TIDMCZN
RNS Number : 3651N
Curzon Energy PLC
19 May 2020
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
19 May 2020
Curzon Energy Plc
("Curzon" or the "Company")
Results for the Year Ended 31 December 2019
Curzon Energy plc (LON:CZN) the London Stock Exchange listed
company, announces its full year audited results for the year ended
31 December 2019.
A copy of the Company's annual report and financial statements
for the year ended 31 December 2019, extracts of which are set out
below, will be made available on the Company's website
www.curzonenergy.com shortly.
Curzon further announces that a Notice of Annual General Meeting
("AGM") will be posted to shareholders, along with the Annual
Report and Financial Statements for the year ended 31 December
2019, on or before 22 May 2020.
The Company will be holding its AGM at the Company's business
address, which is located at Curzon Energy Plc, (WeWork), 71-91
Aldwych House, London WC2B 4HN on Wednesday 24 June 2020 at 2:00
pm, the details of which are explained in the Notice of AGM, which
will be also available on the Company's website
www.curzonenergy.com by 22 May 2020.
Due to the ongoing impact of the COVID-19 pandemic and related
public health guidance, we strongly encourage shareholders to
submit their Forms of Proxy, to ensure they can vote and be
represented at the AGM, without the need to attend in person.
Forms of proxy must be completed, signed and returned so as to
be received by the Company's Registrars no later than 2:00 pm on 22
June 2020.
Scott Kaintz, Chief Executive Officer comments:
"Following a challenging 2019, the subsequent global economic
fallout from the COVID-19 pandemic and the collapse in oil and gas
prices in Q1 2020 saw international markets largely shun the oil
and gas sector. However, after a change in strategy, Curzon now
finds itself with an opportunity to potentially transition from oil
and gas into the trading of the key metals likely to form the
nucleus of a more sustainable future.
The Board is enthusiastic about the opportunity to potentially
acquire London Critical Metals Market and we are currently working
to complete due diligence so as to facilitate a definitive
agreement to acquire the business. While it has been a difficult
year for Curzon, the potential move out of the oil and gas sector
into critical metals trading appears timely and offers the Company
the best prospects for growth and development going forward. We
look forward to making additional announcements on progress in due
course."
For further information please
contact:
Curzon Energy Plc +44 (0) 20 7747 9980
Scott Kaintz
www.curzonenergy.com
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
Richard Hail
Optiva Securities Limited +44 (0) 20 3137 1902
Chairman's Statement
I am pleased to present the annual report for the Company
covering its results for the year to 31 December 2019.
During the course of 2018, the Company focused on extended
testing of existing wells at Coos Bay, and, following several
efforts to rework these wells, gas flow proved inconsistent and
inconclusive. Thereafter, the Company considered alternative
options to advance the appraisal of the property, however, adequate
funding was not available.
In late 2018, the Company announced a memorandum of
understanding with Pared Energy LLC to develop a conventional gas
fairway in Texas. The Company believed that the Texas Gas Project
offered multi-TCF potential through the application of modern
drilling and completion techniques applied to known hydrocarbon
producing reservoirs. The Board further believed that the Texas Gas
Project could provide a highly complementary addition to the
Company's existing assets at Coos Bay, potentially creating a
larger US focused natural gas offering for UK investors.
Considerable effort during 2019 was spent conducting due
diligence on the Texas Gas Project, followed by a six month plus
period of administrative and regulatory work required to complete a
prospectus in order to raise funds to participate in and then
invest in, this project. Unfortunately, by the time these work
streams were at an advanced stage, public equity markets were
unpredictable due to Brexit and the US trade war uncertainties, and
UK investor appetite for US oil investments was much depressed.
In addition, 2019 saw a marked reduction in the price of natural
gas around the world and, by the end of 2019, it became apparent to
the Board that the ongoing decline in the oil and gas markets would
prove difficult if not impossible to overcome. This meant that the
Company's involvement in the Texas Gas Project and further attempts
to restart activities and progress the Company's project at Coos
Bay, at least in the near term, were unlikely. Further, efforts
towards year-end to reach agreement with a potential farm-in
partner at Coos Bay became protracted due to the various factors
mentioned previously and could not be consummated.
