Argos Resources Ltd
Annual Report
Year ended 31 December 2020
Contents
Highlights
Joint
Managing D
Statutory information
and
Corporate governance
Strategy and business model
Risk management report
The board and committees
Directors
Going concern
Remuneration report
Group financial statements
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Notes to the consolidated financial statements
Parent Company accounts
Statement of financial position
Statement of cash flows
Statement of changes in equity
Notes to the accounts
Investor Information and advisors
Page
2
3
4
8
10
10
10
12
16
18
20
22
29
30
31
32
33-48
49
50
51
52-57
58
Argos Resources Ltd
Annual report 2020
Page 1
Highlights
Argos Resources Ltd (AIM: ARG.L), the Falkland Islands based exploration company focused on the
North Falkland Basin, announced its financial results for the year ended 31 December 2020 on 1 June
2021.
US$299,000 loss (2019: loss of US$401,000)
US$438,000 cash reserves at 31 December 2020 (31 December 2019: US$768,000)
In April 2021 the Falkland Islands Government agreed to a 12 month extension of the
Second Phase of the Licence, with no additional work commitments. The licence now
expires on 1 May 2022
$550,000 fund raising in April 2021 means the Group is fully funded for at least 12 months
from sign-off of these accounts
Argos Resources Ltd
Annual report 2020
Page 2
Joint
During the reporting period Brent crude oil prices plummeted from over $65 per barrel at year-end
2019 to a low of $20 per barrel in April 2020. The fall in prices was driven initially by competition from
OPEC for market share and then exacerbated later by the significant drop in global energy demand as
a result of the Covid-19 pandemic supressing oil and gas consumption globally.
The industry was hit hard by this unexpected sharp drop in demand and commodity prices, and
responded by reducing costs, cutting capital expenditure and delaying projects. Acknowledging this
slowdown in activity, the Company requested an extension to the Licence term as more time will be
required to recover from this downturn. In April 2021 the Falkland Islands government agreed to a
twelve month extension to the Second Phase of the Licence to 1st May 2022.
In April 2021 the Company also announced that, subject to shareholder approval, it had raised
$550,000 through the placing of new shares. Shareholder approval was obtained at a General Meeting
on 30th April. The fund raise, when added to existing cash rese
working capital requirements through the term of the Licence extension as well as costs expected to
By the end of 2020 Brent crude oil prices had recovered to $50 per barrel and had fully recovered to
the $65 per barrel range by April 2021. The oil industry is cautiously increasing activity in response to
this recovery albeit still being hampered by operational and logistical difficulties caused by the
continuing Covid-19 restrictions.
The Company continues to seek partners to participate in drilling on its Licence and is currently
engaged with a number of counterparties who have expressed interest. Given the current challenging
environment the Company believes it may be some time before any expressions of interest are
translated into commitments.
Ian Thomson
Chairman
28 May 2021
John Hogan
Managing Director
Argos Resources Ltd
Annual report 2020
Page 3
Statutory information
The directors submit their report and the consolidated financial statements of Argos Resources Ltd and
for the year ended 31 December 2020.
Principal activity
The principal activity of the Group is exploration for oil and gas in the area licensed to it in the North
Falkland Basin. The Licence covers an area of approximately 1,126 square kilometres and was extended
by 12 months by the Falkland Islands Government on 20 April 2021. The Licence now expires on 1 May
2022.
Results and dividend
The results for the year and the Group
financial statements. The directors have not recommended a dividend for the year (2019: $nil).
year-end are shown in the attached
Business review
The Group has returned a loss for the year ended 31 December 2020 of $299,000 (2019: loss of
$401,000) which equates to a loss per share of 0.14 cents (2019: loss per share of 0.18 cents).
Administration expenses were $303,000 in 2020 compared to $433,000 in 2019. The difference is due
largely to a one off $88,000 share-based payment charge for the extension of the options scheme in
2019 and the slowdown and reduced travel in 2020, experienced by the sector due to Covid-19.
2019, reflecting the administration costs. Cash in the year decreased from $768,000 to $438,000.
decreased from $29.5 million to $29.2 million in the year since 31 December
Outlook for the next financial year
The Group carried out a successful fund raise in April 2021 which will fund the continuing search for a
farmout partner and means that the Group is fully funded for the period of the licence extension, and
at least 12 months from sign-off of these accounts.
See Accounting Policy note 1 on page 34 for comments in relation to going concern.
Argos Resources Ltd
Annual report 2020
Page 4
Statutory information (continued)
Key performance indicators
At this stage in its development, the directors do not consider that standard industry key performance
indicators are relevant.
Principal risks and uncertainties
Risks in relation to financial instruments are explained within note 2 to the Group financial statements.
A discussion of other potential risks can be found in the risk management report on page 10.
Substantial shareholders
As at 5 May 2021, the Company has been notified of interests in 3% or more of the Company
rights, based on an issued share capital of 235,141,206, as shown below:
Shareholder/Fund manager
Ian Thomson
Iain Aylwin
Orian Partners LP
JP Morgan Asset Management (UK) Ltd
Portogon Investments SA
Robert Smith
Percentage of
voting rights
14.93
8.56
5.91
4.63
4.25
4.01
Directors and their interests
The interests of the directors and their immediate families and of persons connected with the directors,
within the meaning of the Acts, in the share capital of the Company are as follows:
Name
I M Thomson
J Hogan
A Irvine
D Carlton
C Fleming
J Ragg
Total
Chairman
Managing Director
Finance Director
Non-executive
Non-executive
Non-executive
At 31 December 2020
Ordinary shares of
2 pence each
28,544,701
3,000,000
2,125,000
3,750,000
2,625,000
200,000
At 31 December 2019
Ordinary shares of
2 pence each
28,544,701
3,000,000
2,125,000
3,750,000
2,625,000
200,000
40,244,701
40,244,701
Following the share subscription which took place after the year end and referred to in Note 17, Ian
Thomson subscribed for a further 6,558,182 new shares bringing the total shares held by him to
35,102,883.
The directors also hold options in the Company
on page 21.
Argos Resources Ltd
Annual report 2020
Page 5
Statutory information (continued)
agreements
The terms of the director
The Company entered into a service agreement with the executive directors Ian Thomson, John Hogan
and Andrew Irvine on 8 July 2010 setting out the terms of their employment following the admission
to AIM, which took place on 29 July 2010. The terms of the service contracts permit termination by
either party giving notice to the other of not less than 12 months in the case of Ian Thomson and John
Hogan and 6 months for Andrew Irvine. There are no specific entitlements on termination of any of
the employments concerned.
as follows.
Dennis Carlton, Christopher Fleming and James Ragg are engaged as non-executive directors upon the
terms of various letters of appointment, the principal terms of which are that each of them is
appointed for an initial term of up to three years commencing at the time of admission, subject to
early termination rights of not less than three mont
. Each non-executive
director has been duly re-elected on the expiration of their term in office.
Related party transactions
See note 14.
Events after the reporting date
See note 17.
Financial instruments
For the year under review the Group held no financial instruments outside of cash, payables and
receivables. The policies for financial risk management are disclosed in note 2.
Political and charitable contributions
The Group made no political or charitable donations in the year under review (2019: $nil).
Creditor payment policy
contractual obligations. Average creditor days for the year were 1 day (2019: 9 days), on the basis of
accounts payable (excluding retention held) as a percentage of purchase ledger turnover which
includes amounts capitalised.
capacity as directors, obtain independent
necessary to do so.
Employees
The Group employees consisted of three executive and three non-executive directors during the course
of the year who are included in the total staff numbers shown in note 5 to these accounts.
Health, safety and the environment
protection of the environment which adhere to all applicable laws and represent best practice.
the
Argos Resources Ltd
Annual report 2020
Page 6
Statutory information (continued)
Social and community
The Falkland Islands is a small community and the Company is conscious that the impact of its activities
on the country could be significant. The Company believes that working closely with the Falkland
Islands Government and seeking views through consultation with stakeholder groups should help to
ensure a positive impact from its operations on the Falkland Islands and its population.
Argos Resources Ltd
Annual report 2020
Page 7
financial statements
The directors are responsible for preparing the annual report and the Group and parent Company
financial statements in accordance with applicable law and regulations.
Company law, in the Falkland Islands requires the directors to prepare group and parent company
financial statements for each financial year. Under that law the directors have elected to prepare the
Group and parent Company financial statements in accordance with applicable law as it applies in the
Falkland Islands and International Financial Reporting Standards as adopted by the European Union
(IFRSs).
The financial statements are required to give a true and fair view of the state of affairs of the Group
and parent Company and of
profit or loss for that period. The directors are also required
to prepare financial statements in accordance with the rules of the London Stock Exchange for
companies trading securities on the Alternative Investment Market. In preparing each of the Group
and parent Company financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether the Group and parent Company financial statements have been prepared in
accordance with IFRSs as adopted by the European Union, subject to any material departures
disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the Group and parent Company will continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable
accuracy at any time the financial position of the Company and enable them to ensure that the
financial statements comply with the Companies Act 1985 as applied in the Falkland Islands by the
Companies (Amendment) Ordinance 2006. They are also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The directors are responsible for ensuring the annual report and the financial statements are made
available on a website. Financial statements are published on the Company s website in accordance
with legislation in the Falkland Islands governing the preparation and dissemination of financial
statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of
the Company s website is the responsibility of the directors. The directors responsibility also extends
to the ongoing integrity of the financial statements contained therein.
