TIDMORCP
RNS Number : 7663C
Oracle Power PLC
23 June 2021
23 June 2021
Oracle Power PLC
("Oracle", the "Company")
Final Results, Posting of 2020 Annual Report & Notice of
AGM
Oracle Power PLC (AIM:ORCP, AQSE:ORCP), the international
natural resources and power project developer, today announces its
audited results for the year ended 31 December 2020.
Posting of Annual Report & Notice of AGM
The notice of the Company's annual general meeting ("AGM")
("Notice of AGM"), together with the Annual Report and Accounts for
the year ended 31 December 2020 ("2020 Annual Report"), have been
posted to shareholders and both are available to download on the
Company's website. The AGM is to be held at Two Kingdom Street,
London W2 6BD on Friday 16 July 2021 at 11:00 a.m.
As at the date of this Notice of AGM, it is expected that the UK
Government's legal restrictions (due to Covid-19) on the ability of
people to meet indoors will remain in place at the date of the AGM.
Therefore, Shareholders will not be permitted to attend and the
Company will arrange for the minimum quorum to be present at the
AGM.
For more information, please refer to the Notice of AGM and the
2020 Annual Report, which can be found on the Company's website
under 'Shareholder Circulars' and 'Financial Reports'
respectively.
*S*
For further information on Oracle Power Plc, visit the Company's
website http://www.oraclepower.co.uk or contact
Oracle Power PLC
Naheed Memon - CEO +44 (0) 203 580 4314
Strand Hanson Limited (Nominated Adviser)
Rory Murphy, James Harris, Rob Patrick +44 (0) 20 7409 3494
Brandon Hill Capital Limited (Joint Broker)
Oliver Stansfield +44 (0) 203 463 5000
Shard Capital (Joint Broker)
Damon Heath, Isabella Pierre +44 (0) 20 7186 9952
St Brides Partners Limited (Financial PR)
Susie Geliher, Catherine Leftley +44 (0) 20 7236 1177
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014, which forms part of
United Kingdom domestic law by virtue of the European (Withdrawal)
Act 2018.
CHAIRMAN'S STATEMENT
I am pleased to present the results for Oracle Power Plc for the
year ended 31 December 2020.
2020 has proven to be a difficult year. The COVID 19 pandemic
has made travelling almost impossible for ourselves and our
partners. Whilst "Zoom" and "Teams" have both been useful tools for
sharing ideas and for formal meetings, nothing beats being able to
sit and discuss business face to face.
Notwithstanding the above, in September 2020 a meeting was
arranged between our consortium and the senior members of the
Private Power & Infrastructure Board (PPIB). This was Chaired
by Imran Khan's Special Advisor on Power and included a
representative of CPEC and a representative of the Ministry of
Energy. As a result of that meeting Oracle has been asked to assist
the Pakistan government in designing the framework for a
feasibility study into making gas and fertiliser from coal.
As I mentioned in my report last year, we have been approached
by a number of people who are involved in mining and power related
projects who feel that Oracle would be a symbiotic partner. Whilst
the Thar projects are, and should remain, our primary focus, we are
conscious of the need to have projects that have a faster
turnaround. To this end, in November 2020, we acquired two gold
licenses in Western Australia, the Jundee East Project and the
Northern Zone Project. Both licenses are in world class gold mining
districts and add an important new dimension and commodity exposure
to our shareholders
We were sad to lose Glen Lewis from the board who was a good fit
with Oracle. After six months, Glen decided to retire from the
board as a non-executive director as he felt that living and
working in Australia made attending Board meetings and being
available for management meetings at short notice difficult with
the time zone differences. In addition to this, Glen anticipated
that, as we start to expand our project portfolio, conflicts of
interest between his existing directorships and Oracle may
occur.
In December, we appointed Nicholas Lee as Company Secretary and
head of finance. Nick is a Chartered Accountant with extensive
experience both as a merchant banker but also as an advisor and
director with a number of listed companies.
I am also delighted that in March 2021 we appointed David
Hutchins as a Non-Executive director. David is a highly experienced
corporate mining and commodities professional. During his career he
has held several executive roles for both listed and private
companies and is currently the Chair of the FTSE Gold Mines Index
Committee. David currently sits on the Board of Wishbone Gold Plc
(AIM: WSBN), an Australian focussed gold specialist company
operating in exploration, mining, and bullion trading. David is
ideally suited to assisting us in the development of our gold
projects.
Financially we are in good health. We have substantially reduced
our fixed costs; we have a healthy bank account and we have not
needed to go to the market to raise funds for the day to day
running of the company.
Operational highlights of 2020 are described in the Chief
Executive's Report.
The Government of Imran Khan remains supportive of the
development of Thar coal and of relations with China. The broad
parameters of security remain as last year: there have been no
major incidents and, overall, the army has maintained order.
We are most grateful to the Pakistani Authorities at both
Federal and Provincial levels, to the Chinese Authorities through
China Coal and the Joint Cooperation Committee (JCC) of CPEC for
the constructive way in which they have all supported and continue
to support our project.
Above all, I wish to thank our shareholders for their continued
confidence, patience, and support, enabling us to move the project
towards realisation.
Mark W Steed
Chairman
CHIEF EXECUTIVE'S REPORT
I am pleased to present a report on the Company's progress for
the year ended 31 December 2020.
Oracle entered 2020 on the back of success, following the
finalisation of an important partnership with His Highness Sheikh
Ahmed Bin Dalmook Al Maktoum and China National Coal Development
Company. A consortium agreement detailing planned proportional
investments for the project at Thar, Pakistan, was signed in
February 2020. We proceeded to apply for an LOI (letter of intent)
for a 1320MW mine mouth power plant, to PPIB. The consortium
partners jointly paid the application fees, endorsing their role as
applicants and developers of Block VI. On issuance of the LOI, the
consortium will proceed to apply to NEPRA (National Electric Power
Regulatory Authority) for a cost plus tariff and generation
license.
After the breakthrough development in November 2019, with
respect to obtaining support for Coal to Gas (CTG) in CPEC,
significant progress was made towards the development of CTG and
CTL (coal to liquid) projects at Block VI, in 2020. China Coal,
Oracle's principal technical consortium partner, prepared a
pre-feasibility to mobilise work on these projects at Block VI. It
was also decided after discussions with the Ministry of Planning
and Development and the Ministry of Energy, that in order to
expedite CTG/L project development, a policy proposal based on
input received from China Coal, should be submitted to the
Government of Pakistan, in order for an appropriate commercial
incentive package for CTG/L projects to be approved.
Consequentially, consultants were engaged in December 2020 for this
task. Post period, this policy proposal was jointly submitted to
the Ministry of Energy (Petroleum Division) and it is expected that
a firm policy built on the commercial viability of CTG/L projects
would be made available to investors in 2021, so that they can
proceed with the feasibility studies. In the next phase, once
approval is given for the CTG/L policy by the Pakistan Cabinet,
China Coal will conduct a technical feasibility for CTG/L and the
consortium will engage with the Government to firm a pricing
structure that could potentially secure financing.
I can confirm that Oracle continued to make very good progress
in 2020 in Pakistan, overcoming delays and numerous Covid related
issues. We essentially upgraded the size and value of our project
in Pakistan, in preparation of an imminent critical gas shortage in
the country. Oracle has received tremendous support from the
Government of Pakistan for an enhanced development plan at Block VI
and during the course of 2020, the government of Pakistan endorsed
its support for a diversified usage of Thar Coal. In a meeting
called by the Special Assistant to the PM on Power, at the PPIB,
and attended by His Highness Sheikh Ahmed Bin Dalmook Al Maktoum,
the President of China Coal, and the Chairman of Oracle Power, the
Company presented this enhanced investment proposal to develop the
mine, power plant, CTG facility, urea manufacturing, and CTL
processing as part of an Industrial Park at Block VI, with a gross
value in excess of 6 billion USD. Oracle has moved from being a
mine and power plant developer to a mine and coal developer for
multiple uses and is now recognised as a committed and qualified
front runner for the development of Pakistan's principal indigenous
energy resource.
I am also very pleased to report that despite all challenges
presented by the ongoing pandemic, Oracle successfully diversified
its portfolio of projects, enhancing value for its shareholders by
extending its commodity focus and also mitigating single
jurisdiction risk. The economical acquisition of two gold projects
in Western Australia in November, amidst a global downturn, has we
believe increased the inherent value of the Company significantly.
We have made very quick progress in early-stage exploration within
months of acquiring the tenements. Post period results from these
two tenements have proved very positive and it is expected that
resource scale will be suitably estimated in 2021. Project
management and geological consulting have been set up in Perth and,
despite travel restrictions, the mining industry in WA has proved
to be very efficient and economically priced. Work on the ground
continues at a fast pace as drilling programs post surveys and
chemical testing are set up for 2021. The Company also shared a
development plan for the WA projects post period and we expect to
keep pace with our exploration goals in 2021.
Many proposals were shown to us for joint ventures and
acquisitions in Africa, South America, Europe and Asia during the
course of 2020 as we continue to establish ourselves as a reputable
and effective project development platform committed to high
returns in various growth sectors. I can confirm that the Company
deployed appropriate resources to assess various projects and
continues to do so.
The Company also took a decision to access financing through a
pre-paid subscription facility of GBP1.5 million and an arrangement
to have access to a further GBP45 million.
Unfortunately, 2021 has not yet signalled global economic
recovery in many parts of the world and travel still remains
restricted. However, our management model is conducive for working
remotely and outsourcing. Our business operations are strictly goal
oriented and the management structure remains lean.
Further, whilst global conditions remain uncertain, Oracle's
projects in Pakistan and Australia are centred on the development
of assets which provide a hedge against economic insecurity. In
Pakistan, Oracle's work has become more important as it can set up
ways for Pakistan to become self-sufficient in energy and even
food. Similarly, upon successful development of gold mines in WA,
the Company would deliver returns through production of a commodity
which sits on an upward trajectory of prices in a fragile financial
world. I am optimistic about the future and we see many
opportunities amidst the current global crisis.
I remain grateful to the Government of Pakistan for its
continuing support for the Block VI project, which we strongly
believe will produce cheaper abundant power and become an important
feedstock for Pakistan's agriculture sector in the future. I am
also indebted to many mining professionals in WA for their
dedication and efficient work on the ground. We would be unable to
develop these projects without their commitment to our success. I
would also like to express my gratitude to all those who support
Oracle in the UK, and help us to manage regulatory affairs, public
relations, accounting compliance, brokerage and market trading.
I also extend my greatest thanks to the shareholders for their
support and belief in the Company, and for placing their trust in
its management.
Ms Naheed Memon
Chief Executive Officer
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEARED 31 DECEMBER 2020
2020 2019
GBP GBP
CONTINUING OPERATIONS
Revenue - -
Administrative expenses (1,011,531) (1,087,623)
------------ ------------
OPERATING LOSS (1,011,531) (1,087,623)
Finance costs - (4,220)
Finance income 380 1,697
------------ ------------
LOSS BEFORE INCOME TAX (1,011,151) (1,090,146)
Income tax - -
------------ ------------
LOSS FOR THE YEAR (1,011,151) (1,090,146)
============ ============
Loss attributable to:
Owners of the parent (1,011,151) (1,090,146)
Non-controlling interests - -
------------ ------------
(1,011,151) (1,090,146)
============ ============
Loss per share expressed
in pence per share:
Basic (0.05) (0.08)
Diluted (0.05) (0.08)
============ ============
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEARED 31 DECEMBER 2020
2020 2019
GBP GBP
LOSS FOR THE YEAR (1,011,151) (1,090,146)
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified
to profit or loss:
Exchange difference on consolidation (154,070) (184,991)
Income tax relating to items of other
comprehensive income - -
------------ ------------
OTHER COMPREHENSIVE INCOME/(LOSS)
FOR THE YEAR, NET OF INCOME TAX (154,070) (184,991)
------------ ------------
TOTAL COMPREHENSIVE INCOME/(LOSS)
FOR THE YEAR (1,165,221) (1,275,137)
============ ============
Total comprehensive income/(loss)
attributable to:
Owners of the parent (1,165,221) (1,275,137)
Non-controlling interests - -
------------ ------------
(1,165,221) (1,275,137)
============ ============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2020
2020 2019
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 5,256,313 4,633,022
Property, plant and equipment 8,288 9,845
Loans and other financial assets 365,949 393,723
------------- -------------
5,630,550 5,036,590
------------- -------------
CURRENT ASSETS
Trade and other receivables 32,520 141,208
Cash and cash equivalents 1,554,424 413,858
------------- -------------
1,586,944
555,066 555,066
------------- -------------
TOTAL ASSETS 7,217,494 5,591,656
============= =============
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 2,146,862 1,759,751
Share premium 16,908,975 15,512,025
Translation reserve (686,305) (532,235)
Share scheme reserve 180,229 190,653
Retained earnings (12,454,922) (11,512,373)
------------- -------------
TOTAL EQUITY 6,094,839 5,417,821
============= =============
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 322,655 173,835
Borrowings 800,000 -
------------- -------------
TOTAL LIABILITIES 1,122,655 173,835
------------- -------------
TOTAL EQUITY AND LIABILITIES 7,217,494 5,591,656
============= =============
COMPANY STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2020
2020 2019
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 3,978,851 3,332,126
Property, plant and equipment 684 2,782
Investments 3,703,047 3,702,847
Loans and other financial assets 1,640,353 1,604,275
------------- ------------
9,322,935 8,642,030
------------- ------------
CURRENT ASSETS
Trade and other receivables 199,691 285,901
Cash and cash equivalents 1,535,665 384,058
------------- ------------
1,735,356 669,959
------------- ------------
TOTAL ASSETS 11,058,291 9,311,989
============= ============
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 2,146,862 1,759,751
Share premium 16,908,975 15,512,025
Share scheme reserve 180,229 190,653
Retained earnings (10,049,674) (9,067,436)
------------- ------------
TOTAL EQUITY 9,186,392 8,394,993
============= ============
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 1,071,899 916,996
Borrowings 800,000 -
------------- ------------
TOTAL LIABILITIES 1,871,899 916,996
------------- ------------
TOTAL EQUITY AND LIABILITIES 11,058,291 9,311,989
============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2020
Called up Retained Share Translation Share Non-controlling Total
scheme
share earnngs premium reserve reserve Total interests equity
capital
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January
2019 1,141,822 (10,422,227) 14,538,219 (347,244) 22,839 4,933,409 - 4,933,409
Loss for the
year - (1,090,146) - - - (1,090,146) - (1,090,146)
Other
comprehensive
income
Exchange
difference
on
consolidation - - - (184,991) - (184,991) - (184,991)
---------- ------------- ----------- ------------ --------- ------------ ---------------- ------------
Total
comprehensive
loss - (1,090,146) - (184,991) - (1,275,137) - (1,275,137)
Transactions
with
owners
Issue of share
capital 617,929 - 973,806 - - 1,591,735 - 1,591,735
Share warrants
granted - - - - 167,814 167,814 - 167,814
Total
transactions
with owners 617,929 - 973,806 - 167,814 1,759,549 - 1,759,549
---------- ------------- ----------- ------------ --------- ------------ ---------------- ------------
Balance at 31
December
2019 1,759,751 (11,512,373) 15,512,025 (532,235) 190,653 5,417,821 - 5,417,821
---------- ------------- ----------- ------------ --------- ------------ ---------------- ------------
Loss for the
year - (1,011,151) - - - (1,011,151) - (1,011,151)
Other
comprehensive
income
Exchange
difference
on
consolidation - - - (154,070) - (154,070) - (154,070)
---------- ------------- ----------- ------------ --------- ------------ ---------------- ------------
Total
comprehensive
loss - (1,011,151) - (154,070) - (1,165,221) - (1,165,221)
Transactions
with
owners
Issue of share
capital 387,111 - 1,396,950 - - 1,784,061 - 1,784,061
Share warrants
exercised - 68,602 - - (68,602) - - -
Share warrants
granted - - - - 58,178 58,178 - 58,178
---------- ------------- ----------- ------------ --------- ------------ ---------------- ------------
Total
transactions
with owners 387,111 68,602 1,396,950 - (10,424) 1,842,239 - 1,842,239
---------- ------------- ----------- ------------ --------- ------------ ---------------- ------------
Balance at 31
December
2020 2,146,862 (12,454,922) 16,908,975 (686,305) 180,229 6,094,839 - 6,094,839
========== ============= =========== ============ ========= ============ ================ ============
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2020
Called Retained Share Share Total
up scheme
share earnings premium reserve equity
capital
GBP GBP GBP GBP GBP
Balance at 1
January
2019 1,141,822 (8,001,171) 14,538,219 22,839 7,701,709
Loss for the
year - (1,066,265) - - (1,066,265)
---------- ------------- ----------- --------- ------------
Total
comprehensive
loss - (1,066,265) - - (1,066,265)
Transactions
with owners
Issue of share
capital 617,929 - 973,806 - 1,591,735
Share warrants
granted - - - 167,814 167,814
---------- ------------- ----------- --------- ------------
Total
transactions
with
owners 617,929 - 973,806 167,814 1,759,549
---------- ------------- ----------- --------- ------------
Balance at 31
December
2019 1,759,751 (9,067,436) 15,512,025 190,653 8,394,993
---------- ------------- ----------- --------- ------------
Loss for the
year - (1,050,840) - - (1,050,840)
---------- ------------- ----------- --------- ------------
Total
comprehensive
loss - (1,050,840) - - (1,050,840)
Transactions
with owners
Issue of share
capital 387,111 - 1,396,950 - 1,784,061
Share warrants
exercised - 68,602 - (68,602) -
Share warrants
granted - - - 58,178 58,178
---------- ------------- ----------- --------- ------------
Total
transactions
with
owners 387,111 68,602 1,396,950 (10,424) 1,842,239
---------- ------------- ----------- --------- ------------
Balance at 31
December
2020 2,146,862 (10,049,674) 16,908,975 180,229 9,186,392
========== ============= =========== ========= ============
CONSOLIDATED STATEMENT OF CASH FLOWS
31 DECEMBER 2020
2020 2019
GBP GBP
Cash flows from operating
activities
Cash generated from operations (807,883) (1,320,826)
Interest paid - (4,220)
---------- ------------
Net cash from operating activities (807,883) (1,325,046)
---------- ------------
Cash flows from investing
activities
Purchase of intangible fixed
assets (219,770) (70,949)
Purchase of tangible fixed
assets (2,513) (1,524)
Proceeds from disposal of
fixed assets - 941
Interest received 380 1,696
---------- ------------
Net cash from investing activities (221,903) (69,836)
---------- ------------
Cash flows from financing
activities
Proceeds of share issue 1,370,811 1,759,851
Proceeds from borrowings 800,000 -
---------- ------------
Net cash from financing activities 2,170,811 1,759,851
---------- ------------
Increase/(Decrease) in cash
and cash equivalents 1,141,025 364,959
Cash and cash equivalents
at beginning of year 413,858 48,899
Effect of foreign exchange (459) -
rate changes
---------- ------------
Cash and cash equivalents
at end of year 1,554,424 413,858
========== ============
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2020
2020 2019
GBP GBP
Cash flows from operating activities
Cash generated from operations (909,288) (1,397,684)
Interest paid - (4,220)
---------- ------------
Net cash from operating activities (909,288) (1,401,904)
---------- ------------
Cash flows from investing activities
Purchase of intangible fixed
assets (110,296) (19,310)
Purchase of tangible fixed
assets - (1,524)
Interest received 380 1,696
---------- ------------
Net cash from investing activities (109,916) (19,137)
---------- ------------
Cash flows from financing activities
Proceeds of share issue 1,370,811 1,759,851
Proceeds from borrowings 800,000 -
---------- ------------
Net cash from financing activities 2,170,811 1,759,851
---------- ------------
Increase/(Decrease) in cash
and cash equivalents 1,151,607 338,810
Cash and cash equivalents at
beginning of year 384,058 45,248
Effect of foreign exchange - -
rate changes
---------- ------------
Cash and cash equivalents at
end of year 1,535,665 384,058
========== ============
NOTES TO THE CONSOLIATED FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2020
1. STATUTORY INFORMATION
Oracle Power PLC is a public company, limited by shares and
registered and domiciled in England and Wales. It is the ultimate
holding company of the Oracle Power Plc Group. The Group is
primarily involved in an energy project, based on the exploration
and development of coal and building a mine-mouth power plant in
Pakistan. The presentation currency of the financial statements is
the Pound Sterling (GBP). The Company's registered number and
registered office address can be found on the General Information
page.
2. ACCOUNTING POLICIES
Going concern
The Directors have considered the cashflow requirements of the
Group over the next 12 months and believe there are sufficient
existing funds to meet overhead requirements. It will be necessary
to raise additional funds to bring the project to financial close.
The Directors expect to meet the funding requirements and therefore
believe that the going concern basis is appropriate for the
preparation of the financial statements.
The Directors have also considered the COVID-19 global pandemic
and whether any adjustments are required to reported amounts in the
financial statements. Subsequent to the reporting date with social
distancing and restrictions on travel and in person meetings
business has had to be carried out in a very different way which
can delay or stop critical decisions being made.
The Directors have been able to continue with aspects of the
project despite the restrictions put in place to deal with the
pandemic. They have been able to carry out all internal functions
as normal and progress the project.
Compliance with accounting standards
These financial statements have been prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union and IFRIC interpretations and with those parts of
the Companies Act 2006 applicable to reporting groups under
IFRS.
The financial statements have been prepared under the historical
cost convention.
Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management
to make judgements, estimates and assumptions that affect the
amounts reported for revenues and expenses during the year and the
amounts reported for assets and liabilities at the statement of
financial position date. However, the nature of estimation means
that the actual outcomes could differ from those estimates.
The key sources of estimation uncertainty that have a
significant risk of causing material adjustment to the carrying
amounts of assets and liabilities within the next financial year
are the measurement of any impairment on intangible assets and the
estimation of share-based payment costs.
The principal risk and uncertainty of the intangible assets
(exploration assets) is that the Group may not reach financial
close - as disclosed in Note 9. The board have tested the
intangible assets for impairment. For this test, the board
considered market values of the assets (where applicable); results
from technical and feasibility studies and reports; and the
possibility of future project options available. Based on this, the
board have concluded that no impairment provision is required.
The Group determines whether there is any impairment of
intangible assets on an annual basis.
At the balance sheet date, the intangible assets are carried
forward at their cost of GBP5,256,313.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 December each year. Control is
achieved where the Company has the power to govern the financial
and operating policies of an investee entity so as to obtain
benefits from its activities.
Business acquisitions have been accounted for in accordance with
IFRS 3, 'Business Combinations'. Fair values are attributed to the
Group's share of net assets. Where the cost of acquisition exceeds
the fair values attributed to such assets, the difference is
treated as purchased goodwill and is capitalised. In the case of
subsequent acquisitions of minority interests, the difference
between the consideration payable for the additional interest in
the subsidiary and the minority interest's share of the assets and
liabilities reflected in the consolidated statement of financial
position at the date of acquisition of the minority interest has
been treated as goodwill.
Intangible fixed assets - exploration costs
Expenditure on the acquisition costs, exploration and evaluation
of interests in licences, including related finance and
administration costs, are capitalised. Such costs are carried
forward in the statement of financial position under intangible
assets and amortised over the minimum period of the expected
commercial production of coal in respect of each area of interest
where:
a) such costs are expected to be recouped through successful
development and exploration of the area of interest or
alternatively by its sale;
b) exploration activities have not yet reached a stage that
permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves and active operations in relation
to the areas are continuing.
An annual impairment review is carried out by the Directors to
consider whether any exploration or development costs have suffered
impairment in value where a site has been abandoned or confirmed as
no longer technically feasible. Accumulated costs in respect of
areas of interest that have been abandoned are written off to the
profit and loss account in the year in which the area is
abandoned.
Exploration costs are carried at cost less any provision for
impairment.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less
accumulated depreciation. Depreciation is provided at the following
annual rates in order to write off each asset over its estimated
useful life.
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 20% on reducing balance
Computer equipment - 30% on reducing balance
Investments
Fixed asset investments are stated at cost. The investments are
reviewed annually and any impairment is taken directly to the
statement of profit or loss. Investments in subsidiaries are fully
consolidated within the Group financial statements.
Financial instruments
Financial assets and liabilities are recognised on the statement
of financial position when the Group becomes a party to the
contractual provisions of the instrument.
- Cash and cash equivalents comprise cash held at bank and short term deposits
- Trade payables are not interest bearing and are stated at their nominal value
- Receivables denominated in foreign currency are retranslated at the balance sheet date
- Equity instruments issued by the Company are recorded at the
proceeds received except where those proceeds appear to be less
than the fair value of the equity instruments issued, in which case
the equity instruments are recorded at fair value. The difference
between the proceeds received and the fair value is reflected in
the share based payments reserve.
Taxation
Current taxes are based on the results shown in the financial
statements and are calculated according to local tax rules, using
tax rates enacted or substantially enacted by the statement of
financial position date.
Deferred tax is recognised in respect of all timing differences
that have originated but not reversed at the statement of financial
position date.
Foreign currencies
Assets and liabilities in foreign currencies are translated into
sterling at the rates of exchange ruling at the statement of
financial position date. Transactions in foreign currencies are
translated into sterling at the rate of exchange ruling at the date
of transaction. Exchange differences are taken into account in
arriving at the operating result.
Profit and losses of overseas subsidiary undertakings are
translated into sterling at average rates for the year. The
statements of financial position of overseas subsidiary
undertakings are translated at the rate ruling at the statement of
financial position date. Differences arising from the translation
of Group investments in overseas subsidiary undertakings are
recognised as a separate component of equity.
Net exchange differences classified as equity are separately
tracked and the cumulative amount disclosed as a translation
reserve.
The principal place of business of the Group is the United
Kingdom with sterling being the functional currency. Funds are
advanced to Pakistan as required to finance the exploration costs
which are payable locally.
Leasing commitments
All leases held are either short-term leases or are for low
value assets. The rentals paid are charged to the statement of
profit or loss on a straight line basis over the period of the
lease.
Employee benefit costs
The group operates a defined contribution pension scheme.
Contributions payable to the group's pension scheme are charged to
the income statement in the period to which they relate.
Share-based payment transactions
Where equity settled share warrants are awarded to employees,
the fair value of the warrants at the date of grant is charged to
the statement of profit or loss over the vesting period. Non-market
vesting conditions are taken into account by adjusting the number
of equity instruments expected to vest at each statement of
financial position date so that, ultimately, the cumulative amount
recognised over the vesting period is based on the number of
warrants that eventually vest. Market vesting conditions are
factored into the fair value of all warrants granted. As long as
all other vesting conditions are satisfied, a charge is made
irrespective of whether market vesting conditions are satisfied.
The cumulative expense is not adjusted for failure to achieve a
market vesting condition.
Where terms and conditions of warrants are modified before they
vest, the increase in the fair value of the warrants, measured
immediately before and after the modification, is also charged to
the statement of profit or loss over the remaining vesting
period.
Where equity instruments are granted to persons other than
employees, the statement of profit or loss is charged with the fair
value of goods and services received.
Cash and cash equivalents
Cash and cash equivalents for the purpose of the cash flow
statement comprise cash and bank balances.
New standards and interpretations applied
In preparing these financial statements the Company has reviewed
all new standards and interpretations.
New Standards, Interpretations and Amendments effective from 1
January 2020
The following new and revised Standards and Interpretations have
been adopted in these financial statements but their adoption has
not had any significant impact on the amounts reported in these
financial statements:
- IFRS 3 Business Combinations (amended 2018)
- IFRS 7 Financial Instruments: Disclosures (amended 2019)
- IFRS 9 Financial Instruments (amended 2017)
- IAS 1 Presentation of Financial Statements (amended 2018)
- IAS 8 Accounting Policies (amended 2018)
The other new and revised Standards and Interpretations are not
considered to be relevant to the Company's financial reporting and
operations and are not detailed in these financial statements.
New Standards, Interpretations and Amendments that are not yet
effective and have not been adopted early
The following new and revised Standards and Interpretations are
relevant to the Company but not yet effective for the year
commencing 1 January 2020 and have not been applied in preparing
these financial statements:
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets (amended 2020)
- IFRS 9 Financial Instruments (amended August 2020)
- IFRS 7 Financial Instruments: Disclosures (amended 2020)
- IFRS 16 Leases (amended August 2020)
The Directors do not consider that the implementation of any of
these new standards will have a material impact upon reported
income or reported net assets.
3. SEGMENTAL REPORTING
The principal activity of the Group is an energy project, based
on the exploration and development of coal mining and building a
mine-mouth power plant in Pakistan. Group intangible non-current
assets of GBP4,694,855 (2019: GBP4,633,022) are attributable to the
project in Pakistan. The remaining Group intangible non-current
assets of GBP561,459 relate to an investment in Western Australia
for the exploration and future extraction of gold.
To-date the Group has raised a total GBP20.6m and spent GBP17.8m
on Thar Block VI and GBP0.6m on the Western Australia gold
project.
**ends**
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.
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
FR DLLFLFQLXBBZ
(END) Dow Jones Newswires
June 23, 2021 02:00 ET (06:00 GMT)
Oracle Power (LSE:ORCP)
過去 株価チャート
から 8 2024 まで 9 2024
Oracle Power (LSE:ORCP)
過去 株価チャート
から 9 2023 まで 9 2024
