Information  X 
Enter a valid email address

Clontarf Energy PLC (CLON)

  Print      Mail a friend       Annual reports

Monday 14 September, 2020

Clontarf Energy PLC

Interim Statement for period ended 30 June 2020

RNS Number : 8083Y
Clontarf Energy PLC
14 September 2020
 

14th September 2020

 

Clontarf Energy plc

("Clontarf" or the "Company")

 

Interim Statement for the period ended 30 June 2020

 

Clontarf Energy (AIM: CLON), the oil and gas exploration company focused on Ghana and Bolivia, announces

its unaudited financial results for the six months ended 30 June 2020:

 

The principal activities during this period were ongoing discussions with the Ghanaian authorities to finalise the ratification of our signed Petroleum Agreement on Tano 2A Block, and negotiating a lithium evaporates exploration and development agreement with the Bolivian authorities.

 

Ghanaian Tano 2A Petroleum Agreement

 

Ghana currently produces circa 200,000 barrels of oil per day, from the Jubilee, and TEN oil-fields .  This is expected to increase to up to 500,000 barrels of oil per day by 2023, despite the OPEC + partner output cuts during the 2020 Covid-19 ("C-19") oil demand weakness.

 

Clontarf is ready to contribute to this growth, by initiating the Ghana Hydrocarbons Tano 2A work programme, subject to securing the necessary funding in an environment complicated by the recent oil price fall, as soon as the signed Petroleum Agreement is ratified.

 

Despite lower oil prices, the carefully calibrated Ghanaian fiscal terms help make the Tano Basin oil play feasible, given the demonstrated source rock and Cretaceous sands which remain an industry favourite.  Indeed, the industry contraction may assist Clontarf focus strategy on the bigger potential stratigraphic traps.

 

Critical Ghanaian meetings, scheduled for March 2020, to finalise the few outstanding issues, had to be postponed due to C-19.

 

As of September 2020, Ghana now seems to be returning to normal, with surprising good compliance and low infection rates (possibly reflecting a young population - as well as experience preventing Ebola, etc. since 2002).  Accra airport opened in September 2020.  We are hopeful that progress may be made from October 2020 and will update shareholders as and when appropriate.

 

Bolivian Lithium

 

Bolivia has been hard-hit (as was much of South America) by C-19, leading to postponement of planned meetings, elections, and formation of the new government.

 

We have had informal discussions between our local director and officials. We are hopeful of progress after the elections, which were delayed due to C-19, but likely to proceed on 18th October, 2020.

 

The lithium brines processing work has continued, with technical discussions.  We have a steadily deeper understanding of the issues and technical parameters, and hope to incorporate these in the final agreement.

 

Bolivian salt pans contain at least 50% of the world's brine lithium yet it has not been developed. The EU now estimates that global demand by 2050 will be 60 times the current lithium supply.  The Board  believes there is no economic way to supply this without major Bolivian supplies.

 

The end-2019 Bolivian general elections were inconclusive, with disputed results. Peaceful protests forced the departure of the outgoing government and the appointment of an interim administration in 2020, charged with early, impartial elections under international supervision.  These elections were initially scheduled for May 2020, but ultimately postponed, due to the Bolivia C-19 lock-down, until 18th October 2020, with a possible 2nd round, if necessary to achieve greater than 50% voter approval. 

 

Accordingly, the Company's scheduled March 2020 meetings on Bolivian lithium had to be postponed. Likewise the development of possible cooperation with a prospective partner on osmosis technology that may boost pure lithium recovery from brines. As of September 2020, Bolivia, and its neighbours remain shut down for international visits.

 

Immediately before the lock-down, the Company's local director presented Clontarf's updated proposals to the interim minister's staff. Our plans, based on a review of the 40 plus salt pans suggests that we focus on a small number of medium sized pans.

 

There followed a positive response, and subsequent ministerial briefing.

The Bolivians proposed some clarifications to ensure conformity of Clontarf's proposal (which had previously been agreed with the former YLB Chief) with the existing Lithium Law.  It is also likely that the Lithium Law itself will be streamlined, so as to achieve Bolivia's objective of becoming a major lithium exporter.  The interim economics minister has also publicly stressed the role of lithium development in helping Bolivia to emerge from the COVID-19 pandemic.

 

The ambitious worldwide plans for Electric Vehicles (EVs), hybrid vehicles, as well as electrical storage to facilitate development of intermittent renewable power, make rapid growth in lithium demand inevitable.  Attention so far has focused on the DRC's 64% share of Cobalt output, but the gap is similarly daunting for Lithium - which remains dominated by Australian hard-rock (53%), and Chile (21.5%).

 

Bolivia has not yet exported any battery-grade lithium salts - though it has up to 50% of global lithium resources. This offers a generational opportunity to those, like Clontarf Energy, with decades of Bolivian extractive industries' experience. 

 

Funding

Clontarf remains fully funded for ongoing activities.

 

 

 

John Teeling

Chairman

11th September 2020

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

ENDS

 

 

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

Megan Ray

Rachael Brooks

Madeleine Gordon-Foxwell

 

+44 (0) 207 138 3206

+44 (0) 207 138 3204

+44 (0) 207 138 3203

+44 (0) 207 138 3208

 

 

Teneo

Luke Hogg

Alan Tyrrell

Thomas Shortall

 

+353 (0) 1 661 4055

+353 (0) 1 661 4055

+353 (0) 1 661 4055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clontarf Energy plc

Financial Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

Six Months Ended

 

Year Ended

 

 

 

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

 

 

 

 

unaudited

 

unaudited

 

audited

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

CONTINUING OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative expenses

 

 

 

 

( 146 )

 

( 123 )

 

( 308 )

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE TAXATION

 

 

 

 

( 146 )

 

( 123 )

 

( 308 )

 

 

 

 

 

 

 

 

 

 

Income Tax

 

 

 

 

  -

 

  -

 

  -

 

 

 

 

 

 

 

 

 

 

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD

 

 

 

( 146 )

 

( 123 )

 

( 308 )

 

 

 

 

 

 

 

 

 

 

LOSS PER SHARE - basic and diluted

 

 

 

 

 (0.02p)

 

 (0.02p)

 

 (0.04p)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEET

 

 

 

 30 June 20

 

 30 June 19

 

 31 Dec 19

 

 

 

 

 

 unaudited

 

 unaudited

 

 audited

 

 

 

 

 

 '000

 

 '000

 

 '000

ASSETS:

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

 

 

  869

 

  837

 

  851

 

 

 

 

 

  869

 

  837

 

  851

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Other receivables

 

 

 

 

  2

 

  9

 

  3

Cash and cash equivalents

 

 

 

 

  190

 

  425

 

  301

 

 

 

 

 

  192

 

  434

 

  304

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

 

  1,061

 

  1,271

 

  1,155

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Trade payables

 

 

 

 

( 48 )

 

( 71 )

 

( 56 )

Other payables

 

 

 

 

( 1,240 )

 

( 1,116 )

 

( 1,180 )

 

 

 

 

 

( 1,288 )

 

( 1,187 )

 

( 1,236 )

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

 

( 1,288 )

 

( 1,187 )

 

( 1,236 )

NET (LIABILITES)/ASSETS

 

 

 

 

( 227 )

 

  84

 

( 81 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Share capital

 

 

 

 

  1,792

 

  1 ,792

 

  1,792

Share premium

 

 

 

 

  10,900

 

  10,900

 

  10,900

Share based payment reserve

 

 

 

 

  22

 

  191

 

  22

Retained earnings - (Deficit)

 

 

 

 

( 12,941 )

 

( 12,800 )

 

( 12,795 )

TOTAL EQUITY

 

 

 

 

( 227 )

 

  83

 

( 81 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Share based

 

 

 

 

 

 Share

 

 Share

 

 Payment

 

 Retained

 

 Total

 

 Capital

 

 Premium

 

 Reserves

 

 Losses

 

 Equity

 

 '000

 

 '000

 

 '000

 

 '000

 

 '000

 

 

 

 

 

 

 

 

 

 

As at 1 January 2019

  1,792

 

  10,900

 

  191

 

( 12,677 )

 

  206

Total comprehensive loss

 

 

 

 

 

 

( 123 )

 

( 123 )

As at 30 June 2019

  1,792

 

  10,900

 

  191

 

( 12,800 )

 

  83

 

 

 

 

 

 

 

 

 

 

Share options vested

  -

 

  -

 

  21

 

  -

 

  21

Share options expired

-

 

  -

 

( 190 )

 

  190

 

  -

Total comprehensive loss

 

 

  -

 

( 185 )

 

( 185 )

As at 31 December 2019

  1,792

 

  10,900

 

  22

 

( 12,795 )

 

( 81 )

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss

  -

 

  -

 

  -

 

( 146 )

 

( 146 )

As at 30 June 2020

  1,792

 

  10,900

 

  22

 

( 12,941 )

 

( 227 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED CASH FLOW

 

 

 

 Six Months Ended

 

 Year Ended

 

 

 

 

 

 30 June 20

 

 30 June 19

 

 31 Dec 19

 

 

 

 

 

 unaudited

 

 unaudited

 

 audited

 

 

 

 

 

 '000

 

 '000

 

 '000

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

 

( 146 )

 

( 123 )

 

( 308 )

Share options vested

 

 

 

 

  -

 

  -

 

  21

Exchange movements

 

 

 

 

( 1 )

 

  2

 

  5

 

 

 

 

 

( 147 )

 

( 121 )

 

( 282 )

 

 

 

 

 

 

 

 

 

 

Movements in Working Capital

 

 

 

 

  38

 

  32

 

  79

CASH USED BY OPERATIONS

 

 

 

 

( 109)

 

( 89 )

 

( 203 )

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN OPERATING ACTIVITIES

 

 

 

( 109)

 

( 89 )

 

( 203 )

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Payments for intangible assets

 

 

 

 

( 3 )

 

( 4 )

 

( 3 )

