13th Dec 2018 11:46
LONDON (Alliance News) - Spitfire Oil Ltd on Thursday reported a "significantly" narrowed annual loss on the back of lower expenses, as its main project remained on hold.
For the year ended June 30, the company's pretax loss came in at AUD1.4 million compared to AUD3.8 million the year prior, on the back of lower expenses and impairment costs.
Operating costs were cut to AUD217,641 from AUD353,675, and a provision was made for impairment of exploration and development costs of AUD1.1 million compared to AUD3.4 million the prior year.
The company did not generate any revenue in the year, as its Salmon Gums lignite project in Australia remained on hold. Lignite is a low-rank form of brown coal which can be converted into oil.
Spitfire is aiming to establish a mine and processing facility at Salmon Gums, using either its lignite-to-value conversion process or another proven process in conjunction with other parties if its method does not prove feasible.
"It has been another fruitless year in the attempt to acquire a significant and value enhancing asset for the company," Non-Executive Chairman Mladen Ninkov said.
He added: "The company continues to hold a retention licence over the Salmon Gums project, which was extended for a further two years in 2017. A number of parties have shown an interest in conducting due diligence over the tenements with a view to moving to a joint venture. Time will tell whether this will end in a satisfactory conclusion."
Spitfire shares were untraded at 5.25 pence.