Last checked at 27 Sep 2012 13:00
TIGER RESOURCE FINANCE PLC
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2012
Operations Review
§ Net Asset Value per share at 30 June 2012 - 3.53p (30 June 2011: 4.00p)
§ Total assets of £4.5m as at 30 June 2012 (30 June 2011: £6.9m which includes £1.875m subsequently returned to shareholders pursuant to a tender offer completed in October 2011)
During the period under review, the Company realised gains of £550,872. The sale of an investment in Nautical Petroleum Plc produced a gain of £398,429 and the sale of the Ophir Energy Plc position realised a gain of £152,443 in the six month period to 30 June 2012. New investments totalling £1,106,953 were made in Anglo American Plc, BP Plc, Pan Pacific Aggregates Plc, PanContinental Oil and Gas NL, Papua Mining Plc, Petroceltic International Plc, Trap Oil Plc and Wentworth Resources Plc.
The period under review has maintained a similar pattern to that of the previous two years being characterised by immense volatility within all sectors. The volatility is being caused by political and fiscal news which is unnerving the investment community. Dominating the uncertainty is the debate concerning the Euro, will it survive or will it die? If the single currency collapses then the knock-on effects are thought to be catastrophic in the short-term and will most certainly also be difficult to manage. Should the Euro survive, many are asking the question as to what the costs will be and there are predictions of civil unrest in some of the southern European countries within the Eurozone.
If there is a satisfactory solution, lurking in the background is the Israeli-Iran situation, a Chinese slow down and the possibility of a stalled American growth scenario add further uncertainty to the global economic growth picture. Everybody has varied views on these issues and access to information is greater and quicker than ever before. It could be argued that too much information is available since critical issues are often resolved somewhat differently to the anticipated outcomes and these outcomes are often not as simple as those predicted by the media.
The small cap sector has been the biggest victim of this uncertainty and investor appetite to buy stock or participate in equity placings of smaller companies is possibly at an all-time low. Current predictions are that if the aforementioned conditions prevail for much longer, there will be considerable erosion of small company presence in the public markets. This situation is not confined to the resource industry but is endemic to all smaller companies trying to operate and raise finance in the small cap sector.
Tiger and its management team's philosophy has in the past concentrated on "stock picking" in the resource sector and the Company has enjoyed some considerable success in identifying stocks that have appreciated significantly in value in relatively short periods. The Directors now believe that "stock picking" is made much more difficult by the duress that companies are experiencing, with less effort given to rolling out their business plans and more in keeping "the lights on" and maintain their listings in good standing.
We have recently embarked on a refined investment strategy as indicated in the 2011 Annual Report and approved by shareholders at the annual general meeting on 19 June 2012. Since then, the Board of Tiger have incorporated and progressed two cash shells, one of which is expected to be admitted to PLUS Markets in the coming weeks, covering the mining and oil and gas sectors respectively. We have also taken a significant equity interest in Xtract Energy Plc ("Xtract") where we have appointed a Tiger Director on the company's Board. The first of the two cash shells, African Pioneer plc, will be utilised to either acquire or receive by way of a reverse transaction a substantial mineral project based in sub-Sahara Africa. The Directors firmly believe that base metals will maintain their strong demand and as such will direct the asset search in the direction of base metals. We will also use our significant contact base and "in-house" expertise to participate in new oil and gas deals through Xtract and we also look forward to admitting our second cash shell to PLUS Market to avail of a potential single or regional oil and gas opportunity.
The extension of our investment mandate to include active management of several quoted companies where both Tiger and in some situations, individual Directors of the Company jointly hold equity positions with the Company will, we believe, significantly enhance value for Tiger shareholders and it is a model that we intend to roll out aggressively in the months ahead.