Statement as to disclosure of information to the auditor
Each director in office at the date of this report has confirmed, as far as he is aware, that there is no
relevant information of which the auditor is unaware. Each such director has confirmed that he has
taken all the steps that he ought to have taken as a director in order to make himself aware of any
relevant audit information and to establish that the auditor is aware of that information.
Argos Resources Ltd
Annual report 2020
Page 8
financial statements (continued)
Auditor
BDO LLP will be proposed for reappointment as auditors of the Company at the Annual General
Meeting of the Company in accordance with section 159 of the Companies Act 1948 as applied in the
Falkland Islands by the Companies Act (Amendment) Ordinance 2006.
On behalf of the board
Ian Thomson
Chairman
Date: 28 May 2021
Argos Resources Ltd
Annual report 2020
Page 9
Corporate governance
on corporate governance
As an AIM company, Argos Resources Ltd is required to adopt a recognised Corporate Governance
Code and the Company has chosen to apply the Quoted
Governance Code. The Company believes that high standards of corporate governance helps effective
and efficient decision-making, reduces risk and adds value, which is important for the long-term
benefit of all stakeholders.
Ultimate responsibility for the quality of, and approach to, corporate governance lies with the chair of
the board.
The board meets four times per year or more frequently if it needs to do so. There is a schedule of
matters reserved for board approval and this ensures that the board exercises control over all key
areas. Corporate Governance is a standing agenda item for each board meeting where directors
confirm their interests and related parties together with any external interests beyond a given
threshold. There is also an opportunity to raise any concerns in relation to corporate governance more
generally.
The Company has adopted an anti-
require any proposed share transaction by a director to be pre-approved by the Chairman. The
directors believe that these, the open and transparent process at board meetings and other more
informal updates helps to promote and monitor a healthy corporate culture which assists with meeting
The Company has followed the QCA recommended location for each of the 10 principles in terms of
report and accounts. The
annual report and accounts disclosures are detailed below and the website disclosures can be found
at http://www.argosresources.com/docs/arg-corporate-governance.pdf.
The following paragraphs describe how the company implements the key governance principles
contained within the QCA code in relation to the required disclosure in annual accounts.
Strategy and business model
The principal activity of the Group is exploration for oil and gas in the area licensed to it in the North
Falkland Basin. The Licence covers an area of approximately 1,126 square kilometres and the main
challenge and focus of the business going forward is to attract well-resourced partners to meet the
drilling commitment under the Licence.
Following a successful fund raise in April 2021 the Group is fully funded for at least 12 months from
sign-off of these accounts.
Risk management
number of factors.
and results could be materially adversely affected by a
Argos Resources Ltd
Annual report 2020
Page 10
Corporate Governance (continued)
General exploration risk
Whilst results in the surrounding area are encouraging with respect to the oil and gas potential of the
area and interpretation of the seismic data has indicated extensive prospectivity within the Argos
Licence area, no commercial volumes of oil or gas have yet been discovered and there is no certainty
that such discoveries will ever be made.
Mitigation: Although Noble and Edison withdrew from the Licence there is no indication that this was
due to a lack of prospectivity and the Company is actively seeking new partners to continue exploration
in the area covered by the Licence.
Licence risk
The Licence was extended by 12 months by the Falkland Islands Government on 20 April 2021 and
now expires on 1 May 2022. The licence requires a well to be drilled by 1 May 2022. There is a risk
that the licence will expire and not be extended.
Mitigation: In April 2021 an extension of the Licence was approved by the Executive Council of the
Falkland Islands Government and by the UK Secretary of State for Foreign and Commonwealth Affairs.
This approval extended the current Second Phase of the Licence to 1 May 2022. Argos continues to
discuss activity with the Falkland Islands Government and the Company is actively seeking new partners
to continue exploration in the Licence area.
Commercial risk
Even if quantities of oil or gas are discovered, there is a risk that these will not be developed.
Mitigation: The Company is actively seeking partners with strong financial backgrounds and track
records of expediting the process from commercial discovery to production.
Funding risk
There is a risk that funds run out before a partner is found.
Mitigation: Following a successful fund raise in April 2021 the Group is fully funded for at least 12
months from sign-off of these accounts, during which time the Company could seek to raise further
finance if required.
Political risk
The Argentine Government has not relinquished its claims to sovereignty over the Falkland Islands and
the surrounding maritime areas.
Mitigation: In a referendum, conducted in 2013, the Falkland Islanders voted unequivocally to remain
as a British Overseas Territory and the UK Government has stated that it has no doubt about its
sovereignty and remains fully committed to the offshore prospecting policy pursued by the Falkland
Islands Government.
Argos Resources Ltd
Annual report 2020
Page 11
Corporate Governance (continued)
The Board
The board members have a collective responsibility and legal obligation to promote the interests of
the company, and are collectively responsible for defining corporate governance arrangements.
The board (and committees) are provided with high quality information in a timely manner to facilitate
proper assessment of the matters requiring a decision or insight.
The board has an appropriate balance between executive and non-executive directors, with three
independent non-executive directors. All board appointments are for a maximum of three years, with
two directors offering themselves up for re-election, by rotation, at each AGM.
number of t
considers, however, that the benefit of his experience and long involvement with business in the
Falkland Islands more than outweighs the benefits of an independent chairman.
The policy for managing financial risks is set by the board following recommendations from the Finance
Director but the Company has no formal policy on the management of other types of risk as the
directors are the only employees and as such decisions on risk are not delegated but assessed by the
board in relation to all key management decisions.
Whilst the non-executive directors are shareholders in the Company and hold options to acquire
shares in the Company, this is not considered a significant threat to their independence and the Board
is satisfied that it has a suitable balance between independence on the one hand, and knowledge of
the Company on the other, to enable it to discharge its duties and responsibilities effectively.
Dennis Carlton is the senior non-executive director. Dennis is considered a valuable member of the
Board and his experience in the oil industry more than outweighs any perceived loss of independence
due to the time he has served as non-executive.
Should shareholders have concerns which have not been adequately addressed by the chairman or
managing director, he can be contacted by sending an email to info@argosresources.com. The same
address can also be used to contact James Ragg, chairman of the audit committee.
The board has agreed to meet four times per year or more frequently if it needs to do so. There is a
schedule of matters reserved for board approval and this ensures that the board exercises control over
all key areas.
The Chairman meets on an individual basis with the head of the Audit Committee at least monthly. In
addition, individual telephone meetings are held with the Senior non-executive director on a bi-
monthly basis.
tage of development the
board do not believe that any formal procedures beyond this are necessary. No significant changes
took place following discussions which took place during 2020.
Argos Resources Ltd
Annual report 2020
Page 12
Corporate Governance (continued)
The Company complies with Rule 21 of the AIM Rules for Companies regarding dealings in the
Audit committee
The audit committee comprises James Ragg (committee chairman), Dennis Carlton and Chris Fleming.
The board considers all three members of the committee to be independent and is satisfied that at
least one, James Ragg, has recent and relevant financial experience.
The committee invites the remainder of the board and the external auditor to attend its meetings as
observers. It meets the external auditor, in the absence of the remainder of the board, at least once
per year.
The role and responsibilities of the audit committee have been set out in written terms of reference
which are principally:
risk assessment, particularly, but not exclusively, in respect of financial reporting risks;
oversight of financial reporting;
evaluation of internal and external audit processes; and
development and implementation of policy on the provision of non-audit services by the
external auditor.
The audit committee has established procedures by which concerns regarding accounting or audit
by sending an email to info@argosresources.com.
The audit committee has considered the need for an internal audit function and regards this as
The audit committee makes recommendations to the board regarding the appointment,
reappointment and removal of external auditors. At the Annual General Meeting the shareholders
are requested to authorise the audit committee to fix the remuneration of the external auditors.
The audit committee recognises that, for smaller companies, it is cost-effective to procure certain non-
audit services from the external auditor but there is a need to ensure that provision of such services
therefore put in place a written policy on the use of external auditors which includes clear limits on
the level of non-audit work beyond which the chairman of the audit committee must be consulted
before the assignment can be awarded to the external auditor.
The audit committee was satisfied throughout the year
independence were in no way impaired by the nature of the non-audit work undertaken or any other
factors including the level of non-audit fees charged.
Argos Resources Ltd
Annual report 2020
Page 13
Corporate Governance (continued)
The audit committee held one meeting during the year and during that meeting the following items
were considered:
the audit
in relation to the annual report:
report to members of the audit committee; and,
changes in accounting policies and practices;
judgement areas and accounting issues which are of a subjective nature;
significant adjustments resulting from the audit;
the going concern position of the company for a period of 12 months from the date of
approval of the accounts;
whether there is any indication of impairment to the carrying value of the capitalised
exploration expenditure;
compliance with accounting standards;
compliance with the
AIM Rules and regulatory requirements;
compliance with corporate governance requirements;
narrative elements; and,
the draft RNS and annual report.
,
During the period since the year end one further meeting has been held.
Remuneration committee
Board performance is subject to regular review, as well as that of its committees and the individual
directors.
The Chairman meets with the non-executive directors annually, without the other executive directors
present, to evaluate executive director performance in terms of contribution and commitment. In
addition the Chairman also considers the non-executive director performance in terms of contribution
and independence.
The Remuneration Committee meets annually to review the terms, conditions and performance of the
directors.
Nominations committee
The board considers that, at its current stage of development, the Company does not require a
separate nominations committee. The functions of that committee, namely consideration of any new
appointments of directors to the board and succession planning, are carried out by the board as a
whole.
believe that it is necessary to have any formal structure in place to deal with succession planning.
he board do not
No appointments to the board were made in the year under review.
Argos Resources Ltd
Annual report 2020
Page 14
Corporate Governance (continued)
Internal controls
The board of
system of internal control.
The system of internal control is designed to mitigate rather than eliminate risk and therefore provides
reasonable rather than total assurance against material misstatement or loss.
development, to implement an internal audit capability.
The Directors are expected to devote sufficient time to carry out their duties. Briefings take place
where directors are unable to attend a meeting to ensure that all contributions are considered.
I M Thomson (Chairman)
J Hogan
A Irvine
D Carlton (chairman, remuneration
committee)
C Fleming
J Ragg (chairman, audit committee)
Total meetings during the year
Board
meetings
5
5
5
5
2
5
5
Audit
committee
meetings
-
-
-
Remuneration
committee
meetings
-
-
-
1
1
1
1
1
1
1
1
Argos Resources Ltd
Annual report 2020
Page 15
Corporate Governance (continued)
Directors
The board believes that there is an appropriate balance of sector, financial and public markets skills and
experience, as well as an appropriate balance of personal qualities and capabilities. The Board supports
members in their efforts to keep up to date with changing regulations and practices largely through Continuing
Professional Development (CPD) as required by relevant professional body memberships. Given the size and
monitoring of the development or mentoring needs of individual directors is necessary, beyond the annual
informal assessment carried out by the Chairman. Details of individual board members are listed on the
following pages, together with their qualifications, external appointments and any committee positions that they
hold.
Ian Thomson OBE
Executive Chairman (aged 81)
Skills and experience
Ian, a Chartered Engineer, founded Argos in 1995. After an early career in the mining and energy equipment
industry, he became
in the UK and Europe.
External appointments
He is a director of a number of Falkland Islands and overseas companies engaged in fishing and other operations.
Committee membership
None
John Hogan
Managing Director (aged 68)
Skills and experience
John joined the board in 2005. John is a qualified geologist who has spent over 40 years in the oil industry. He
was Chief Operating Officer of LASMO PLC and Managing Director of LASMO North Sea between 1989 and 2000.
Since 2000, he has been active at board level in a number of privately held and quoted energy businesses
internationally.
Committee membership
None
Andrew Irvine FCCA
Finance Director (aged 59)
Skills and experience
Drew joined the board in 2005. After qualifying as a Chartered Certified Accountant in Scotland, Drew managed
the Pannell Kerr Foster related accounting practice in the Falkland Islands. Drew is now a Falkland Islands
resident and is a director of a number of Falkland Island companies.
Argos Resources Ltd
Annual report 2020
Page 16
Corporate Governance (continued)
External appointments
He is a director of Argos Group Limited, a Falkland Islands fishing quota holder, a member of the board of the
Falkland Islands Fishing Companies Association and chairman of the Falkland Islands Pensions Scheme.
Committee membership
None
Dennis Carlton
Senior Non-executive Director (aged 70)
Skills and experience
Dennis joined the board in 2005, having served on the board of Argos Exploration since 1995. Dennis is a qualified
petroleum geologist and has been involved with the North Falkland Basin since 1995. He was Chief Operating
Officer of Evergreen Resources Inc. between 1981 and 2004, and following its merger, Vice President of
Exploration, Western Division for Pioneer Natural Resources USA Inc. until 2008.
External appointments
He is currently consulting for a number of other private companies operating in the energy and other sectors.
Committee membership
Dennis is a member of the Audit Committee and Chairman of the Remuneration Committee.
Christopher Fleming
Non-executive Director (aged 61)
Skills and experience
Christopher joined the board in 2008. Christopher graduated from Aberdeen University with an M.A. in
Economics and Law and joined Morgan Grenfell in 1985. Between 1987 and 2005 he was involved in the
development of the Gilt Sales operations of Bankers Trust, Deutsche Bank and SBC Warburg as Head of
Government Bond Sales of each of the banks. From 2005 to 2009 he was Head of EMEA Flow Rates, Credit and
Currency Sales for RBS Global Markets and retired as Head of Global Markets EMEA Sales for Nomura
International PLC in August 2016. In June 2017 Chris returned to Nomura as Vice Chairman of EMEA Wholesale.
External appointments
Christopher is Chairman and co-founder of mentorxchange", a company set up in 2016.
Committee membership
Christopher is a member of the Audit Committee and a member of Remuneration Committee.
Argos Resources Ltd
Annual report 2020
Page 17
Corporate Governance (continued)
James Ragg LLB, FCA
Non-executive Director (aged 54)
Skills and experience
James joined the board in 2008. James qualified as a Chartered Accountant in 1995, and after eight years with
Saffery Champness, joined a Haines Watts accountancy practice as an audit and assurance partner in 2004. He
subsequently managed the de-merger of his firm from Haines Watts and its renaming as Blue Spire South LLP
where he was a Management Partner until September 2012, and a non-executive partner until September 2013.
External appointments
He is currently heading up the finance and development operations for a group of private companies.
Committee membership
James is Chairman of the Audit Committee and a member of the Remuneration Committee.
Going concern
The financial statements have been prepared on the going concern basis as, in the opinion of the
directors, there is a reasonable expectation that the Group and the Company will continue in
operational existence for the foreseeable future.
On 7 April 2021 the Company announced that it had conditionally raised US$550,000 through a
subscription by certain new shareholders and Ian Thomson, Executive Chairman of the Company and
the Fundraise was ratified by the passing of the required Resolutions at a General Meeting held on 30
April 2021.
On 20 April 2021 the Falkland Islands Government agreed an extension the second term of the
Company's PL001 Licence by twelve months, to 1 May 2022.
Following the successful fund raise in April 2021 the Group has sufficient cash resources to continue
for at least 12 months from sign-off of these accounts.
on finding an exploration partner. The Group continues to seek partners to participate in drilling on its
Licence and is currently engaged with a number of counterparties who have expressed interest.
However, given the current challenging environment the Group believes it may be some time before
any expressions of interest are translated into commitments and further extensions to the Licence
term may be required.
In order to continue as a going concern beyond the current Licence term, which expires on 1 May
2022, the Company will need to raise further finance, either through a farmout partner or by raising
funds in an equity issue.
Argos Resources Ltd
Annual report 2020
Page 18
Corporate Governance
Going concern (continued)
Should the Directors be unable to raise sufficient funds, find an exploration partner, or negotiate
further Licence extensions the Group may be unable to realise its assets and discharge its liabilities in
the normal course of business.
These factors indicate the existence of a material uncertainty which may cast significant doubt over
concern. The financial statements do not include the
adjustments that would result if the Group was unable to continue as a going concern.
See also Accounting Policy note 1 on page 34.
Capital
Capital is managed to ensure that the Group is able to continue as a going concern. The Group is not
subject to any externally imposed capital requirements.
Argos Resources Ltd
Annual report 2020
Page 19
Corporate Governance (continued)
Remuneration report
The remuneration committee comprises Dennis Carlton (committee chairman), Chris Fleming and
James Ragg. The board considers that all members of the remuneration committee are independent.
directors in order to ensure that all members of the executive management of the Company are
provided with appropriate incentives to encourage enhanced performance.
The committee met formally once during the year under review and held a number of informal
discussions. The committee did not recommend any changes to remuneration for executive members
of the Board.
I M Thomson
J Hogan
A Irvine
D Carlton
C Fleming
J Ragg
remuneration
Remuneration above
2020
2020
2020
Pension
contributions
Fees
Total
2019
Fees and
total
-
50
20
10
10
10
100
128
-
-
1
-
-
-
1
2
-
50
21
10
10
10
-
99
21
19
10
20
101
169
130
218
Argos Resources Ltd
Annual report 2020
Page 20
Corporate Governance
Remuneration report (continued)
Share options
On 5 November 2019 the Board resolved to amend the terms of any options (the "Options"), held by
the current directors, which had not been exercised prior to the original expiry date of 11 November
2019. The option expiry date was extended by 5 years to 11 November 2024. No other amendments
were made to the terms of the Options.
The share options in place as at 31 December 2020 and held by directors are as follows:
Date of grant
12/11/2009
12/11/2009
12/11/2009
Number of
options
brought
forward
4,805,818
875,000
1,025,000
6,705,818
Exercised
during the
year
Number of
options carried
forward
Exercise
price
(pence)
-
-
-
-
4,805,818
875,000
1,025,000
6,705,818
2
2
2
J Hogan
D Carlton
J Ragg
Total
Argos Resources Ltd
Annual report 2020
Page 21
Opinion on the financial statements
In our opinion:
the Group financial statements have been properly prepared in accordance with IFRSs as
adopted by the European Union;
the Parent Company financial statements have been properly prepared in accordance with
IFRSs as adopted by the European Union and as applied in accordance with the Companies
Act 1985 as it applies in the Falkland Islands by virtue of the Companies (Amendment)
Ordinance 2006; and
the financial statements have been prepared in accordance with the requirements of the
Companies Act 1985 as it applies in the Falkland Islands by virtue of the Companies
(Amendment) Ordinance 2006.
statement of comprehensive income, the Consolidated and Parent Company statements of financial
position, the Consolidated and Parent Company statements of cash flows, the Consolidated and
Parent Company statements of changes in equity and notes to the financial statements, including a
summary of significant accounting policies. The financial reporting framework that has been applied in
the preparation of the Group financial statements is applicable law and International Financial
Reporting Standards (IFRSs) as adopted by the European Union and, as regards the Parent
Company financial statements, as applied in accordance with the Companies Act 1985 as it applies in
the Falkland Islands b
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs
(UK)) and applicable law. Our responsibilities under those standards are further described in the
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Group and the Parent Company in accordance with the ethical
Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Material uncertainty related to going concern
We draw attention to note 1 to the financial statements which explains that the Group and Parent
continue as a going concern is dependent on the finding of an exploration partner,
obtaining further funding and negotiating further License extensions. As stated in note 1, these events
or conditions, along with other matters as set out in note 1, indicate that a material uncertainty exists
concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have
basis of accounting in the preparation of the financial statements is appropriate.
We considered going concern to be a Key Audit Matter based on our assessment of the risk and the
effect on our audit.
Argos Resources Ltd
Annual report 2020
Page 22
to adopt the going concern basis of accounting and in response to the Key Audit Matter included:
We have obtained and reviewed the cash flow forecasts which cover the period to December 2022
and compared the forecast overhead expenditure with actual historic expenditure.
We have performed sensitivity analysis on the cash flow forecasts produced by management to
determine the level of headroom in the model.
We have verified the current cash position of the Group by agreeing to bank statements.
We discussed with management their plans regarding finding an exploration partner and confirmed
they have included expenditure in their forecast to assist them achieve this.
We have obtained and reviewed the correspondence from the Falkland Islands Government
approving the extension of the licence from May 2021 to May 2022 and we have reviewed the
terms of the licence to check that it had been reassigned to Argos and to check the period that it
covers.
We have reviewed the disclosures throughout the financial statements to determine if these are
Our responsibilities and the responsibilities of the Directors with respect to going concern are described
in the relevant sections of this report.
Overview
Coverage1
Key audit matters
Materiality
100% (2019: 100%) of Group loss before tax
100% (2019: 100%) of Group total assets
2020
2019
Going concern
Valuation of
intangible assets
Group financial statements as a whole
$450,000 (2019: $450,000) based on 1.5% (2019: 1.5%) of
Total assets.
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including
statements. We also addressed the risk of management override of internal controls, including
assessing whether there was evidence of bias by the Directors that may have represented a risk of
material misstatement.
The Group audit team performed a full scope audit of Argos Resources Limited and Argos Exploration
Limited, being the Parent Company and wholly owned subsidiary respectively.
1 These are areas which have been subject to a full scope audit by the group engagement team
Argos Resources Ltd
Annual report 2020
Page 23
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) that we identified, including those which
had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and
directing the efforts of the engagement team. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. In addition to the matter described in the Material uncertainty related
to going concern section of our report, we have determined the matter below to be the key audit matter
to be communicated in our report.
Our application of materiality
Argos Resources Ltd
Annual report 2020
Page 24
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality,
we use a lower materiality level, performance materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we
also take account of the nature of identified misstatements, and the particular circumstances of their
occurrence, when evaluating their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole
and performance materiality as follows:
for
Materiality
Basis
determining
materiality
Rationale for the
benchmark
applied
Performance
materiality
Basis
determining
performance
materiality
Group financial statements
Parent company financial
statements
2020
$450,000
1.5% of
assets
total
2019
$450,000
1.5% of
assets
total
2020
$180,000
1.5% of
assets
total
2019
$337,500
75% of Group
materiality
We determined that an asset based measure is
ity is the
exploration and development of oil and gas assets
company, such that the asset base is considered
to be a key financial metric for users of the financial
statements.
$340,000
$337,500
$135,000
Calculated as a
of
percentage
group materiality
the
given
assessment
of
aggregation risk.
$253,000
for
75% of materiality was considered a reasonable basis, taking into
consideration:
the expected value of misstatements was likely to be low based
on past experience;
there are few accounts which are subject to estimation;
the components are all based within one location and there are
no brought forward adjustments from the prior period.
We also determined that for the statement of comprehensive income, a misstatement of less than
materiality for the financial statements as a whole, specific materiality, could influence the economic
decisions of users. As a result, we determined materiality for these items to be $30,000 (2019: $40,000)
based on 10% of loss after tax. We further applied a performance materiality level of 75 % of specific
materiality
omponent materiality
The Group comprises the ultimate parent Company, Argos Resources Ltd, and its wholly owned
subsidiary Argos Exploration Ltd. Materiality for the subsidiary, Argos Exploration Limited has been set
at $340,000 (2019: $337,500) on a similar basis of 75% of Group materiality.
Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit differences in
excess of $22,500 (2019: $22,500). We also agreed to report differences below this threshold that, in
our view, warranted reporting on qualitative grounds.
Argos Resources Ltd
Annual report 2020
Page 25
Other information
The directors are responsible for the other information. The other information comprises the information
included in the annual report oth
opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit, or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact.
We have nothing to report in this regard.
Other Falkland Islands company law reporting
Based on the responsibilities described below and our work performed during the course of the audit,
we are required by the Falkland Islands company law and ISAs (UK) to report on certain opinions and
matters as described below.
on
Matters
which we are
to
required
report
by
exception
We have nothing to report in respect of the following matters in relation to
which the Falkland Islands company law requires us to report to you if, in our
opinion:
adequate accounting records have not been kept by the Parent
Company, or returns adequate for our audit have not been received
from branches not visited by us; or
the Parent Company financial statements are not in agreement with
the accounting records and returns; or
made; or
we have not received all the information and explanations we require
for our audit.
ot
Responsibilities of Directors
statements, the Directors are responsible for the preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such internal control as the Directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
applicable, matters related to
going concern and using the going concern basis of accounting unless the Directors either intend to
liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but
to do so.
Argos Resources Ltd
Annual report 2020
Page 26
responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
eport that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect
of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory framework applicable to the Group and
the industry in which it operates and considered the significant laws and regulations to be those
relating to the industry, financial reporting framework, tax legislation and the listing rules;
We held discussions with management and the Board to consider any known or suspected
instances of non-compliance with laws and regulations or fraud identified by them;
Reviewing minutes from board meetings of those charged with governance to identify any
instances of non-compliance with laws and regulations;
Assessing the susceptibility of the Group's financial statements to material misstatement, including
how fraud might occur;
In response to the risk of management override of control, we identified and tested any large or
unusual (those with key risk characteristics) journal entries made in the year;
We reviewed estimates and judgements applied by Management in the financial statements to
assess their appropriateness and the existence of any systematic bias (refer to key audit matter
above); and
Communicating relevant identified laws and regulations and potential fraud risks to all audit team
members and remained alert to any indications of fraud or non-compliance with laws and
regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial
statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than
the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit
procedures performed and the further removed non-compliance with laws and regulations is from the
events and transactions reflected in the financial statements, the less likely we are to become aware of
it.
www.frc.org.uk/auditorsresponsibilities.
Argos Resources Ltd
Annual report 2020
Page 27
Use of our report
235 of the Companies Act 1985 as it applies in the Falkland Islands by virtue of the Companies
(Amendment) Ordinance 2006. Our audit work has been undertaken so that we might state to the
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
work, for this report, or for the opinions we have formed.
BDO LLP, Statutory Auditor
London, UK
28 May 2021
Argos Resources Ltd
Annual report 2020
Page 28
Consolidated statement of comprehensive income
Year ended 31 December 2020
Administrative expenses
Finance income
Foreign exchange gains
Note
4
(Loss) for the year attributable to owners of
the parent
Total comprehensive (loss) for the
period attributable to owners of the parent
Basic and diluted (loss) per share (cents)
9
The notes on pages 33 to 48 form part of the financial statements.
Year
ended
Year
ended
31 December
31 December
2020
$
(303)
1
3
2019
$
(433)
4
28
(299)
(401)
(299)
(0.14)
(401)
(0.18)
Argos Resources Ltd
Annual report 2020
Page 29
Consolidated statement of financial position
As at 31 December 2020
Note
2020
2019
Assets
Non-current assets
Exploration intangible assets
Current assets
Other receivables
Cash and cash equivalents
Total current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Total liabilities
Total net assets
Capital and reserves attributable to
equity holders of the Company
Share capital
Share premium
Retained losses
10
11
12
13
28,815
28,815
28,737
28,737
40
438
478
86
768
854
29,293
29,591
59
59
58
58
29,234
29,533
6,696
30,071
(7,533)
6,696
30,071
(7,234)
29,234
29,533
The notes on pages 33 to 48 form part of the financial statements.
These financial statements were approved by the directors and authorised for issue on 28 May 2021
and are signed on their behalf by:
I M Thomson
Chairman
Argos Resources Ltd
Annual report 2020
Page 30
Consolidated statement of cash flows
Year ended 31 December 2020
Cash flows from operating activities
(Loss) for period before taxation
Adjustments for:
Finance income
Foreign exchange (gains)
Share based remuneration expensed
Net cash (outflow) from operating activities
before changes in working capital
Decrease in other receivables
Increase/(Decrease) in other payables
Net cash outflow from operating activities
Investing activities
Interest received
Exploration and development expenditure
Net cash (used) in investment activities
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Exchange gains on cash and cash equivalents
Cash and cash equivalents at end of the year
Note
Year
ended
Year
ended
31 December
31 December
2020
$
(299)
(1)
(3)
-
2019
$
(401)
(4)
(28)
89
(303)
(344)
1
1
(301)
1
(33)
(32)
(333)
768
3
438
377
(3)
30
4
(82)
(78)
(48)
788
28
768
The notes on pages 33 to 48 form part of the financial statements.
Argos Resources Ltd
Annual report 2020
Page 31
Consolidated statement of changes in equity
Year ended 31 December 2020
At 1 January 2019
Total comprehensive income for
the year
Share based income expense
Share based income adjustment
for expired options
At 31 December 2019
and 1 January 2020
Total comprehensive income for
the year
Share
capital
Share
premium
Retained
losses
Total
equity
6,696
30,071
(6,899)
29,868
-
-
-
-
-
-
(401)
89
(23)
(401)
89
(23)
6,696
30,071
(7,234)
29,533
-
-
(299)
(299)
At 31 December 2020
6,696
30,071
(7,533)
29,234
The share premium reserve comprises the amount subscribed for share capital in excess of its nominal
value.
Retained losses represent the accumulated gains and losses recognised in the financial statements and
the share payment reserve.
The notes on pages 33 to 48 form part of the financial statements.
Argos Resources Ltd
Annual report 2020
Page 32
Notes to the consolidated financial statements
Year ended 31 December 2020
1 Accounting policies
The Group and its operations
Argos Resources Ltd is an AIM quoted, limited liability company. The Group comprises the ultimate
parent Company, Argos Resources Ltd, and its wholly owned subsidiary Argos Exploration Ltd. Argos
Resources Ltd is incorporated and domiciled in the Falkland Islands under registration number 10605.
The address of its registered office is Argos House, H Jones Road, Stanley, Falkland Islands, FIQQ 1ZZ.
The principal activity of the Group is exploration for oil and gas in the area licensed to it in the North
Falkland Basin. The Licence covers an area of approximately 1,126 square kilometres and was extended
by 12 months by the Falkland Islands Government on 20 April 2021. The Licence now expires on 1 May
2022.
Statement of compliance
The consolidated financial statements are prepared in compliance with International Financial
Reporting Standards as adopted by the European Union (IFRSs) and interpretations of those standards
as issued by the International Accounting Standards Board, and applicable legislation. The
consolidated financial statements were approved for issue by the board of directors on 28 May 2021
and are subject to adoption at the Annual General Meeting of shareholders which is expected to be
held in Stanley, Falkland Islands, in October 2021.
Basis of preparation
These financial statements have been prepared under the historical cost convention, using the
accounting policies set out below, which have been consistently applied unless stated otherwise. The
functional and presentational currency of the parent and subsidiary companies is considered to be US
Dollars (US$). All values are rounded to the nearest thousand D
indicated.
The following new standards, amendments and interpretations are effective for the first time for
periods beginning on or after 1 January 2020 but have not had a material effect on the Group and so
have not been discussed in detail in the notes to the financial statements:
IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in
Disclosure Initiative - Definition of Material);
Accounting Estimates and Errors (Amendment
IFRS 3 Business Combinations (Amendment
Definition of Business);
Conceptual Framework for Financial Reporting (Revised); and,
Phase 1.
IBOR Reform and its Effects on Financial Reporting
Argos Resources Ltd
Annual report 2020
Page 33
Notes to the consolidated financial statements
Year ended 31 December 2020
Accounting policies (continued)
There are a number of standards, amendments to standards, and interpretations which have been
issued by the IASB that are effective in future accounting periods that the group has decided not to
adopt early. The most significant of these is as follows:
Covid-19-Related Rent Concessions
IBOR Reform and its Effects on Financial Reporting
Amendment to IFRS 16;
Phase 2;
Onerous Contracts
Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16);
Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16
Cost of Fulfilling a Contract (Amendments to IAS 37);
and IAS 41); and,
References to Conceptual Framework (Amendments to IFRS 3).
The directors have assessed the impact of the above amendment and do not believe that it will have
any impact on the Group reporting.
Going concern
The financial statements have been prepared on the going concern basis as, in the opinion of the
directors, there is a reasonable expectation that the Group and the Company will continue in
operational existence for the foreseeable future.
On 7 April 2021 the Company announced that it had conditionally raised US$550,000 through a
subscription by certain new shareholders and Ian Thomson, Executive Chairman of the Company and
the Fundraise was ratified by the passing of the required Resolutions at a General Meeting held on 30
April 2021.
On 20 April 2021 the Falkland Islands Government agreed to an extension of the second term of the
Company's PL001 Licence by twelve months, to 1 May 2022.
Following the successful fund raise in April 2021 the Group has sufficient cash resources to continue
for at least 12 months from sign-off of these accounts.
on finding an exploration partner. The Group continues to seek partners to participate in drilling on its
Licence and is currently engaged with a number of counterparties who have expressed interest.
However, given the current challenging environment the Group believes it may be some time before
any expressions of interest are translated into commitments and further extensions to the Licence
term may be required.
In order to continue as a going concern beyond the current Licence term, which expires on 1 May
2022, the Company will need to raise further finance, either through a farmout partner or by raising
funds in an equity issue.
Argos Resources Ltd
Annual report 2020
Page 34
Notes to the consolidated financial statements
Year ended 31 December 2020
Accounting policies (continued)
Should the Directors be unable to raise sufficient funds, find an exploration partner, or negotiate
further Licence extensions the Group may be unable to realise its assets and discharge its liabilities in
the normal course of business.
These factors indicate the existence of a material uncertainty which may cast significant doubt over
statements do not include the
adjustments that would result if the Group was unable to continue as a going concern.
Basis of consolidation
The consolidated financial statements incorporate the results of Argos Resources Ltd and its wholly
owned subsidiary undertaking as at 31 December 2020 using the acquisition method of accounting.
Where the acquisition method is used, the results of subsidiary undertakings are included from the
date of acquisition.
All inter-company accounts and transactions have been eliminated on consolidation.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision maker has been identified as the board
of directors.
and in
the opinion of the directors there is only one business segment and the information contained in the
financial statements reflects the operations within that segment.
capitalised exploration expenditure, impairment and royalty interests
Intangible assets
Evaluation and exploration (E&E) expenditure
As part of the 2015 farmout transaction the Group retained an ORRI of 5% of gross revenues from all
hydrocarbon discoveries developed within the Licence area and the accumulated historical E&E cost
was reclassified
. The Group therefore believed that the most appropriate
method of accounting for the Noble and Edison withdrawal in 2018 was to reclassify the ORRI to E&E
asset accounting for it using the method, as permitted under IFRS 6 whereby all historic costs
associated with oil exploration are capitalised as intangible assets, pending determination of feasibility
of the project.
As an initial fair value could not be reliably determined the E&E asset was measured at cost, which was
the carrying amount of the ORRI, with no gain or loss. The E&E asset is therefore presented as an
intangible asset and carried at cost less accumulated amortisation and any impairment provision.
Costs incurred include appropriate technical and administrative expenses but not general overheads.
If an exploration project is successful, the related expenditures are transferred to tangible assets and
amortised over the estimated life of the commercial reserves. Where a licence is relinquished, a
project is abandoned, or is considered to be of no further value to the Group, the related costs are
written off.
Argos Resources Ltd
Annual report 2020
Page 35
Notes to the consolidated financial statements
Year ended 31 December 2020
Accounting policies (continued)
Impairment
E&E assets are assessed for impairment when facts and circumstances suggest that the carrying
amount may exceed the recoverable amount.
In accordance with IFRS 6 the Group firstly considers the following facts and circumstances in their
whether the period for which the Group has the right to explore in a specific area has expired
during the period or will expire in the near future, and is not expected to be renewed;
whether substantive expenditure on further exploration for and evaluation of mineral
resources in a specific area is neither budgeted nor planned;
whether exploration for and evaluation of hydrocarbons in a specific area have not led to the
discovery of commercially viable quantities of hydrocarbons and the Group has decided to
discontinue such activities in the specific area; and,
whether sufficient data exists to indicate that although a development in a specific area is
likely to proceed, the carrying amount of the exploration and evaluation assets is unlikely to
be recovered in full from successful development or by sale.
