Spitfire eyes Salmon Gums renewal and new projects as losses mount

Spitfire Oil released its half year report on Tuesday, showing increased losses as directors seek to “revitalise” the company.

The mining and investment company recorded a total comprehensive loss of $444,534 for the six month period to December 31, an 18% increase over the same period in 2016.

Over the same period, the Bermuda-incorporated, AIM-traded company revealed a 46% increase in operating losses to $213,243, and an increase in expenditure of 21% to $228,510 over the same period.

Mladen Ninkov, chairman of Spitfire Oil, said: “The directors continue to investigate, approach, evaluate and negotiate new projects and acquisition opportunities to revitalize the company. Needless to say, for all the reasons outlined in previous communications, this is a monumental task when attractive assets are involved.”

The company, which holds a retention licence over the Salmon Gums lignite deposit in Western Australia, reported cash balances of $2.7m and has benefitted from interest receipts of $15,267.

“The internal process of renewing the retention licence over the Salmon Gums project has been completed and all the relevant documentation, including a revised JORC statement in compliance with revised requirements, lodged. A new retention licence is expected to be issued in the near future,” Ninkov said.

While it seeks to renew its retention licence, the company stated that it was reviewing potential new projects but had not yet found any that meet its requirements.

As of 0929 GMT Spitfire Oil’s shares were down 11.76% at 7.50p.