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 2015 of A$596,094 (2014 A$4,538,212), after providing $288,217 (2014: $4,249,592) for diminution in value of the Salmon Gums tenements. The Group benefited from interest received of A$144,291 (2014 A$143,897). Operating costs of  A$452,168 (2014 A$432,517) were incurred. In addition, A$288,217 (2014 A$194,039) was incurred and capitalised on licence fees and tenement management.

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 September 2016.

The directors continue to pursue potential joint ventures for the development of facilities to process the Salmon Gums lignite.

Although a resource has been defined, and title to the Salmon Gums mineral tenements has been secured for the foreseeable future, with active exploration work now suspended and with due consideration to market prices for fuel products the directors are of the view that the carrying value of the Salmon Gums mineral tenements continues to be $4,340,000, in conformity with a review undertaken by independent consultants for the purposes of this report.

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.

Chairman’s Statement:

To say that it has been yet another difficult year for the oil & gas industry, and by definition Spitfire, would be a massive understatement. The dramatic fall in oil and gas prices have severely, if not mortally, injured the junior oil & gas market

Nevertheless, the Company has continued its extensive search for acquisitions in the oil & gas sector with no success primarily due to the uneconomic nature of any proven, probable or otherwise oil and gas fields at the current low US$40+ barrel oil price coupled with the evaporation of the capital equity markets for junior oil & gas companies.

It is in this environment that the Company has decided to look further afield at base and precious metals and minerals projects that may provide the economic return over a long period of time that may be attractive to finance, construct and commission in  this difficult part of the commodities curve.

In the interim, the Retention Licence remains in place over the Salmon Gums project and the directors continue to originate and evaluate opportunities whilst keeping  operating expenses and overheads to the barest possible minimum.

As always, the Company’s core value remains to originate, nurture and generate exceptional returns for its shareholders. May the years ahead bring that statement to fruition?

Spitfire Oil Limited
Statement of Profit or Loss and Other Comprehensive Income

YEAR ENDED 30 JUNE 2015 2015 2014
A$ A$
OTHER INCOME 144,291 143,897
EXPENDITURE
Corporate expenses (369,325) (341,776)
Other expenses (82,843) (90,741)
OPERATING LOSS (307,877) (288,620)
Impairment – exploration and evaluation costs (288,217) (4,249,592)
LOSS BEFORE INCOME TAX (596,094) (4,538,212)
INCOME TAX
LOSS AFTER INCOME TAX (596,094) (4,538,212)
OTHER COMPREHENSIVE INCOME, NET OF TAX
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED (596,094) (4,538,212)
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share) (2.3) (13.3)

Spitfire Oil Limited
Consolidated Statement of Financial Position

AS AT 30 JUNE 2015 2015 2014
A$ A$
CURRENT ASSETS
Cash and cash equivalents 4,428,982 5,049,361
Trade and other receivables 1,733 890
Accrued revenues 94,347
Other current assets 17,341 16,021
TOTAL CURRENT ASSETS 4,542,403 5,066,272
NON‑CURRENT ASSETS
Capitalised exploration and evaluation costs 4,340,000 4,340,000
Office equipment 164 1,145
Other non-current assets 45,000 45,000
TOTAL NON‑CURRENT ASSETS 4,385,164 4,386,145
TOTAL ASSETS 8,927,567 9,452,417
CURRENT LIABILITIES
Trade and other payables 122,878 51,634
TOTAL CURRENT LIABILITIES 122,878 51,634
TOTAL LIABILITIES 122,878 51,634
NET ASSETS 8,804,689 9,400,783
EQUITY
Issued capital 19,289,284 19,289,284
Reserves
Accumulated losses (10,484,595) (9,888,501)
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT 8,804,689 9,400,783

Spitfire Oil Limited
Consolidated Statement of Changes in Equity

YEAR ENDED 30 JUNE 2015 Issued
Capital
Options
Reserve
Accumulated
Losses
Total
A$ A$ A$ A$
BALANCE AT 30 JUNE 2013 20,854,412 321,600 (5,671,889) 15,504,123
Loss for the year (4,538,212) (4,538,212)
TOTAL COMPREHENSIVE INCOME (4,538,212) (4,538,212)
TRANSACTIONS
WITH OWNERS IN THEIR CAPACITY AS OWNERS
Purchase of shares for cancellation (1,565,128) (1,565,128)
Transfer on expiry of options (321,600) 321,600
Transaction with owners (1,565,128) (321,600) 321,600 (1,565,128)
BALANCE AT 30 JUNE 2014 19,289,284 (9,888,501) 9,400,783
Loss for the year (596,094) (596,094)
TOTAL COMPREHENSIVE INCOME (596,094) (596,094)
TRANSACTIONS
WITH OWNERS IN THEIR CAPACITY AS OWNERS
Transaction
with owners
BALANCE AT 30 JUNE 2015 19,289,284 (10,484,595) 8,804,689

Spitfire Oil Limited
Consolidated Statement of Cash Flows

YEAR ENDED 30 JUNE 2015 2015 2014
A$ A$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (371,524) (448,714)
Interest received 49,944 143,897
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (321,581) (304,817)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation expenditure (288,217) (194,039)
Payments for equipment (1,636)
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (288,217) (195,675)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of shares for cancellation (1,565,128)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES (1,565,128)
NET DECREASE IN CASH AND CASH EQUIVALENTS (609,798) (2,065,620)
Cash and cash equivalents at the beginning of the financial year 5,049,361 7,110,136
Effects of exchange rate changes on cash and cash equivalents (10,581) 4,845
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 4,428,982 5,049,361

Spitfire Oil Limited
Notes to the preliminary results to 30th June 2015

  1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Group.
  2. 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 2015 and the summarised consolidated statement of profit or loss and other 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 2015 statutory financial statements upon which the auditors’ opinion is unqualified. The statutory financial statements for the year to 30 June 2015 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 2014 have been extracted from the statutory accounts for that period, which contain an unqualified auditors’ report.
  3. The annual report and accounts for 2015 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.
  4. The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$596,094 divided by the weighted average number of shares in issue during the year of 25,884,001. There is no
    dilutive effect of share purchase options.

The full preliminary results are available in Adobe Acrobat PDF format. Please click on the link below: