Source - RNS
RNS Number : 9488K
Tiger Resource Finance PLC
27 September 2016
 

 

TIGER RESOURCE FINANCE PLC

 

 

 

INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 

 

 

Operations Review

 

·      Net Asset Value per share - 0.81p (30 June 2015 - 1.14p/ 31 Dec 2015 - 0.77p)

·      Total assets of £1.12M (30 June 2015 - £1.63M/ 31 Dec 2015 - £1.10M)

 

 

Last year at this time, Tiger reported that it was quite optimistic despite the gloom surrounding the resource industry. The optimism expressed was justified against the events of this year and the Board is now confident that the resource sector will enter a gradual but sustained growth phase during the coming year.

 

We note that the major mining companies have all made significant gains in market capitalisation since the January 2016 lows and their management are making further positive statements on the future prospects for their companies. As always, it is taking time for the positive sentiment to migrate into the smaller cap sector. The Canadian market has seen much investor activity with secondary placings being common and considerable M&A activity based on opportunity rather than threat. We have little doubt that this sentiment will be evident in the UK AIM market in which the Company generally operates.

 

Commodity prices have been erratic with solid gains being recorded in the price of gold, silver, platinum, palladium and zinc particularly since the January 2016 lows.  The price of oil has climbed from the low $30's to almost $50 per barrel and there is an expectation that it will remain close to this level in the coming months, given the decision by oil exporting countries to resist attempts to curtail their output, particularly in the short to medium term.  The US shale oil and gas industry has shown resilience and seems capable of operating profitably to this longer term price deck.

 

We expect metal prices to generally improve but are less optimistic for the gold price than others might be.  We recognise the unprecedented level of geo-political risks throughout the world but fear that the stronger dollar and better global economic conditions will eventually drive the price of gold lower. The US Presidential election will continue to weigh on sentiment but again we feel that whoever wins, the certainty will work against the gold price.

 

Despite their lackluster performance, year to date, we are bullish on copper and nickel and as such we will be looking at investments in these commodities. Global markets at the moment are giving very little value to companies exploring for base metals and we are confident that this phenomenon will change dramatically over the coming two years.

 

The Board remains convinced that passive investment alone is not the way forward and as such we will also take on investment in companies which, in our opinion, are undervalued and have significant scope for positive revaluation with improving metal prices due to the hidden value in their specific asset base. The Board is currently considering a number of strategic investments in private base metal companies on a pre IPO basis to gain exposure to these opportunities. The strategy on these investments will be to be proactive and a member of the Tiger team will be actively involved in bringing these companies to IPO and may at times join the newly listed company's board to represent Tiger's interest in the underlying investee company.

 

The Group had a cash balance in excess of £500,000 at 30 June 2016 giving the Board some scope to execute on suitable investment opportunities. However, the Board believes that further strengthening of the balance sheet would give the Company greater flexibility to act on potential opportunities and have therefore proposed a reorganisation of the Company's share capital structure which will be voted on by shareholders at the General Meeting on 30 September 2016. If passed, the capital reorganisation will allow the Company more flexibility with respect to issuing new shares in the case of any potential transaction or new equity fundraising.  

 

We announced the resignation of Bruce Rowan on 31 August 2016 due to personal reasons. Bruce has been a good friend and colleague to the Board and to all members of the management team and as such he will be missed.

 

 

By order of the Board - 27 September 2016
 

Portfolio Holdings as at 30 June 2016

 

 

 

Investments

Number

Cost

£

Valuation

 £

Anglo American PLC

11,500

250,117

83,594

Ascent Resources PLC

482,142

400,824

3,279

Aurum Mining PLC

8,333,333

250,218

75,000

Duke Royalty Limited

20,000

200,218

9,600

ETFS Physical Platinum

2,250

246,458

162,007

Galileo Resources Plc

10,416,667

125,200

109,375

Jersey oil and Gas Plc

3,300

101,660

680

Jubilee Platinum PLC

1,169,600

100,219

32,749

MX Oil Plc

400,000

100,218

3,520

New World Oil and Gas PLC

5,000,000

250,218

3,000

Northern Petroleum PLC

294,118

250,219

11,176

PanContinental Oil and Gas PLC

885,714

97,827

1,505

Papua Mining PLC

230,000

101,200

4,600

Revelo Resources Corp

216,667

      62,965

10,032

Rex Bionics Plc

6,250

37,500

2,031

Rockrose Energy Plc

100,000

50,000

45,500

Sovereign Mines of Africa PLC

2,000,000

100,000

5,800

Sunrise Resources PLC

665,000

6,650

1,131

Tertiary Minerals PLC

1,330,000

119,700

18,354

 

 

 

 

Investments held by African Pioneer Plc (subsidiary company)

 

 

146,324

 

 

 

 

Total Investments for the Group

 

 

729,257

 

 

 

 

 

 

 

Notes:

 

1)   The Company incubated a subsidiary company, African Pioneer PLC in 2012. Tiger holds 59,529,132 shares in African Pioneer Plc as at 30 June 2016.

 

 
 

 

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2016

 

 

 

 

(Unaudited)

Group Six months ended

30 June 16

 

(Unaudited)

Group Six months ended

30 June 15

 

(Audited)

Group

Year

ended

31 Dec 15

 

 

 

£

£

£

Gain/(loss) on sale of available for sale assets

117,298

97,699

10,983

Profit on Sale of Xtract

2,153

 

92,758

Income:

 

 

 

Investment income

976

6,103

10,159

Unrealised (loss)/gain on financial assets at fair value through profit and loss

-

65,000

12,750

Interest receivable

551

955

1,717

Administrative expenses

(220,422)

(185,205)

(423,803)

Impairment

144,690

(174,674)

(436,233)

PROFIT/ (LOSS) BEFORE TAXATION

45,246

(190,122)

(731,669)

 

 

 

 

Taxation

-

-

-

PROFIT/ (LOSS) FOR THE PERIOD

45,246

(190,122)

(731,669)

 

 

 

 

Other Comprehensive Income

 

 

 

 

 

 

 

Available-for-sale financial assets unrealised loss

(117,300)

(200,547)

(399,274)

Transfer to Impairment

144,690

174,674

436,233

OTHER COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD, NET OF TAX

27,390

(25,873)

36,959

TOTAL COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD

72,636

(215,995)

 

(694,710)

 

Profit/(Loss) for the period attributable to:

 

 

 

 

Shareholders of the Company

23,954

(173,247)

(670,693)

Non-controlling interest

21,292

(16,875)

(60,976)

 

 

 

 

 

45,246

(190,122)

(731,669)

 

 

 

 

Basic earnings per share

0.1p

(0.13)p

(0.48)p

Diluted earnings per share

0.1p

(0.13)p

(0.48)p

 

 

 

 

 

 

All profits are derived from continuing operations.

Consolidated Statement of Financial Position

As at 30 June 2016

 

 

 

 

(Unaudited)

Group

30 June 16

 

(Unaudited) Group

30 June 15

 

(Audited) Group

31 Dec 15

 

 

£

£

£

NON CURRENT ASSETS

 

 

 

Financial assets at fair value through profit or loss

729,257

137,500

34,500

Available-for-sale investments

-

670,430

591,872

 

729,257

807,930

626,372

CURRENT ASSETS

 

 

 

Trade and other receivables

13,268

16,349

59,608

Cash and cash equivalents

522,525

905,001

548,023

 

535,793

921,350

607,631

 

 

 

 

TOTAL ASSETS

1,265,050

1,729,280

1,234,003

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

EQUITY ATTRIBUTABLE TO SHAREHOLDERS

 

 

 

Share capital

1,428,319

1,428,319

1,428,319

Share premium

1,597,231

1,597,231

1,597,231

Other components of equity

1,239,687

1,255,991

1,267,077

Retained earnings

(3,203,483)

(2,729,991)

(3,227,437)

EQUITY ATTRIBUTABLE TO THE OWNERS

1,061,754

1,551,550

1,065,190

 

 

 

 

Equity interest of non-controlling interest

60,015

82,824

38,723

 

 

 

 

TOTAL EQUITY

1,121,769

1,634,374

1,103,913

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

143,281

94,906

130,090

Corporate tax payable

-

-

-

 

143,281

94,906

130,090

 

 

 

 

TOTAL LIABILITIES

143,281

94,906

130,090

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

1,265,050

1,729,280

1,234,003

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

As at 30 June 2016

 

 

                                                                                         Other components of equity

 

Share capital

Share premium

Capital redemption reserve

Other

reserves

Available-for-sale financial assets

Share

based

reserves

Retained             earnings

 

Non-controlling interest

Total

 

 

£

£

£

£

£

£

£

£

£            

 

 

 

 

 

 

 

 

 

 

As at 30 June 2014

1,428,319

1,597,231

1,100,000

-

78,764

130,118

(1,799,140)

94,741

2,630,033

Changes in equity

 

 

 

 

 

 

 

 

 

(Loss) for  the period

-

-

-

-

-

-

(757,604)

(19,734)

(777,338)

Other Comprehensive (loss)

