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DJ Altona Energy Plc Interim Results

 
TIDMANR 
 
Embargoed until 
7am 
19 June 2020 
 
                               Altona Energy plc 
                          ("Altona" or "the Company") 
 
                                Interim Results 
 
Altona (AQSE: ANR.PL), a mining exploration company, announces its unaudited 
interim results for the six months ended 31 December 2019. 
 
Christian Taylor-Wilkinson, Interim CEO of Altona, commented, "The period under 
review for these results was one of transition for the Company, as while the 
strategy remained that of finding a mining project suitable for increasing 
shareholder value, the evaluation of a vanadium project in China (June 2019) as 
well as the attempt to acquire a new Petroleum Exploration Licence in South 
Australia (December 2019) were both discarded by the board, as projects not 
suited to achieve the desired results. 
 
"In May of 2020, outside the review period, the Company engaged with a Malawian 
mining consultancy, which is in the process of acquiring the mining rights over 
a Rare Earth Element project in southern Malawi. The board believes that this 
project has a high degree of merit and we are currently carrying out due 
diligence, which we believe will take less than three months. 
 
"We are also speaking with owners of other mining assets, whilst assessing the 
potential of alternative projects, should a more suitable investment be found, 
or should the project in Malawi not be able to move forward for whatever 
reason. 
 
"We also continue to search for realistic funding solutions for the Company, so 
as to provide the necessary capital for the Company to remain solvent until we 
find our next project, and to ensure our shareholders do not face excessive 
dilution. It has become a delicate balancing act, but ultimately the board is 
trying to ensure the Company survives in its current form and therefore, we may 
have to face tough choices in the next few months in order to raise the right 
amount of funds at the right price which will enable us to finally move ahead 
and put the last few years behind us. 
 
"The shares in the Company remain suspended and may do so until new funds have 
been raised. This, we hope, will be in conjunction with the Company finalising 
a deal to acquire a new mining asset. The timeline for any fund raise and 
completion of an acquisition, if one is to happen, we envisage, will be within 
the next four months. 
 
"We will continue to update the market as and when we have developments to 
report and we once more thank our shareholders for their ongoing support." 
 
Financial Review 
 
The financial loss of the Group for the six months ended 31 December 2019 was GBP 
78,000 (H1 2018: GBP366,000), due to the strict cost cutting exercise implemented 
by the new board. 
 
The Company had total liabilities of GBP377,000 at 31 December 2019 (H1 2019: GBP 
310,000), being made up of a bank overdraft facility of GBP100,000 and GBP162,000 
of accrued expenses, the majority of which relate to deferred salaries of Mr 
Zhang, Mr Taylor-Wilkinson and Mr Sutherland; these amounts will be settled 
either, once the Company has suffient cash reserves, or converted into Altona 
shares. Any payment of these accrued salaries will not be made to the detriment 
of the business's planned future operations. 
 
                                    -ends- 
 
For further information, please visit www.altonaenergy.com or contact: 
 
Altona Energy plc 
Christian Taylor-Wilkinson, Interim CEO                   +44 (0) 7795 168 157 
Philip Sutherland, Non-Executive Director                 +61 (0)402 440 339 
 
Alfred Henry Corporate Finance Ltd (AQSE Corporate 
Adviser)                                                  +44 (0) 20 3772 0021 
Jon Isaacs / Nick Michaels 
 
Leander (Financial PR)                                    +44 (0) 7795 168 157 
 
Company Information 
 
Altona is a mining exploration company focused on the evaluation, development 
and extraction of minerals. 
 
The Company was admitted to trading on AIM on 10 March 2005 and was 
subsequently admitted to Aquis Stock Exchange (Formerly NEX Exchange for Growth 
Companies) on 1 February 2019.  A copy of its admission documents dated 4 March 
2005 can be accessed on its website, www.altonaenergy.com.  This website is 
where items can be inspected under Rule 75 of the Aquis Stock Exchange Rules 
for Issuers, from 1 February 2019. 
 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
FOR THE HALF YEAR ENDED 31 DECEMBER 2019 
 
                                       Notes     Unaudited     Unaudited 
                                                 Half-year     Half-year       Audited 
                                                     ended         ended    Year ended 
                                               31 Dec 2019   31 Dec 2018  30 June 2019 
 
                                                     GBP'000         GBP'000         GBP'000 
 
Total administrative expenses and                     (78)         (366)         (624) 
loss from operations 
 
Impairment expense                                       -             -      (11,033) 
 
Loss before taxation                                  (78)         (366)      (11,657) 
 
Tax                                      2               -             -             - 
 
Loss for the financial period                         (78)         (366)      (11,657) 
 
Other comprehensive income 
 
Exchange differences on translating                      -         (148)         (187) 
foreign operations maybe subsequently 
reclassified to profit or loss 
 
