(Alliance News) - Metal Tiger PLC on Friday reported a swing to profit for 2019, mainly through a gain from the fair value of accounted equities.
Metal Tiger - which invests in mineral explorers and developers, posted a pretax profit of GBP4.5 million, swinging from a loss of GBP4.0 million the year before.
The company reported a GBP3.3 million gain from the sale of its 30% interest in its Botswana joint venture with MOD Resources Ltd to Australian gold and copper mining firm Sandfire Resources Ltd in October.
There was also a gain of GBP4.5 million on the fair value of accounted equities, swinging from a loss of GBP12.4 million the prior year.
Within Metal Tiger's Project Investments division, the company's joint venture Kalahari Metals Ltd intersected wide zones of copper mineralisation from diamond drilling at its Okavango copper project.
Post-period, an initial drilling programme at Cobre Perrinvale project has started, confirming high grade volcanic-hosted massive sulfide mineralisation. In addition, Metal Tiger has completed an AUD2.2 million investment into South Korean gold explorer, Southern Gold Ltd for a 17% stake.
Looking ahead, Metal Tiger will hold its annual general meeting at the end of June, where it will propose a 1 for 10 share consolidation.
"The sale of our interests in our MOD joint venture and the subsequent sale of MOD to Sandfire represented a critical turning point for the company. It has facilitated further exciting new investments, increased our liquidity and increased our asset value. Further, the sale has given the company immediate cash flow in the term of Sandfire dividends, but also a look through to potential long term cash flow in the form of a 2% net smelter royalty over the old MOD/Metal Tiger JV ground covering circa 8,000 square kilometres," said Chief Executive Officer Michael McNeilly.
"This deal, together with the new share issues during 2019 have meant that we have been able to acquire investments in Cobre and Southern Gold and to continue funding our interests in KML, thereby increasing our portfolio diversity whilst retaining our high-impact interest in exciting jurisdictions such as the Kalahari Copper Belt," McNeilly added.
Shares in Metal Tiger closed 3.7% higher at 2.10 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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