Tiger Resource Regulatory News (TIR)

For immediate release

24 May 2018

Tiger Resource Finance plc("Tiger" or the "Company")Final Results for the Year Ended 31 December 2017 and Notice of Annual General Meeting

The Company is pleased to announce its audited results for the year ended 31 December 2017 and to confirm that the 2017 Annual Report and Financial Statements ("Annual Report"), together with a Notice of AGM ("Notice") will be posted to shareholders on Friday 25 May 2018. The AGM will be convened at Fladgate LLP, 16 Great Queen Street, London WC2B 5DG on Friday, 22 June 2018 at 14:00.

Pursuant to rule 20 of the AIM Rules for Companies, copies of both the Annual Report and the Notice will be available for inspection at www.tiger-rf.com effective from 08:00 am on 25 May 2018.

Notes

1) Extracts from the Annual Report are set out below. The financial information set out below does not constitute the Company's statutory accounts for the periods ended 31 December 2017 or 31 December 2016 but it is derived from those accounts. Statutory accounts for 31 December 2016 have been delivered to the Registrar of Companies and those for 31 December 2017 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

2) The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information please contact:

Dear Shareholder,

The year under review has seen Tiger's net asset value ("NAV") decrease to 0.62p per share from 0.80p per share as at 31 December 2016, representing a 22.5% decrease in NAV compared to 31 December 2017. The decrease in NAV has resulted mainly from the increased number of shares in issue as at the 31 December 2017 against a relatively flat portfolio valuation. The portfolio value has since recovered to 0.77p per share in the most recent review at 31 March 2018.

During the year, apart from normal trading activities, the Group sold 5.1M shares in Galileo Resources Plc realising a profit of £208,831. In February 2018, Tiger made a total return of £436,354 by selling its holding in RockRose Energy Plc.

Tiger made a number of investments during the year, primarily in the gold and base metal sector in junior resource companies. The investments made were consistent with our stated mission of proactive involvement in underlying investee companies. During the year under review, we made proactive investments in Revelo Resources Corporation, a Canadian copper exploration company with assets in Chile, Jubilee Metals Group Plc, a producing chrome and platinum company in South Africa and Ferrum Crescent Limited, an emerging zinc developer with a significant project in north western Spain. Shortly after the year-end, and in keeping with the proactive theme, an investment of £250,000 was made in Bezant Resources Plc which has a highly advanced copper project in the Philippines and a brown field copper and gold project in Argentina. 

An examination of our portfolio endorses our decision to be closer to the companies we invest in as opposed to making arm's length passive investments in companies where we have limited knowledge of current developments. We will continue to identify opportunities to make new investments on a proactive basis and where appropriate we will invest further funds into existing investee companies with the view to either maintaining or increasing our current position.

At the time of writing, the outlook for the resource sector is extremely positive with high growth and inflation being forecast across the world's leading economies. History predicts that this is a particularly good time to invest in base metals and in the resource sector generally. However, the sentiment for metals is somewhat dampened by the uncertainty and lack of confidence in what the future holds for global stock markets and by heightened geopolitical tension. The improvement in the price of oil to current levels around $70 per barrel also has positive implication for the oil and gas market and affiliated businesses. 

The linkage between main markets and the junior resource markets has never been clearly defined and as such, if a correction materialises in the coming months, the fortunes of smaller cap resource companies could in fact improve as investors become nervous with returns from larger companies. Furthermore, a large proportion of junior sector investors avoid the main markets since share price movements in real terms are relatively low compared with the upside potential from successful junior resource companies.

The resource industry has different fundamentals to most other industry sectors, other than possibly the pharmaceutical sector which is faced with problems from generic production and extremely high competition levels for acquiring successful medical research development products. The major mining industry is now very different to the typical cycles seen historically and patterns are being broken. Typically at the end of the very tough downward cycle, which we have experienced over the last few years, mid-cap single producing mines are usually acquired by the larger mining companies with the view to boosting their earnings and metal inventory. There are currently very few single mine producing companies for this model to be repeated. Having scrapped their exploration divisions a number of years ago, the majors will be on the hunt for high quality proven resources in countries where mining is well understood and supported. Historically, this phase always leads to acquisitions of junior resource companies and as the appetite for new resources increases, we foresee higher valuations in the coming months. 

In November 2017, the Company issued 46,015,131 new Ordinary shares as part of an Open Offer made to all shareholders raising a total amount of £161,053 before costs. The Company will continue to finance its future investments by realising profits in current investments and where appropriate through new placing of shares.

I would like to thank my fellow directors and the Company's shareholders for their support in what has been a positive year with our proactive focus being partially achieved and continuing progress being made towards new investments opportunities.

Colin Bird

Executive Chairman

22 May 2018

The table below includes available-for-sale investments only. Other investments held by the Group are disclosed in notes 7 and 8 to the financial statements.

PARENT COMPANY:

(1) 3,900,000 Galileo Resources Plc shares were sold during the year resulting in a holding of 6,516,667 shares at 31 December 2017. 5,000 Rockrose Plc shares were also sold during the year resulting in a holding of 95,000 shares at 31 December 2017. The remaining Rockrose Energy Plc shares were sold in February 2018. 1,666,667 Ortac Resources Plc (now known as Arc Minerals Plc) shares were bought and sold in the current year.

2,500,000 BMR Group Plc (formerly known as Berkeley Mineral Resources Plc) shares and 173,500 Goldquest Mining Corporation shares were purchased during the current reporting period.

(2) The Bezant Resources Plc and Corralian Energy Limited investments were acquired after 31 December 2017 and thus have not been allocated a cost and valuation figure as at 31 December 2017.

(3) Berkeley Minerals Group Plc changed its name to BMR Group Plc

(4) Jubilee Platinum Plc changed its name to Jubilee Metals Group Plc.

(5) Northern Petroleum Plc has changed its name to Cabot Energy Plc.

(6) The investments in New World Oil and Gas Plc (now known as Eridge Capital Limited) and Rex Bionics Plc have now been fully written off.

AFRICAN PIONEER PLC ("APP"):

(1) Investments in BHP Billiton Plc, ETFS Physical Platinum, Ophir Energy Plc and Royal Dutch Shell Plc were sold in the year ended 31 December 2017. 1,500,000 Galileo Resources Plc shares were also sold in the current reporting period.

1,200,000 additional Revelo Resources Corp. shares were purchased resulting in a total holding of 1,515,000 Revelo Resources Corp shares held at 31 December 2017.

2,500,000 Galileo Resources Plc shares were purchased in the year. APP also made investments Jubilee Metals Group Plc and Ferrum Crescent Ltd.

The Freeport-McMoran and Copper ETFS investments were sold after 31 December 2017.

Details of impairments are shown in note 8 of the Financial Statements.

CONSOLIDATED AND PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED 31 DECEMBER 2017

All profits are derived from continuing operations.

The notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY YEAR ENDED 31 DECEMBER 2017

Other components of equity

The notes form an integral part of these financial statements. 

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY YEAR ENDED 31 DECEMBER 2016

Other components of equity

The notes form an integral part of these financial statements.

CONSOLIDATED AND PARENT COMPANY STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2017

The notes form an integral part of these financial statements.

The financial statements of Tiger Resource Finance Plc (registered number 2882601) were approved by the Board on 22 May 2018 and signed on its behalf by:

Colin Bird - Executive Chairman R Samtani - Director

CONSOLIDATED AND PARENT COMPANY CASH FLOW STATEMENTS YEAR ENDED 31 DECEMBER 2017

The notes form an integral part of these financial statements

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

1. ACCOUNTING POLICIES

Basis of preparation

The Company is an investment company incorporated and domiciled in England and Wales. The Group's and Company's principal activities are discussed in the Strategic Report and the address of the registered office is included on page 1 of the annual report. The functional currency for the Group is Sterling as that is the currency of the primary economic market in which the Company and Group operates. 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 International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union.

A number of new standards and interpretations have been adopted by the Group for the first time in line with their mandatory adoption dates, but the only one applicable to the Group is

· Amendment to IAS 1 'Presentation of financial statements' on the disclosure initiative.

