Altona Energy plc recorded £11 million impairment of historic Australian coal assets as the company continues its transformation into an African-focused rare earths miner.
For the year ended 30 June 2020, Altona reduced loss before taxation to £228,000 compared with £11.6m during 2019.
The impairment of the intangible assets of £11,033,000 was due to Altona relinquishing its ownership of its three historic exploration licences in the Arckaringa Basin, southwest Australia.
As at 30 June 2020, the company had an overdraft of £99,000 compared with £96,000 at 30 June 2019. In December 2020, Altona reduced the balance to £50,000 and agreed an extension with its bank to 31 May 2021.
Since June 2020, the company has raised £661,000 during December 2020 and January 2021 from two placings and started its application for the LSE standard market.
Altona also signed heads of agreements to acquire majority shares in two rare earth projects in East Africa, and is negotiating two more possible acquisitions to complete its portfolio of rare earth mining assets. bit.ly/3r3v56R
The company today said it expected to appoint two further directors following two appointed during October and December 2020.
Chief executive Christian Taylor-Wilkinson said that the 12-month period had been one of great change for Altona after spending 15 years in Australian coal exploration.
In November 2019, the company decided not to renew its exploration licences on its three Arckaringa coal mining tenements in Australia because it did not own the petroleum exploration licence, which it had failed to acquire in 2012, and was unable to perform an in-situ gasification project.
The company decided to continue exploration in underground coal gasification but failed to raise sufficient funds, and then stopped all coal mining activities in Australia.
Altona’s new strategy is to generate profits in under three years and provide a return for long-term shareholders. The company hopes to acquire majority interests in multiple rare earths mining projects in Africa, primarily those holding deposits based in ionic clay.
Mr Taylor-Wilkinson added that a rare earth metals mining strategy would have far greater relevance for the world in the 21st Century.
“The company is poised at the juncture of a significant opportunity, which it hopes to be able to capitalise on in 2021.
“Should we gain the right level of funding we require and should the assets we are currently assessing ahead of acquiring, be as we expect them, then Altona will be in a position to start a journey that could take it to being a respected producer of rare earth metals within a few years.”