Tiger Resource Regulatory News (TIR)

24 Feb 2005 12:31

Tiger Resource Finance PLC24 February 2005 Tiger Resource Finance PLC ("Tiger" or the "Company") PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER, 2004 CHAIRMAN'S STATEMENT HIGHLIGHTS: • Total recognised gains in the year of £2,290,102 (2003 - 2,784,774) • NAV per share was 4.15p at 31 December 2004 (2003 - 3.02p) I am pleased to report that the year 2004 was an excellent year for the Company.Our investment strategy remained consistent and we harvested some of thebenefits of our conservative investment policy. During the year, your directors bought back 18.4 million shares representing7.8% of the total number of shares in issue. The directors are of the opinionthat the Company's shares were undervalued and as such represented an excellentbuy-back opportunity. These shares are held in treasury and may be cancelled,held or resold as the directors deem appropriate in the best interest of theshareholders. The year under review was one of consolidation for the resource sector with theAIM market outperforming other international resource markets. It is encouragingto note that generalist fund managers continue to take positions in new andsecondary resource offerings. The forecast for commodity prices remains good with nickel and copper lookingparticularly strong on the demand side. Gold and platinum group metals continueto show price resilience with potential for price increases. Basic commoditiessuch as iron ore and coal are also enjoying buoyant demand with robust producerpricing leading to long term demand at industry beneficial prices. The aforementioned has led to the major mining companies posting significantprofit increases, further attracting investor support to the resource industry. Integral to the increased profitability is the demand from China and South EastAsia. The question now is will this demand continue. The directors believe thateven if general demand is reduced, the emergence of this region alongsidetraditional demand will still maintain supply pressure on base metals. Our investment strategy remains consistent i.e. people, project and places withthe emphasis on quality. We will, during 2005, structure our portfolio to beproactive in that we may take positions in new listings or possibly be part ofthe listing process. Whilst we expect 2005 to be a good year for resource stocks we believe a part"pro-active" approach will allow us to outperform the sector. As well as investing in more junior exploration companies, we will also seek outresource investments which are close to production, since we are of the opinionthat the investment cycle will result in fund managers favouring maturingcompanies against emerging explorers. I would like to thank our shareholders for their continued support and my fellowdirectors and management for their efforts during the year. Finally, I would like to state my optimism for 2005 and assure our shareholdersof our intent to further enhance the value of their company in the current year. R B Rowan - Chairman 23 February 2005 PORTFOLIO REVIEW (2004) INVESTMENTS Number Cost Valuation 31/12/04 31/12/04 31/12/04 £ £ African Eagle Resources Plc 1,241,174 112,264 274,299 Alamos Gold Inc 106,293 27,610 164,852 Ascent Resources Plc 22,500,000 225,000 1,012,500 Bullion Resources Plc 9,000,000 180,000 382,500 Formation Capital Corp 2,025,000 207,043 375,129 Franconia Minerals Corp - OFEX 333,333 45,432 63,333 Franconia Minerals Corp - TSE 625,000 107,562 107,712 Gold Fields Ltd 10,500 32,759 66,799 Minmet Plc 17,471,488 241,135 471,730 Pacific North West Capital Corp 566,500 107,682 119,587 Ridge Mining Plc 100,000 178,477 50,000 River Diamonds Plc 6,666,666 100,000 216,667 Tertiary Minerals plc 1,330,000 119,700 119,700 FAIR VALUE OF WARRANTS & OPTIONS Cambrian Mining Plc (1) 1,350,000 - 2,034,750 Franconia Minerals Corp - OFEX (2) 166,667 - - Franconia Minerals Corp - TSE (3) 312,500 - - River Diamonds Plc (4) 13,333,333 - 233,333 MIT Ventures Corp Loan Note - 40,000 40,000 _______ _______ 1,724,664 5,732,891 Warrants included in the above investment list are as follows: 1. 1,200,000 warrants in Cambrian Mining Plc exercisable at 25p each to 27 March 2007 and a further 150,000 options exercisable at 50p each to 15 October 2005 - (see note * below). 2. 166,667 warrants in Franconia Minerals Corp (OFEX) exercisable at C$0.45 each to 11 June 2005. 3. 312,500 warrants in Franconia Minerals Corp (TSE) are exercisable at C$.60 to the earlier of a) 15 days after Franconia has given notice that its share price has been equal or greater than C$.70 for a period of 15 consecutive days; and b) 14 December 2006. 4. 