Basis of consolidation

The Group financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The subsidiary has a reporting date of 31 December.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those used by other members of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination. Losses applicable to the non-controlling interests in excess of the minority's interest in the subsidiary's equity are recorded as a debit to non-controlling interest regardless of whether there is an obligation in the part of the holders of non-controlling interests for losses.

Valuation of available-for-sale Investments

Available-for-sale investments are initially measured at fair value plus incidental acquisition costs. Subsequently, they are measured at fair value in accordance with IFRS 13. This is either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.

Gains and losses on available-for-sale investments are recognised in other comprehensive income and accumulated in the available-for-sale assets reserve except for impairment losses, until the assets are derecognised, at which time the cumulative gains and losses previously recognised in other comprehensive income are recognised in profit or loss.

In respect of available-for-sale equity securities, impairment losses previously recognised in profit and loss are not reversed through profit and loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income and accumulated in the available-for-sale assets reserve. In respect of available-for-sale debt securities, impairment losses are subsequently reversed through profit and loss if an increase in the fair value of the investment can be objectively related to an event occurring after the date of the recognition of the impairment loss.

Investments in subsidiaries

In its separate financial statements the Company recognises its investments in subsidiaries at cost, less any provision for impairment. The cost of acquisition includes directly attributable professional fees and other expenses incurred in connection with the acquisition.

Financial assets at fair value through profit or loss ('FVTPL')

Financial assets at FVTPL include financial assets that are either classified as held for trading or that meet certain conditions and are designated at FVTPL upon initial recognition. All investments where the company hold more than 10% of the share capital fall into this category. Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this category are determined by reference to active market.

Revenue

Dividends receivable from equity shares are taken to profit or loss on an ex-dividend basis. Income from bank interest received is recognised on a time-apportionment basis. Dividends are stated net of related tax credits.

Expenses

All expenses are accounted for on an accruals basis. For available for sale assets expenses which are incidental to the acquisition of an investment are added to the fair value on acquisition.

Cash and cash equivalents

This consists of cash held in the Group's bank accounts.

Foreign currency

Assets and liabilities denominated in foreign currency are translated into sterling at the rates of exchange ruling at balance sheet date. Exchange gains or losses on monetary items are recorded in profit or loss. Exchange gains or losses on available-for-sale financial assets are recorded in other comprehensive income.

Share options

The fair value of share options has been calculated using the Black Scholes model which is charged in the profit or loss and credited to equity.

Treasury shares

The cost of purchasing treasury shares and the proceeds from the sale of treasury shares up to the original price is taken to the retained earnings reserve; any surplus on the disposal of treasury shares (measured against the weighted average purchase price) is taken to the share premium account.

Reserves

Available-for-sale Financial Assets Reserve

Increases and decreases in the valuation of available-for-sale investments held at year end are credited or debited to this account.

Share Based Payment Reserves

The fair value of share options which has been calculated in accordance with the share options accounting policy is credited to this account.

Capital Redemption Reserve

Any cancellation of shares leads to a credit to this account.

Geographical segments

The internal management reporting used by the chief operating decision maker consists of one segment. Hence in the opinion of the directors, no separate disclosures are required under IFRS 8. The Group's revenue in the year is not material and consequently no geographical segment information has been disclosed.

Deferred tax

Deferred tax liabilities are generally recognised for taxable temporary differences and deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised except for differences arising on investments in subsidiaries where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.

Deferred tax is also based on rates enacted or substantively enacted at the reporting date and expected to apply when the related deferred tax asset is realised or liability settled.

Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt within equity.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the consolidated income statement because it excludes items or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Significant management judgement in applying accounting policies and estimation uncertainty

When preparing the financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

Fair value of financial assets

Establishing the fair value of financial assets may involve inputs other than quoted prices. As is further disclosed in note 8, all of the Group's financial assets which are measured at fair value are based on level 1 inputs, which reduces the level of estimation involved in their valuation.

Impairment of financial assets

Determining whether the decline in the fair value of a financial asset constitutes an impairment and, as regards "available-for-sale" financial assets, whether that cumulative decline should therefore be reclassified to profit and loss is inherently subjective. As noted above, the Group applies a quantitate threshold of a 20% decline in fair value against cost as being a key determinant in establishing whether an asset is impaired. At the balance sheet date there were no material available for sale investments where the carrying value was below cost but the decline had been treated as a temporary fall rather than an impairment through profit and loss.

