20th Mar 2007 11:37
Altona Resources PLC20 March 2007 20th March 2007 ALTONA RESOURCES PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2006 Altona Resources plc (AIM:ANR) announces its interim results for the periodended 31 December 2006. Chairman's Statement The Board of Altona Resources Plc ("Altona" or "the Company") is pleased toreport the interim results of the Company for the 6 month period ending 31stDecember 2006. In the reported period, Altona continued to make significant progress in theevaluation of the exciting development potential of the Company's ArckaringaCoal Project in South Australia, comprising the Wintinna, Westfield andMurloocoppie deposits. In July 2006, Altona announced that it entered into a non-binding Memorandum ofUnderstanding ("MOU") with BP Australia Ltd ("BP Australia") to work together inevaluating the development opportunities at Arckaringa in relation to theevaluation of Coal to Liquids ("CTL") and power generation developmentopportunities. The Company continues to work positively with BP in respect ofthe objectives of the MOU. As announced in October 2006, the Company is working towards a BankableFeasibility Study ("BFS") for a CTL and power generation plant, supported by amine at the Wintinna deposit ("the Project"). The Project Base Case beingstudied is for a 30,000 bbl/d petroleum products, 560 MW power and 10mtpa opencut coal mine. Activities planned by the Company towards the BFS over the nextseveral months include, supplementary field drilling, coal quality testing forplant design and further studies to optimise capital and operating costs. The work schedule towards the BFS has been revised to take account of delays inthe commencement of the drilling program, due to scarcity of drill rigs, andpending a review of the BFS programme by Hatch Engineering about extendedstaging of feasibility study work. The Company and its Project Financial Adviser, Royal Bank of Scotland, have beendeveloping a preliminary financial model in respect of the Project Base Caseapplying inputs from studies undertaken by Jacobs Consulting and MineConsult. As reported on 21st February 2007, the initial analysis from the financialmodelling showed projected CTL net unit production costs for the Project in thelowest quartile of CTL industry benchmarks, after applying revenues from powersales against operating costs. Having now established initial economic cost parameters for the Project, theCompany intends to progress discussions with potential joint venture partnersfor the Project. In addition to the evaluation of the Wintinna deposit and the Project, theCompany has been assessing development opportunities for the Westfield andMurloocoppie deposits. In November 2006, the Company announced that it hadentered into a non-binding MOU with Flinders Power, South Australia's largestelectricity producer to evaluate the potential of supplying up to 4 milliontonnes of coal per annum for 25 years from Altona's Westfield Coal Deposit. During the period, the Board was pleased to appoint Mr Phillip Sutherland as aNon-Executive Director of the Company. Phillip was previously the CEO of TheSouth Australian Chamber of Mines and Energy ("SACOME"), the major resourcesindustry body in South Australia. I look forward to reporting on further significant progress on Arckaringa movingforward into 2007. Christopher LambertChairman 20th March 2007 For further information please contact: Altona Resources plcAnthony Samaha, Director +44 (0) 207 766 7500 Nabarro Wells & Co LimitedHugh Oram, Director +44 (0) 207 710 7400 Parkgreen CommunicationsVictoria Thomas +44 (0) 207 851 7480 Hichens, Harrison & CoPeter Trevelyan-Clark +44 (0) 207 382 4450 Independent Review Report to Altona Resources Plc Introduction We have been instructed by the Company to review the financial informationcomprising the consolidated profit and loss account, consolidated balance sheet,consolidated cash flow statement and notes thereon and we have read the otherinformation contained in the interim report and considered whether it containsany apparent mis-statements or material inconsistencies with the financialinformation. This report is made solely to the Company in accordance with guidance containedin Bulletin 1999/4 "Review of interim financial information" issued by theAuditing Practices Board. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than the company, for our work,for this report, or for the conclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the Directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange for companies trading securities on the AlternativeInvestment Market which require that the half-yearly report be presented andprepared in a form consistent with that which will be adopted in the company'sannual accounts having regard to the accounting standards applicable to suchannual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom by auditorsof fully listed companies. A review consists principally of making enquiries ofthe Directors and applying analytical procedures to the financial informationand underlying financial data and based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with UnitedKingdom Auditing Standards and therefore provides a lower level of assurancethan an audit. Accordingly we do not express an audit opinion on the financialinformation. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 December 2006. CHAPMAN DAVIS LLPChartered Accountants2 Chapel CourtLondon SE1 1HH Consolidated Profit and Loss AccountFor the half year ended 31st December 2006 Notes Reviewed Reviewed Audited Half-year period from period from ended incorporation incorporation on 2 Feb 2005 on 2 Feb 2005 to to 31 Dec 2006 31 Dec 2005 30 June 2006 £'000 £'000 £'000 Operating expenses (415) (104) (394) Share options expensed (364) - ---------------------------- ------ ---------- ----------- -----------Operating Loss (779) (104) (394) Investment income andinterest receivable 11 23 35--------------------------- ------ ---------- ----------- -----------Loss on ordinary activitiesbefore taxation (768) (81) (359) Taxation 3 - - ---------------------------- ------ ---------- ----------- -----------Loss for the financialperiod (768) (81) (359)--------------------------- ------ ---------- ----------- ----------- Loss per share: 5Basic - expressed inpence (0.33p) (0.04p) (0.18p) Consolidated Balance Sheet At 31st December 2006 Notes Reviewed Reviewed Audited 31 Dec 2006 31 Dec 2005 30 June 2006 £'000 £'000 £'000 Fixed assetsIntangible assets 6 2,508 2,121 2,361Tangible assets 3 1 2--------------------------- ------ ---------- ----------- -----------Total fixed assets 2,511 2,122 2,363--------------------------- ------ ---------- ----------- -----------Current assetsCash at bank and in hand 391 888 454Debtors 32 12 42Creditors: amounts falling duewithin one year (47) (41) (150)--------------------------- ------ ---------- ----------- -----------Total current assets 376 859 346--------------------------- ------ ---------- ----------- -----------Net assets 2,887 2,981 2,709--------------------------- ------ ---------- ----------- -----------Capital and reservesCalled up share capital 240 230 231Share premium 1,409 831 836Merger reserve 2,001 2,001 2,001Share based payments reserve 364 - -Profit and loss account (1,127) (81) (359)--------------------------- ------ ---------- ----------- -----------Total shareholders' funds 2,887 2,981 2,709--------------------------- ------ ---------- ----------- ----------- Consolidated Cash Flow StatementFor the half year ended 31st December 2006 Reviewed Reviewed Audited Half-year Period Period ended ended ended 31 Dec 2006 31 Dec 2005 30 June 2006 £'000 £'000 £'000 Net cash flow from:Operating activities (506) (86) (285) Returns on investments and servicingof financeInterest received 11 20 35------------------------------ ---------- ----------- -----------Net cash inflow from returns oninvestments and servicing of finance 11 20 35 Investing activitiesPayments to acquire tangible fixed (1) (1) (3)assetsPayments to acquire intangible fixedassets (149) (67) (330)------------------------------ ---------- ----------- -----------Net cash outflow from investing (150) (68) (333)activities Financing activitiesNet proceeds from issue of shares 582 1,022 1,037------------------------------ ---------- ----------- -----------Net cash inflow from financing 582 1,022 1,037------------------------------ ---------- ----------- -----------Increase in cash in period (63) 888 454Cash at bank and in hand atbeginning of period 454 - ------------------------------- ---------- ----------- -----------Cash at bank and in hand at end of 391 888 454period ------------------------------ ---------- ----------- ----------- Consolidated Statement of Changes in EquityFor the half year ended 31st December 2006 Called Share Merger Share Profit Total up share