Preliminary Results

Spitfire Oil Limited (“the Company”) and its wholly owned subsidiary, Spitfire Oil Pty Ltd (“Spitfire”), together (“the Group”), recorded a loss before tax for the year ended 30th June 2013 of A$289,639 (2012 A$430,987). The Group benefited from interest received of A$220,495 (2012 A$332,569). Operating costs were reduced to A$510,134 (2012 A$763,556).

Following the grant of retention licences over the Salmon Gums tenements $21,656 of tenement management expenditure was incurred and capitalised on further exploration work (2012 A$339,241).

Cash balances at 30th June 2013 amounted to A$7,110,136 (2012 A$7,367,957).

Operations

The Salmon Gums Lignite Project remains on hold and the Retention Licence on which it occurs has been renewed for a further year until October 2014.
One potential joint venture on it was pursued during the year but without success.

The Company has continued to keep its running costs to a minimum while reviewing possible new projects. A number have been considered during the year but have so far not met requirements. As the market has declined, extra efforts are now being made to acquire a suitable new project.

Chairman’s Statement:

It has been an uneventful year.  This has been primarily due to the junior oil & gas and mining equity markets severely contracting and, in essence, forcing these companies into “survival mode.”  Very few quality opportunities were offered for sale, joint venture or relinquishment, and those that were, failed to meet any of the primary economic hurdles required for an investment or acquisition by Spitfire.  The time may well be approaching when junior resource companies may encounter such unavoidable financial distress, unable to be alleviated by raising equity or debt capital, that quality assets will be offered for sale or joint venture.  It is that time that the Company will have the greatest opportunity of acquiring a long life, sizeable project capable of delivering the economic returns expected by the Company.  Nevertheless, the Company has not been dormant in investigating, researching and evaluating acquisitions in preparation for such a time.  The Company continues to assess a number of acquisition opportunities which, if consummated, would have a significant and long lasting impact on the future direction of the Company.  As always in such cases, the chances of success are small, but they still need to be continually monitored in the hope that they may be consummated one day.

The Salmon Gums project continues to be governed by retention licences and awaits the day when technology and costs will enable the project to be developed.

The Company continues to keep costs to the barest of minimum, conserving cash to enable opportunities to be pursued, due diligence to be undertaken and acquisitions hopefully completed.  As always, the Company is driven by completing the right acquisition to ensure the largest and longest returns to shareholder.  May it be this year.

SPITFIRE OIL LIMITED
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2013
(expressed in Australian dollars)

2013 2012
A$ A$
OTHER INCOME 220,495 332,569
EXPENDITURE
Corporate expenses (414,483) (656,805)
Other expenses (95,651) (106,751)
LOSS BEFORE INCOME TAX (289,639) (430,987)
INCOME TAX
LOSS AFTER INCOME TAX (289,639) (430,987)
OTHER COMPREHENSIVE INCOME, NET OF TAX
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR
ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED
(289,639) (430,987)
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share) (0.7) (1.0)

SPITFIRE OIL LIMITED
Consolidated Statement of Financial position
For the year ended 30 June 2013
(expressed in Australian dollars)

2013 2012
A$ A$
CURRENT ASSETS
Cash and cash equivalents 7,110,136 7,367,957
Trade and other receivables 1,242
Other current assets 14,179 12,961
TOTAL CURRENT ASSETS 7,125,557 7,380,918
NON CURRENT ASSETS
Capitalised exploration and evaluation costs 8,395,553 8,373,897
Other non-current assets 45,000 45,000
TOTAL NON CURRENT ASSETS 8,440,553 8,418,897
TOTAL ASSETS 15,566,110 15,799,815
CURRENT LIABILITIES
Trade and other payables 61,987 45,800
TOTAL CURRENT LIABILITIES 61,987 45,800
TOTAL LIABILITIES 61,987 45,800
NET ASSETS 15,504,123 15,754,015
EQUITY
Issued capital 20,854,412 20,854,412
Reserves 321,600 281,853
Accumulated losses (5,671,889) (5,382,250)
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT 15,504,123 15,754,015

SPITFIRE OIL LIMITED
Consolidated Statement of Changes in Equity
For the year ended 30 June 2013
(expressed in Australian dollars)

Issued Capital Options Reserve Accumulated Losses Total
A$ A$ A$ A$
BALANCE AT 1 JULY 2011 20,854,412 149,937 (4,951,263) 16,053,086
 

Loss for the year

(430,897) (430,897)
TOTAL COMPREHENSIVE INCOME (430,897) (430,897)
 

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

Share option expense 131,916 131,916
BALANCE AT 30 JUNE 2012 20,854,412 281,853 (5,382,250) 15,754,015
 

Loss for the year

(289,639) (289,639)
TOTAL COMPREHENSIVE INCOME (289,639) (289,639)
 

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

Share option expense 39,747 39,747
BALANCE AT 30 JUNE 2013 20,854,412 321,600 (5,671,889) 15,504,123

 

SPITFIRE OIL LIMITED
Consolidated Statement of Cash Flows
For the year ended 30 June 2013

2013 2012
A$ A$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (451,906) (602,466)
Interest received 220,495 332,569
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (231,411) (269,897)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation expenditure (21,655) (348,213)
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (21,655) (348,213)
NET DECREASE IN CASH AND CASH EQUIVALENTS (253,066) (618,110)
Cash and cash equivalents at the beginning of the financial year 7,367,957 7,985,012
Effects of exchange rate changes on cash and cash equivalents (4,755) 1,055
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 7,110,136 7,367,957

(expressed in Australian dollars)

 

SPITFIRE OIL LIMITED

Notes to the Preliminary Results to 30th June 2013

  • This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Group.
  • The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006. The summarised consolidated statement of financial position at 30 June 2013 and the summarised consolidated statement of comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows for the year then ended have been extracted from the Group’s 2013 statutory financial statements upon which the auditors’ opinion is unqualified. The statutory financial statements for the year to 30 June 2013 have been prepared in accordance with the requirements of International Accounting Standard IAS1: Presentation of Financial Statements as adopted in Australia. The results for the year ended 30 June 2012 have been extracted from the statutory accounts for that period, which contain an unqualified auditors’ report.
  • The annual report and accounts for 2013 are being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company’s London correspondent office, 6th Floor, 60 St James’s Street, London, SW1A 1LE and on the Company’s web site.
  • The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$289,639 divided by the weighted average number of shares in issue during the year of 42,550,668.
    There is no dilutive effect of share purchase options.

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