Last checked at 30 Sep 2015 07:00
TIGER RESOURCE FINANCE PLC
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015
Operations Review
· Net Asset Value per share - 1.14p (30 June 2014 - 1.83p)
· Total assets of £1.63M (30 June 2014 - £2.63M)
Despite all the negativity surrounding commodity prices, major mining companies and the fortunes of small cap resource companies, we write this commentary with more optimism than the previous few years.
London has seen an emergence in financing capability targeted towards companies with competent management teams and quality assets. Retail investors are either "going it alone" with stock selection or working under the umbrella of advisory groups specializing in the industry sector. With easy access to messaging boards, investment chat sites and financial forums, the retail investor is now better informed than ever before in the history of small cap investments. This trend coupled with regulated transparency and control over company information dissemination is resulting in a level playing field where informed decisions can be made in what remains a risky environment.
The recent and dramatic fall in the share price of Glencore plc and the debate surrounding its fund raising by means of a placing of new shares as opposed to an expected rights issue, serves to demonstrate that the current commodity crash has been widespread and is now also impacting the majors of the industry.
The Board of Tiger has, over the last couple of years, come to the view that second guessing commodity prices, interest rates and other factors which may influence company performance is futile. What matters is a combination of good assets managed by experienced engineers with good corporate backgrounds. A degree of tenacity also helps when navigating junior resource companies through the current threats.
We therefore continue to seek out investment opportunities which, in due course will convert a low entry price into profitable exits. Our first pro-active investment, Xtract Resources Plc has performed well and we have taken the opportunity to realise some profit in this investment during the period under review. African Pioneer Plc has made a number of small investments which coincide with Tiger's view that now is an opportune time to make strategic investments in the industry sector.
In essence, Tiger whilst not enamoured with recent developments in the resource sector, remains convinced that change is around the corner. The Directors will continue to seek out opportunities in and around special situations within the sector and participate in more passive investments which should provide above average returns in more stable markets.
By order of the Board.
30 September 2015
Portfolio Holdings as at 30 June 2015
Investments | Number | Cost £ | Valuation £ |
Anglo American PLC | 11,500 | 250,117 | 105,627 |
Ascent Resources PLC | 9,642,857 | 400,824 | 20,250 |
Aurum Mining PLC | 8,333,333 | 250,218 | 108,333 |
Duke Royalty Limited | 20,000 | 200,218 | 10,300 |
ETFS Physical Platinum | 2,250 | 246,458 | 148,255 |
Jubilee Platinum PLC | 1,169,600 | 100,219 | 25,731 |
MX Oil Plc | 400,000 | 100,218 | 17,280 |
New World Oil and Gas PLC | 5,000,000 | 250,218 | 13,000 |
Northern Petroleum PLC | 294,118 | 250,219 | 23,176 |
PanContinental Oil and Gas PLC | 885,714 | 97,827 | 4,995 |
Papua Mining PLC | 230,000 | 101,200 | 9,775 |
Revelo Resources Corp | 216,667 | 62,965 | 22,691 |
Rex Bionics Plc | 6,250 | 37,500 | 3,594 |
Sovereign Mines of Africa PLC | 2,000,000 | 100,000 | 4,400 |
Sunrise Resources PLC | 665,000 | 6,650 | 1,330 |
Tertiary Minerals PLC | 1,330,000 | 119,700 | 38,238 |
Trap Oil PLC | 330,000 | 101,660 | 1,056 |
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Available for sale investments held by African Pioneer Plc (subsidiary company) |
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| 112,399 |
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Total |
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| 670,430 |
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Notes:
1) The Company also holds an investment in Xtract Resources Plc. This Investment has been classified as a Financial Asset at Fair Value through Profit or Loss and is valued at £137,500 on 30 June 2015.
2) The Company incubated a subsidiary company, African Pioneer PLC in 2012. Tiger currently holds 59,529,132 shares in African Pioneer Plc which trades on ISDX and valued at 1 penny per share on 30 June 2015.
3) The Company's investment in Xtract Resources Plc is not included in the investment table shown above.
Statement of Comprehensive Income
For the six months ended 30 June 2015
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(Unaudited) Group Six months ended 30 June 15 | (Restated) (Unaudited) Group Six months ended 30 June 14
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(Audited) Group Year ended 31 Dec 14
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| £ | £ | £ |
Gain/(loss) on sale of available for sale assets | 97,699 | 42,462 | 35,363 |
Income: |
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Investment income | 6,103 | 3,632 | 5,864 |
Unrealised (loss)/gain on financial assets at fair value through profit and loss | 65,000 | (258,621) | (568,966) |
Interest receivable | 955 | 1,084 | 2,156 |
Administrative expenses | (185,205) | (215,983) | (466,829) |
Impairment | (174,674) | (294,117) | (506,469) |
LOSS BEFORE TAXATION | (190,122) | (721,543) | (1,498,881) |
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Taxation | - | - | - |
LOSS FOR THE PERIOD | (190,122) | (721,543) | (1,498,881) |
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Other Comprehensive Income |
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Available-for-sale financial assets unrealised loss | (200,547) | (260,147) | (570,067) |
Reclassification to profit or loss | - | - | 18,804 |
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Transfer to Impairment | 174,674 | 294,117 | 506,469 |
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Tax relating to components of |
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other comprehensive income | - | - | - |
Reclassification of tax to profit and loss account | - | - | - |
OTHER COMPREHENSIVE PROFIT/(LOSS) FOR THE PERIOD, NET OF TAX | (25,873) |
(33,970) |
(44,794) |
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | (215,995) |
(687,573) |
(1,543,675) |
Loss for the period attributable to:
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Shareholders of the Company | (173,247) | (702,469) | (1,460.073) |
Non-controlling interest | (16,875) | (19,074) | (38,808) |
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| (190,122) | (721,543) | (1,498,881) |
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Basic earnings per share | (0.13)p | (0.51)p | (1.06)p |
Diluted earnings per share | (0.13)p | (0.51)p | (1.06)p |
All profits are derived from continuing operations.Statement of Financial Position
As at 30 June 2015
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(Unaudited) Group 30 June 15 | (Restated) (Unaudited) Group 30 June 14 |
(Audited) Group 31 Dec 14
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| £ | £ | £ |
NON CURRENT ASSETS |
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Financial assets at fair value through profit or loss | 137,500 | 810,345 | 500,000 |
Available-for-sale investments | 670,430 | 1,187,312 | 689,491 |
Deferred tax asset | - | - | - |
| 807,930 | 1,997,657 | 1,189,491 |
CURRENT ASSETS |
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Trade and other receivables | 16,349 | 25,549 | 8,695 |
Corporate tax receivables | - | 15 | - |
Cash and cash equivalents | 905,001 | 673,477 | 687,012 |
| 921,350 | 699,041 | 695,707 |
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TOTAL ASSETS | 1,729,280 | 2,696,698 | 1,773,931 |
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EQUITY AND LIABILITIES |
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EQUITY ATTRIBUTABLE TO SHAREHOLDERS |
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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 | 1,255,991 | 1,308,882 | 1,230,118 |
Retained earnings | (2,729,991) | (1,799,140) | (2,556,744) |
EQUITY ATTRIBUTABLE TO THE OWNERS | 1,551,550 | 2,535,292 | 1,698,924 |
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Equity interest of non-controlling interest | 82,824 | 94,741 | 75,007 |
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TOTAL EQUITY | 1,634,374 | 2,630,033 | 1,773,931 |
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NON CURRENT LIABILITES |
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Deferred tax liabilities | - | - | - |
| - | - | - |
CURRENT LIABILITIES |
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Trade and other payables | 94,906 | 66,665 | 111,267 |
Corporate tax payable | - | - | - |
| 94,906 | 66,665 | 111,267 |