At the balance sheet date the carrying value of the parent company's holding in its subsidiary exceeded the underlying assets of that subsidiary, as is detailed in note 6. In line with the policies above, no impairment has been recognised in respect of this decline in underlying net assets as it is not deemed to be a permanent decline based on current forecasts of the subsidiary's activities. However, failure to meet those forecasts will lead to a diminution in the net assets held by the parent company.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Group's future taxable income against which the deductible temporary differences can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions. In the opinion of the directors a deferred tax asset has not been recognised as future profits cannot be forecasted with reasonable certainty.

Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Group

At the date of authorisation of these financial statements, a number of new standards, amendments and interpretations to existing standards have been published by the IASB but are not yet effective, and have not been adopted early by the Group. Management anticipates that all of the relevant pronouncements will be adopted in the Group's accounting policies for the first period beginning after the effective date of the pronouncement. Information on new standards, amendments and interpretations that are expected to be relevant to the Group's financial statements is provided below. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Group's financial statements.

IFRS 9 'Financial instruments': this standard replaces the guidance in IAS 39. It includes requirements on the classification and measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the current incurred loss impairment model. The standard is applicable for annual periods commencing on or after 1 January 2018.

IFRS 16 'Leases': this standard replaces the current guidance in IAS 17 and is a far-reaching change in accounting by lessees in particular. Under IAS 17, lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). IFRS 16 now requires lessees to recognise a lease liability reflecting future lease payments and a 'right-of-use asset' for virtually all lease contracts. The IASB has included an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees. For lessors the accounting required by IAS 17 is largely unchanged, although changes to the definition of what constitutes a lease means lessors will also be affected. The standard is effective for annual periods commencing on or after 1 January 2019.

Amendments to IFRS 2, 'Share based payments', on clarifying how to account for certain types of share-based payment transactions: This amendment clarifies the measurement basis for cash-settled, share-based payments and the accounting for modifications that change an award from cash-settled to equity-settled. It also introduces an exception to the principles in IFRS 2 that will require an award to be treated as if it was wholly equity-settled, where an employer is obliged to withhold an amount for the employee's tax obligation associated with a share-based payment and pay that amount to the tax authority. The amendment is applicable for annual periods commencing on or after 1 January 2018.

2. OPERATING EXPENSES

Operating profit is stated after charging:

3. DIRECTORS' EMOLUMENTS

Other than directors, there were no employees in the current or prior year.

Amounts of £64,340 and £64,865 (2016: £52,340 and £52,865) were due to C Bird and R Samtani respectively at the balance sheet date and included in accruals in respect of emoluments payable by African Pioneer plc. The annual amount accrued in respect of such emoluments are included in the disclosures above irrespective of the fact they have not been paid.

4. TAXATION

5. EARNINGS PER SHARE

There were no share options outstanding at 31 December 2017. 

6. INVESTMENT IN SUBSIDIARIES

On 20 July 2012, Tiger Resource Finance Plc made an investment in African Pioneer Plc ("APP"), an Isle of Man based business, thereby gaining control. African Pioneer Plc is an investment vehicle which was incorporated to facilitate pro-active investments being undertaken by Tiger Resource Finance Plc in the resource sector. At 31 December 2016, the Group had an interest of 50.75% of the voting equity rights in its subsidiary, African Pioneer Plc.

The subsidiary company was incorporated on 20 July 2012, and later issued shares through a placing of shares for cash and there were, therefore, no assets or liabilities acquired at the time acquisition. No acquisition costs were incurred. African Pioneer Plc issued 4,998,258 Ordinary shares of nil par on 2 June 2015 at 1 pence per share. Tiger Resource Finance Plc subscribed for a further 2,529,130 shares in this placing and currently holds 59,529,132 shares representing a holding of 50.75% in African Pioneer Plc.

African Pioneer Plc's capital and reserves were as follows:

7. 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 company quoted on AIM (XTR). The acquisition of the 344,827,584 shares in Xtract was paid for in cash at 0.0435p per Ordinary share. The balancing Xtract shares were sold during the year ended 31 December 2016 for a total consideration of £36,653.

