TIDMCLON
RNS Number : 7827N
Clontarf Energy PLC
26 May 2020
26(th) May 2020
Clontarf Energy plc
("Clontarf" or "the Company")
Preliminary Results for the Year Ended 31 December 2019
Clontarf Energy, the oil and gas exploration company focused on
Ghana and Bolivia today announces its preliminary results for the
year ending 31 December 2019.
The Company expects to shortly publish its 2019 Annual Report
& Accounts and a further update will be made in this regard as
and when appropriate.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014 .
For further information please visit http://clontarfenergy.com or contact:
Clontarf Energy
John Teeling, Chairman
David Horgan, Director +353 (0) 1 833 2833
Nominated & Financial Adviser
Strand Hanson Limited
Rory Murphy
Ritchie Balmer
Georgia Langoulant +44 (0) 20 7409 3494
Broker
Novum Securities Limited
Colin Rowbury +44 (0) 207 399 9400
Public Relations
Blytheweigh +44 (0) 207 138 3206
Megan Ray +44 (0) 207 138 3204
Madeleine Gordon-Foxwell +44 (0) 207 138 3208
Teneo
Luke Hogg
Alan Tyrrell +353 (0) 1 661 4055
Thomas Shorthall +353 (0) 1 661 4055
Statement Accompanying the Final Results
The world is currently a very unstable place. Health, society,
the economy and the financial system are having to deal with
unknown unknowns. Those of us who studied economics and finance in
the 1960's would have dealt with the concept of uncertainty.
Uncertainty was, and is, not knowing about variables which impact
on outcomes. It is not risk. Risk can be assessed. Not so
uncertainty. You really don't know what you don't know. In recent
decades academics have either ignored uncertainty or lumped it with
risk. They developed models to predict outcomes in almost all areas
of life. The era of Big Data, Analytics and Artificial Intelligence
promised to reduce or eliminate risk. Billions upon billions have
been made by quantitative funds using Algorithms to make investment
decisions but they ignored uncertainty. Models are the gospels of
the 2020's. No one talks about - GIGO garbage in, garbage out.
Modellers ignore the effect of variables which are not in their
models. When uncertainty appears they talk about deviations from
the expected outcome e.g. a 6 Standard deviation event or I have
seen a 25 Standard deviation event, or a Black Swan event. Well the
world is now experiencing a Black and White Swan event. Predictions
are not only wrong but out of date before the models run the data.
The "Butterfly Effect" is ignored or paid lip service only.
The medical models on which social and economic decisions are
being made have already had massive social impact, a catastrophic
economic effect and an unknown future financial impact. What is
certain is that current and future borrowings can never be repaid.
There are only two possible outcomes. Inflate away the value of the
borrowings or default - simply don't repay.
Why do I spend time on this? Because I really do not know when
the world economy will restart and what it will look like when it
does but our business must survive and continue.
The business we are in, Energy Production, will recover and will
continue to grow as the vast percentage of the world's population
strive to have "The Good Things in Life". Note I say Energy rather
than Hydrocarbon Production. There is no doubt but that fossil fuel
generation is a Sunset industry. But for the immediate coming
decades Oil, Gas and even Coal will continue to be the main part of
Energy Production. Yet the focus has already moved to Alternative
Sources of Power such as Wind, Solar, Tidal, Wave, Hydrogen and
even Nuclear, are seeing more and more research funds being
ploughed into developing commercial technologies. Major advances
are being made, costs are falling rapidly and should continue to do
so but most are not viable yet.
Where does Clontarf Energy fit into this scenario? We are
working on both strands. Lithium in Bolivia and Hydrocarbons in
Ghana.
Lithium in Bolivia
The explosive growth in Electric Vehicles offers a major
opportunity in Lithium, a critical element in batteries. Bolivia,
where Clontarf has maintained a presence for over 30 years, holds
half of the world's known deposits of Lithium. These deposits are
in remote Andean salt pans, have technical issues, but some are
good grade, with manageable impurities. Clontarf was active in
Bolivia in the years 2008 -2011 in a joint venture with the armed
forces to look at developing Lithium deposits, Changes in Bolivian
laws made it impossible to continue. Since 2018, we are again
active in this space. We have recruited a Bolivian based director
to progress our interests. We have examined and analysed a number
of the salt pans to determine what best suits a company like
Clontarf and, significantly, we have made proposals to the
authorities to work with them within the existing legal parameters.
We are hopeful.
Hydrocarbons in Ghana
Clontarf holds a 60% interest in the Tano 2A concession offshore
Ghana (the remaining interest is held by Petrel Resources PLC: 30%
and Abbey Oil and Gas: 10%). By now, after a decade of frustration,
shareholders are well aware of the position. We have an agreement
with the Ghanaian National Petroleum Committee over 1500 plus sq
kms in the shallow waters of the Tano Basin. In recent months there
has been renewed motivation among the parties involved to seek a
solution for Clontarf. World lockdowns have effectively stopped all
international travel and meetings but once travel is possible these
meetings will take place.
