Interim Statement For The Six Months Ended 31 December 2018

Spitfire Oil Limited (“Spitfire” or “the Company”) is pleased to publish a copy of its condensed consolidated unaudited interim results for the six months ended the 31st December 2018.

Spitfire and its subsidiaries (together “the Group”) recorded a loss before tax for the six months ended the 31st December 2018 of A$325,594 (2017: A$444,534). With cash balances of A$2.3m, the Group has benefited from interest receipts of A$11,715 (2017 A$15,267) in the period. With all directors fees suspended and other administration costs curtailed operating costs were reduced to A$86,680 (2017 A$228,510) and provision has been made for impairment of exploration and development costs incurred of A$250,629 (2017 A$231,291).

Chairman’s Statement

Chairman Mladen Ninkov commented

The superficial view of the Company’s six month operating performance shows a company with no operations and overheads cut to the bare bone, including all directors fees suspended and administrative costs cut to the barest minimum. But it would be a mistake to assume the Company is dormant. Poor, uneconomic and unmineable assets are always available. But this is the road to nowhere and leads to a waste of shareholders fund and the eventual dilution of the Company’s share capital. That is why the Company continues to search, investigate, evaluate and attempts to negotiate transactions which will add real value to the Company and its shareholders. It is not easy and it takes an incredibly long time to consummate such a transaction. When it eventually occurs, hopefully, the wait will have been worthwhile.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS OR OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
(expressed in Australian dollars)

Half-year Full-year
Note 31
December
2018
Unaudited
A$
31
December
2017
Unaudited
A$
30
June
2018
Audited
A$
OTHER INCOME 11,715 15,267 63,405
EXPENDITURE
Corporate and other expenses (86,680) (228,510) (297,539)
OPERATING LOSS (74,965) (213,243) (234,134)
Imparment – exploration and evaluation costs (250,629) (231,291) (1,116,767)
LOSS BEFORE INCOME TAX (325,594) (444,534) (1,350,901)
INCOME TAX
LOSS AFTER INCOME TAX (325,594) (444,534) (1,350,901)
OTHER COMPREHENSIVE INCOME, NET OF TAX
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED (325,594) (444,534) (1,350,901)
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share). 6 (1.3) (1.7) (5.22)

The above consolidated statement of profit or loss or other comprehensive income should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 December 2018
(expressed in Australian dollars)

 

Note 31
December
2018
Unaudited
A$
31
December
2017
Unaudited
A$
30
June
2018
Audited
A$
CURRENT ASSETS
Cash and cash equivalents 2,250,704 2,671,088 2,560,120
Accrued revenues 24,540 23,229
Other current assets 31,307 24,297 28,954
TOTAL CURRENT ASSETS 2,282,011 2,719,925 2,612,303
NON-CURRENT ASSETS
Plant and equipment 164
Capitalised exploration and evaluation costs 450,000 1,250,000 450,000
Other non-current assets 45,000 45,000 45,000
TOTAL NON-CURRENT ASSSETS 495,000 1,295,164 495,000
TOTAL ASSETS 2,777,011 4,015,089 3,107,303
CURRENT LIABILITIES
Trade and other payables 32,172 38,289 36,870
TOTAL CURRENT LIABILITIES 32,172 38,289 36,870
TOTAL LIABILITIES 32,172 38,289 36,780
NET ASSETS 2,744,839 3,976,800 3,070,433
EQUITY
Issued capital 5 19,289,284 19,289,284 19,289,284
Accumulated losses (16,544,445) (15,312,484) (16,218,851)
TOTAL EQUITY 2,744,839 3,976,800 3,070,433

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
(expressed in Australian dollars)

Issued
Capital
Accumulated
Losses
Total
A$ A$ A$
BALANCE AT 31 DECEMBER 2016 19,289,284 (11,483,502) 7,805,782
Loss for the period (3,384,448) (3,384,448)
TOTAL COMPREHENSIVE LOSS (3,384,448) (3,384,448)
BALANCE AT 30 JUNE 2017 19,289,284 (14,867,950) 4,421,334
Loss for the period (444,534) (444,534)
TOTAL COMPREHENSIVE LOSS (444,534) (444,534)
BALANCE AT 31 DECEMBER 2017 19,289,284 (15,312,484) 3,976,800
Loss for the period (906,367) (906,367)
TOTAL COMPREHENSIVE LOSS (906,367) (906,367)
BALANCE AT 30 JUNE 2018 19,289,284 (16,218,851) 3,070,433
Loss for the period (325,594) (325,594)
TOTAL COMPREHENSIVE LOSS (325,594) (325,594)
BALANCE AT 31 DECEMBER 2018 19,289,284 (16,544,445) 2,744,839