13,333,333 warrants in River Diamonds Plc exercisable at 1.5p each to 28 October 2008. * There were no adjusting post balance sheet events. On 14 February 2005, the Company exercised 1,200,000 warrants and 150,000 options held in Cambrian Mining Plc paying a total consideration of £375,000. The carrying value of the warrants and options was £2,034,750. The shares acquired upon exercise of the warrants were subsequently sold for net proceeds of £2,708,708 resulting in a profit of £2,333,708 compared to the original cost of purchase. African Eagle Resources Plc: (AIM) - AER www.africaneagle.co.uk Tiger holds 1,241,171 shares in African Eagle Resources Plc ("African Eagle").African Eagle explores for and develops gold and other mineral resources ineastern and southern Africa. The company acquired a 75% interest in the Igurubiproject on which it recently completed a 17-hole, 1,190m reverse circulationdrilling programme. The results demonstrated that the system containssignificant gold mineralisation in the form of narrow but high-grade vein-likestructures. In Zambia, a drilling programme and an airborne geophysical surveyproceeded on its Mweze copper prospect. Tiger believes that African Eagle hasgood prospects, which will continue to impact favourably on the share price asfurther exploration results emerge. Alamos Gold Inc: Toronto Stock Exchange (TSE) - AGI www.alamosgold.com Tiger holds 106,293 shares in Alamos Gold Inc ("Alamos") purchased at a cost of£27,610. Alamos fully owns the Mulatos deposit, one of the largest undevelopedgold resources located in the state of Sonora, Mexico. This deposit, which is atmineable development stage and slated for production in 2005, was acquired fromPlacer Dome Inc. and Kennecott Minerals Company. Alamos also own the Salamandraproperty which was purchased for C$8.7 million equivalent to US$1.64 per goldresource ounce. Tiger believes that Alamos has good assets and anticipates thatits share price will move in unison with the gold price. Consequently, we willmonitor the company's share price closely. Ascent Resources Plc (AIM) - AST Tiger acquired 22,500,000 shares at a cost of £225,000 following a placing byAscent Resources Plc ("Ascent") in November 2004. The company was admitted toAIM on 10 November 2004. Ascent Resources has been formed for the purpose ofmaking investments in the mining, minerals, and oil and gas sectors. Thisinvestment has performed well for Tiger and was valued at £1,012,500 at 31December 2004 reflecting an increase of 350%. Bullion Resources Plc (AIM) - BLO Tiger purchased 9,000,000 shares for a total consideration of £180,000 inBullion Resources Plc ("Bullion"). In September 2004, Bullion agreed to dispose of the entire issued share capitaland loan accounts of its subsidiary, Black Reef Gold Limited to Minerale AfriqueLimited for a consideration of ZAR 5 million (approx. £454,000). The companyalso completed a fundraising totalling £625,000, further strengthening itstreasury and positioning itself for a future reverse takeover transaction.Bullion has announced that it is holding exploratory discussions with suitablecandidates and will keep shareholders informed of further developments. Tigerbelieves that Bullion has an experienced and entrepreneurial management team andshould perform well in 2005. Cambrian Mining Plc (AIM) - CBM www.cambrianmining.com Tiger sold 1,350,000 shares in Cambrian Mining plc ("Cambrian") during the yearfor a consideration of £1,306,225 realising a profit of £1,006,225 and a returnof 335% on original cost. Tiger acquired a further 1,350,000 shares at a cost of£375,000 by exercising options in January 2005. Cambrian is a diversifiednatural resource exploration and development company. The Cambrian investmentperformed extremely well in 2004 with success mainly attributable to Cambrian's27% stake in Asia Energy Plc. Asia Energy's sole asset is the Phulbari coaldeposit in north-west Bangladesh. The deposit contains more than 400 milliontonnes of high quality thermal coal. Recent economic studies estimate post-taxproject Net Present Value ("NPV") of US$2.3 billion. Tiger exercised 1,200,000warrants and 150,000 options at a total cost of £375,000 and subsequently sold1,350,000 Cambrian shares for a total consideration of £2,708,708 in February2005. Formation Capital Corporation: Toronto Stock Exchange (TSE) - FCOwww.formcap.com Tiger holds 2,025,000 shares in Formation Capital Corporation ("Formation").Formation's fully owned flagship property, Idaho Cobalt, a primary cobaltproject in the Idaho Cobalt Belt in the United States, is in the feasibility andpermitting stage of development. The company recently announced final drillresults from its 25,000 foot, 28 hole drill program on the project, confirmingthe downdip extension of mineralisation along a strike length of 2,200 feet of aknown 2,400 feet of strike. The company also recently announced its intention toraise US$8 million (gross) by private placement. This investment is essentiallya call option on the Cobalt price and Tiger will maintain an active watch onCobalt futures. Franconia Minerals Corporation (OFEX/TSE) - FRA www.franconiaminerals.com Tiger acquired 625,000 shares in Franconia Minerals Corporation ("Franconia") ata cost of £107,562, following Franconia's dual listing on the Toronto StockExchange in which the company raised CDN$ 1.5 million. Franconia exercised itsearn-in option on the Birch Lake platinum-palladium-copper-nickel property inthe Duluth Complex of Minnesota and commenced a metallurgical testing programmeon the property. In addition to the company's San Francisco drill-ready zincproperty in the western US, Franconia acquired the Mahoney property, ahigh-grade zinc target in New Mexico. Franconia has interesting projects, a wellregarded management team and provides Tiger with exposure to the US miningscene. Gold Fields Limited: Johannesburg Stock Exchange (JSE) - GFIwww.goldfields.co.za Gold Fields Limited ("Gold Fields") is one of the world's largest producers ofgold, operating in three key gold mining regions of the world, South Africa,West Africa (Ghana) and Australia. At the end of June 2004, Gold Fields hadattributable precious metal mineral resources of 190.6 million ounces (195.3million ounces - 2003) and attributable gold mineral reserves of 75.6 millionounces (81.5 million ounces - 2003). The earnings potential for the company isexcellent against current gold prices and should impact favourably onprofitability. At year-end, Tiger held 10,500 shares in the company valued at£66,799. The current takeover battle for the company has clouded resultsprojections. Tiger, however believes that irrespective of the conclusion, theunderlying assets should perform very well in a strong gold market. Minmet Plc: Irish Stock Exchange (ISE) - MNT www.minmet.ie Tiger sold 4 million shares in Minmet Plc ("Minmet") during the year, realisinga profit of £78,486 compared to the original cost of purchase. At year-end,Tiger held a total of 17.5 million shares valued at £471,730. Minmet is aEuropean gold producer with international mining and exploration interests. Itis focused on generating positive cash flows from its Bjorkdal gold mine inSweden having acquired both the crushing and the milling plants with an annualprocessing capacity of 1.2 million tonnes of ore, producing high value goldconcentrates. Minmet acquired a 58% controlling shareholding in TSX-V listedGoldQuest Mining Corporation, which acquired Minmet's gold exploration interestsin the Dominican Republic. The company also holds interests in explorationprojects, principally for gold, in Brazil and Peru. Tiger perceives Minmet to bea well managed production/ exploration company and looks forward to a focusemerging from the company's current portfolio. Pacific North West Capital Corp: Toronto Stock Exchange (TSE) - PFNwww.pfncapital.com Tiger holds 566,500 shares in Pacific North West Capital Corp ("PFN") valued at£119,587 on 31 December 2004. PFN is exploring for platinum group metals closeto Sudbury, the nickel/copper mining region of Ontario and near Ketchikan southeast Alaska. The company has as partners, Anglo Platinum in Canada and Lonminplc in Alaska. The company increased the combined mineral resource estimate(measured and indicated Pt+Pd+Au) on its River Valley project to more than 1.1million oz (previous 593,000 oz) following completion of its phase 6 program.PFN commenced a CDN$3 million phase-7 programme to continue to March 2005. OnPFN's Union Bay Platinum project, Lonmin increased the programme budget byUS$600,000 to US$1.8 million following favourable results from the Phase 1exploration programme. This company, despite its excellent technical results,has traded in a disappointingly low share price. We will continue to followprogress closely. Ridge Mining Plc: London Stock Exchange (LSE) - CLU www.cluff-mining.com Tiger holds 100,000 shares in Ridge Mining Plc ("Ridge"), previously CluffMining Plc, valued at £50,000 at year-end. Ridge has reported good progress atits three main platinum and associated metal projects, Sheba's Ridge; Blue Ridgeand Fountain Ridge on the Bushveld Complex of South Africa. The pre-feasibilitystudy on its Sheba's Ridge Platreef joint venture is reported to be on targetfor completion in March 2005. Tiger awaits with interest the results of thefeasibility study of Sheba's Ridge. River Diamonds Plc (AIM) - RID - www.riverdiamond.co.uk Tiger