Last checked at 27 Sep 2017 07:00
27 September 2017
Tiger Resource Finance Plc("Tiger" or the "Company")
Unaudited interim financial statements
for the six months ended 30 June 2017
Tiger (AIM: TIR) is pleased to announce the publication of its unaudited interim results for the six month period ended 30 June 2017 which will shortly be available on the Company's website www.tiger-rf.com
Operations Review
· Net Asset Value per share - 1.03p (30 June 2016 - 0.81p/ 31 Dec 2016 - 0.80)
· Total assets of £1.42M (30 June 2016 - £1.12M/ 31 Dec 2016 - £1.16M)
The period under review has shown a significant improvement in the fortunes of the natural resource sector. Large company valuations have risen significantly with mid-cap and junior resource companies also showing modest gains. Tiger's NAV increased from 0.80 pence per share at 31 December 2016 to 1.03 pence per share at 30 June 2017 being an increase of 29% in the six month period. The Group realised gains of £213,450 during the period predominantly from the sale of part of its investment in Galileo Resources Plc.
The inauguration of President Trump has sent mixed signals throughout the world although mature stock markets have seen significant gains following promises of lower taxation, large infrastructure projects and decreasing regulation in the banking and financial services sector. These trends, alongside quantitative easing programmes have set the scene for rising equity prices in the US markets closely followed by Europe as well as in selected emerging markets. In contrast to this, the US foreign policy program is generally in disarray with global threats abundant such as the North Korean nuclear threat, sporadic terrorist attacks in western countries, Middle East instability to name a few factors.
The aforementioned issues would traditionally have created a very nervous market place with stocks tending to lock into a downward trajectory as opposed to rising to all-time highs, but this has not been the case. We feel that that an adverse economic or political event in the not too distant future could trigger negative sentiment which may seriously undermine the current stock market euphoria.
Notwithstanding the above views, the resource sector appears to have regained recognition from investors and the need for raw materials marches on and will not wait for any of the aforementioned threats to subside. Mankind is living in a far more materialistic world today and the demand for white goods, smart phones, hybrid cars and the latest paraphernalia will not diminish any time soon.
The Board feels positive in relation to metal demand, particularly for base metals with copper and zinc being the "favourites". We are undecided about the fortunes for gold as the Tiger team has always been cynical in relation to the driving forces that control this precious metal, being neither predictable or sustainable and as such we will continue to limit exposure to gold, at least in the short and medium terms..
The smaller mining company markets in Australia, Canada and UK have continued to be resilient whilst not showing any significant corporate or large financing activity. We would have expected to see an upswing in M&A activity by this stage of the cycle as well as an increase in the volume of IPO's but both activities have not been as prolific to date as in previous bullish markets. We are however seeing good evidence of secondary placements and small projects being funded which of course are welcome signs.