Future
In these turbulent times it may be very hard to look ahead with
any real confidence. We will strive to progress our interests in
both Bolivia and Ghana. Uncertainty throws up opportunities. We
will see some of them. We have funds to continue operating for at
least the next twelve months.
John Teeling
Chairman
22(nd) May 2020
CLONTARF ENERGY PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2019
2019 2018
CONTINUING OPERATIONS GBP GBP
Administrative expenses (308,535) (238,871)
Impairment of exploration and evaluation assets - (111,682)
LOSS FOR THE YEAR BEFORE TAXATION (308,535) (350,553)
Income tax expense - -
LOSS AFTER TAX AND TOTAL
COMPREHENSIVE INCOME FOR THE YEAR (308,535) (350,553)
Loss per share - basic and
diluted (0.04p) (0.06p)
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2019
2019 2018
GBP GBP
ASSETS:
NON CURRENT ASSETS
Intangible assets 850,789 817,865
850,789 817,865
CURRENT ASSETS
Other receivables 3,344 3,909
Cash and cash equivalents 301,292 511,564
304,636 515,473
TOTAL ASSETS 1,155,425 1,333,338
LIABILITIES:
CURRENT LIABILITIES
Trade payables (56,195) (56,138)
Other payables (1,180,567) (1,070,567)
(1,236,762) (1,126,705)
TOTAL LIABILITIES (1,236,762) (1,126,705)
NET LIABILITIES (81,337) 206,633
EQUITY
Called-up share capital 1,792,450 1,792,450
Share premium 10,900,373 10,900,373
Retained deficit (12,795,775) (12,677,836)
Share based payment
reserves 21,615 191,646
SHAREHOLDERS DEFICIT (81,337) 206,633
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2019
Called-up Share Based
Share Share Payment Retained
Capital Premium Reserve Deficit Total
GBP GBP GBP GBP GBP
At 1 January
2018 1,454,612 10,773,211 191,646 (12,327,283) 92,186
Issue of
shares 337,838 162,162 - - 500,000
Share issue
expenses - (35,000) - - (35,000)
Loss for the
year and
total
comprehensive
income - - - (350,553) (350,553)
At 31 December
2018 1,792,450 10,900,373 191,646 (12,677,836) 206,633
Share options
vested - - 20,565 - 20,565
Share options
expired - - (190,596) 190,596 -
Loss for the
year and
total
comprehensive
income - - - (308,535) (308,535)
At 31 December
2019 1,792,450 10,900,373 21,615 (12,795,775) (81,337)
Share premium
The share premium reserve comprises of a premium arising on the
issue of shares. Share issue expenses are deducted against the
share premium reserve when incurred.
Share based payment reserve
The share based payment reserve arises on the vesting of share
options under the share option plan. Share options expired are
reallocated from share based payment reserve to retained deficit at
their grant date fair value.
Retained deficit
Retained deficit comprises of losses incurred in the current and
prior years.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEARED 31 DECEMBER 2019
2019 2018
GBP GBP
CASH FLOW FROM OPERATING
ACTIVITIES
Loss for the year (308,535) (350,553)
Impairment of exploration and
evaluation assets - 111,682
Share options vested 20,565 -
Foreign exchange gains 4,697 2,705
(283,273) (236,166)
MOVEMENTS IN WORKING CAPITAL
Increase in trade and other
payables 80,057 48,379
Decrease/(increase) in trade and
other receivables 565 (100)
(202,651) (187,887)
NET CASH USED IN OPERATING
ACTIVITIES (202,651) (187,887)
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to exploration and
evaluation assets (2,924) (196,524)
NET CASH FROM INVESTING
ACTIVITIES (2,924) (196,524)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from share issue - 500,000
Share issue costs - (35,000)
NET CASH GENERATED BY FINANCING
ACTIVITIES - 465,000
NET (DECREASE)/INCREASE IN CASH
AND CASH EQUIVALENTS (205,575) 80,589
Cash and cash equivalents at
beginning of the financial year 511,564 433,680
Effect of foreign exchange rate
changes (4,697) (2,705)
CASH AND CASH EQUIVALENTS AT
OF THE FINANCIAL YEAR 301,292 511,564
Notes:
1. ACCOUNTING POLICIES
There were no changes in accounting policies from those used to
prepare the Group's Annual Report for financial year ended 31
December 2018. The financial statements have been prepared in
accordance with International Financial Reporting Standards and
IFRSs as adopted by the European Union and in accordance with the
Companies Act 2006.
2. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after
taxation for the year available to ordinary shareholders by the
weighted average number of ordinary shares in issue and ranking for
dividend during the year. Diluted earnings per share is computed by
dividing the loss after taxation for the year by the weighted
average number of ordinary shares in issue, adjusted for the effect
of all dilutive potential ordinary shares that were outstanding
during the year.
The following table sets out the computation for basic and
diluted earnings per share (EPS):
2019 2018
GBP GBP
Numerator
For basic and diluted EPS (308,535) (350,553)
Denominator
For basic and diluted EPS 716,979,964 619,608,620
Basic EPS (0.04p) (0.06p)
Diluted EPS (0.04p) (0.06p)
The following potential ordinary shares are anti-dilutive and
are therefore excluded from the weighted average number of shares
for the purpose of the diluted earnings per share:
No. No
Share options
40,500,000 8,900,000
3. GOING CONCERN
The Group and Company incurred a loss for the year of GBP308,535
(2018: GBP350,553) and the Group and Company had net current
liabilities of GBP932,126 (2018: GBP611,232) and GBP473,091 (2018:
GBP182,197) respectively at the balance sheet date. These
conditions represent a material uncertainty that may cast doubt on
the Group and Company's ability to continue as a going concern.
Included in current liabilities is an amount of GBP1,180,567
(2018: GBP1,070,567) for the Group and GBP671,527 (2018:
GBP591,527) for the Company owed to directors in respect of
directors' remuneration due at the balance sheet date. The
directors have confirmed that they will not seek settlement of
these amounts in cash for a period of at least one year after the
date of approval of the financial statements or until the Group and
Company has generated sufficient funds from its operations after
paying its third party creditors.
The Group and Company had a cash balance of GBP301,292 at the
balance sheet date. The directors have prepared cashflow
projections for a period of at least twelve months from the date of
approval of these financial statements. The cashflow projections
include any anticipated impacts of the Covid-19 pandemic on the
Group and Company . As the Group and Company are not revenue or
cash generating it relies on raising capital from the public
market. The Group and Company completed a capital raising during
the prior year and the cash flow projections prepared by the Group
and Company indicate that the funds available are sufficient to
meet the obligations of the Group and Company for a period of at
least twelve months from the date of approval of these financial
statements.
As in previous years the Directors have given careful
consideration to the appropriateness of the going concern basis in
the preparation of the financial statements and believe the going
concern basis is appropriate for these financial statements. The
financial statements do not include the adjustments that would
result if the Group and Company were unable to continue as a going
concern.
4. INTANGIBLE ASSETS
2019 2018
Group Group
GBP GBP
Exploration and evaluation
assets:
Cost:
At 1 January 8,528,077 8,301,553
Additions during the year 32,924 226,524
At 31 December 8,561,001 8,528,077
Impairment:
At 1 January 7,710,212 7,598,530
Impairment during the year - 111,682
At 31 December 7,710,212 7,710,212
Carrying Value:
At 1 January 817,865 703,023
At 31 December 850,789 817,865
Segmental analysis 2019 2018
Group Group
GBP GBP
Bolivia 16,225 16,225
Ghana 834,564 801,640
850,789 817,865
Exploration and evaluation assets relate to expenditure incurred
in prospecting and exploration for lithium, oil and gas in Bolivia
and Ghana. The directors are aware that by its nature there is an
inherent uncertainty in exploration and evaluation assets and
therefore inherent uncertainty in relation to the carrying value of
capitalised exploration and evaluation assets.
An impairment charge of GBP111,682 was recorded by the Group in
the prior year in respect of Equatorial Guinea licences which were
fully impaired during 2018.
During 2018 the Group resolved the outstanding issues with the
Ghana National Petroleum Company (GNPC) regarding a contract for
the development of the Tano 2A Block. The Group has signed a
Petroleum Agreement in relation to the block and this agreement
awaits ratification by the Ghanian government.
The directors believe that there were no facts or circumstances
indicating that the carrying value of intangible assets may exceed
their recoverable amount and thus no impairment review was deemed
necessary by the directors. The realisation of these intangibles
assets is dependent on the successful discovery and development of
economic deposit resources and the ability of the Group to raise
sufficient finance to develop the projects. It is subject to a
number of potential significant risks, as set out below:
-- licence obligations
-- requirement for further funding
-- geological and development risks
-- title to assets
-- political risk
Included in the additions for the year are GBP30,000 (2018:
GBP30,000) of directors remuneration. The remaining balance
pertains to the amounts capitalised to the respective licences held
by the entity.
5. TRADE PAYABLES
2019 2018
Group Group
GBP GBP
Trade payables 38,195 40,138
Other accruals 18,000 16,000
56,195 56,138
It is the Company's normal practice to agree terms of
transactions, including payment terms, with suppliers and provided
suppliers perform in accordance with the agreed terms, payment is
made accordingly. In the absence of agreed terms it is the
Company's policy that payment is made between 30 - 40 days. The
carrying amount of trade and other payables approximates to their
fair value.