If any such facts or circumstances are noted the Group must perform an impairment test in accordance
with the provisions of IAS 36, assessing the recoverable amount of the E&E assets together with all
development and production assets, as a single cash generating unit (CGU). The aggregate carrying
value is compared against the expected recoverable amount of the CGU. The recoverable amount is
the higher of value in use and the fair value less costs to sell.
Any E&E impairment loss would be recognised in the income statement and separately disclosed.
Revenue and income
The Group has no income other than investment income which consists of interest receivable for the
period. Interest income is recognised as it accrues.
Financial instruments
Financial assets
The Group classifies its financial assets depending on the purpose for which the asset was acquired.
The Group has classified its financial assets as amortised cost.
Financial assets held at amortised cost
These assets are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market.
prior period. They are initially recognised at fair value plus costs that are directly attributable to the
acquisition or issue and subsequently carried at amortised cost less any provision for impairment. The
alents and other receivables in the
statement of financial position. Cash and cash equivalents comprise current account balances or short
term deposits at variable interest rates that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value. Any interest earned is accrued and
classified as interest receivable.
Argos Resources Ltd
Annual report 2020
Page 36
Notes to the consolidated financial statements
Year ended 31 December 2020
Accounting policies (continued)
The effect of discounting on these financial instruments is not considered to be material.
Financial liabilities
The Group classifies its financial liabilities depending on the purpose for which the liability was
incurred. All are non-derivative liabilities and are measured at amortised cost.
The effect of discounting on these financial instruments is not considered to be material.
Cash and cash equivalents
This includes cash in hand and deposits held with banks.
Foreign currencies
The functional and presentational currency is US Dollars (US$). Transactions denominated in
currencies other than US$ are translated at the rate of exchange ruling at the date of the transaction.
Monetary amounts held in currencies other than US$ are converted at the rate ruling at the year end.
Any translation differences are dealt with in the consolidated statement of comprehensive income.
The year-end rates of exchanges used were:
£:US$
2020
1.37
2019
1.33
Income taxes and deferred taxation
Deferred tax assets and liabilities are not discounted and shall be measured using the liability method
at the tax rates that are expected to apply to the period when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the
reporting date. Deferred income tax assets are recognised only to the extent that it is probable that
future taxable profit will be available against which the temporary differences can be utilised.
Share based remuneration
The Company issued share options to directors and key personnel on 12 November 2009 which were
due to expire on 11 November 2019. On 5 November 2019 the Board resolved to amend the terms of
any options (the "Options"), held by the directors, which had not been exercised prior to the original
expiry date of 11 November 2019. These options were extended by 5 years and now expire on 11
November 2024.
The Group accounts for the costs of the issue of these options and the related extension of the expiry
date in line with IFRS
options is based on the fair value of the options at the date of grant or extension and is charged to the
consolidated statement of comprehensive income or, if appropriate, capitalised over the expected
vesting period of the options and credited to retained losses.
Argos Resources Ltd
Annual report 2020
Page 37
Notes to the consolidated financial statements
Year ended 31 December 2020
2
Financial instruments
financial assets held at amortised cost
financial liabilities held at amortised cost and these are all current financial liabilities.
Financial liabilities comprise other payables which are categorised as
in financial instruments shall be undertaken.
The policy for managing financial risks is set by the board following recommendations from the Finance
Director. The policy for each of the above risks is described in more detail below.
Foreign exchange
As the functional currency is US$ and some of the current monetary assets and liabilities are in Sterling
there is a risk of loss in relation to the net Sterling financial assets position, should there be a
devaluation of Sterling against US$. The risk of any loss, in terms of meeting future liabilities, is
however eliminated by matching the currencies of cash balances with the currencies of projected
liabilities.
As of 31 December 2020 the Group s financial assets and financial liabilities were denominated in a
mixture of US$ and Sterling which consisted of:
Financial assets
Other receivables
Less: prepayments
Cash and cash equivalents
Financial Liabilities
Other payables
Net financial assets
Financial assets held at amortised cost
Sterling
denominated
US$
denominated
Total
14
(10)
434
438
26
(26)
4
4
Financial liabilities held at amortised cost
(59)
379
-
4
40
(36)
438
442
(59)
383
Argos Resources Ltd
Annual report 2020
Page 38
Notes to the consolidated financial statements
Year ended 31 December 2020
Financial instruments (continued)
At 31 December 2019 the comparative balances were:
Financial assets
Other receivables
Less: prepayments
Cash and cash equivalents
Financial liabilities
Other payables
Net financial assets
Financial assets held at amortised cost
Sterling
denominated
US$
denominated
Total
15
(11)
744
748
71
(71)
24
24
Financial liabilities held at amortised cost
(58)
690
-
24
86
(82)
768
772
(58)
714
If the US$ had strengthened against Sterling by 10%, the loss for the year would increase and equity
would reduce by $38K (2019: increase in loss and decrease in equity of $69K). Conversely if the US$
weakens against Sterling by 10% the loss for the year would decrease and equity would increase by
$38K (2019: decrease in loss and increase in equity of $69K).
Counter-parties
This is the risk that a third party failure results in loss to the Group such as a bank collapse resulting in
the loss of deposits. To mitigate against this risk cash deposits are spread between two high quality
institutions, Lloyds Bank PLC, which is part owned by the British government, and Standard Chartered
Bank. The following was the split of funds between the various institutions at 31 December 2020:
Institution
Lloyds Bank PLC
Standard Chartered Bank
2020
2019
382
56
438
637
131
768
Argos Resources Ltd
Annual report 2020
Page 39
Notes to the consolidated financial statements
Year ended 31 December 2020
Financial instruments (continued)
Liquidity
This is the risk that the Group cannot meet its liabilities as these fall due. As the timing of significant
payments carries a degree of uncertainty cash balances are being kept in interest bearing term
deposits with periods of no longer than 6 months.
Credit risk
The Group is not exposed to credit risk as it does not trade, and the cash balances held by the Group
are spread between two reputable institutions. The comments made above in relation to counter-
party risk are relevant.
Fair values
carrying values in the consolidated statement of financial position and notes to the financial
information.
3
Significant accounting judgements, estimates and assumptions
When making an assessment of whether or not there are facts and circumstances which may indicate
that an impairment review is required, the directors are required to exercise judgement. These
judgements include, assessing whether or not it is expected that future renewal of the licence will be
granted and assessing whether or not any of the geological data obtained to date indicates an
impairment review is required.
The directors consider there are no indicators under IFRS 6 to trigger an impairment review.
The financial statements have been prepared on the going concern basis as, in the opinion of the
directors, there is a reasonable expectation that the Group and the Company will continue in
operational existence for the foreseeable future.
On 7 April 2021 the Company announced that it had conditionally raised US$550,000 through a
subscription by certain new shareholders and Ian Thomson, Executive Chairman of the Company and
the Fundraise was ratified by the passing of the required Resolutions at a General Meeting held on 30
April 2021.
On 20 April 2021 the Falkland Islands Government agreed to an extension of the second term of the
Company's PL001 Licence by twelve months, to 1 May 2022.
Following the successful fund raise in April 2021 the Group has sufficient cash resources to continue
for at least 12 months from sign-off of these accounts.
Argos Resources Ltd
Annual report 2020
Page 40
Notes to the consolidated financial statements
Year ended 31 December 2020
Significant accounting judgements, estimates and assumptions (continued)
on finding an exploration partner. The Group continues to seek partners to participate in drilling on its
Licence and is currently engaged with a number of counterparties who have expressed interest.
However, given the current challenging environment the Group believes it may be some time before
any expressions of interest are translated into commitments and further extensions to the Licence
term may be required.
In order to continue as a going concern beyond the current Licence term, which expires on 1 May
2022, the Company will need to raise further finance, either through a farmout partner or by raising
funds in an equity issue.
Should the Directors be unable to raise sufficient funds, find an exploration partner, or negotiate
further Licence extensions the Group may be unable to realise its assets and discharge its liabilities in
the normal course of business.
These factors indicate the existence of a material uncertainty which may cast significant doubt over
not include the
adjustments that would result if the Group was unable to continue as a going concern.
4
Administrative expenses
n (see note 5)
Professional fees
Other expenses
Total
5
Remuneration and fees
Pensions*
Share based payment expense (see note 7)
Total
2020
$
130
146
27
303
2019
218
161
54
433
2020
2019
128
2
-
130
127
2
89
218
*A Irvine is accruing retirement benefits under a defined contribution pension arrangement.
on page 20.
The average monthly number of employees, including directors, during this and the preceding year
was 6.
Argos Resources Ltd
Annual report 2020
Page 41
Notes to the consolidated financial statements
Year ended 31 December 2020
6
2020
2019
Fees payable to the
auditor for the
statements
statements
Review of interim accounts
Total payable for audit related services
other services:
Taxation
Taxation services for the subsidiary company
29
5
-
34
3
3
40
30
5
-
35
4
6
45
Argos Resources Ltd
Annual report 2020
Page 42
Notes to the consolidated financial statements
Year ended 31 December 2020
7
Share based remuneration
In 2009 Argos Resources Ltd introduced an equity-settled share based remuneration scheme for
employees and key personnel, the only vesting condition being that the individual remains a director
or employee of the Group or, where not an employee, serves out the full contract term over the
vesting period.
On 5 November 2019 the Board resolved to amend the terms of any options (the "Options"), held by
the current directors, which had not been exercised prior to the original expiry date of 11 November
2019. The option expiry date was extended by 5 years to 11 November 2024, which is accounted for
on an incremental value basis. No other amendments were made to the terms of the Options.
At 1 January 2019
Options expired during 20192
At 31 December 2019 and
31 December 2020
Average share
price on date
exercised
(pence)
Exercise price
(pence)
2
2
2
Number
8,080,818
(1,375,000)
6,705,818
All options outstanding at the end of the year had vested and were exercisable.
The following information is relevant in the determination of the fair value of options extended in 2019
under the equity-settled share based remuneration scheme operated by Argos Resources Ltd:
Option pricing model used
Weighted average exercise price
Exercise price
Weighted average contractual life
Expected volatility
Risk-free interest rate
Expected dividend growth rate
Fair value of options granted
Black-Scholes
2 pence
2 pence
5.02 years
73.8%
0.5%
N/A%
1.32 cents
The volatility assumption, measured at the standard deviation of expected share price returns, is based
on a statistical analysis of daily share prices over the last five years.
Charge for share based payment
Expensed through the income statement
Adjustment to exploration expenditure for
options expired and previously capitalised
Equity-settled
2020
$
-
-
-
2019
$
89
(23)
(66)
2 Expired options relate to a contractor and not a director or employee.
Argos Resources Ltd
Annual report 2020
Page 43
Notes to the consolidated financial statements
Year ended 31 December 2020
8 Taxation
Total tax:
Corporation tax on losses for the year
Reconciliation of total tax:
(Loss)/profit before tax
(Loss/profit on ordinary activities multiplied by
the standard rate of corporation tax of 26%
Effects of:
Unrelieved tax losses and other deductions
arising in the period
Receipts not taxable
Interest receivable not taxable
Expenses not deductible for tax purposes
Total tax for the year
2020
2019
-
(299)
(78)
78
-
-
-
-
-
(401)
(104)
103
-
-
1
-
The Group has capital tax losses carried forward of $23m. The resulting deferred tax assets and
liabilities have been offset and the Group and Company intend to manage the assets in the future so
as to utilise all of the carried forward capital and trading losses.
The group has the following temporary differences:
Trading Losses Carried forward
Capital losses carried forward
Accelerated tax depreciation
Net Deferred Tax Asset
2020
2019
9,000
22,900
(28,700)
2,600
8,600
22,900
(28,700)
2,200
The resulting deferred tax assets and liabilities have been offset and the Group and Company intend
to manage the assets in the future so as to utilise all of the carried forward losses.
In respect of the net deferred tax asset, no deferred tax asset has been recognised due to the uncertain
timing of the utilisation of losses.
Argos Resources Ltd
Annual report 2020
Page 44
Notes to the consolidated financial statements
Year ended 31 December 2020
9
Earnings per share
Shares in issue brought forward (2 pence shares)
Shares in issue carried forward
Weighted average shares in issue
(Loss) for the year
Weighted average number of ordinary shares
in issue during the year
Basic (loss) per ordinary share (cents)
2020
Number
220,713,205
2019
Number
220,713,205
220,713,205
220,713,205
220,713,205
220,713,205
2020
(299)
2019
(401)
220,713,205
220,713,205
(0.14)
(0.18)
Basic earnings per share has been computed by dividing the earnings by the weighted average number
of shares in issue during the period.
As the Group is reporting a loss for both 2019 and 2020 the share options are considered anti-dilutive
because the exercise of share options would have the effect of reducing the loss per share and are
therefore excluded from the calculation for that year.
Argos Resources Ltd
Annual report 2020
Page 45
Notes to the consolidated financial statements
Year ended 31 December 2020
10 Exploration and
evaluation (E&E)
intangible assets
1 January 2019
Additions
Adjustment for share options expired
At 31 December 2019 and
1 January 2020
Additions
At 31 December 2020
Exploration
& evaluation
(E&E) assets
Total
28,749
28,749
11
(23)
11
(23)
28,737
28,737
78
28,815
78
28,815
Details of the accounting policies adopted by the Group for these types of assets and the consideration
of impairment is detailed in note 1 on page 35.
The Licence was due to expire on 1 May 2021 and prior to expiry the Falkland Islands Government
extended the second term of the Licence by 12 months, to 1 May 2022, with no additional work
commitments.
The Company has a commitment to drill one exploration well within the licence area by the end of the
second term of the licence and is actively seeking new partners to continue exploration in the Licence
area.
11 Other receivables
Prepayments
Other
12 Trade and other payables
Trade payables
Accruals
2020
2019
36
4
40
82
4
86
2020
2019
1
58
59
7
51
58
Argos Resources Ltd
Annual report 2020
Page 46
Notes to the consolidated financial statements
Year ended 31 December 2020
13 Share capital
Authorised:
500,000,000 ordinary shares of 2 pence each
Allotted, issued and fully paid:
Ordinary shares of 2 pence each
At 1 January 2019 and
and 31 December 2020
14 Related party transactions
2020
2019
14,960
14,960
Number
220,713,205
6,696
Argos Georgia Ltd is a related party of the Group due to one of the Group s directors, Ian Thomson,
having a significant shareholding in Argos Georgia Ltd. Transactions with Argos Georgia Ltd during the
year are as follows:
Due to Argos Georgia Ltd at 1 January
Expenses paid on behalf of the Group
Creditor balances paid
Office running costs*
Due to Argos Georgia Ltd at 31 December
2020
2019
-
0.3
(0.3)
-
-
-
12
(12)
-
-
* The services and agency agreement between the Company and Argos Georgia Ltd in which Argos Georgia Ltd
provided certain agency, accounting, secretarial and operational services to the Company was terminated with
effect from 31 March 2016. The cost of continued provision of these services, which has not been charged for,
is $15,000. The key management personnel are the directors only.
There have been no transactions with directors during the year other than remuneration paid to each
report on page 20 and in note 5.
15 Commitments
(a) Capital commitments
The Second Phase of the PL001 licence requires an Oil Well to be drilled.
(b) Operating commitments
There were no ongoing commitments at 31 December 2020 nor for the comparative period.
Argos Resources Ltd
Annual report 2020
Page 47
Notes to the consolidated financial statements
Year ended 31 December 2020
16 Contingent liabilities
The Group has no anticipated material contingent liabilities.
17 Events after the reporting date
On 7 April 2021 the Group announced that it had conditionally raised US$550,000 through a
subscription by certain new shareholders and Ian Thomson, Executive Chairman of the Company and
the Fundraise was ratified by the passing of the required Resolutions at a General Meeting held on 30
April 2021.
Following the successful fund raise in April 2021 the Group has sufficient cash resources to continue
for at least 12 months beyond sign -off of these accounts.
On 20 April 2021 the Falkland Islands Government agreed to an extension of the second term of the
Company's PL001 Licence by twelve months, to 1 May 2022.
Argos Resources Ltd
Annual report 2020
Page 48
Parent Company financial statements
Statement of financial position
As at 31 December 2020
Assets
Non-current assets
Investments
Current assets
Other receivables
Cash and cash equivalents
Total current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Total liabilities
Total net assets
Capital and reserves attributable to
equity holders of the company
Share capital
Share premium
Retained losses
Total s
equity
Note
6
7
8
9
2020
2019
2,120
2,120
9,703
438
2,120
2,120
9,685
768
10,141
10,453
12,261
12,573
39
39
41
41
12,222
12,532
6,696
30,071
(24,545)
6,696
30,071
(24,235)
12,222
12,532
The Company has elected to take the exemption under section 230 of the Companies Act 1985, to not
present the parent company income statement. The net loss for the parent company was $310
thousand (2019: $193 thousand loss).
The notes on pages 52 to 57 form part of the financial statements.
These financial statements were approved by the directors and authorised for issue on 28 May 2021
and are signed on their behalf by:
Ian Thomson
Chairman
Argos Resources Ltd
Annual report 2020
Page 49
Parent Company financial statements
Statement of cash flows
Year ended 31 December 2020
Cash flows from operating activities
(Loss) for period before taxation
Adjustments for:
Finance income
Foreign exchange
Share based remuneration expensed
IFRS 9 provision/(credit)
Net cash (outflow) from operating activities
before changes in working capital
(Increase)/decrease in other receivables
(Decrease) in other payables
Net cash (outflow) from operating activities
Investing activities
Interest received
Net cash generated from investment activities
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Exchange gains on cash and cash equivalents
Cash and cash equivalents at end of the year
The notes on pages 52 to 57 form part of the financial statements.
