LONDON (Alliance News) - Natural resources investor Metal Tiger PLC on Thursday recorded a heavily multiplied loss for the first half of 2018 due to the decline in value of its direct holdings in companies.
The company's pretax loss widened severely to GBP5.0 million in the six months to June 30 from just GBP34,100 a year before, after it sank to a GBP3.4 million loss on investments from a GBP2.0 million gain.
The main source of this was an unrealised GBP3.1 million loss due to a fall in the value of its direct equity holdings.
Metal Tiger also sold its 8.6% equity stake in gold miner Kingsgate, contributing to the investment loss. The stake was sold after Metal Tiger called a vote to remove a majority of Kingsgate's directors, which was not passed.
Metal Tiger is not revenue-producing at present. Metal Tiger's key operation is its 30% ownership of the Kalahari Copper Belt joint venture project in Botswana with MOD Resources Ltd, which is currently in development.
"Metal Tiger remains positive on the outlook for copper prices given limitations on supply and the important role of copper in the global economy. In the year to date the company has focussed the majority of its resources on the highly prospective Kalahari Copper Belt in Botswana and this will continue to be its priority. Metal Tiger believes that its joint venture with MOD has the potential to become a world class copper asset," said Metal Tiger Chairman Charles Hall.
Shares in Metal Tiger were down 3.5% at 2.36 pence on Thursday.