6. OTHER PAYABLES
2019 2018
Group Group
GBP GBP
Amounts due to directors 1,180,567 1,070,567
1,180,567 1,070,567
Other payables relate to amounts due for directors' remuneration
of GBP1,180,567 (2018: GBP1,070,567) accrued but not paid at year
end.
7. CALLED-UP SHARE CAPITAL
Allotted, called-up and fully paid:
Number Share Capital Share Premium
GBP GBP
At 1
January
2018 581,844,829 1,454,612 10,773,211
Issued
during
the year 135,135,135 337,838 162,162
Share
issue
expenses - - (35,000)
At 31
December
2018 716,979,964 1,792,450 10,900,373
Issued - - -
during
the year
At 31
December
2019 716,979,964 1,792,450 10,900,373
Movements in issued share capital
On 20 September 2018 a total of 135,135,135 shares were placed
at a price of 0.37 pence per share. Proceeds were used to provide
additional working capital and fund development costs.
Share Options
A total of 40,500,000 share options were in issue at 31 December
2018 (2018: 8,900,000). These options are exercisable, at prices
ranging between 0.70p and 0.725p, up to seven years from the date
of granting of the options unless otherwise determined by the
board.
8. SHARE BASED PAYMENTS
The Group issues equity-settled share-based payments to certain
directors and individuals who have performed services for the
Group. Equity-settled share-based payments are measured at fair
value at the date of grant.
Fair value is measured by the use of a Black-Scholes model.
The Group plan provides for a grant price equal to the average
quoted market price of the ordinary shares on the date of
grant.
2019 2018
Weighted Weighted
30/06/2019 average average
Options exercise exercise
price 30/06/2018 price
in pence Options in pence
Outstanding at beginning
of year 8,900,000 4.25 8,900,000 4.25
Issued 40,000,000 0.7 - -
Expired (8,400,000) 4.25 - -
Outstanding at end of
the year 40,500,000 0.7 8,900,000 4.25
Exercisable at end of
the year 13,833,333 0.7 8,900,000 4.25
During the current year 40,000,000 options were granted with a
fair value of GBP246,788. These fair values were calculated using
the Black-Scholes valuation model. These options will vest over a 3
year period and will be capitalized or expensed on a straight line
basis over the vesting period.
The options outstanding at 31 December 2019 had an average
exercise price of 0.70p and a weighted average remaining
contractual life of 6.75 years.
The inputs into the Black-Scholes valuation model were as
follows:
Grant 2 October 2019
Weighted average share price at date of grant (in pence)
0.7p
Weighted average exercise price (in pence) 0.7p
Expected volatility 116.23%
Expected life 7 years
Risk free rate 1.3%
Expected dividends none
Expected volatility was determined by management based on their
cumulative experience of the movement in share prices over a period
of 3 years
The terms of the options granted do not contain any market
conditions within the meaning of IFRS 2.
The Group capitalised expenses of GBPNil (2018: GBPNil) and
expensed costs of GBP20,565 (2018: GBP Nil) relating to
equity-settled share-based payment transactions during the
year.
9. POST BALANCE SHEET EVENTS
In the period since 31 December 2019, the emergence and spread
of Covid-19 has not had a significant impact on the Group's
operations. Although some high level discussions originally
scheduled to take place in March in Ghana, Europe and Bolivia in
relation to the Group's projects were postponed due to the Covid-19
pandemic, they are expected to be rescheduled over the coming
months. The Group continues to progress its interests in Ghana and
Bolivia and do not believe that its prospects will be negatively
impacted by Covid-19.
10. ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on Thursday
23rd July 2020 at Granite Exchange, 5-6 Kildare St, Newry BT34 1DQ
at 11.00 am. Further information, including the Notice of AGM, will
be provided shortly.
11. GENERAL INFORMATION
The financial information set out above does not constitute the
Company's audited financial statements for the year ended 31
December 2019 or the year ended 31 December 2018. The financial
information for 2018 is derived from the financial statements for
2018 which have been delivered to the Registrar of Companies. The
auditors had reported on the 2018 statements; their report was
unqualified with an emphasis of matter in respect of considering
the adequacy of the disclosures made in the financial statements
concerning the valuation of intangible assets, and did not contain
a statement under section 498(2) or 498(3) of the Companies Act
2006. The financial statements for 2019 will be delivered to the
Registrar of Companies.
A copy of the Company's Annual Report and Accounts for 2019 will
be mailed shortly only to those shareholders who have elected to
receive it. Otherwise, shareholders will be notified that the
Annual Report will be available on the website
www.clontarfenergy.com . Copies of the Annual Report will also be
available for collection from the Company's registered office,
Suite 1, 3(rd) Floor, 11-12 St. James's Square, London, SW1Y
4LB.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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