Year
ended
31 December
Year
ended
31 December
2020
2019
(310)
(193)
(1)
(3)
-
31
(4)
(28)
89
(182)
(283)
(318)
(50)
(1)
(334)
1
1
(333)
768
3
438
269
(3)
(52)
4
4
(48)
788
28
768
Argos Resources Ltd
Annual report 2020
Page 50
Parent Company financial statements
Statement of changes in equity
Year ended 31 December 2020
Share
capital
Share
premium
Retained
earnings/
(deficit)
Total
equity
At 1 January 2019
6,696
30,071
(24,108)
12,659
(Loss) for year
Share based income expense
Share based income adjustment
for expired options
At 31 December 2019
and 1 January 2020
-
-
-
-
-
-
(193)
89
(23)
(193)
89
(23)
6,696
30,071
(24,235)
12,532
(Loss) for year
-
-
(310)
(310)
At 31 December 2020
6,696
30,071
(24,545)
12,222
The notes on pages 52 to 57 form part of the financial statements.
Argos Resources Ltd
Annual report 2020
Page 51
Notes to the parent Company financial statements
Year ended 31 December 2020
1 Accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention. All accounting
policies are consistent with those adopted in the Group financial statements except as otherwise
noted below.
The amount due from the subsidiary company is repayable on demand.
Investments
Investments are measured at cost at acquisition and are then subsequently measured at cost less
impairment
h and cash equivalents and other receivables, which are
These financial assets were referred to as
. Financial liabilities comprise other payables which are
categorised as financial liabilities held at amortised cost and these are all current financial liabilities.
Intercompany loan to the subsidiary company
The loan to the subsidiary company, Argos Exploration Limited, is classified as repayable on demand.
IFRS 9 requires consideration of the expected credit risk associated with the loan. As the subsidiary
company does not have any liquid assets to sell to repay the loan, should it be recalled, the conclusion
reached was that the loan should be categorised as stage 3 and the impairment assessment of the
loan has been performed using a lifetime expected credit loss model under IFRS 9.
As part of the assessment of expected credit losses of the intercompany loan receivable, the Directors
have considered the expected future oil prices; the value of the reserves reflected in the independent
economic assessment of the Licence area; the ability to sell the project, the ability to find a new farm-
out partner and the exploration project risk provided in the Competent Persons Report. The Directors
have also assessed the cash flow scenarios of the above considerations.
The credit risk of the intercompany loan is assessed at the end of each accounting period. There was
no change in the significant credit risk at year-end.
Changes in accounting standards
Please refer to changes in accounting standards, Note 1, in the group financial statements.
Going concern
Please refer to going concern, Note 1, in the group financial statements.
Argos Resources Ltd
Annual report 2020
Page 52
Notes to the parent Company financial statements
Year ended 31 December 2020
2 Significant accounting judgements, estimates and assumptions
Application of the expected credit loss model prescribed by IFRS 9
IFRS 9 requires the Parent company to make assumptions when implementing the forward-looking
expected credit loss model. This model is required to be used to assess the intercompany loan
receivable from Argos Exploration Limited for impairment.
Please refer to accounting policies, Note 1, in the parent Company financial statements for more
information.
3 Financial instruments
The policy for managing financial risks is set by the board following recommendations from the Finance
Director.
Foreign exchange
As the functional currency is US$ and some of the current monetary assets and liabilities are in Sterling
there is a risk of loss in relation to the net Sterling financial assets position, should there be a
devaluation of Sterling against US$. The risk of any loss, in terms of meeting future liabilities, is
however eliminated by matching the currencies of cash balances with the currencies of projected
liabilities.
As of 31 December 2020 the
a mixture of US$ and Sterling which consisted of:
financial assets and financial liabilities were denominated in
Financial assets
Other receivables
Less: prepayments
Cash and cash equivalents
Financial liabilities
Other payables
Net financial assets
Amortised cost
Sterling
denominated
US$
denominated
14
(10)
434
438
9,689
-
4
9,693
Amortised cost
Total
9,703
(10)
438
10,131
(39)
399
-
9,693
(39)
10,092
Argos Resources Ltd
Annual report 2020
Page 53
Notes to the parent Company financial statements
Year ended 31 December 2020
Financial instruments (continued)
At 31 December 2019 the comparative balances were:
Current assets
Other receivables
Less: prepayments
Cash and cash equivalents
Financial liabilities
Other payables
Net financial assets
Amortised cost
Sterling
denominated
US$
denominated
15
(11)
744
748
9,670
-
24
9,694
Amortised cost
Total
9,685
(11)
768
10,442
(41)
707
-
9,694
(41)
10,401
If the US$ had strengthened against Sterling by 10%, the loss for the year would increase and equity
would reduce by $40K (2019: increase in loss and reduction in equity of $71K). Conversely if the US$
weakens against Sterling the loss for the year would decrease and equity would increase by $40K
(2019: decrease in loss and increase in equity of $71K).
Counter-parties
This is the risk that a third party failure results in loss to the Group such as a bank collapse resulting in
the loss of deposits. To mitigate against this risk cash deposits are spread between two high quality
institutions, Lloyds Bank PLC, which is part owned by the British government, and Standard Chartered
Bank. The following was the split of funds between the various institutions at 31 December 2020.
Institution
Lloyds Bank PLC
Standard Chartered Bank
2020
2019
382
56
438
637
131
768
Interest rates
The Company is not exposed to interest rate risk as there are no interest bearing loans or balances
outstanding to providers of finance.
Liquidity
This is the risk that the Company cannot meet its liabilities as these fall due. As the timing of significant
payments carries a degree of uncertainty cash balances are being kept in interest bearing term
deposits with periods of no longer than 6 months.
Argos Resources Ltd
Annual report 2020
Page 54
Notes to the parent Company financial statements
Year ended 31 December 2020
Financial instruments (continued)
Credit
The Company is not exposed to credit risk, other than amounts due from the subsidiary company, as
it does not trade and the cash balances held by the Company are spread between two reputable
institutions. Please refer to note 7 for the details of the expected credit loss on the intercompany
receivable due from the subsidiary company.
Fair values
The fair values of the Company
carrying values in the statement of financial position and notes to the financial information.
not materially different from the
4 Loss attributable to the members of the parent Company
The loss for the year was $310 thousand (2019: profit of $193 thousand). A separate income
statement for the Company has not been presented as permitted by the Companies Act 1985 as
applied in the Falkland Islands by the Companies (Amendment) Ordinance 2006.
Argos Resources Ltd
Annual report 2020
Page 55
Notes to the parent Company financial statements
Year ended 31 December 2020
5 Staff costs
The information given in note 5 of the consolidated financial statements relates wholly to the
Company. There is no difference
Company and
the Group.
6
Investments
Investment in subsidiary
Cost:
At 1 January and
31 December
The principal undertaking in which the Company
follows:
2020
$
2019
$
2,120
2,120
year-end was 20% or more is as
Investment in subsidiary
Country of
incorporation
Percentage of voting
rights and ordinary
share capital held
Nature of business
Argos Exploration Ltd
Falkland Islands
100
Oil and gas
exploration
7 Other receivables
Amounts due from subsidiary company
Less: provision for impairment (see below)
Amounts due from subsidiary
Prepayments
Other
net
Movement in impairment provision on
amounts due from subsidiary company
As at 1 January
Increase/(decrease) in impairment
As at 31 December
2020
2019
25,498
(15,809)
25,448
(15,778)
9,689
10
4
9,703
9,670
11
4
9,685
2020
2019
15,778
31
15,809
15,960
(182)
15,778
Please refer to note 1 and 2 for the detail of how the provision for impairment has been calculated.
Argos Resources Ltd
Annual report 2020
Page 56
Notes to the parent Company financial statements
Year ended 31 December 2020
8
Trade and other payables
2020
2019
Trade payables
Accruals
9 Share capital
1
38
39
7
34
41
Share capital movements are set out note 13 on page 47 of the consolidated financial statements.
10 Other statutory disclosures
Audit services
Costs incurred on audit and other services provided by the auditor are provided on a consolidated
basis in note 6 of the consolidated financial statements.
Share based remuneration
The information given in note 7 of the consolidated financial statements relates wholly to the
Company.
Related party transactions
The information given in note 14 of the consolidated financial statements relates wholly to the
Company.
Commitments
The information given in note 15 of the consolidated financial statements relates wholly to the
Company.
Events after the balance sheet date
There were no reportable events occurring after the balance sheet date.
Argos Resources Ltd
Annual report 2020
Page 57
Investor Information and advisors
Registered office
Argos House
H Jones Road
Stanley
Falkland Islands
Business address
Argos House
H Jones Road
Stanley
Falkland Islands
Company Secretary
Kevin Kilmartin
Argos House
H Jones Road
Stanley
Falkland Islands
Nominated advisor and broker
Cenkos Securities PLC
6.7.8 Tokenhouse Yard
London, EC2R 7AS
Solicitors (Falkland Islands law)
Kevin Kilmartin
Argos House
H Jones Road
Stanley
Falkland Islands
Auditors
BDO LLP
55 Baker Street
London, W1U 7EU
Registrars
Computershare Investor Services (Jersey) Ltd
Queensway House
Hilgrove Street
St Helier
Jersey, JE1 1ES
Bankers
Lloyds Bank PLC
3-5 Bridge Street
Newbury
UK, RG14 5HB
Bankers
Standard Chartered Bank
Ross Road
Stanley
Falkland Islands
Website
www.argosresources.com
Argos Resources Ltd
Annual report 2020
Page 58