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TOTAL LIABILITIES | 94,906 | 66,665 | 111,267 |
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TOTAL EQUITY AND LIABILITIES | 1,729,280 | 2,696,698 | 1,885,198 |
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Statement of Changes in Equity
As at 30 June 2015
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
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| £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
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As at 30 June 2013 | 1,428,319 | 1,597,231 | 1,100,000 | - | 13,929 | 130,118 | (948,853) | 136,182 | 3,456,926 | ||
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Changes in equity |
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(Loss) for the period | - | - | - | - | - | - | (147,818) | (22,367) | (170,185) | ||
Other Comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | (118,943) | - |
| - | (118,943) | ||
Transfer to impairment | - | - | - | - | 146,420 | - |
| - | 146,420 | ||
Reclassification to profit or loss | - | - | - | - | 3,388 | - |
| - | 3,388 | ||
Total comprehensive expense for the period | - | - | - | - | 30,865 | - | (147,818) | (22,367) | (139,320) | ||
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Reserve movements | - | - | - | - | - | - | - | - | - | ||
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As at 31 Dec 2013 | 1,428,319 | 1,597,231 | 1,100,000 | - | 44,794 | 130,118 | (1,096,671) | 113,815 | 3,317,606 | ||
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Changes in equity |
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(Loss) for the period | - | - | - | - | - | - | (702,469) | (19,074) | (721,543) | ||
Other Comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | (260,147) | - | - | - | (260,147) | ||
Transfer to impairment | - | - | - | - | 294,117 | - | - | - | 294,117 | ||
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Total comprehensive expense for the period | - | - | - | - | 33,970 | - | (702,469) | (19,074) | (687,573) | ||
Reserve movements | - | - | - | - | - | - |
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As at 30 June 2014 | 1,428,319 | 1,597,231 | 1,100,000 | - | 78,764 | 130,118 | (1,799,140) | 94,741 | 2,630,033 | ||
Changes in equity |
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(Loss) for the period | - | - | - | - | - | - | (757,604) | (19,734) | (777,338) | ||
Other Comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | (78,764) | - | - | - | (78,764) | ||
Transfer to impairment | - | - | - | - | - | - | - | - | - | ||
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Total comprehensive expense for the period | - | - | - | - | (78,764) | - | (757,604) | (19,734) | (856,102) | ||
Reserve movements | - | - | - | - | - | - |
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As at 31 December 2014 | 1,428,319 | 1,597,231 | 1,100,000 | - | - | 130,118 | (2,556,744) | 75,007 | 1,773,931 | ||
Changes in equity |
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(Loss) for the period | - | - | - | - | - | - | (173,247) | (16,875) | (190,122) |
Other Comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | 200,547 | - | - | - | 200,547 |
Transfer to impairment | - | - | - | - | (174,674) | - | - | - | (174,674) |
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Total comprehensive expense for the period | - | - | - | - | 25,873 | - | (173,247) | (16,875) | (164,249) |
Acquisition of subsidiary | - | - | - | - | - | - |
| 24,692 | 24,692 |
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As at 30 June 2015 | 1,428,319 | 1,597,231 | 1,100,000 | - | 25,873 | 130,118 | (2,729,991) | 82,824 | 1,634,374 |
Cash Flow Statement
For the six months ended 30 June 2015
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(Unaudited) 30 June 15 |
(Unaudited) 30 June 14 |
(Audited) 31 Dec 14 |
| £ | £ | £ |
CASH FLOW FROM OPERATIONS |
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(Loss) before taxation | (190,122) | (633,860) | (1,498,882) |
Adjustment for: |
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Investment in subsidiary | - | - | - |
Interest received | (955) | (3,191) | (2,156) |
Dividends received | (6,103) | (10,846) | (5,864) |
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Operating (loss) before movement in working capital | (197,180) | (647,897) | (1,506,902) |
(Increase)/decrease in receivables | 17,054 | (20,544) | (309) |
Increase/(decrease) in payables | (16,377) | (52,347) | 29,860 |
Gain on disposal | (97,699) | - | (34,426) |
Transfer to impairment | 174,674 | 778,113 | 506,469 |
(Increase)/decrease in value of financial assets at fair value through profit or loss | (65,000) | (327,584) | 568,966 |
Sale of assets available for sale | 570,859 | - | 290,356 |
Purchase of assets available for sale | (175,400) | - | - |
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NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES
| 210,931 | (270,259) | (145,986) |
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TAXATION PAID |
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CASH FLOW FROM INVESTING ACTIVITIES |
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Interest received | 955 | 3,191 | 2,156 |
Dividends received | 6,103 | 10,846 | 5,864 |
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NET CASH INFLOW FROM INVESTING ACTIVITIES
| 7,058 | 14,037 | 8,020 |
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CASH FLOW FROM FINANCING ACTIVITIES
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Purchase of shares (through exercise of share options) | - | - | - |
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NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES | - | - | - |
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Net decrease in cash and cash equivalents in the period | 217,989 | (256,222) | (137,966) |
Cash and cash equivalents at the beginning of the period | 687,012 | 1,066,888 | 824,978 |
Cash and cash equivalents at the end of the period | 905,001 | 810,666 | 687,012 |
Selected notes to the consolidated financial statements
For the six months ended 30 June 2015
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 bases 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 2015 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2014. 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 2015 | 6 months to 30 June 2014 | Year ended 31 December 2014 |
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Profit/(loss) after tax for the purpose of earnings per share | £(173,247) | £(702,469) | £(1,460,073) |
Weighted average number of shares | 138,331,939 | 138,331,939 | 138,331,939 |
Basic earnings per ordinary share | (0.13)p | (0.51)p | (1,06)p |
Diluted |
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Profit/(loss) after tax | £(173,247) | £(702,469) | £(1,460,073) | |
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 | (0.13)p | (0.51)p | (1.06)p | |
3. 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 Resources PLC was paid for in cash at 0.0435 pence per Ordinary share. During the current period, 294,827,584 Xtract shares were sold for a total consideration of £570,879. The remaining 50,000,000 Xtract shares have been revalued to fair value reflecting the market value of 0.275 pence per share at 30 June 2015.
| Unaudited 30 June 2015 £ | Audited 31 December 2014 £ |
At 1 January | 500,000 | 1,068,966 |
Sale of shares during the period | (427,500) | - |
Adjustment to fair value | 65,000 | (568,966) |
At 30 June 2015/ 31 December 2014 | 137,500 |
500,000 |
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
The share capital of Tiger Resource Finance PLC consists only of fully paid ordinary shares with a nominal value of 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.
| Unaudited 30 June 2015 | Unaudited 30 June 2015 | Unaudited 30 June 2014 | Unaudited 30 June 2014 | Audited 31 December 2014 | Audited 31 December 2014 |
| Number | £ | Number | £ | Number | £ |
Authorised: |
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1,000,000,000 ordinary shares 1p each | 1,000,000,000 | 10,000,000 | 1,000,000,000 | 10,000,000 | 1,000,000,000 | 10,000,000 |
Issued: |
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At 30 June 2015 | 142,831,939 | 1,428,319 | 142,831,939 | 1,428,319 | 142,831,939 | 1,428,319 |
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Shares in issue at 31 December 2014 /30 June 2014 | 142,831,939 | 1,428,319 | 142,831,939 | 1,428,319 | 142,831,939 | 1,428,319 |
Included in allotted called and fully paid share capital are 4,500,000 shares with a nominal value of £45,000 held by the company in treasury.
Share options in issue at 30 June 2015:
The Company has granted options to subscribe for ordinary 1p shares as follows:
Date granted 21 March 2006
Period exercisable 21 March 2006 to 20 March 2016
Exercise price per share (pence) 3.50p
Number of options 6,000,000
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.