8. AVAILABLE-FOR-SALE INVESTMENTS

GROUP

There are no significant holdings (over 20%) in any of the investee companies.

COMPANY

The gains/(losses) on the Group's available-for-sale investments are analysed below. Accounting standards prohibit the recognition of uplifts in the value of impaired assets in profit and loss.

Financial instruments measured at fair value

The following table presents financial assets and liabilities measured at fair value in the statement of financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

- Level 3: inputs for the asset or liability that are not based on observable market data (unobserved inputs).

The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement.

The financial assets and liabilities measured at fair value in the statement of financial position are grouped into the fair value hierarchy as follows:

(GROUP)

(COMPANY)

There have been no significant transfers between levels in the reporting period.

Measurement of fair value

The methods and valuation techniques used for the purpose of measuring fair value are outlined in note 1 and remain unchanged compared to the previous reporting period. The fair values of short-term receivables, cash and short-term payables do not differ from their carrying values due to their short maturity profiles.

Listed / quoted securities

Equity securities held by the Group are denominated in GBP, USD, CAD$, and AUS$ and are publicly traded on the main London Stock Exchange, the Alternative Investment Market of the London Stock Exchange, the Toronto Venture Exchange, the Australian Exchange and on ISDX. Fair values have been determined by reference to their quoted bid prices at the reporting date, with the exception of Rockrose plc, which are currently suspended and have been valued at their last available market price prior to suspension.

9. TRADE AND OTHER RECEIVABLES

10. DEFERRED TAX LIABILITIES

The group has tax losses carried forward in respect of excess management charges, non-trade deficits and capital losses of £1,247,203 (2016: £1,163,555). Unrealised losses on the Group's financial assets are estimated at £1,649,963 (2016: £2,092,979). The resulting deferred tax asset is £550,462 (2016: £618,741). 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. Tax losses may be carried forward indefinitely and will only be recoverable if suitable profits arise in the future. Deferred tax positions arising from unrealised gains and losses on the group's financial assets will vary depending on changes in the fair values of those assets up until the date of disposal.

11. TRADE AND OTHER PAYABLES

12. CALLED UP SHARE CAPITAL

The share capital of Tiger Resource Finance Plc consists only of fully paid ordinary shares with a nominal value of 0.1p 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.

During the year ended 31 December 2016, the Company divided each issued existing ordinary share of 1p each (Existing Ordinary Share) into one new Ordinary share of 0.1p and one deferred share of 0.9p and each unissued Existing Ordinary Share into 10 new Ordinary Shares as part of a share capital reorganisation. The Deferred shares have no income or voting rights.

The Company issued 46,015,131 new Ordinary shares on 29 November 2017 following an open offer to all shareholders at a price of 0.35 pence per share (representing a premium of 0.25 pence per Ordinary share) increasing the number of shares in issue to 188,847,070 at 31 December 2017.

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

Share warrants in issue at year end

The Company has granted options to subscribe for ordinary 1p shares as follows:

The Income Statement does not include a share-based payment charge as the 2.5 million warrants issued in July 2016 did not give rise to a material change.

13. RELATED PARTY TRANSACTIONS

(1) Lion Mining Finance Limited, a company in which Colin Bird is director and shareholder, has provided administrative and technical services to the Company amounting to £60,000 plus VAT in the year (2016 - £60,000). There were no amounts outstanding at 31 December 2017 (2016- nil). The Board considers this transaction to be on an arms' length basis.

(2) The emoluments of the Directors are disclosed in note 3.

(3) Directors' shareholdings are disclosed in the Report of the Directors.

(4) Tiger Resource Finance Plc made an investment of £210,000 on 20 July 2012, to acquire a 50.76% equity interest in a newly formed subsidiary, African Pioneer Plc ("APP"). C Bird, M H Nolan and R Samtani each also invested £10,000 to acquire 10 Million ordinary shares each (representing an 8.9% interest in APP). On 2 June 2015, Tiger purchased a further 2,529,130 shares at a cost £25,291 increasing its holding in APP to 59,529,132 shares representing a 50.75% holding of the company. On the same date, C Bird and M H Nolan and R Samtani each purchased an additional 617,282 shares in APP at cost of £6,173 increasing their individual holdings to 10,617,282 shares. See note 6 to the financial statements for further details relating to this investment.