NET CASH USED IN INVESTING ACTIVITIES

 

 

 

( 3 )

 

( 4 )

 

( 3 )

 

 

 

 

 

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

( 112 )

 

( 85 )

 

( 206 )

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of the period

 

  301

 

  512

 

  512

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash held

 

 

 

  1

 

( 2 )

 

( 5 )

CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD

 

  190

 

  425

 

  301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

1.  INFORMATION

 

The financial information for the six months ended 30 June 2020 and the comparative amounts for the six months ended 30 June 2019 are unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

The Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The accounting policies and methods of computation used in the preparation of the Interim Financial Report are consistent with those used in the Group 2019 Annual Report, which is available at www.clontarfenergy.com

 

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

 

2.  No dividend is proposed in respect of the period.

 

3.  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):

 

 

Six months Ended

 

Year Ended

 

30 June 20

 

30 June 19

 

31 Dec 19

 

£'000

 

£'000

 

£'000

Numerator

 

 

 

 

 

For basic and diluted EPS

(146)

 

(123)

 

(308)

 

 

 

 

 

 

Denominator

For basic and diluted EPS 

 

716,979,964

 

 

716,979,964

 

 

716,979,964

 

 

 

 

 

 

Basic EPS

(0.02p)

 

(0.02p)

 

(0.04p)

Diluted EPS

(0.02p)

 

(0.02p)

 

(0.04p)

 

 

 

 

 

 

 

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive and is therefore excluded.

 

 

4.  INTANGIBLE ASSETS

 

Exploration and evaluation assets:

 

30 June 20

 

30 June 19

 

31 Dec 19

 

 

 

 

 

£'000

 

£'000

 

£'000

Cost:

 

 

 

 

 

 

 

 

 

At 1 January

 

 

 

8,561

 

8,528

 

8,528

Additions

 

 

 

 

18

 

19

 

33

Closing Balance

 

 

 

8,579

 

8,547

 

8,561

 

 

 

 

 

 

 

 

 

 

Impairment:

 

 

 

 

 

 

 

 

At 1 January

 

 

 

7,710

 

7,710

 

7,710

Provision for impairment

 

 

-

 

-

 

-

Closing Balance

 

 

 

7,710

 

7,710

 

7,710

 

 

 

 

 

 

 

 

 

 

Carrying value:

 

 

 

 

 

 

 

 

At 1 January

 

 

 

851

 

818

 

818

 

 

 

 

 

 

 

 

 

 

At period end

 

 

 

869

 

837

 

851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional Analysis 

 

30 Jun 20

£'000

 

30 Jun 19

£'000

 

31 Dec19

£'000

 

Bolivia

 

16

 

16

 

16

 

Ghana

 

853

 

821

 

835

 

 

 

869

 

837

 

851

                           

 

 

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. 

 

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 Ghanaian 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.

 

The Group's activities are subject to a number of significant potential risks including:

 

· licence obligations;

· exchange rate risks;

· uncertainties over development and operational costs;

· political and legal risks, including arrangements with Governments for licences, profit sharing and taxation;

· foreign investment risks including increases in taxes, royalties and renegotiation of contracts;

· title to assets;

· financial risk management;

· going concern;

· ability to raise finance; and

· operational and environmental risks.

 

 

Included in the additions for the period are £15,000 (2019: £30,000) of directors remuneration. The remaining balance pertains to the amounts capitalised to the respective licences held by the entity.

 

 

5.  TRADE PAYABLES

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 

38

 

47

 

38

Other accruals

 

 

10

 

24

 

18

 

 

 

 

48

 

71

 

56

 

 

 

6.  OTHER PAYABLES

 

 

30 June 20

 

30 June 19

 

31 Dec 19

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

Amounts due to directors

 

 

1,240

 

1,116

 

1,180

 

 

 

 

1,240

 

1,116

 

1,180

 

Other payables relate to remuneration due to directors' accrued but not paid at period end.

 

 

 

 

 

 

 

7.  SHARE CAPITAL

 

Allotted, called-up and fully paid:

 

 

 

 

 

 

Number

 

Share Capital

 

 Premium

 

 

 

  £'000

 

£,000

At 1 January 2019

716,979,964

 

1,792

 

10,900

Issued during the period

-

 

-

 

-

At 30 June 2019

716,979,964

 

1,792

 

10,900

 

 

 

 

 

 

Issued during the period

-

 

-

 

-

At 31 December 2019

716,979,964

 

1,792

 

10,900

 

 

 

 

 

 

Issued during the period

-

 

-

 

-

At 30 June 2020

716,979,964

 

1,792

 

10,900

 

 

 

8.  POST BALANCE SHEET EVENTS

 

There were no material post balance sheet events affecting the group or company.

 

 

9.   The Interim Report for the six months to 30 June 2020 was approved by the Directors on 11th September 2020.

 

 

10. The Interim Report will be available on the Company's website at www.clontarfenergy.com

 

 

 

 

 

 

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 [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR BLGDCUGBDGGB

a d v e r t i s e m e n t