During the period under review we have been active mainly in passive investments in the resource sector but have not as yet participated in "proactive" investments during the period under review to actively position early stage investment opportunities. We are considering a number of such opportunities and look forward to making positive progress and further increasing Tiger's net asset value during the coming months.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information please contact:
Tiger Resource Finance Plc | |
Raju Samtani, Finance Director | +44 (0) 207 581 4477 |
Beaumont Cornish Limited (Nominated Adviser) www.beaumontcornish.com | |
Roland Cornish/ Felicity Geidt | +44 (0) 207 628 3396 |
Beaufort Securities Limited (Broker) | |
Jon Belliss | +44 (0) 207 382 8300 |
Portfolio Holdings as at 30 June 2017
Investments | Number | Cost £ | Valuation £ |
Anglo American PLC | 11,500 | 250,117 | 117,760 |
Ascent Resources PLC | 482,142 | 400,824 | 7,328 |
Cabot Energy Plc | 294,118 | 250,519 | 10,294 |
Duke Royalty Limited | 20,000 | 200,218 | 8,500 |
ETFS Physical Platinum | 2,250 | 246,458 | 149,913 |
ETFS Copper | 1,760 | 29,864 | 35,244 |
Galileo Resources Plc | 6,516,667 | 78,200 | 391,000 |
Jersey oil and Gas Plc | 3,300 | 101,660 | 8,926 |
Jubilee Platinum PLC | 1,169,600 | 100,219 | 43,860 |
MX Oil Plc | 400,000 | 100,218 | 2,600 |
PanContinental Oil and Gas PLC | 885,714 | 97,827 | 1,063 |
Pantheon Resources | 31,500 | 30,340 | 16,065 |
Papua Mining PLC | 230,000 | 101,200 | 2,806 |
Revelo Resources Corp | 216,667 | 62,965 | 5,178 |
Rockrose Energy Plc | 100,000 | 50,200 | 44,620 |
Sovereign Mines of Africa PLC | 2,000,000 | 100,000 | 7,600 |
Sunrise Resources PLC | 665,000 | 6,650 | 732 |
Tertiary Minerals PLC | 1,330,000 | 119,700 | 7,314 |
Available for sale investments held by African Pioneer Plc (subsidiary company) | 210,114 | ||
1,070,917 | |||
Total | |||
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2017
(Unaudited) Group Six months ended 30 June 17 | (Restated) (Unaudited) Group Six months ended 30 June 16
|
(Audited) Group Year ended 31 Dec 16
| |
£ | £ | £ | |
Gain on sale of available for sale assets | 213,450 | 117,298 | 120,315 |
Profit on Sale of Xtract | - | 2,153 | 2,153 |
Income: | |||
Investment income | 1,540 | 976 | 2,035 |
Interest receivable | 181 | 551 | 843 |
Administrative expenses | (172,772) | (220,422) | (425,942) |
Impairment | (47,760) | 144,690 | 136,606 |
(LOSS) /PROFIT BEFORE TAXATION | (5,361) | 45,246 | (163,990) |
Taxation | - | - | - |
(LOSS) /PROFIT FOR THE PERIOD | (5,361) | 45,246 | (163,990) |
Other Comprehensive Income | |||
Available-for-sale financial assets unrealised profit/(loss) | 390,091 | (117,300) | 499,501 |
Reclassification to profit or loss | (119,850) | - | (289,603) |
Transfer to Impairment | - | 144,690 | 5,936 |
OTHER COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD, NET OF TAX | 270,241 | 27,390 | 215,834 |
TOTAL COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD | 264,880 | 72,636 |
51,844 |
(Loss)/profit for the period attributable to:
| |||
Shareholders of the Company | (25,893) | 23,954 | (156,540) |
Non-controlling interest | 20,532 | 21,292 | (7,450) |
(5,361) | 45,246 | (163,990) | |
Basic earnings per share | (0.02)p | 0.02p | (0.11)p |
Diluted earnings per share | (0.02)p | 0.02p | (0.11)p |
All profits are derived from continuing operations.
Consolidated Statement of Financial Position
As at 30 June 2017
(Unaudited) Group 30 June 17 | (Restated) (Unaudited) Group 30 June 16 |
(Audited) Group 31 Dec 16
| |
£ | £ | £ | |
NON CURRENT ASSETS | |||
Financial assets at fair value through profit or loss | 1,070,917 | 729,257 | |
Available-for-sale investments | - | 867,499 | |
1,070,917 | 729,257 | 867,499 | |
CURRENT ASSETS | |||
Trade and other receivables | 82,424 | 13,268 | 72,816 |
Cash and cash equivalents | 414,437 | 522,525 | 360,885 |
496,861 | 535,793 | 433,701 | |
TOTAL ASSETS | 1,567,778 | 1,265,050 | 1,301,200 |