(5) On 19 August 2015, the Company made an investment of £125,000 in Galileo Resources Plc ("Galileo"), acquiring 10,416,667 Ordinary shares of 0.1 pence each (being a 6.69% stake in Galileo at the date of subscription). Tiger sold 3,900,000 Galileo shares on 3 February 2017 for a total consideration of £161,346 and holds 6,516,667 shares in Galileo Resources Plc on 31 December 2017. 

During the current year, African Pioneer Plc ("APP") sold its brought forward holding of 1,500,000 Ordinary shares in Galileo Resources Plc realising a profit of £94,285. APP bought a further 2,500,000 Galileo shares for £50,000 in September 2017. 

Colin Bird is a Director and the Executive Chairman of Galileo and did not participate in the decision making process for the Galileo investment decisions.

(6) APP purchased 130,499,858 shares in Ferrum Crescent Ltd for a total consideration of £65,000 on 8 November 2017 as part of the Group's proactive investment policy. Colin Bird was subsequently appointed Non-Executive Chairman of Ferrum Crescent Ltd on 12 January 2018.

14. POST-REPORTING DATE EVENTS

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation the financial statements.

15. CONTINGENT LIABILITIES

There were no contingent liabilities at 31 December 2017 (2016 - None).

16. FINANCIAL INSTRUMENTS

Management of Risk

The Group and the Company's financial instruments comprise:

§ Investments in subsidiary companies

§ Available-for-sale investments held at fair value through profit or loss

§ Cash, short-term receivables and payables

Throughout the period under review, it was the Group's policy that no trading in derivatives shall be undertaken.

The main financial risks arising from the Group and Company's financial instruments are market price risk and liquidity risk. Credit risk is not significant, but is monitored. The Board regularly reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained constant throughout the period.

Market risk

Market risk consists of interest rate risk, foreign currency risk and other price risk. It is the Board's policy to maintain an appropriate spread of investments in the portfolio whilst maintaining the investment policy and aims of the Company and the Group. The Investment Committee actively monitors market prices and other relevant information throughout the year and reports to the Board, who is ultimately responsible for the Group's investment policy.

Interest rate risk

Changes in interest rates would affect the Company and the Group's returns from its cash balances. A floating rate of interest, which is linked to bank base rates, is earned on cash deposits. The exposure to cash flow interest rate risk at 31 December 2017 for the Group was £255,805 (2016: £360,885). The exposure to cash flow interest rate risk at 31 December 2017 for the Company was £236,337 (2016: £318,653).

A sensitivity analysis based on a movement of 1% on interest rates would have a £2,558 effect on the Group's profit (2016: £3,608). A sensitivity analysis based on a movement of 1% on interest rates would have a £2,363 effect on the Company's' profit (2016: £3,186).

As the Group does not have any borrowings and finances its operations through its share capital and retained revenues, it does not have any interest rate risk except in relation to cash balances.

Foreign currency risk

The Group's total return and net assets can be affected by currency translation movements as part of the available-for-sale assets held by the Company are denominated in currencies other than £ Sterling. The Directors mitigate the individual currency risks through the international spread of investments. Hedging transactions may be used but none have been employed during the period under review (2016: none).

The fair values of the Group's available-for-sale investments that have foreign currency exposure at 31 December 2017 are shown below.

The Group accounts for movements in fair value of its available for sale financial assets in other comprehensive income. The following table illustrates the sensitivity of the equity in regard to the Group's financial assets and the exchange rates for £/ Canadian Dollar, £/ US Dollar and £/Australian Dollar.

It assumes the following changes in exchanges rates:

- £/CAD +/- 20% - (2016: +/- 20%)

- £/USD +/- 20% - (2016: +/- 20%)

- £/AUD +/- 20% - (2016: +/- 20%)

These percentages used reflect the high level of market volatility experienced in exchange rates in recent years.

The sensitivity analysis is based on the Group's foreign currency financial instruments held at each balance sheet date.

If £ Sterling had weakened against the currencies shown, this would have had the following effect: