6 days ago
Irish exploration company Clontarf Energy cuts losses by 12%
Irish exploration company
Clontarf Energy
cut its losses by 12 per cent last year as it saw a reduction in administrative expenses.
The company, which was founded by
John Teeling
but is now run by one of his right-hand men, David Horgan, has operations in Ghana and Chad, as well as Bolivia, where it says there are 23 million metric tonnes of lithium – the mineral used to make electric vehicle batteries.
Financial results published on Friday show the group made a loss of £765,432 (€906,895) last year, which was down from £870,061 in the previous year. Administrative expenses came down from £696,452 to £591,823.
The company had net current liabilities of £579,263, which were down from £1,277,374 in 2023. 'These conditions ... represent a material uncertainty that may cast doubt on the group's ability to continue as a going concern,' the directors noted.
READ MORE
Included in current liabilities is an amount of £940,750 owed to directors in respect of their remuneration.
The group had a cash balance of £818,212 at the year end, which was up from £182,516 the year before. The directors said their projections 'indicate' that the group has sufficient cash to fund working capital requirements and develop existing projects.
As the group is not revenue or cash generating, it relies on raising capital from the public market. During the year the company raised £1,150,000 before expenses via placing of shares.
'Clontarf has successfully accessed the financial markets when necessary,' Mr Horgan said.
'Subject to technical verification of its exploration projects and permitting, Clontarf is confident of being able to source adequate funding, whether in London or Australia, for near to medium-term ongoing activities.
'Our preference, where possible, is to avoid dilution by relying on off-takers or EU institutions for necessary infrastructural support.'
Clontarf Energy has signed a petroleum agreement in relation to the Tano 2A Block in Bolivia, and it awaiting ratification by the Ghanian government.
As ratification has not yet been achieved, the directors, 'as a matter of prudence', wrote down 20 per cent of the carrying value of the block's historic expenditure. Accordingly, an impairment charge of £173,609 was recorded in the year.