The Company then implemented a new strategy and began
discussions with a number of groups presenting fresh opportunities
both in and outside of the oil and gas sector and, on 18 March
2020, the Company announced that it had entered a period of
exclusivity in order to conduct due diligence and to potentially
acquire a 100% interest in London Critical Metals Market, the first
unified global metals trading exchange for critical metals that
have few or no direct investment or trading options elsewhere.
For the period ended 31 December 2019, the Group incurred a loss
of US$3,580,750. The majority of this loss comprised the impairment
of the Company's coal bed methane assets at Coos Bay of
US$2,559,000 that has been recognized in the accounts.
At the time of writing, the United Kingdom and the World at
large is in the process of dealing with the COVID-19 pandemic and
its associated aftershocks. While the disagreements between OPEC
and Russia combined with the drop in demand for oil due to the
COVID-19 fallout has been exceptionally destructive to the oil
industry, we currently do not expect these developments to
materially impact the potential transaction with London Critical
Metals Market under consideration. However, these same developments
will likely impact our ability to further develop our asset at Coos
Bay, and may make a disposal or farm-in more challenging.
Present turmoil aside, the Company continues to progress
diligence activities in regards to London Critical Metals Market as
announced in March this year, and the Board remains enthusiastic
about the scale and quality of the opportunity this transaction
represents for Curzon stakeholders. The potential move from oil and
gas into the trading of the metals the world requires to continue
the transition to renewables and energy storage appears prescient,
and the Company expects to make additional announcements on
progress in the near term.
John McGoldrick
Non-Executive Chairman
18 May 20 20
Strategic Report
Financial Results
The Group loss for the year to 31 December 2019 was US$
3,580,750 (2018: US$1,953,708). There were no revenues and the
majority of this loss related to the impairment of the Company's
coal bed methane interests at Coos Bay, Oregon.
The loss per share was US$0.044 (2018: loss per share
US$0.026).
Following mixed results from well testing operations at Coos Bay
in 2018, the Directors put the project on care and maintenance in
late 2018 and no significant development was undertaken during
2019. Following the lack of progress on the project in 2019, and a
general lack of interest in funding US oil projects observed in the
UK equity market, an impairment loss on the project of US$
(2,559,000) has been recognized in the accounts.
The Group currently has no source of revenue and is reliant on
loans to continue to meet its overhead expenditure. The Group held
cash balances of US$28,709 as at 31 December 2019 and has
subsequently increased its borrowing capacity and current liquidity
through the agreement with Seven Sun Stars Investment Group.
The Directors note that the Group will need additional funding
to continue operations for the foreseeable future and this means
there is a material uncertainty as to the Group's ability to
continue as a going concern, however, the Directors are confident
that the Group will be able to raise, as required, sufficient cash
or reduce its commitments to enable it to continue its operations,
and to continue to meet, as and when they fall due, its liabilities
for at least the next twelve months from the date of approval of
the Group financial statements. The Group financial statements
have, therefore, been prepared on the going concern basis.
The Group has 3 members of staff (including Directors).
Principal Activities
The Company was incorporated in England and Wales on 29 January
2016 as an investment company to acquire oil and gas assets. Its
first acquisition was of Coos Bay.
The Group's business continues to be operated through the US
Group, with a focus on oil and gas exploration, appraisal and
development.
The Company is a holding company with the following subsidiaries
being part of the US Group:
Name Country of Incorporation Proportion Principal activity
of equity ownership
Coos Bay Energy Nevada, USA 100% Gas Exploration &
LLC Development
------------------------- --------------------- -------------------
Westport Energy Delaware, USA 100% Holding Company
Acquisition,
Inc.
------------------------- --------------------- -------------------
Westport Energy, Delaware, USA 100% Gas Exploration &
LLC Development
------------------------- --------------------- -------------------
Curzon Energy, Delaware, USA 100% Holding Company
Inc.*
------------------------- --------------------- -------------------
Rigel Energy, Delaware, USA 100% Holding Company
LLC* *
------------------------- --------------------- -------------------
* Incorporated on 1 May 2019 and dissolved on 26 February 2020
as related transaction did not complete.
** Incorporated on 1 May 2019 and dissolved on 27 February 2020
as related transaction did not complete.
Coos Bay LLC, which employs the Group's employees and conducts
operations in the Coos Bay basin area, is held directly by the
Company. Its two indirectly owned subsidiaries are Westport Energy
Acquisition Inc. and its wholly-owned subsidiary, Westport Energy
LLC, which are held by Coos Bay Energy LLC.
