News 10 December 2013

Preliminary Results

Financial

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

The preliminary results for Spitfire Oil are also available in Adobe Acrobat PDF format. Please click on the link below: