REG - Petro Matad Ltd - Final Results <Origin Href="QuoteRef">MATD.L</Origin> - Part 3
29/06/2017 08:10
- Part 3: For the preceding part double click ID:nRSc5431Jb
financial obligations as they fall due.
The Group's approach to managing liquidity is to ensure, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Group's reputation.
The Group's objective is to ensure that sufficient funds are available to
allow it to continue its exploration activities.
The remaining contractual maturities of the Group's and parent entity's
financial liabilities are:
31 Dec 2016 31 Dec 2015
Note $'000 $'000
6 months or less 1,352 6,938
6-12 months - 498
1-5 years - -
over 5 years - -
1,352 7,436
All of the Group's amounts payable and receivable are current.
Further, the Group has exploration expenditure commitments on its PSCs as
disclosed in Note 16(b).
Fair Value of Financial Assets and Liabilities
The fair value of cash and cash equivalents and non-interest bearing financial
assets and financial liabilities of the Group approximate their carrying value
due to their short term duration.
Fair Value Hierarchy as at 31 December 2016
Level 1 Level 2 Level 3 Total
Financial Assets
Trade and other receivables - 5,155 - 5,155
Total - 5,155 - 5,155
Financial Liabilities
Trade and other payables - 1,352 - 1,352
Total - 1,352 - 1,352
Fair Value Hierarchy as at 31 December 2015
Level 1 Level 2 Level 3 Total
Financial Assets
Trade and other receivables - 1,358 - 1,358
Total - 1,358 - 1,358
Financial Liabilities
Trade and other payables - 7,436 - 7,436
Total - 7,436 - 7,436
The fair values of the financial assets and financial liabilities included in
the level 2 category above have been determined in accordance with generally
accepted pricing models based on a discounted cash flow analysis, with the
most significant inputs being the discount rate that reflects the credit risk
of counterparties.
20 Capital management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. The management of the Group
and the Group's capital is regularly reviewed by the Board. The capital
structure of the Group consists of cash and bank balances (Note 7) and equity
of the Group (comprising issued capital, reserves and retained earnings as
detailed in Notes 13 and 14). This is reviewed by the Board of Directors as
part of their regular Directors meetings.
The Group monitors its capital requirements based on the funding required for
its exploration activities in Mongolia and operations of the company.
The Group is not subject to externally imposed capital requirements.
21 Events after the reporting date
On 1 Feb 2017, following the withdrawal of Shell's Affiliate from Mongolia, $5
million was received from the Affiliate, which was in relation to an agreement
that such amount would be paid upon receipt of Mongolian government approval
for the reassignment of Block IV and V interests back to the Company which was
received on 15 December 2016 with the Protocol of Assignments signed on 18
January 2017.
On 24 March 2017, 197,500 shares were issued to directors and employees upon
exercise of options under the Group's Long Term Equity Incentive Plan (the
"Plan") with an exercise price per share of GBP0.11.
On 24 March 2017, 75,000 shares were awarded to a director upon exercise of
options under the Group's Plan with an exercise price per share of GBP0.0788.
On 24 March 2017, 16,000 shares were awarded to a director and employees upon
exercise of options under the Group's Plan with an exercise price per share of
GBP0.1975.
On 24 March 2017, 141,000 shares were awarded to employees upon exercise of
options under the Group's Plan with an exercise price per share of GBP0.0888.
On 8 May 2017, the Company announced a Private Placement/Convertible Note
arrangement with Bergen Asset Management, LLC (Bergen), which provides staged
private placements of up to US$43,200,000 worth of new ordinary shares in the
Company and a convertible instrument with a nominal value of US$2,000,000. The
staged private placements will occur over a period not exceeding 15-months and
the value of each tranche will range between $1.2 million - $3.0 million per
month, the precise amounts being subject to mutual agreement.
On 11 May 2017, the Company issued 5,651,951 commencement and collateral
shares to Bergen as part of the initial closing under the Private Placement
arrangement.
On 16 May 2017, the Company received $1,235,000 from Bergen for the first
tranche payment.
On 13 June 2017, the Company issued 9,507,963 new ordinary shares to Bergen in
relation to the first tranche payment.
On 14 June 2017, the Company received PSC extension approvals from MRPAM for
Blocks IV and V. These extensions are for two years to 29 July 2019. A further
extension of two years is allowed under the PSCs. The agreed financial
commitments for obtaining the extensions are US$5 million for Block IV and
US$2 million for Block V.
On 21 June 2017, the Company received $1,200,000 from Bergen for the second
tranche payment.
22 Auditors' remuneration
The auditor of Petro Matad Limited is Bentleys (WA) Pty Ltd.
31 Dec 2016 31 Dec 2015
Note $'000 $'000
Amounts received or due and receivable by Bentleys (WA) Pty Ltd for (2015: Deloitte):
- an audit or review of the financial report of the entity and any other entity in the Group 42 75
- other services in relation to the entity and any other entity in the Group - -
42 75
Amounts received or due and receivable by Deloitte Onch Audit LLC for:
- an audit or review of the financial report of subsidiary entities 39 39
- other services in relation to the subsidiary entities - -
39 39
81 114
23 Other Information
Registered Office:
Victory House
Douglas
Isle of Man
IM1 1EQ
This information is provided by RNS
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