Review of the Business
2018 saw the Company conducting extensive well testing
operations at Coos Bay in Oregon where the gas flow rates proved
inconsistent and inconclusive.
As such, the Company announced its intention to augment the Coos
Bay project with a complementary project developed jointly with
Pared Energy that offered significant multi-trillion cubic feet of
upside in an established oil and gas region in Texas, USA. The
Company proceeded to sign a memorandum of understanding in November
2018 announcing its intention to pursue joint development of this
project. In February 2020, the Company announced that it had ended
discussions with Pared Energy in Texas, as a transaction could not
be completed.
In March 2020, the Company announced that it had executed a
letter of intent with Seven Sun Stars Investment Group ("SSSIG") to
acquire a 100% interest in the London Critical Metals Market
("LCMM") the first unified global metals trading exchange for
critical metals that have few or no direct investment or trading
operations elsewhere in the world.
Key performance indicators (KPIs)
As the Company is traditionally a pure exploration business with
no production or proven reserves and which is currently exploring
reverse takeover options that might materially change the business,
the Directors take the view that KPIs would not provide materially
useful information to investors at this time. As the business
develops further, the addition of KPIs will be considered and added
as appropriate.
Principal Risks and Risk Management
Exploration is an inherently high-risk business:
-- Even the most promising prospects can have failures for many reasons, such as:
o The gas assets may not be found in commercial quantities if
there are errors in the underlying geological assumptions or
analysis.
o Hydrocarbons may have been present but escaped due to
unexpected geological events.
o The reservoir may not flow hydrocarbons at commercially viable
rates of flow.
o The drilling may encounter technical problems which make it
impossible or too expensive to reach the target.
o The ability of the Group to exploit and develop gas reserves
depends on its current leases. There is no guarantee that existing
leases will be continued beyond their primary term or additional
leases acquired on attractive terms.
-- The Company may take on commitments for which it then cannot
find adequate funding. Although the Company can then potentially
sell all or part of its assets:
o There is no guarantee it could find a buyer.
o Even if it does find a buyer, the transaction may take too
long, and the Company's cash resources may become exhausted.
The Company's risk mitigation strategies include the
following:
-- Partnering with key experts that have demonstrated an ability
to determine the presence or absence of hydrocarbons.
-- Utilising the Directors' experience who have excellent
technical, commercial or local knowledge as to where to locate
assets.
-- Securing the support of a number of key private shareholders,
and actively pursuing other sources of funding.
-- Utilising third parties to assist with the management of currency risk.
Corporate Responsibility
The Company takes its responsibilities as a corporate citizen
seriously. The Board's primary goal is to create shareholder value
in a responsible way which serves all stakeholders.
Section 172 Statement
Section 172 of the Companies Act 2006 requires Directors to take
into consideration the interests of stakeholders in their decision
making. The Directors continue to have regard to the interests of
the Company's employees and other stakeholders, including the
impact of its activities on the community, the environment and the
Company's reputation, when making decisions. Acting in good faith
and fairly between members, the Directors consider what is most
likely to promote the success of the Company for its members in the
long term.
The Directors are fully aware of their responsibilities to
promote the success of the Company in accordance with section 172
of the Companies Act 2006. The Board regularly reviews our
principal stakeholders and how we engage with them. The stakeholder
voice is brought into the boardroom throughout the annual cycle
through information provided by management and also by direct
engagement with stakeholders themselves. The relevance of each
stakeholder group may increase or decrease depending on the matter
or issue in question, so the Board seeks to consider the needs and
priorities of each stakeholder group during its discussions and as
part of its decision making.
The Board welcomes the opportunity to engage with our
shareholders and with the capital markets more generally. The Board
achieves this through dialogue with shareholders, prospective
shareholders and capital markets participants including corporate
brokers. Feedback from any such meetings or calls would be shared
with all Board members.
Investors, prospective investors and analysts can contact the
Executive Director as well as access information on our corporate
website. The Board believes that appropriate steps have been taken
during the year so that all members of the Board, and in particular
the non-executive Directors, have an understanding of the views of
major shareholders.
Governance
The Board considers sound governance as a critical component of
the Company's success and the highest priority. The Company has an
effective and engaged Board, with a strong non-executive presence
drawn from diverse backgrounds and with well-functioning governance
committees. Through the Company's compensation policies and
variable components of employee remuneration, the Remuneration
Committee of the Board seeks to ensure that the Company's values
are reinforced in employee behavior and that effective risk
management is promoted.