acquired a further 3,333,333 shares in River Diamonds Plc ("RiverDiamonds") at a cost of £50,000. River Diamonds owns diamond and goldexploration licences in the Mato Grosso area of Brazil covering 57,000 ha. InAugust 2004, River Diamonds moved from OFEX to AIM raising £1.68 million. Thecompany is focused on large scale alluvial deposits in the Mato Grasso region.Early stage production has begun at the first project, Melgueira, and isexpected to increase to 2,700 tonnes per day by January 2005. River Diamonds,one of the first companies operating in Brazil to receive its Kimberley ExportLicence, is now exporting diamonds to sell at a premium in the Antwerp market.This investment provides Tiger with a speculative position in the junior diamondsector, which is showing signs of buoyancy. Tertiary Minerals Plc (AIM) -TYM www.tertiaryminerals.com Tiger holds 1,330,000 shares in Tertiary Minerals Plc ("Tertiary") valued at£119,700. Tertiary is involved with tantalum, platinum group metals, base metalsand gold. The company has interests in a number of mineral exploration projectsin Sweden, Finland, Norway and Saudi Arabia including projects at drill-readyand preliminary economic feasibility stages. At Nottrask, the company's mainnickel prospect in Sweden, it has prepared a geophysical programme to cover theentire central part of the intrusion in the search for Voisey's Bay stylemassive nickel sulphides. Drilling is likely in the early summer. The company'sFinnish Diamond Project remained a high priority in an active explorationportfolio. With continued hardening of the tantalum market the company isconsidering the start of preliminary feasibility studies on its world-classtantalum deposit in Saudi Arabia. The company has a good base of projects alongwith a strong management team. We would welcome one of the projects emerging asa lead project, which in our opinion would provide stronger investor confidence. PROFIT AND LOSS ACCOUNTYEAR ENDED 31 DECEMBER 2004 2004 2003 £ £ Administrative expenses (332,892) (287,645) OPERATING LOSS (332,892) (287,645) Profit on sale of fixed asset investments 340,014 547,747 Investment income 690 50,234 Other Income 7,500 7,500 Interest receivable 134,048 88,846 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 149,360 406,682 Tax on profit on ordinary activities 65,374 (104,028) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION FOR THE YEAR 214,734 302,654 Basic and diluted earnings per share 0.09p 0.13p All profits are derived from continuing operations STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES YEAR ENDED 31 DECEMBER 2004 2004 2003 £ £ Profit for the year after taxation 214,734 302,654 Unrealised gains on fixed asset investments 3,100,122 2,727,465 Unrealised losses on fixed asset investments (655,545) (85,074) Tax on gains/losses on fixed asset investments (369,209) (160,271) Total recognised gains 2,290,102 2,784,774 BALANCE SHEET AS AT 31 DECEMBER 2004 2004 2003 £ £ FIXED ASSETS Investments 5,732,891 4,533,734 CURRENT ASSETS Debtors 11,755 11,962 Cash at bank 3,732,178 2,991,055 3,743,933 3,003,017 CREDITORS: amounts falling due within one year (446,461) (421,707) NET CURRENT ASSETS 3,297,472 2,581,310 TOTAL ASSETS LESS CURRENT LIABILITIES 9,030,363 7,115,044 Represented by: CAPITAL AND RESERVES Called-up share capital 2,358,819 2,358,819 Share premium account 1,554,856 1,554,856 Revaluation reserve 4,008,228 2,818,695 Profit and loss account 1,108,460 382,674 EQUITY SHAREHOLDERS' FUNDS 9,030,363 7,115,044 CASH FLOW STATEMENT YEAR ENDED 31 DECEMBER 2004 2004 2003 £ £ Net cash (outflow) from operating activities (345,032) (264,983) Returns on investment and servicing of finance Interest received 131,548 110,585 Other income and investment income received 8,190 57,734 139,738 168,319 Taxation Corporation tax paid (264,234) (6,604) Capital expenditure and financial investment Payments to acquire fixed asset investments (512,562) (961,631) Receipts from sale of fixed asset investments 2,097,996 1,660,246 Net cash inflow from capital expenditure and financial investment 1,585,434 698,615 Financing Proceeds from exercise of options - 17,000 Purchase of own shares for treasury (374,783) - Net cash (outflow)/inflow from financing (374,783) 17,000 Increase in cash in the year 741,123 612,347 This preliminary statement is not the Company's statutory accounts. Thestatutory accounts for the year ended 31 December 2004 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 7 March 2005. The statutory accounts for the year ended 31 December 2003 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. This information is provided by RNS The company news service from the London Stock Exchange