News 08 March 2013

Interim statement for the six months ended 31st December 2012

Spitfire Oil Limited (“Spitfire” or “the Company”) is pleased to publish its unaudited interim results for the six months ended 31st December 2012.

Spitfire and its subsidiaries (together “the Group”) recorded a loss before tax for the six months ended 31st December 2012 of A$182,907 (2011: A$211,889). With cash balances of A$7.2m, the Group has benefited from interest receipts of A$122,584 (2011 A$180,660) in the period. Operating costs have been reduced to A$305,491 (2011 A$392,549) with action taken during the period to further reduce costs, including a reduction in directors’ fees.

On 4th September 2012 Spitfire Oil Pty Ltd was granted a five year renewable retention licence covering the Salmon Gums lignite resource area with no annual exploration expenditure commitments attaching to this licence other than the prescribed licence fees.

Developing processing technologies, and in particular developments in pyrolysis technology, are being kept under review for possible application to process the Salmon Gums lignite. In the meantime the directors continue to evaluate numerous alternative natural resources projects.

Chairman’s Statement

Chairman Mladen Ninkov commented, “Having ensured long term tenure over the Salmon Gums lignite deposits with minimal financial commitment, costs have been further reduced to ensure the financial stability of the Company for the foreseeable future. The directors will continue to review all possible acquisition opportunities for the Company. "


SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
(expressed in Australian dollars)

Half-year

Full-year

Note

31 December 2012
Unaudited
A$

31 December 2011
Unaudited
A$

30 June 2012
Audited
A$

OTHER INCOME

122,584

180,660

332,569

EXPENDITURE

Corporate expenses

(284,001)

(331,357)

(656,805)

Other expenses

(21,490)

(61,192)

(106,751)

LOSS BEFORE INCOME TAX

(182,907)

(211,889)

(430,987)

Income tax

-

-

-

LOSS AFTER INCOME TAX

(182,907)

(211,889)

(430,987)

OTHER COMPREHENSIVE INCOME, NET OF TAX

-

-

-

LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED

(182,907)

(211,889)

(430,987)

Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share).

6

(0.4)

(0.5)

(1.0)

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

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 December 2012
(expressed in Australian dollars)

Note

31 December 2012
Unaudited
A$

31 December 2011
Unaudited
A$

30 June
2012
Audited
A$

CURRENT ASSETS

Cash and cash equivalents

7,216,454

7,519,328

7,367,957

Trade and other receivables

-

3,266

-

Other current assets

30,447

26,128

12,961

TOTAL CURRENT ASSETS

7,246,901

7,548,722

7,380,918

NON-CURRENT ASSETS

Plant and equipment

-

1,085

-

Capitalised exploration and evaluation costs

8,373,897

8,332,730

8,373,897

Other non-current assets

-

45,000

45,000

TOTAL NON-CURRENT ASSSETS

8,373,897

8,378,815

8,418,897

TOTAL ASSETS

15,620,798

15,927,537

15,799,815

CURRENT LIABILITIES

Trade and other payables

22,999

6,909

45,800

TOTAL CURRENT LIABILITIES

22,999

6,909

45,800

TOTAL LIABILITIES

22,999

6,909

45,800

NET ASSETS

15,597,799

15,920,628

15,754,015

EQUITY

Issued capital

5

20,854,412

20,854,412

20,854,412

Reserves

308,544

229,368

281,853

Accumulated losses

(5,565,157)

(5,163,152)

(5,382,250)

TOTAL EQUITY

15,597,799

15,920,628

15,754,015

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 2012
(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 period

-

-

(211,889)

(211,889)

LOSS AND TOTAL COMPREHENSIVE INCOME

-

-

(211,889)

(211,889)

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

Issuance of employee share options

-

79,431

-

79,431

BALANCE AT 31 DECEMBER 2011

20,854,412

229,368

(5,163,152)

15,920,628

Loss for the period

-

-

(219,098)

(219,098)

LOSS AND TOTAL COMPREHENSIVE INCOME

-

-

(219,098)

(219,098)

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

Issuance of employee share options

-

52,485

-

52,485

BALANCE AT 30 JUNE 2012

20,854,412

281,853

(5,382,250)

15,754,015

Loss for the period

-

-

(182,907)

(182,907)

LOSS AND TOTAL COMPREHENSIVE INCOME

-

-

(182,907)

(182,907)

TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS

Issuance of employee share options

-

26,691

-

26,691

BALANCE AT 31 DECEMBER 2012

20,854,412

308,544

(5,565,157)

15,597,799

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 2012
(expressed in Australian dollars)

Half-year

Full-year

31 December 2012
Unaudited
A$

31 December 2011
Unaudited
A$

30 June 2012
Audited
A$

CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees

(228,360)

(335,362)

(602,446)

Interest received

122,584

180,660

332,569

Net cash outflow from operating activities

(105,776)

(154,702)

(269,897)

CASH FLOWS FROM INVESTING ACTIVITIES

Refund of tenement rents

-

-

-

Payments for exploration and evaluation expenditure

(41,167)

(311,275)

(348,213)

Net cash (outflow)/inflow from investing activities

(41,167)

(311,275)

(348,213)

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS

(146,943)

(465,977)

(618,110)

Cash and cash equivalents at the beginning of the period

7,367,957

7,985,012

7,985,012

Effects of exchange rate changes on cash and cash equivalents

(4,560)

293

1,055

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

7,216,454

7,519,328

7,367,957

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 2012 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

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 2012 and the condensed consolidated statement of 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 2012 statutory financial statements upon which the auditors’ opinion is unqualified. The condensed consolidated statement of comprehensive income has been prepared using information extracted from the Group’s 2012 statutory financial statements.

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 2012 and any public announcements made by Spitfire Oil Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company’s London office, 60 St James’s Street, London, SW1A 1LE.

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

The Group has reviewed all new Standards and Interpretations that have been issued but are not yet effective for the six months ended 31 December 2012. 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.

NOTE 2: SEGMENT INFORMATION

The Group operates in predominantly one operating segment, being the exploration and mining for valuable resources that produce energy in Australia. The results, revenue and operating assets reported all relate to 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 2012.

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 2012

31 December 2011

30 June 2012

No

A$

No

A$

No

A$

Issued and Paid Up Capital

Fully Paid Ordinary Shares

42,550,668

20,854,412

42,550,668

20,854,412

42,550,668

20,854,412

Total Issued Capital

20,854,412

20,854,412

20,854,412

NOTE 6: LOSS PER SHARE

31 December 2012

31 December 2011

30 June 2012

Basic and diluted loss per share (cents)

(0.4)

(0.5)

(1.0)

a) Net loss used in the calculation of basic and diluted loss per share

(182,907)

(211,889)

(430,987)

b) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic and diluted loss per share

42,550,668

42,550,668

42,550,668

Options that are considered to be potential ordinary shares are excluded from the weighted average number of ordinary shares used in the calculation of basic loss per share. Where dilutive, potential ordinary shares are included in the calculation of diluted loss per share.

All the options on issue do not have the effect to dilute loss per share. Therefore they have been excluded from the calculation of diluted loss per share. There have been no other conversions to, call of, or subscriptions for ordinary shares since the reporting date and before the completion of this report.

NOTE 7: NET TANGIBLE ASSETS

31 December

2012

31 December

2011

30 June

2012

Net Tangible Assets (A$)

7,223,902

7,587,898

7,380,118

Shares (No)

42,550,668

42,550,668

42,550,668

Net Tangible Assets (cents)

17.0

17.8

17.8

NOTE 8: SUBSEQUENT EVENTS

No matter or circumstance has arisen since 31 December 2012, 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.