premium reserve based and shareholders capital payment loss equity reserve account £'000 £'000 £'000 £'000 £'000 £'000 Shares issuedduring the period 231 846 2,001 - - 3,078Share issueexpense - (10) - - - (10)Loss for theperiod - - - - (359) (359)------------------ ------- -------- -------- -------- ------- ---------Balance at 30June 2006 231 836 2,001 - (359) 2,709 Shares issuedduring theperiod 9 573 - - - 582Equity-settledshare-basedpayments - - - 364 - 364Loss for theperiod - - - - (768) (768)------------------ ------- -------- -------- -------- ------- ---------Balance at 31December 2006 240 1,409 2,001 364 (1,127) 2,887------------------ ------- -------- -------- -------- ------- --------- Notes to the Interim ReportFor the half year ending 31st December 2006 1. PRESENTATION OF INTERIM RESULTS The interim results have not been audited, but were the subject of anindependent review carried out by the Company's auditors, Chapman Davis LLP.Their review confirmed that the figures were prepared using applicableaccounting policies and practices consistent with those adopted in the annualreport, except that the Company is now applying FRS 20 'Share Based Payments'.The financial information contained in this interim report does not constitutestatutory accounts as defined by Section 240 of the Companies Act 1985.Shareholders can receive a copy of this interim report from the Company'sregistered office at 55 Gower St London WC1E 6HQ. 2. SHARE-BASED PAYMENTS: FRS 20 "Share-based Payment" requires the recognition of share-based payments atfair value at the date of grant. The Company has applied this standard from 1July 2006. The fair value of the share based payments to be expensed has beendetermined by a Black-Scholes pricing model. The financial impact of adoptingthis standard during the period is £364,000 (2005: £nil). 3. TAXATION No taxation has been provided due to losses in the period. 4. DIVIDENDS The Directors do not recommend the payment of a dividend. 5. LOSS PER SHARE The basic loss per share is derived by dividing the loss for the periodattributable to ordinary shareholders by the weighted average number of sharesin issue. Reviewed Reviewed Audited 31 Dec 2006 31 Dec 2005 30 June 2006 £'000 £'000 £'000 Loss for the period (768) (81) (359)Weighted average number of shares -expressed in million 235.7m 190.8m 204.2mBasic loss per share - expressed inpence (0.33p) (0.04p) (0.18p) As the inclusion of the potential ordinary shares would result in a decrease inthe loss per share they are considered not to be dilutive and, as such, thediluted loss per share calculation is the same as the basic loss per share. 6. INTANGIBLE ASSET The Intangible Asset is in respect of the Project of Arckaringa Energy PtyLimited. Reviewed Reviewed Audited 31 Dec 2006 31 Dec 2005 30 June 2006 £'000 £'000 £'000 Fair Value uplift 2,031 2,031 2,031Associated costs of acquisition 69 69 69Deferred evaluation expenditure 408 21 261------------------------------- ---------- ----------- -----------Intangible Asset - Project 2,508 2,121 2,361------------------------------- ---------- ----------- ----------- 7. CALLED UP SHARE CAPITAL Authorised £'000 1,000,000,000 Ordinary shares of 0.1p each 1,000 Allotted, called up and fully paid239,600,000 Ordinary shares of 0.1p each 240 Share options and warrants The following equity instruments have been issued by the Company and have notbeen exercised at 31 December 2006: Number of Exercise Expires ordinary shares price IPO options 1,250,000 £0.01 10/03/2010Warrant instrument 3,000,000 £0.08 02/08/2011Warrant instrument 3,000,000 £0.12 02/08/2011Warrant instrument 3,000,000 £0.16 02/08/2011Incentive options 6,000,000 £0.07 12/10/2011Incentive options 5,000,000 £0.10 12/10/2011Incentive options 3,000,000 £0.14 12/10/2011 DIRECTORS AUDITORS BROKER Christopher Lambert Chapman Davis LLP Hichens, Harrison & Co. plcChristopher Schrape 2 Chapel Court Bell Court HouseNorman Kennedy LONDON SE1 1HH 11 Blomfield StreetAnthony Samaha SOLICITORS LONDON EC2M 1LBPhillip Sutherland Ronaldsons REGISTRARSSECRETARY 55 Gower Street Share Registrars LimitedStephen Frank Ronaldson LONDON WC1E 6HQ Craven HouseWEBSITE NOMINATED ADVISOR West Streetwww.altonaresources.com Nabarro Wells & Co Limited Farnham Saddlers House SURREY GU9 7EN Gutter Lane REGISTERED OFFICE LONDON EC2V 6HS Third Floor 55 Gower Street LONDON WC1E 6HQ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Altona Energy