| |||
EQUITY AND LIABILITIES | |||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS | |||
Share capital | 1,428,319 | 1,428,319 | 1,428,319 |
Share premium | 1,597,231 | 1,597,231 | 1,597,231 |
Other components of equity | 1,600,860 | 1,239,687 | 1,330,619 |
Retained earnings | (3,279,752) | (3,203,483) | (3,253,859) |
EQUITY ATTRIBUTABLE TO THE OWNERS | 1,346,658 | 1,061,754 | 1,102,310 |
Equity interest of non-controlling interest | 73,979 | 60,015 | 53,447 |
TOTAL EQUITY | 1,420,637 | 1,121,769 | 1,155,757 |
CURRENT LIABILITIES |
| ||
Trade and other payables | 147,141 | 143,281 | 145,443 |
Corporate tax payable | - | - | - |
147,141 | 143,281 | 145,443 | |
TOTAL LIABILITIES | 147,141 | 143,281 | 145,443 |
| |||
TOTAL EQUITY AND LIABILITIES | 1,567,778 | 1,265,050 | 1,301,200 |
Consolidated Statement of Changes in Equity
As at 30 June 2017
Other components of equity
Share capital | Share premium | Capital redemption reserve | Other reserves | Available-for-sale financial assets | Share based reserves | Retained earnings
| Non-controlling interest | Total
| |||
£ | £ | £ | £ | £ | £ | £ | £ | £ | |||
As at 31 December 2015 | 1,428,319 | 1,597,231 | 1,100,000 | - | 36,959 | 130,118 | (3,227,437) | 38,723 | 1,103,913 | ||
Changes in equity | |||||||||
Profit/ (Loss) for the period | - | - | - | - | - | - | 23,954 | 21,292 | 45,246 |
Other Comprehensive (loss) | |||||||||
Available-for-sale financial assets: | |||||||||
Current period (losses) | - | - | - | - | 117,300 | - | - | - | 117,300 |
Transfer to impairment | - | - | - | - | (144,690) | - | - | - | (144,690) |
Total comprehensive expense for the period | - | - | - | - | (27,390) | - | 23,954 | 21,292 | 17,856 |
As at 30 June 2016 | 1,428,319 | 1,597,231 | 1,100,000 | - | 9,569 | 130,118 | (3,203,483) | 60,015 | 1,121,769 |
Changes in equity | ||||||||||
Profit/ (Loss) for the period | - | - | - | - | - | - | (50,376) | (6,568) | (56,944) | |
Other Comprehensive (loss) | ||||||||||
Available-for-sale financial assets: | ||||||||||
Current period (losses) | - | - | - | - | 337,803 | - | - | - | 337,803 | |
Transfer to impairment | - | - | - | - | 3,013 | - | - | - | 3,013 | |
Transfer on disposal | - | - | - | - | (119,766) | (119,766) | ||||
Transfer on expiry of options | - | - | - | - | - | (130,118) | - | - | (130,118) | |
Total comprehensive expense for the period | - | - | - | - | 221,050 | (130,118) | (50,376) | (6,558) | 33,988 | |
As at 31 December 2016 | 1,428,319 | 1,597,231 | 1,100,000 | - | 230,619 | - | (3,253,859) | 53,447 | 1,155,757 | |
Changes in equity | ||||||||||
Profit/ (Loss) for the period | - | - | - | - | - | - | (25,893) | 20,532 | (5,361) | |
Other Comprehensive (loss) | ||||||||||
Available-for-sale financial assets: | ||||||||||
Current period gains | - | - | - | - | 390,091 | - | - | - | 390,091 | |
Transfer to on disposal | - | - | - | - | (119,850) | - | - | - | (119,850) | |
Total comprehensive expense for the period | - | - | - | - | 270,241 | - | (25,893) | 20,532 | 264,880 | |
As at 30 June 2017 | 1,428,319 | 1,597,231 | 1,100,000 | - | 500,860 | - | (3,279,752) | 73,979 | 1,420,637 | |
Cash Flow Statement
For the six months ended 30 June 2017
(Unaudited) 30 June 17 |
(Unaudited) 30 June 16 |
(Audited) 31 Dec 16 | |
£ | £ | £ | |
CASH FLOW FROM OPERATIONS | |||
(Loss)/profit before taxation | (5,361) | 45,246 | (163,990) |
Adjustment for: | |||
Interest received | (181) | (551) | (843) |
Dividends received | (1,540) | (976) | (2,035) |
Operating (loss) before movement in working capital | (7,082) | 43,719 | (166,868)
|
(Increase)/decrease in receivables | (69,157) | 46,339 | (13,208) |
Increase/(decrease) in payables | 3,860 | 13,193 | 15,353 |
Gain on disposal of financial asset at fair value | (213,450) | (117,298) | (120,315) |
Gain on disposal of Xtract investment | - | (2,153) | (2,153) |
Transfer to impairment | 47,760 | (144,690) | (136,606) |
NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES
| (238,069) | (160,890) | (423,797) |
TAXATION PAID | - | ||
CASH FLOW FROM INVESTING ACTIVITIES | |||
Interest received | 181 | 551 | 843 |
Dividends received | 1,540 | 976 | 2,035 |
Sale of investments | 330,384 | 194,071 | 432,969 |
Purchase of investments | (120,049) | (60,206) | (199,188) |
NET CASH INFLOW FROM INVESTING ACTIVITIES
| 212,056 | 135,392 | 236,659 |
CASH FLOW FROM FINANCING ACTIVITIES
| |||
Purchase of shares by minorities | - | - | - |
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES | - | - | - |
Net increase/(decrease) in cash and cash equivalents in the period | 53,552 | (25,498) | (187,138} |
Cash and cash equivalents at the beginning of the period | 360,885 | 548,023 | 548,023 |
Cash and cash equivalents at the end of the period | 414,437 | 522,525 | 360,885 |
Selected notes to the consolidated financial statements
For the six months ended 30 June 2017
1. Basis of preparation
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 basis and principal accounting policies of the Group are set out below. The financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union. These interim financial statements for the period ended 30 June 2017 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2016. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Reporting".
2. Earnings Per Share
Basic | Unaudited | Unaudited | Audited |
6 months to 30 June 2017 | 6 months to 30 June 2016 | Year ended 31 December 2016 | |
(Loss)/profit after tax for the purpose of earnings per share | £(25,983) | £23,954 | £(156,540) |
Weighted average number of shares | 138,331,939 | 138,331,939 | 138,331,939 |
Basic earnings per ordinary share | (0.02)p | 0.02p | (0.11)p |
Diluted | ||||
Profit/(loss) after tax | £(25,983) | £23,954 | £(156,540) | |
Weighted average number of shares | 138,331,939 | 138,331,939 | 138,331,939 | |
Diluted effect of options | - | - | - | |
Diluted weighted average number of shares | 138,331,939 | 138,331,939 | 138,331,939 | |
Diluted earnings per ordinary share | (0.02)p | 0.02p | (0.11)p | |
3. Investments in Financial Assets at Fair Value through Profit or Loss
Unaudited 30 June 2017 £ | Audited 31 December 2016 £ | |
At 1 January | - | 34,500 |
Sale of shares during the period | - | (34,500) |
Adjustment to fair value | - | |
At 30 June 2017/ 31 December 2016 | - |
- |
4. Deferred Tax
A deferred tax asset on revaluation of AFS investments arose during the period. 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. Losses may be carried forward indefinitely and will only be recoverable if suitable profits arise in the future.
5. Called Up Share Capital
30 June 17 | 30 June 16 | |
£ | £ | |
Authorised:
| ||
10,000,000,000 (30 June 2016: 10,000,000,000) ordinary each | 10,000,000 | 10,000,000 |
shares of 0.1p (30 June 2016 - 1p) each |
| |
30 June 17 | 30 June 16 | |
£ | £ | |
142,831,939 (30 June 2016: 142,831,939) ordinary shares of 0.1p (30 June 2016 - 1p each)
| 142,832 | 1,428,319 |
142,831,939 (30 June 2016: nil) deferred shares of 0.9p each | 1,285,487 | - |
1,428,319 | 1,428,319 |
On 30 October 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.
Included in allotted called and fully paid Existing Ordinary Share Capital are 4,500,000 shares with a nominal value of £45,000 held by the Company in treasury.
No share options were in issue at 30 June 2017.
6. Post-reporting date
No adjusting or significant non-adjusting events have occurred between the reporting date and the date of release of the Company interim financials.