquarters. These cost savings will be
partially recognised in the 2015 final results and into 2016.
Since the year end the joint venture has benefitted from the
receipt of AUD$2 million funds from our joint venture partners.
Post Balance Sheet Events
The board appointed Mr Qinfu Zhang as Chairman in January 2015,
allowing me to concentrate solely on the CEO role, as we enter this
challenging new phase of development. In order to strengthen the
board and bolster its senior management experience, finding a
suitable UK-based non-executive continues to be a priority.
Also in January, the JV Company received ministerial consent
from the South Australian government to transfer the three
Arckaringa Exploration Licences into this company, following the
approval of the Australian Foreign Investment Review Board (FIRB)
which it received in December 2014.
On 13 February, the joint venture partners being Wintask Group
Limited and Sino-Aus Energy Group Limited ("Sino-Aus") paid AUD$2
million into the JV Company, with the remaining AUD$4 million of
the first contribution due from Sino-Aus before the end of March
2015. This initial payment will allow the planning for the test
drilling programme to commence and it is expected that this will
happen soon. Also this month the Company has applied for the
renewal of the three exploration licences that make up the project
area.
Outlook
Our clear focus for 2015 is to progress the test drilling
programme in order to remain on target to finish the BFS by the end
of two years. Like all projects of this size and nature, we cannot
predict the exact timing and success of future operations but, with
the initial funds in place, we, along with our joint venture
partners, will engage with mining and engineering experts to ensure
it is only the unpredictable that could delay the programme.
We will continue to develop the project using the latest
scientific methods and we remain very excited about the prospects
for the Arckaringa project. We will update shareholders as we pass
each milestone on this journey.
MICHAEL ZHENG
CEO
Consolidated Statement of Comprehensive Income
For the half year ended 31 December 2014
Notes Unaudited Unaudited Audited
Half-year Half-year Year
ended ended ended
31 Dec 2014 31 Dec 2013 30 June 2014
GBP'000 GBP'000 GBP'000
Total administrative expenses
and loss from operations (1,174) (710) (2,362)
Finance income - - 1
Loss before taxation (1,174) (710) (2,361)
Tax 3 - 6 80
Loss for the financial period (1,174) (704) (2,281)
Other comprehensive income
Exchange differences on translating
foreign operations maybe subsequently
reclassified to profit or loss (582) (1,252) (929)
Total comprehensive (loss) attributable
to the equity holders of the
parent (1,756) (1,956) (3,210)
------------- ------------- --------------
Loss per share
- Basic and diluted 4 (0.15p) (0.12p) (0.33p)
Consolidated Statements of financial position
At 31December 2014
Unaudited Unaudited Audited
Notes 31 Dec 2014 31 Dec 2013 30 June 2014
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 10,484 10,601 11,040
Other receivables - 79 79
------------- ------------- --------------
Total Non-current assets 10,484 10,680 11,119
------------- ------------- --------------
Current assets
Trade and other receivables 237 159 202
Cash and cash equivalents 1,033 639 1,913
Total Current assets 1,270 798 2,115
------------- ------------- --------------
Total assets 11,754 11,478 13,234
------------- ------------- --------------
LIABILITIES
Non-current liabilities
Provisions 6 - 300 -
------------- ------------- --------------
Current liabilities
Provisions 6 790 - 790
Trade and other payables 5 400 72 155
Total Current liabilities 1,190 72 945
------------- ------------- --------------
Total liabilities 1,190 372 945
------------- ------------- --------------
NET ASSETS 10,564 11,106 12,289
------------- ------------- --------------
Capital and reserve attributable
to the equity holders of the
Parent
Share capital 792 622 792
Share premium 17,778 15,683 17,778
Merger reserve 2,001 2,001 2,001
Foreign exchange reserve 737 996 1,319
Retained losses (10,744) (8,196) (9,601)
------------- ------------- --------------
TOTAL EQUITY 10,564 11,106 12,289
------------- ------------- --------------
Consolidated Statement of Cashflows
For the half year ended 31 December 2014
Unaudited Unaudited Audited
Half-year Half-year Year
ended ended ended
31 Dec 2014 31 Dec 2013 30 June 2014
GBP'000 GBP'000 GBP'000
Operating activities
Loss before taxation (1,174) (704) (2,281)
Finance income - - (1)
Share based payments 31 - 172
(Increase)/ decrease in receivables 38 (24) (59)
(Decrease) / increase in payables
and provisions 242 (72) 801
Cash used in operations (863) (800) (1,368)
Income tax benefit received - - -
------------- ------------- --------------
Net cash outflow used in operating
activities (863) (800) (1,368)
Investing activities
Payments to acquire intangible fixed
assets (20) (30) (452)
Interest received - - 1
Net cash outflow from investing activities (20) (30) (451)
Financing activities
Proceeds from issue of shares - 836 3,220
Issue costs paid - (42) (161)
Net cash inflow from financing - 794 3,059
Decrease in cash and cash equivalents
in period/ year (883) (36) 1,240
Cash and cash equivalents at beginning
of period / year 1,913 679 679
Effect of exchange rate changes on
cash and cash equivalents 3 (4) (6)
------------- ------------- --------------
Cash and cash equivalents at end of
period / year 1,033 639 1,913
------------- ------------- --------------
Consolidated Statement of Changes in Equity
For the half year ended 31 December 2014
Share Share Merger Foreign Retained Total shareholders'
capital premium reserve exchange losses equity
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 July 2013 562 14,949 2,001 2,248 (7,492) 12,268
Total comprehensive loss
for the period - - - (1,252) (704) (1,956)
Issue of share capital 60 776 - - - 836
Costs of issue of share
capital - (42) - - - (42)
Balance at 31 December
2013 622 15,683 2,001 996 (8,196) 11,106
-------------------------- --------- --------- --------- ---------- --------- --------------------
Total comprehensive loss
for the period - - - 323 (1,577) (1,254)
Issue of share capital 170 2,214 - - - 2,384
Costs of issue of share
capital - (119) - - - (119)
Share based payments - - - 172 172
Balance at 30 June 2014 792 17,778 2,001 1,319 (9,601) 12,289
-------------------------- --------- --------- --------- ---------- --------- --------------------
Total comprehensive loss
for the period - - - (582) (1,174) (1,756)
Share based payments - - - - 31 31
Balance at 31 December
2014 792 17,778 2,001 737 (10,744) 10,564
-------------------------- --------- --------- --------- ---------- --------- --------------------
Notes to the Interim Report
For the half year ending 31 December 2014
1. GENERAL INFORMATION
Altona Energy Plc (the "Company") is a company domiciled in
England. The condensed consolidated interim financial statements of
the Company for the six months ended 31 December 2014 comprise the
result of the Company and its subsidiaries (together referred to as
the "Group").
The condensed interim financial information for the period 1
July 2014 to 31 December 2014 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 2013 to 31
December 2013 and extracts from the audited financial statements
for the year to 30 June 2014.
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 2014 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 and did not contain a statement under
s498 (2) - (3) of Companies Act 2006.
2. TAXATION
The Group has recognised a GBPNil tax credit (31 December 2013:
GBP6,000 and 30 June 2014: GBP80,000) in respect of the concession
for research and development 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 Unaudited Audited
31 Dec 2014 31 Dec 2013 30 June 2014
Loss for the period (GBP'000) (1,174) (704) (2,281)
Weighted average number of shares
- expressed in millions 792.0 581.7 683.8
Basic loss per share - expressed
in pence (0.15p) (0.12p) (0.33p)
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 Unaudited Audited
31 Dec 2014 31 Dec 2013 30 June 2014
Trade payables 145 14 127
Accruals and other payables 255 58 28
------------- ------------- --------------
400 72 155
============= ============= ==============
Included in accruals and other payables is an amount of
GBP225,000 (2013: GBPNil and 2014:GBPNil) in respect of termination
payments due to Christopher Lambert that as at 31 December 2014
remained accrued but unpaid.
5. PROVISIONS
Unaudited Unaudited Audited
31 Dec 2014 31 Dec 2013 30 June 2014
Current provision
Taxes & Social Security 790 - 790
------------- ------------- --------------
Non-current provision
Provision for success fee - 300 -
------------- ------------- --------------
Taxes & Social Security:
The taxes and social security provision amounting to GBP790,000
(30 June 2014: GBP790,000, 31 December 2013: GBPNil) is in respect
of a potential anticipated liability to HMRC for income tax not
deducted and accounted for under the PAYE system, and National
Insurance Contributions not accounted for. Altona has approached
HMRC in respect of the anticipated liability and no substantive
progress has been made since the company described the provision in
its annual results for the year ended 30 June 2014 (as reported in
our annual results to 30 June 2014 dated and announced 14 November
2014).
6. POST REPORTING DATE EVENTS
Since year end the joint venture company, Arckaringa Coal
Chemical Joint Venture Co Pty Ltd has benefitted from the receipt
of the first AUD$2 million funds from the joint venture
partners.
There were no other post reporting date events to disclose.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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