Total comprehensive profit/(loss)                     (78)         (514)      (11,844) 
attributable to the equity holders of 
the parent 
 
Loss per share 
 
- Basic and diluted                      3         (4.87p)      (23.51p)     (894.84p) 
 
 
 
 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
AS AT 31 DECEMBER 2019 
 
                                                 Unaudited     Unaudited       Audited 
                                               31 Dec 2019   31 Dec 2018  30 June 2019 
                                                     GBP'000         GBP'000         GBP'000 
 
ASSETS 
 
Non-current assets 
 
Intangible assets                                        -        11,074             - 
 
Other receivables                                        3             3             3 
 
Total Non-current assets                                 -        11,077             3 
 
Current assets 
 
Trade and other receivables                             21            77            32 
 
Cash and cash equivalents                                -            19             - 
 
Total Current assets                                    21            96            32 
 
Total assets                                            24        11,173            35 
 
LIABILITIES 
 
Current liabilities 
 
Trade and other payables                 4             377           127           310 
 
Total Current liabilities                              377           127           310 
 
Total liabilities                                      377           127           310 
 
NET ASSETS                                           (353)        11,046         (275) 
 
Capital and reserve attributable to 
the equity holders of the Parent 
 
Share capital                                        1.431         1,427         1.431 
 
Share premium                                       18,697        18,692        18,697 
 
Merger reserve                                       2,001         2,001         2,001 
 
Foreign exchange reserve                             1,224         1,263         1,224 
 
Retained losses                                   (23,706)      (12,337)      (23,628) 
 
TOTAL EQUITY                                         (353)        11,046         (275) 
 
 
 
 
CONSOLIDATED STATEMENT OF CASHFLOWS 
FOR THE HALF YEAR ENDED 31 DECEMBER 2019 
 
                                                 Unaudited   Unaudited 
                                                 Half-year   Half-year         Audited 
                                                     ended       ended      Year ended 
                                               31 Dec 2019 31 Dec 2018    30 June 2019 
 
                                                     GBP'000       GBP'000           GBP'000 
 
Operating activities 
 
Loss before taxation                                  (78)       (366)        (11,657) 
 
Share based payments                                     -           -               9 
 
Impairment of intangibles                                -           -          11,033 
 
(Increase)/ decrease in receivables                     11        (39)               6 
 
Increase / (decrease) in payables and                   67          36 
provisions                                                                         123 
 
Cash used in operations                                  -       (369)           (486) 
 
Income tax benefit received                              -           -               - 
 
Net cash outflow used in operating activities            -       (369)           (486) 
 
Investing activities 
 
Interest received                                        -           -               - 
 
Net cash outflow from investing activities               -           -               - 
 
Financing activities 
 
Proceeds from bank overdraft                             -           -              96 
 
Proceeds from issue of shares                            -           -               - 
 
Costs of issue                                                                       - 
 
Net cash inflow from financing activities                -           -              96 
 
Increase/decrease in cash and cash                       -       (369) 
equivalents in period/ year                                                      (390) 
 
Cash and cash equivalents at beginning of                -         391 
period / year                                                                      391 
 

(MORE TO FOLLOW) Dow Jones Newswires

June 19, 2020 02:00 ET (06:00 GMT)

DJ Altona Energy Plc Interim Results -2-

Effect of exchange rate changes on cash and              -         (3)             (1) 
cash equivalents 
 
Cash and cash equivalents at end of period /             -          19               - 
year 
 
 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
FOR THE HALF YEAR ENDED 31 DECEMBER 2019 
 
                                                          Foreign                  Total 
                              Share     Share   Merger   exchange Retained shareholders' 
                            capital   premium  reserve    reserve   losses        equity 
 
                              GBP'000     GBP'000    GBP'000      GBP'000    GBP'000         GBP'000 
 
Balance at 30 June 2018       1,427    18,692    2,001      1,411 (11,971)        11,560 
 
Total comprehensive loss          -         -        -      (148)    (366)         (514) 
for the period 
 
Issue of share capital            -         -        -          -        -             - 
 
Balance at 31 December        1,427    18,692    2,001      1,263 (12,337)        11,046 
2018 
 
Total comprehensive loss          -         -        -       (39) (11,291)      (11,330) 
for the period 
 
Issue of share capital            4         5        -          -        -             9 
 
Balance at 30 June 2019       1,431    18,697    2,001      1,224 (23,628)         (275) 
 
Total comprehensive loss          -         -        -          -     (78)          (78) 
for the period 
 
Issue of share capital            -         -        -          -        -             - 
 
Balance at 31 December        1,431    18,697    2,001      1,224 (23,706)         (353) 
2019 
 
NOTES TO THE INTERIM REPORT 
 
FOR THE HALF YEAR ENDING 31 DECEMBER 2018 
 
1.         GENERAL INFORMATION 
 
Altona Energy Plc (the "Company") is a company registered in England and 
Wales.  The condensed consolidated interim financial statements of the Company 
for the six months ended 31 December 2019 comprise the result of the Company 
and its subsidiaries (together referred to as the "Group") and have been 
prepared in accordance with the Aquis Stock Exchange Growth Market Rules for 
Issuers. As permitted, the Company has chosen not to adopt IAS 34 "Interim 
Financial Statement" in preparing these interim financial statements. 
 
The consolidated interim financial information for the period 1 July 2019 to 31 
December 2019 is unaudited. In the opinion of the Directors the condensed 
interim financial information for the period presents fairly the financial 
position, and results from operations and cash flows for the period in 
conformity with the generally accepted accounting principles consistently 
applied. The condensed interim financial information incorporates unaudited 
comparative figures for the interim period 1 July 2018 to 31 December 2018 and 
extracts from the audited financial statements for the year to 30 June 2019. 
 
The financial information contained in this interim report does not constitute 
statutory accounts as defined by section 435 of the Companies Act 2006. 
 
The comparatives for the full year ended 30 June 2019 are not the Company's 
full statutory accounts for that year. A copy of the statutory accounts for 
that year has been delivered to the Registrar of Companies. The auditor's 
report on those financial statements was unqualified but did include a 
reference to the uncertainties surrounding going concern, to which the auditors 
drew attention by way of emphasis of matter and did not contain a statement 
under s498 (2) - (3) of Companies Act 2006. The interim report has not been 
audited or reviewed by the Company's auditor. The key risks and uncertainties 
and critical accountancy estimates remain unchanged from 30 June 2019 and the 
accountancy policies adopted are consistent with those used in the preparation 
of its financial statements for the year ended 30 June 2019. 
 
2.         TAXATION 
 
The Group has recognised a GBPnil tax credit (31 December 2018: GBPnil and 30 June 
2019: GBPnil) in respect of the concession for research and development tax 
credits available to the Group. No current taxation has been provided due to 
losses in the period. 
 
3.         LOSS PER SHARE 
 
The basic loss per share is derived by dividing the loss for the period 
attributable to ordinary shareholders by the weighted average number of shares 
in issue. 
 
                                         Unaudited     Unaudited       Audited 
                                       31 Dec 2019   31 Dec 2018  30 June 2019 
 
Loss for the period (GBP'000)                   (78)         (366)      (11,657) 
 
Weighted average number of shares -          1,602         1,559         1,602 
expressed in thousands 
 
Basic loss per share - expressed in        (4.87p)      (23.51p)      (894.84) 
pence 
 
As the inclusion of the potential ordinary shares would result in a decrease in 
the loss per share they are considered to be anti-dilutive and, as such, the 
diluted loss per share calculation is the same as the basic loss per share. 
 
4.         TRADE AND OTHER PAYABLES 
 
                                         Unaudited     Unaudited       Audited 
                                       31 Dec 2019   31 Dec 2018  30 June 2019 
                                             GBP'000         GBP'000         GBP'000 
 
Trade payables                                 115            60           132 
 
Bank overdraft                                 100             -            96 
 
Accruals and other payables                    162            67            82 
 
                                               377           127           310 
 
5.         POST REPORTING DATE EVENTS 
 
The following events occurred subsequent to period end: 
 
  * The company launched an Open Offer to existing shareholders with an aim to 
    raise up to GBP400,000 to pursue the acquisition of a Petroleum Exploraiton 
    Licence Application in South Australia, however took the decision to cancel 
    the open offer due to it not raising the minimum amount required to acquire 
    the PELA. Therefore, those shareholders who subscribed for shares in the 
    offer, were refunded the full amount of their subscription monies in 
    relation to the Open Offer. 
 
  * The Company entered into a Memorandum of Understanding ("MoU") with mining 
    consultancy company, Akatswiri Mineral Resources ("Akatswiri"), to acquire 
    a majority stake in a rare earth mining project in the Chambe Basin, 
    Mulanje in Southern Malawi. 
 
    Akatswiri is currently the 100% owner of Akatswiri Rare Earths Pvt Ltd 
    ("ARE"), a Malawi registered company, which has applied for Exploration 
    licence APL 0153 - the Chambe Rare Earth Project ("Chambe"). It is expected 
    that the licence will be granted in June, following government final 
    approval. 
 
    The terms of the MoU state Altona will initially acquire a 51% holding in 
    ARE, rising to 75% on certain project milestones being met. Akatswiri will 
    remain a 25% shareholder. The consideration for the transaction will be 
    Altona Energy ordinary shares if the transaction proceeds. 
 
 
 
END 
 

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June 19, 2020 02:00 ET (06:00 GMT)