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 DECEMBER 2018
(expressed in Australian dollars)

Half-year Full-year
31
December
2018
Unaudited
A$
31
December
2017
Unaudited
A$
30
June
2018
Audited
A$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (91,204) (268,418) (342,724)
Interest received 34,944 1,239 50,688
Net cash (outflow) from operating activities (56,260) (267,179) (292,036)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation expenditure (250,629) (231,291) (316,767)
Net cash (outflow) from investing activities (250,629) (231,291) (316,767)
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (306,889) (498,470) (608,803)
Cash and cash equivalents at the beginning of the period 2,560,120 3,170,851 3,170,851
Effects of exchange rate changes on cash and cash equivalents (2,527) (1,293) (1,928)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 2,250,704 2,671,088 2,560,120

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
Notes to the CONDENSED CONSOLIDATED financial statements

NOTE 1: BASIS OF PREPARATION OF THE SIX MONTH FINANCIAL REPORT

This condensed consolidated interim financial report for the six month reporting period ended 31 December 2018 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting.

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 condensed consolidated statement of financial position at 30 June 2018 and the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended have been extracted from the Group’s 2018 statutory financial statements upon which the auditors’ have opined that they were unable to obtain sufficient appropriate audit evidence concerning the carrying value of capitalised exploration and evaluation costs totalling $4.340 million in relation to the Salmon Gums Project for the year ended 30 June 2016 and qualified their audit opinion accordingly. As a result of this matter, the auditors were unable to obtain sufficient appropriate audit evidence concerning the opening balance for the current year as at 1 July 2016. Since opening capitalised exploration and evaluation costs balance affects the determination of the profit or loss for the year and cash flows, the auditors were unable to determine whether adjustments to the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the net cash flow from operating activities reported in the consolidated statement of cash flows might be necessary for the year ended 30 June 2017, and the auditors qualified their opinion accordingly. The auditors opinion on the financial statements to 30th June 2018 is also modified because of the possible effect of this matter on the comparability of the figures for the year to 30th June 2018 and the corresponding figures.

This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2018 and any public announcements made by Spitfire Oil Limited during the interim reporting period in accordance with the continuous disclosure requirements.

Copies of this interim report are available from the Company’s London office, 8th Floor, 54 Jermyn Street, London, SW1Y 6LX.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

Adoption of new and revised accounting standards

In the six months ended 31 December 2018, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2018.

It has been determined by the Group that, there is no material impact of the new and revised standards and interpretations on its business and therefore no change is necessary to the Group’s accounting policies.

The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2018. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

No retrospective change in accounting policy or material reclassification has occurred requiring the inclusion of a third Statement of Financial Position as at the beginning of the comparative financial period, as required under AASB 101.

NOTE 2: SEGMENT INFORMATION

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. For management purposes, the Group has identified only one reportable segment, being the exploration and mining for valuable resources that produce energy in Australia.

NOTE 3: DIVIDENDS

The Company has not declared any dividends in the period ended 31 December 2018.

NOTE 4: CONTINGENCIES

There has been no change in contingent liabilities or contingent assets since the last annual reporting date.

NOTE 5: ISSUED CAPITAL

31 December 2018 31 December 2017 30 June 2018
No A$ No A$ No A$
Issued and Paid Up Capital
Fully Paid Ordinary Shares 25,884,001 19,289,284 25,884,001 19,289,284 25,884,001 19,289,284
Total Issued Capital 19,289,284 19,289,284 19,289,284

NOTE 6: LOSS PER SHARE

31
December
2018
31
December
2017
30
June
2018
Basic and diluted loss per share (cents) (1.3) (1.7) (5.22)
a) Net loss used in the calculation of basic and diluted loss per share (A$) (325,594) (444,534) (1,350,901)
b) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic and diluted loss per share 25,884,001 25,884,001 25,884,001

NOTE 7: SUBSEQUENT EVENTS

No matter or circumstance has arisen since 31 December 2018, which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years.