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets:

 

 

 

 

 

 

 

 

 

Current period (losses)

-

-

-

-

(78,764)

-

-

-

(78,764)

Transfer to impairment

-

-

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

Total comprehensive expense for the period

-

-

-

-

(78,764)

-

(757,604)

(19,734)

(856,102)

 

Reserve movements

-

-

-

-

-

-

 

-

-

 

 

 

 

 

 

 

 

 

 

As at 31 December 2014

1,428,319

1,597,231

1,100,000

-

-

130,118

(2,556,744)

75,007

1,773,931

                       

 

 

Changes in equity

 

 

 

 

 

 

 

 

 

(Loss) for  the period

-

-

-

-

-

-

(173,247)

(16,875)

(190,122)

Other comprehensive (loss)

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets:

 

 

 

 

 

 

 

 

 

Current period (losses)

-

-

-

-

200,547

-

-

-

200,547

Transfer to impairment

-

-

-

-

(174,674)

-

-

-

(174,674)

 

 

 

 

 

 

 

 

 

 

Total comprehensive expense for the period

-

-

-

-

25,873

-

(173,247)

(16,875)

(164,249)

 

Acquisition of subsidiary

-

-

-

-

-

-

 

24,692

24,692

 

 

 

 

 

 

 

 

 

 

As at 30 June 2015

1,428,319

1,597,231

1,100,000

-

25,873

130,118

(2,729,991)

82,824

1,634,374

 

 

 

Changes in equity

 

 

 

 

 

 

 

 

 

(Loss) for  the period

-

-

-

-

-

-

(497,446)

(44,101)

(541,547)

Other comprehensive (loss)

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets:

 

 

 

 

 

 

 

 

 

Current period (losses)

-

-

-

-

11,086

-

-

-

11,086

Transfer to impairment

-

-

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

Total comprehensive expense for the period

-

-

-

-

11,086

-

(497,446)

(44,101)

(530,461)

 

Reserve movements

-

-

-

-

-

-

 

-

-

 

 

 

 

 

 

 

 

 

 

As at 31 December 2015

1,428,319

1,597,231

1,100,000

-

36,959

130,118

(3,227,437)

38,723

1,103,913

 

 

Changes in equity

 

 

 

 

 

 

 

 

 

Profit/ (Loss) for  the period

-

-

-

-

-

-

23,954

21,292

45,246

Other comprehensive (loss)

 

 

 

 

 

 

 

 

 

Available-for-sale financial assets:

 

 

 

 

 

 

 

 

 

Current period (losses)

-

-

-

-

117,300

-

-

-

117,300

Transfer to impairment

-

-

-

-

(144,690)

-

-

-

(144,690)

 

 

 

 

 

 

 

 

 

 

Total comprehensive expense for the period

-

-

-

-

(27,390)

-

23,954

21,292

17,856

 

 

 

 

 

 

 

 

 

 

As at 30 June 2016

1,428,319

1,597,231

1,100,000

-

9,569

 130,118

(3,203,483)

60,015

1,121,769

 

 

 

 

 

Cash Flow Statement

For the six months ended 30 June 2016

 

 

 

 

(Unaudited)

30 June 16

 

(Unaudited)

30 June 15

 

(Audited)

31 Dec 15

 

£

£

£

CASH FLOW FROM OPERATIONS

 

 

 

Profit (Loss) before taxation

45,246

(190,122)

(731,669)

Adjustment for:

 

 

 

Investment in subsidiary

-

-

-

Interest received

(551)

(955)

(1,717)

Dividends received

(976)

(6,103)

(10,159)

 

 

 

 

Operating profit (loss) before movement in working capital

43,719

(197,180)

(743,545)

 

(Increase)/decrease in receivables

46,339

17,054

(50,912)

Increase/(decrease) in payables

13,193

(16,377)

18,822

Gain on disposal of financial asset at fair value

(117,298)

(97,699)

(10,983)

Gain on disposal of Xtract investment

(2,153)

 

(92,758)

Transfer to impairment

(144,690)

174,674

436,233

(Increase)/decrease in value of financial assets at fair value through profit or loss

-

(65,000)

(12,750)

 

 

 

 

NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES

 

(160,890)

(184,528)

(455,893)

 

 

 

 

TAXATION PAID

 

 

-

CASH FLOW FROM INVESTING ACTIVITIES

 

 

 

Interest received

551

955

1,717

Dividends received

976

6,103

10,159

Sale of investments

194,071

570,859

627,651


Purchase of investments


(60,206)

  
(175,400)

   
(347,315)

 

 

 

 

NET CASH INFLOW FROM INVESTING ACTIVITIES

 

135,392

402,517

292,212

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

 

Purchase of shares by minorities

-

-

24,692

 

 

 

 

NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES

-

-

-

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents in the period

(25,498)

217,989

(138,989)

Cash and cash equivalents at the beginning of the period

548,023

687,012

687,012

Cash and cash equivalents at the end of the period

522,525

905,001

548,023

 

 

 

 

Selected notes to the consolidated financial statements

For the six months ended 30 June 2016

 

 

1.         Basis of preparation

 

The financial statements have been prepared under the historical cost convention except for the measurement of certain non-current asset investments at fair value. The measurement bases and principal accounting policies of the Group are set out below. The financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union. These interim financial statements for the period ended 30 June 2016 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2015. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Reporting".

 

 

2.         Earnings Per Share    

 

 

Basic

Unaudited

Unaudited

Audited

 

6 months to

30 June 2016

6 months to

30 June 2015

Year ended 31 December 2015

 

 

 

 

Profit/(loss) after tax for the purpose of

earnings per share

£23,954

£(173,247)

£(670,693)

Weighted average number of shares

138,331,939

138,331,939

138,331,939

Basic earnings per ordinary share

0.1p

(0.13)p

(0.48)p

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) after tax

£23,954

£(173,247)

£(670,693)

Weighted average number of shares

138,331,939

138,331,939

138,331,939

Diluted effect of options

-

-

-

Diluted weighted average

number of shares

138,331,939

138,331,939

138,331,939

Diluted earnings per ordinary share

0.1p

(0.13)p

(0.48)p

         

 

 

 

 

 

Selected notes to the consolidated financial statements

For the six months ended 30 June 2016

 

 

3.         Investments in Financial Assets at Fair Value through Profit or Loss

 

On 10 September 2012, Tiger Resource Finance PLC acquired 14.9 % of the voting rights of Xtract Resources PLC ("Xtract"), a UK based mining exploration company quoted on AIM (XTR).  The acquisition of the 344,827,584 shares in Xtract Resources PLC was paid for in cash at 0.0435 pence per Ordinary share. 

 

During the current period, the 15 Million Xtract shares (held by the Company on 1 January 2016) were sold for a total consideration of £36,653 realising a net gain of £2,153 during the period.  Tiger does not hold any shares in Xtract as at 30 June 2016.

 

 

Unaudited

30 June 2016

£

Unaudited

30 June 2015

£

Audited

31 Dec 2015

£

 

 

 

At 1 January 2016

34,500

500,000

500,000

 

 

 

Sale of shares during the period

(34,500)

(427,500)

(478,250)

 

 

 

Adjustment to fair value 

-

65,000

12,750

 

 

 

 

At 30 June 2016

-

137,500

34,500

 

 

 

 

 

 

4.         Deferred Tax

 

A deferred tax asset on revaluation of AFS investments arose during the period. However, deferred tax assets are not recognised due to the unpredictability of future profit streams arising from the disposal of investments held by the Group. Losses may be carried forward indefinitely and will only be recoverable if suitable profits arise in the future.

 

 

 

Selected notes to the consolidated financial statements

For the six months ended 30 June 2016

 

 

5.         Called Up Share Capital

 

The share capital of Tiger Resource Finance PLC consists only of fully paid ordinary shares with a nominal value of 1p each.  All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders' meeting of Tiger Resource Finance PLC.

 

 

Unaudited

30 June

 2016

Unaudited 30 June 2016

Unaudited

30 June

2015

Unaudited 30 June 2015

Audited

31 December 2015

Audited

31 December 2015

 

Number

£

Number

£

Number

£

Authorised:

 

 

 

 

 

 

1,000,000,000 ordinary shares 1p each

1,000,000,000

10,000,000

1,000,000,000

10,000,000

1,000,000,000

10,000,000

 

Issued:

 

 

 

 

 

 

At 30 June 2016

142,831,939

 1,428,319

142,831,939

 1,428,319

142,831,939

 1,428,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares in issue at 31 December 2015 /30 June 2015

142,831,939

1,428,319

142,831,939

1,428,319

142,831,939

1,428,319

 

 

Included in allotted called and fully paid share capital are 4,500,000 shares with a nominal value of £45,000 held by the company in treasury. 

 

 

Share options in issue at 30 June 2016:

 

The Company has no outstanding share options in issue at 30 June 2016.  Six million options issued on 21 March 2006 lapsed on 21 March 2016.

 

 

 

6.       Post-reporting date

 

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of release of the Company interim financials.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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