Tiger Resource Regulatory News (TIR)

27 Jun 2007 15:30

Tiger Resource Finance PLC27 June 2007 Tiger Resource Finance plc ("Tiger" or the "Company") FINAL RESULTS REPORT OF THE CHAIRMAN I am pleased to report further good progress for the year under review. The netasset value per share at 31 December 2006 was 4.73p compared to 4.77p at 31December 2005. The portfolio value per share, based on cash plus investments,was 6.42p at 31 May 2007. Our commitment to quality in selecting investmentopportunities has continued to generate further advances in Tiger's NAV. During the year, the Company purchased 7.9 million of its own shares for aconsideration of £289,992. The total number of treasury shares held by Tiger asat 31 December 2006 is 7,900,000 representing 3.93 % of the Company's issuedshare capital. The period under review saw further resource sector advances with somevolatility against general market support for the sector. This volatility wasoften the result of non-industry analysts using various approaches aimed at "talking the sector down". The Tiger Board believes strongly that the strength of the current resource boomreflects 20 years of under investment in the mining sector; the supply situationin most metals is now very tight and in some cases precarious. There has been amodest slowdown in South East Asia and the forecasted Indian industrial growthhas not fully materialised. Nevertheless overall demand remains strong against atight supply. Having outlined a very positive scenario, we feel that investors have becomefamiliar with current prices and the very low prices of some 4 years ago havebeen forgotten. Hence any modest downward correction in metal prices may beseen as the end of the current cycle and could result in significant downwardshare price adjustments. Current corporate activity around mergers and acquisitions suggest that themajors are buying metal reserves since they recognize that organic generationwill not occur in the time required. How will the aforementioned alter the markets? We believe the following scenarios are most likely: • Junior explorers on a selective basis will see significant gains; • Newcomers and early stage exploration companies may experience secondary financing difficulties; • New IPO's may be difficult to launch; • Mature explorers who have advanced to bankable feasibility study will attract large premiums; and • Merger and acquisition activity around the majors will remain "frantic". All the above suggests that individual stock selection and recognition ofspecial situations will be more fundamental going forward, as opposed to generalresource sector support. Last year, we referred to a lack of a major exploration discovery. A majordiscovery has not yet been made, despite continuing unprecedented expenditure onglobal exploration. This fact, in our opinion, underpins the sentiment thatmetals in general will be in short supply for a considerable time. In essence the Tiger Board's key strategy to maximise net asset backing will beto: • Participate in investments at all levels with the emphasis being on asset quality and management expertise; • Invest in higher risk/reward situations; • Realise profits where appropriate. We are confident that this approach will further enhance the Company'sperformance and produce good returns for shareholders. We look forward toreviewing new investment opportunities that will further enhance the Company'sprofitability and shareholder value. R B Rowan - Chairman26 June 2007 TIGER RESOURCE FINANCE PLC ('Tiger') PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER, 2006 PORTFOLIO REVIEW INVESTMENTS Number Cost Valuation Valuation 31/12/06 31/12/06 31/12/06 31/05/07 £ £ £ African Eagle Resources Plc 1,241,174 112,264 127,220 147,700Ascent Resources Plc 29,093,406 534,890 2,909,341 4,638,391Franconia Minerals Corp - TSX (Plus)* 333,333 45,432 219,814 -Franconia Minerals Corp - TSX 312,500 53,781 206,075 1,201,287Gold Fields Ltd 10,500 32,759 100,902 97,696Minmet Plc 873,574 241,135 87,357 89,716Nautical Petroleum Plc 9,000,000 180,000 720,000 720,000Pacific North West Capital Corp 566,500 107,682 95,884 146,721Pan African Resources Plc 5,098,345 175,013 309,979 309,979Ridge Mining Plc 100,000 178,477 51,250 139,500River Diamonds Plc 8,144,207 125,000 61,082 98,545Sunrise Diamonds Plc 665,000 6,650 18,288 15,628Tertiary Minerals Plc 1,330,000 119,700 156,275 186,200 WARRANTSAscent Resources Plc (1) 549,451 - -River Diamonds Plc (2) 13,333,333 - - - -LOAN NOTESMIT Ventures Corp Loan Note - 40,000 40,000 40,000 _______ _______ _______ 1,952,783 5,103,467 7,831,363 Warrants included in the above investment list are as follows: (1) 549,451 warrants in Ascent Resources Plc exercisable at 12p each to 22 December 2007. (2) 13,333,333 warrants in River Diamonds Plc exercisable at 1.5p each to 28 October 2008. *333,333 Franconia Minerals Corp shares held by the Company ceased trading onPlus markets at 31 December 2006 and are now listed on TSX. Consequently thevaluation of £1,201,287 at 31 May 2007 is for the total holding of 645,833shares held by the Company in Franconia Minerals Corp. African Eagle Resources plc (AIM - AFE) www.africaneagle.co.uk Tiger holds 1,241,174 shares in African Eagle Resources plc ("African Eagle").The feasibility study at the Mkushi copper project is progressing well. Jointventure partner CGA Mining Limited has completed 3,930m of reverse circulationdrilling and 1,954m of diamond drilling since taking over operations in the corearea in July 2006. This on-going drill program continues to confirm thesubstantial width and grade of the deposit and is on track to increase its JORC-compliant copper resource. For its Miyabi project, African Eagle has been ableto define a JORC-compliant resource of 520,000 ounces of gold. The company hasbeen in discussion with a number of potential JV partners with a view toaccelerating this project towards feasibility study. Tiger continues to believethat these projects have good prospects for enhancing shareholder value. Ascent Resources plc (AIM - AST) www.ascentresources.co.uk Tiger holds 27,093,406 shares in Ascent Resources plc ("Ascent") following thedisposal of 2 million shares post 31 December 2006. Ascent has expanded rapidlyduring the last 18-month period after assembling a diverse and robust portfoliofollowing its incorporation in 2004. The company's portfolio was rationalisedduring the latter half of 2006 and during the first quarter of the current yearthrough the acquisition of interests in Slovenia, which is a cross-bordercontinuation of Ascent's South West Hungary gas play and following profitabledivestment of the company's minority interests in Romania. The operationalmanagement team was considerably strengthened during the period and Ascent isnow suitably equipped with the skills and experience necessary to deliver oncurrent and future work commitments. Tiger is very pleased with the performanceof this investment since the company's admission to AIM in November 2004. Franconia Minerals Corporation (TSX - FRA) www.franconiaminerals.com Tiger sold 312,500 shares in Franconia Minerals Corporation ("Franconia") duringthe year for a consideration of £215,759 realising a profit of £161,978 and areturn of almost 400% on original cost. Tiger currently holds a further 645,833shares in the company. Franconia is a company focused in the exploration ofPlatinum Group Metals and zinc/copper in the USA. Franconia's most advancedproject is the Birch Lake Platinum-Palladium-Copper-Nickel project, located inthe Duluth Complex in northeastern Minnesota. The project includes two inferredPGM resources; the 100 million tonne Birch Lake resource and the 120 milliontonne Maturi resource. Birch Lake and the nearby Maturi deposit are thesubjects of a recent independent preliminary economic assessment to NI 43-101standards. The preliminary economic assessment contemplates that a combinedBirch Lake-Maturi operation would have, over a 26-year mine life, an averageannual production of 74 million lbs of copper, 19 million lbs of nickel, 2.9million lbs of cobalt, 68,000 ounces of palladium, 33,000 ounces of platinum and7,300 ounces of gold. Tiger is pleased with this investment and will realisefurther profits when appropriate. Gold Fields Limited (JSE - GFI) www.goldfields.co.za Tiger holds 10,500 Gold Fields Limited ("Gold Fields") shares. Gold Fields isone of the world's largest unhedged pure gold producers, providing investorswith maximum leverage to the gold price. The company has an annual goldproduction of approximately 4.1 million ounces from mines in South Africa,Ghana, Australia and Venezuela, as well as a developing mine at Cerro Corona inPeru and has ore reserves of 65 million ounces and mineral resources of 179million ounces. Following the acquisition of both Barrick Gold Corporation andWestern Areas Limited, Gold Fields now looks forward to realizing the full valueof its enlarged asset base. Minmet plc (AIM - MNT) www.minmet.ie Following the recent consolidation in Minmet's share capital, Tiger currentlyholds 873,574 shares in Minmet plc ("Minmet"). The company has recentlyimplemented a strategy as an incubator and promoter of a number of new andexisting projects and opportunities in the oil & gas and minerals sectors. Thecompany holds an interesting and diversified portfolio through joint venturesand strategic investments. In February 2007, the company acquired the existingLatin American oil and gas database and work in progress of Gold Old Caribbeanlimited, a subsidiary of Gold Oil plc and attracted Gold Oil plc as a strategicpartner and investor in Minmet. Tiger believes that the recent re-structuringof the group along with the new strategy should improve the performance of thisinvestment. Pacific North West Capital Corp (TSX - PFN) www.pfncapital.com Tiger holds 566,500 shares in Pacific North West Capital Corp ("PFN"), which isfocused on PGM and base metal exploration in North America. PFN is currentlyexploring the River Valley Project, located near Sudbury, Ontario and jointventured 50/50 with Anglo Platinum Limited ("Anglo Platinum"). Anglo Platinumhas committed over CAN$19 million to the River Valley Project to date and mayearn a 60% interest in the project by completing a feasibility study and a 65%interest by funding it through to production. Stillwater Mining recently signeda letter of intent to invest CAN$4.5 million into PFN's Alaskan exploration andreconnaissance programs including the Goodnews Bay Platinum Project. Tigerbelieves that this company has an interesting portfolio that should generategood shareholder value. Pan African Resources plc (AIM - PAF) www.panafricanresources.com Tiger purchased 1,765,000 Pan African Resources plc ("Pan African") shares inMarch 2006 for £75,013, a gold exploration company with properties in Africaincreasing its holding to 5,098,333 shares. In December 2006, Pan Africanannounced the signing of a conditional Sale of Share Agreement with MetorexLimited to acquire 74% of Barberton Mines (Proprietary) Limited, a company whichowns gold producing mines. This acquisition will establish Pan African as agold producer and provide access to industry skilled personnel. Dealings in PanAfrican shares have been suspended on AIM since December 2006 pending thepublication of the re-admission document. Tiger believes this acquisition willdeliver significant shareholder value as it will allow the company to become agold producer and explorer and hence be well positioned for further growth. Nautical Petroleum plc (AIM - NPE) www.nauticalpetroleum.com Tiger holds 9,000,000 shares in Nautical Petroleum plc ("Nautical"). Nauticaldevelops heavy oil assets in the UK and Europe. The company's strategy isfocused on securing further heavy oil discoveries and achieving near termproduction on its current assets. Nautical acquired a 98.5% interest in theBluebeard and Skipper discoveries on the East Shetland Platform in November2006. Earlier this year, the company secured interests in 4 additional licencesfollowing the results of the UKCS 24th Seaward Licencing Round. Tiger believesthat Nautical has a strong management team capable of delivering a good returnon investment through its diverse and interesting portfolio. Ridge Mining plc (AIM - RDG) www.ridgemining.com Tiger holds 100,000 shares in Ridge Mining plc ("Ridge"). In 2006, Ridge signeda revised joint venture agreement to incorporate the IDC in its Sheba's Ridgeproject in return for funding to the feasibility study. The IDC has advanced ZAR60 million to date and accordingly earned 26% a interest in the project. InApril 2007, Ridge completed the placement of 12 million new Ordinary Shares toraise £15 million. These funds will be used to continue the development of theBlue Ridge project until funding is received from Imbani Platinum (Pty) Limited("Imbani") and the consortium of South African banks. Funding from the latter isexpected to commence in December 2007 following the expenditure of equitycapital from Ridge and Imbani. Tiger sees the future performance of thisinvestment linked to management performance and platinum price. River Diamonds plc (AIM - RVD) www.riverdiamonds.co.uk Tiger holds 8,144,207 shares in River Diamonds plc ("River Diamonds"), which hasdiamond exploration and prospecting projects in Brazil and Sierra Leone. RiverDiamonds recently announced the purchase of a 4.8% working interest in LesothoDiamond Corporation ("LDC") for a consideration of £4 million with an option toacquire a further 2.3% stake by 20 April 2008 for an additional £2.1 million. LDC is the holding company of the 147 million tonne, 10.19 million carat KaoDiamond Project in Lesotho. River Diamonds has agreed to pay £400,000 for1,212,121 shares in LDC and is in the process of placing additional shares toraise the balancing £3.6 million to complete the first phase of thistransaction. This investment continues to disappoint but Tiger will closelyfollow this holding following River Diamonds acquisition of the minority stakein LDC. Sunrise Diamonds plc (AIM - SDS) www.sunrisediamonds.com Tiger holds 665,000 shares in Sunrise Diamonds plc ("Sunrise Diamonds"). InAugust 2006, Sunrise Diamonds entered into a joint venture giving it the rightto earn a 75% interest in projects held by Nordic Diamonds Inc. in the Kuopio-Kaavi district of south central Finland where previous exploration hasidentified 16 kimberlites on the Nordic claims. Field-work carried-out at 4targets in the Kaavi-Kuopio area produced excellent results and follow up workis now being planned to generate drill targets on these exciting areas. In theKuusamo area, field-work has now been completed at 14 priority targets andsamples are currently being processed for kimberlite indicator minerals. InFebruary 2007, Sunrise Diamonds placed 27,250,000 new ordinary shares withinstitutional investors raising £545,000 to fund on-going explorationprogrammes. Tiger will continue to monitor this small investment with interest. Tertiary Minerals plc (AIM - TYM) www.tertiaryminerals.com Tiger holds 1,330,000 shares in Tertiary Minerals plc ("Tertiary Minerals"), anexploration company with interests primarily in Scandinavia and Saudi Arabia. Apreliminary feasibility study is now well underway at the company's Ghurrayahrare-metal project in Saudi Arabia. Metallurgical test work, using a three tonnesample has now advanced to the stage where the initial mineral concentrationscheme is largely defined. This has resulted in improvements in metal recoveriesand reductions in reagent usage which should combine to reduce operating costsfrom previous estimates. Tertiary Minerals' shares were temporarily suspended,earlier this year, at the company's request pending resolution of issuesrelating to the renewal of its exploration rights over the Ghurayyah tantalumproject in Saudi Arabia. INCOME STATEMENTYEAR ENDED 31 DECEMBER 2006 2006 2005 (Restated)* £ £ Administrative expenses (493,248) (400,076) OPERATING LOSS (493,248) (400,076) Profit on sale of fixed asset investments 695,774 2,333,708 Investment income 1,174 619 Other income - 25,000 Other interest receivable & similar income (bank interest) 181,097 226,692 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 384,797 2,185,943 Tax on profit on ordinary activities (157,332) (656,107) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION FOR THE YEAR 227,465 1,529,836 Basic and diluted earnings per share 0.01p 0.07p * Details of the prior year restatement are shown in note 1. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESYEAR ENDED 31 DECEMBER 2006 2006 2005 (Restated)* £ £Profit for the year after taxation 227,465 1,529,836Cumulative gains recognised in previous years on sales in the year (422,241) (2,034,750)Unrealised gains on fixed asset investments 581,698 2,523,551Unrealised losses on fixed asset investments (674,960) (830,841)Total recognised gains/(losses) (288,038) 1,187,796 * Details of the prior year restatement are shown in note 1. BALANCE SHEETAS AT 31 DECEMBER 2006 2006 2005 £ £FIXED ASSETSInvestments 5,103,467 5,832,391CURRENT ASSETSDebtors 117,161 10,439Cash at bank 4,215,479 4,456,745 4,332,640 4,467,184CREDITORS: amounts falling due within one year (303,315) (718,871)NET CURRENT ASSETS 4,029,325 3,748,313 TOTAL ASSETS LESS CURRENT LIABILITIES 9,132,792 9,580,704Represented by:CAPITAL AND RESERVESCalled-up share capital 2,008,819 2,358,819Share premium account 1,554,856 1,554,856Capital redemption reserve 350,000 -Revaluation reserve 3,150,685 3,666,188Profit and loss account 2,068,432 2,000,841EQUITY SHAREHOLDERS' FUNDS 9,132,792 9,580,704 CASH FLOW STATEMENTYEAR ENDED 31 DECEMBER 2006 2006 2005 £ £Net cash (outflow) from operating activities (384,318) (368,306) Returns on investment and servicing of financeInterest received 181,516 224,118Other income and investment income received 1,174 25,619 182,690 249,737TaxationCorporation tax paid (658,841) (411,577) Capital expenditure and financial investmentPayments to acquire fixed asset investments (75,013) (816,540)Receipts from sale of fixed asset investments 984,208 2,708,708Net cash inflow from capital expenditure and financial investment 909,195 1,892,168 FinancingPurchase of own shares for treasury (289,992) (637,455)Net cash outflow from financing (289,992) (637,455) Increase/(decrease) in cash in the year (241,266) 724,567 Note 1. Basis of preparation The financial statements have been prepared on the historical cost basis ofaccounting, except for the measurement of investments at fair value. Thefinancial statements have been prepared in accordance with applicable UnitedKingdom Accounting Standards. All of the Company's operations are of acontinuing nature Valuation of Investments Investments are now held at fair value (previously mid-market) in accordancewith FRS 26. This is either the bid price or the last traded price, depending onthe convention of the exchange on which the investment is quoted. The effect ofthis change in method on the investments held at 1 January 2005 and 2006 is notconsidered material. Investments are treated as available-for-sale financial assets and gains andlosses are recognised through the Statement of Total Recognised Gains andLosses, except for impairment losses and foreign exchange gains and losses onmonetary items denominated in a foreign currency, until the assets arederecognised, at which time the cumulative gains and losses previouslyrecognised through the Statement of Total Recognised Gains and Losses arerecognised in the Income Statement. The comparatives for the year ended 31 December 2005 have been restated inrespect of this change in accounting policy. This has led to changes in theIncome Statement and the Statement of Total Recognised Gains and Losses but noeffect on the Balance Sheet and Cashflow Statement. The main change has been to recognise the cumulative gains on investmentspreviously recognised through the Statement of Total Recognised Gains andLosses, in the Income Statement. The effect of this has been to increase Profit on Ordinary Activities AfterTaxation for the current year by £295,442 and for 2005 by £1,425,084 andincreased EPS by 0.05p in 2006 and 0.02p in 2005. There is no effect on thetotal recognised gains and losses. The change in the basis of valuation from midto bid is not material in the context of these financial statements. This preliminary statement is not the company's statutory accounts. Thestatutory accounts for the year ended 31 December 2006 have been approved by thedirectors and have received an audit report which was unqualified and did notcontain statements under s237(2) and (3) of the Companies Act 1985. Thesestatutory accounts have not been delivered to the Registrar of Companies andwill be sent to shareholders on 28 June 2007. The statutory accounts for the year ended 31 December 2005 have been deliveredto the Registrar of Companies and have received an audit report which wasunqualified and did not contain statements under s237(2) and (3) of theCompanies Act 1985. The Company will be posting its Annual Report, together with a Notice of AGM ("Notice") to shareholders on Thursday, 28 June, 2007. The Annual General Meetingof the Company will be held on Wednesday 1 August 2007 at 3.00 p.m. at theDrayton Suite, Jury's Kensington Hotel, 109 - 113 Queensgate, London SW7 5LR Pursuant to rule 20 of the AIM Rules, copies of both the Annual Report and theNotice will be available for inspection, for a period of at least one month fromThursday, 28 June, 2007 at www.tiger-rf.com. By order of the Board 27 June 2007 This information is provided by RNS The company news service from the London Stock Exchange