Analysis by Gender
Category Male Female
Directors 3 0
----- -------
Senior Managers 0 0
----- -------
Other Employees 0 0
----- -------
Employees and their development
The Company is dependent upon the qualities and skills of its
employees and their commitment plays a major role in the Company's
business success. Employees' performance is aligned to the
Company's goals through an annual performance review process and
via incentive programmes. The Company provides employees with
information about its activities through regular briefings and
other media. The Company operates a share option scheme operated at
the discretion of the Remuneration Committee.
Diversity and inclusion
The Company does not discriminate on the grounds of age, gender,
nationality, ethnic or racial origin, non-job-related-disability,
sexual orientation or marital status. The Company gives due
consideration to all applications and provides training and the
opportunity for career development wherever possible. The Board
does not support discrimination of any form, positive or negative,
and all appointments are based solely on merit.
Health and safety
The Company endeavors to ensure that the working environment is
safe and healthy and conducive to the wellbeing of employees who
are able to balance work and family commitments. The Company has a
Health and Safety at Work policy which is reviewed regularly by the
Board and is committed to the health and safety of its employees
and others who may be affected by the Company's activities. The
Company provides the information, instruction, training and
supervision necessary to ensure that employees are able to
discharge their duties effectively. The Health and Safety
procedures used by the Company ensure compliance with all
applicable legal, environmental and regulatory requirements, as
well as its own internal standards.
Outlook
The Company spent the majority of 2019 working with Pared Energy
and the Company's advisors to both structure and fund an investment
in Pared's Texas gas project in the United States. This involved
significant planning and administrative work as required by the
Company's listing on the Standard List of the London Stock
Exchange. By the end of the year, it became apparent that a
transaction in the oil and gas sector was not going to complete.
The Board then turned its attention to exploring new options for
Curzon and implemented a new strategy.
In March 2020, the Company announced that it had executed a
letter of intent with the Sun Seven Stars Investment Group
("SSSIG") to potentially acquire a 100% interest in London Critical
Metals Market ("LCMM"), the first unified global metals trading
exchange for critical metals that have few or no direct investment
or trading options elsewhere in the World.
The Board is enthusiastic about the opportunity to potentially
acquire LCMM and is currently working to complete its due diligence
on the company, so as to facilitate the drafting and execution of a
definitive agreement to acquire the business. While it has been a
difficult year for Curzon, the potential move out of the oil and
gas sector into critical metals trading appears timely and offers
the Company the best prospects for growth and development going
forward.
Signed by order of the Board.
Scott Kaintz
Chief Executive Officer
18 May 2020
Independent auditor's report to the members of Curzon Energy
Plc
Opinion
We have audited the consolidated financial statements of Curzon
Energy Plc and its subsidiaries (the "Group") for the year ended 31
December 2019 which comprise the consolidated statement of
comprehensive income, the consolidated and company statements of
financial position, the consolidated and company statements of cash
flows, the consolidated and company statements of changes in equity
and notes to the financial statements, including a summary of
significant accounting policies. The financial reporting framework
that has been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as adopted by
the European Union.
In our opinion:
-- the financial statements give a true and fair view of the
state of the group's and company's affairs as at 31 December 2019
and of its loss for the year then ended;
-- have been properly prepared in accordance with International
Financial Reporting Standards as adopted by the European Union;
-- the company financial statements have been properly prepared
in accordance with IFRSs as adopted by the European Union as
applied in accordance with the provisions of the Companies Act
2006; and
-- the financial statements have been prepared in accordance
with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the Company
in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the
FRC's Ethical Standard, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to note 2 to the financial statements, which
details the factors the company has considered when assessing the
going concern position. As detailed in note 2, the uncertainty
surrounding the availability of funds to finance ongoing working
capital requirements indicates the existence of a material
uncertainty that may cast significant doubt on the company's
ability to continue as a going concern. Our opinion is not modified
in respect of this matter.
Overview of our audit approach
Materiality
In planning and performing our audit we applied the concept of
materiality. An item is considered material if it could reasonably
be expected to change the economic decisions of a user of the
financial statements. We used the concept of materiality to both
focus our testing and to evaluate the impact of misstatements
identified.
Based on our professional judgement, we determined overall
materiality for the financial statements as a whole to be
GBP30,000, based on 5% of the adjusted results of the year.
We use a different level of materiality ('performance
materiality') to determine the extent of our testing for the audit
of the financial statements. Performance materiality is set based
on the audit materiality as adjusted for the judgements made as to
the entity risk and our evaluation of the specific risk of each
audit area having regard to the internal control environment.
Where considered appropriate performance materiality may be
reduced to a lower level, such as, for related party transactions
and directors' remuneration.
We agreed with the Audit Committee to report to it all
identified errors in excess of GBP1,500. Errors below that
threshold would also be reported to it if, in our opinion as
auditor, disclosure was required on qualitative grounds.
Overview of the scope of our audit
There are two components of the Group, Curzon Energy Plc as an
entity and the US Group headed by Coos Bay Energy LLC. The audit of
Curzon Energy Plc was conducted from the UK. The accounting records
were provided to us by management.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had
the greatest effect on: the overall audit strategy, the allocation
of resources in the audit; and directing the efforts of the
engagement team. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these
matters.
This is not a complete list of all risks identified by our
audit.
Key audit matter How the scope of our audit addressed
the key audit matter
================================== ==============================================================
Valuation of Intangible
assets In considering this assessment we
The group's primary focus carried out the following audit procedures:
is on exploration activities
in the Coos Bay Basin. The * Review the board minutes and announcements which
exploration assets at 31 indicated that well testing was not carried out
December 2019 was $2.6m during the year ended 31 December 2019.
and an impairment of $2.6m
was recognised in the year
as it has not yielded meaningful * Discussions with management regarding the plans and
gains in flow rates and intentions in relation to the existing wells drilled
well performance. The view in the Coos Bay Project.
has thus been taken that
this work may not result
in future recoverable economic * It was confirmed by management that they were not
value. expecting to carry out drilling operations for
foreseeable future.
Given the impairment recognised,
we considered the risk that
the residual intangible * Assessment of the appropriateness of the accounting
assets relating to the Coos treatment of the exploration activities in accordance
Bay Basin was impaired. with IFRS 6.
In addition, we considered the primary
lease agreement which expires during
2020 and has not been renewed to date.
Key observations
We concur with management's decision
to fully impair the cost of exploration
activities capitalised to date.
================================== ==============================================================
Our audit procedures in relation to this matter were designed in
the context of our audit opinion as a whole. They were not designed
to enable us to express an opinion on these matters individually
and we express no such opinion.
Other information
The directors are responsible for the other information. The
other information comprises the information included in the annual
report, other than the financial statements and our auditor's
report thereon. Our opinion on the financial statements does not
cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a
material misstatement in the financial statements or a material
misstatement of the other information. If, based on the work we
have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act
2006
In our opinion the part of the directors' remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion based on the work undertaken in the course of our
audit
-- the information given in the strategic report and the
directors' report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
-- the directors' report and strategic report have been prepared
in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the group and the
parent company and their environment obtained in the course of the
audit, we have not identified material misstatements in the
strategic report or the directors' report.
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, in
our opinion:
-- adequate accounting records have not been kept by the
company, or returns adequate for our audit have not been received
from branches not visited by us; or
-- the financial statements and the part of the directors'
remuneration report to be audited are not in agreement with the
accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit
Responsibilities of the directors for the financial
statements
As explained more fully in the directors' responsibilities
statement set out on page 17, the directors are responsible for the
preparation of the financial statements and for being satisfied
that they give a true and fair view, and for such internal control
as the directors determine is necessary to enable the preparation
of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of
the financial statements is located on the Financial Reporting
Council's website at: www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor's report.
Other matters which we are required to address
We were appointed by the Board on 15 April 2020 to audit the
financial statements for the year ended 31 December 2019. Our total
uninterrupted period of engagement is 4 years, covering the period
ended 31 December 2016 to 31 December 2019.
The non-audit services prohibited by the FRC's Ethical Standard
were not provided to the company and we remain independent of the
group and the parent company in conducting our audit.
Our audit opinion is consistent with the additional report to
the audit committee.
Use of our report
This report is made solely to the company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Matthew Stallabrass
Senior Statutory Auditor
For and on behalf of
Crowe U.K. LLP
Statutory Auditor
London
18 May 2020
Consolidated statement of comprehensive income
for the year ended 31 December 2019
Note 2019 2018
US$ US$
---------------------------------------- ----- ------------- ------------
Administrative expenses 6 (913,572) (1,363,949)
---------------------------------------- ----- ------------- ------------
Loss from operations (913,572) (1,363,949)
Finance expense, net 7 (108,178) (14,443)
Impairment of exploration and
evaluation assets 10 (2,559,000) (575,316)
Loss before taxation 4 (3,580,750) (1,953,708)
Income tax expense 8 - -
---------------------------------------- ----- ------------- ------------
Loss for the year attributable
to
equity holders of the parent
company (3,580,750) (1,953,708)
---------------------------------------- ----- ------------- ------------
Other comprehensive loss
(Loss) on translation of parent
net assets and results from
functional currency into presentation
currency (39,602) (70,245)
---------------------------------------- ----- ------------- ------------
Total comprehensive loss for
the year (3,620,352) (2,023,953)
---------------------------------------- ----- ------------- ------------
Loss per share - Basic and diluted,
US$ 9 (0.04) (0.03)
---------------------------------------- ----- ------------- ------------
Consolidated statements of financial position
as at 31 December 2019
Note 2019 2018
US$ US$
----------------------------------- ----- ------------- -------------
Assets
Non-current assets
Intangible assets 10 - 2,559,000
Property, plant and equipment 683 -
Restricted cash 12 125,000 125,000
----------------------------------- ----- ------------- -------------
Total non-current assets 125,683 2,684,000
----------------------------------- ----- ------------- -------------
Current assets
Prepayments and other receivables 13 31,203 36,157
Cash and cash equivalents 14 28,709 125,621
----------------------------------- ----- ------------- -------------
Total current assets 59,912 161,778
----------------------------------- ----- ------------- -------------
Total assets 185,595 2,845,778
----------------------------------- ----- ------------- -------------
Liabilities
Current liabilities
Trade and other payables 15 835,826 506,894
Borrowings 16 698,798 213,812
----------------------------------- ----- ------------- -------------
Total current liabilities 1,534,624 720,706
----------------------------------- ----- ------------- -------------
Total liabilities 1,534,624 720,706
----------------------------------- ----- ------------- -------------
Capital and reserves attributable
to shareholders
Share capital 17 1,103,457 1,024,036
Share premium 3,586,947 3,563,122
Share-based payments reserve 474,792 454,026
Warrants reserve 213,250 191,011
Merger reserve 31,212,041 31,212,041
Foreign currency translation
reserve (103,376) (63,774)
Accumulated losses (37,836,140) (34,255,390)
Total capital and reserves (1,349,029) 2,125,072
----------------------------------- ----- ------------- -------------
Total equity and liabilities 185,595 2,845,778
----------------------------------- ----- ------------- -------------
The financial statements were approved and authorised for issue
by the Board of Directors on 18 May 2020 and were signed on its
behalf by:
John McGoldrick
Director
Consolidated statements of changes in equity
Other Accumulated
Share capital Share premium reserves losses Total
US$ US$ US$ US$ US$
----------------------- -------------- -------------- ----------- ------------- ------------
Equity at 1 January
2018 964,575 3,199,004 31,524,182 (32,301,682) 3,386,079
----------------------- -------------- -------------- ----------- ------------- ------------
Loss for the year - - - (1,953,708) (1,953,708)
Other comprehensive
loss for the year - - (70,245) - (70,245)
----------------------- -------------- -------------- ----------- ------------- ------------
Total comprehensive
loss for the year - - (70,245) (1,953,708) (2,023,953)
Issue of shares 59,461 416,223 - - 475,684
Share issue costs - (52,105) - - (52,105)
Issue of share
options - - 339,367 - 339,367
----------------------- -------------- -------------- ----------- ------------- ------------
Total transactions
with shareholders 59,461 364,118 339,367 - 762,946
----------------------- -------------- -------------- ----------- ------------- ------------
Equity at 31 December
2018 1,024,036 3,563,122 31,793,304 (34,255,390) 2,125,072
----------------------- -------------- -------------- ----------- ------------- ------------
Loss for the year - - - (3,580,750) (3,580,750)
Other comprehensive
loss for the year - - (39,602) - (39,602)
----------------------- -------------- -------------- ----------- ------------- ------------
Total comprehensive
loss for the year - - (39,602) (3,580,750) (3,620,352)
Issue of shares 79,421 46,064 - - 125,485
Issue of warrants - (22,239) 22,239 - -
Issue of share
options - - 20,766 - 20,766
----------------------- -------------- -------------- ----------- ------------- ------------
Total transactions
with shareholders 79,421 23,825 43,005 - 146,251
----------------------- -------------- -------------- ----------- ------------- ------------
Equity at 31 December
2019 1,103,457 3,586,947 31,796,707 (37,836,140) (1,349,029)
----------------------- -------------- -------------- ----------- ------------- ------------
Other Reserves
Foreign
Share-based currency
Merger payments Warrants translation Total Other
reserve reserve reserve reserve reserves
US$ US$ US$ US$ US$
--------------------- ------------- ------------ --------- ------------- ------------
Other reserves
as at 1 January
2018 31,212,041 114,659 191,011 6,471 31,524,182
--------------------- ------------- ------------ --------- ------------- ------------
Other comprehensive
loss for the
year - - - (70,245) (70,245)
--------------------- ------------- ------------ --------- ------------- ------------
Total comprehensive
loss for the
year - - - (70,245) (70,245)
Issue of share
options - 339,367 - - 339,367
--------------------- ------------- ------------ --------- ------------- ------------
Other reserves
at 31 December
2018 31,212,041 454,026 191,011 (63,774) 31,793,304
--------------------- ------------- ------------ --------- ------------- ------------
Other comprehensive
loss for the
year - - - (39,602) (39,602)
--------------------- ------------- ------------ --------- ------------- ------------
Total comprehensive
loss for the
year - - - (39,602) (39,602)
Issue of warrants - - 22,239 - 22,239
Issue of share
options - 20,766 - - 20,766
--------------------- ------------- ------------ --------- ------------- ------------
Other reserves
at 31 December
2019 31,212,041 474,792 213,250 (103,376) 31,796,707
--------------------- ------------- ------------ --------- ------------- ------------
Consolidated statement of cash flows
Notes 2019 2018
US$ US$
------------------------------------------------ ------ ------------ ------------
Cash flow from operating activities
Loss before taxation (3,580,750) (1,953,708)
Adjustments for:
Finance expenses 7 112,093 42,321
Share-based payments charge 18 20,766 339,367
Impairment of exploration assets 2,559,000 575,316
Unrealised foreign exchange movements (3,915) (27,878)
------------------------------------------------ ------ ------------ ------------
Operating cashflows before working capital
changes (892,806) (1,024,582)
------------------------------------------------ ------ ------------ ------------
Changes in working capital:
Increase/(decrease) in payables 309,917 (22,541)
Decrease in receivables 27,084 112,461
------------------------------------------------ ------ ------------ ------------
Net cash used in operating activities (555,805) (934,662)
------------------------------------------------ ------ ------------ ------------
Investing activities
Capitalised exploration costs - (575,316)
------------------------------------------------ ------ ------------ ------------
Net cash outflow from investing activities - (575,316)
------------------------------------------------ ------ ------------ ------------
Financing activities
Issue of ordinary shares 17 104,021 -
Costs of share issue - (52,105)
Proceeds from new borrowings 16 362,320 100,000
------------------------------------------------ ------ ------------ ------------
Net cash flow from financing activities 466,341 47,895
------------------------------------------------ ------ ------------ ------------
Net (Decrease)/increase in cash and cash
equivalents in the period (89,464) (1,462,083)
Cash and cash equivalents at the beginning
of the period 125,621 1,595,035
Restricted cash held on deposits 12 125,000 125,440
------------------------------------------------ ------ ------------ ------------
Total cash and cash equivalents at the
beginning of the period, including restricted
cash 250,621 1,720,475
------------------------------------------------ ------ ------------ ------------
Effect of the translation of cash balances
into presentation currency (7,448) (7,331)
(Charge) on restricted cash - (440)
Cash and cash equivalents at the end of
the period 28,709 125,621
Restricted cash held on deposits 12 125,000 125,000
------------------------------------------------ ------ ------------ ------------
Total cash and cash equivalents at the
end of the period, including restricted
cash 153,709 250,621
------------------------------------------------ ------ ------------ ------------
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
FR ALMBTMTMBBMM
(END) Dow Jones Newswires
May 19, 2020 07:05 ET (11:05 GMT)
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