By Order of the Board
27 September 2012
Portfolio Holdings as at 30 June 2012
Investments | Number | Cost £ | Valuation £ |
African Eagle Resources PLC | 1,241,174 | 112,264 | 37,235 |
Anglo American PLC | 11,500 | 250,122 | 240,120 |
Ascent Resources PLC | 9,642,857 | 400,824 | 221,786 |
Aurum Mining PLC | 8,333,333 | 250,218 | 241,667 |
BP PLC | 58,500 | 249,743 | 246,812 |
ETFS Physical Platinum | 2,250 | 246,458 | 201,015 |
New World Oil and Gas | 5,000,000 | 250,218 | 500,000 |
Northern Petroleum | 294,118 | 250,519 | 191,177 |
Astar Minerals PLC | 4,000,000 | 100,635 | 76,000 |
PanContinental Oil and Gas | 885,714 | 97,827 | 100,086 |
Papua Mining PLC | 230,000 | 101,200 | 106,950 |
Petroceltic International PLC | 1,666,000 | 101,593 | 108,290 |
Sovereign Mines of Africa | 2,000,000 | 100,000 | 98,000 |
Sunrise Resources PLC | 665,000 | 6,650 | 43,225 |
Tertiary Minerals | 1,330,000 | 119,700 | 81,130 |
Trap Oil PLC | 330,000 | 101,660 | 62,040 |
U3O8 Holdings | 4,166,666 | 125,000 | 12,500 |
Union Med Tech PLC | 625,000 | 37,500 | 12,500 |
Vatukoula Gold Mines plc | 150,000 | 112,500 | 42,750 |
Wentworth Resources PLC | 220,000 | 104,174 | 103,180 |
Total | 3,118,805 | 2,726,463 |
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2012
(Unaudited) Six months ended 30 June 12 | (Unaudited) Six months ended 30 June 11
| (Audited) Year ended 31 Dec 11
| |
£ | £ | £ | |
Profit/(loss) on sale of available for sale assets | 550,872 | 304,696 | 304,696 |
Income: | |||
Investment income | - | 447 | 447 |
Interest receivable | 8,313 | 8,639 | 14,669 |
Administrative expenses | (196,389) | (207,143) | (374,599) |
Impairment | - | - | - |
| |||
PROFIT/(LOSS) BEFORE TAXATION | 362,796 | 106,639 | (54,787) |
Taxation | (64,591) | (30,000) | - |
PROFIT/(LOSS) FOR THE PERIOD | 298,205 | 76,639 | (54,787) |
Other Comprehensive Income
Available-for-sale financial assets
| |||
Unrealised (loss) | (209,491) | (882,829) | (1,114,341) |
Reclassification to profit or loss | (298,179) | (298,189) | (298,189) |
Tax relating to components of | |||
other comprehensive income | 126,454 | 330,685 | 395,508 |
OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX |
(381,216) |
(850,333) |
(1,017,022) |
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD |
(83,011) |
(773,694) |
(1,071,809) |
| |||
Basic earnings per share | 0.24p | 0.04p | (0.03)p |
Diluted earnings per share | 0.24p | 0.04p | (0.03)p |
All profits are derived from continuing operations.STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2012
(Unaudited) 30 June 12 | (Unaudited) 30 June 11 | (Audited) 31 Dec 11
| |
£ | £ | £ | |
NON CURRENT ASSETS | |||
Financial assets | |||
Available-for-sale investments
| 2,726,463 | 2,573,661 | 2,341,950 |
Deferred tax asset | 94,162 | - | - |
2,820,625
| 2,573,661 | 2,341,950 | |
CURRENT ASSETS | |||
Trade and other receivables | 216,997 | 12,879 | 13,653 |
Cash and cash equivalents | 1,480,298 | 4,336,972 | 2,038,535 |
1,697,295 | 4,349,851 | 2,052,188 | |
TOTAL ASSETS | 4,517,920 | 6,923,512 | 4,394,138 |
EQUITY AND LIABILITIES | |||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS | |||
Share capital | 1,428,319 | 1,770,719 | 1,270,719 |
Share premium | 1,597,231 | 1,557,831 | 1,557,831 |
Other components of equity | 931,943 | 979,848 | 1,313,159 |
Retained earnings | 456,052 | 2,292,428 | 157,847 |
TOTAL EQUITY | 4,413,545 | 6,600,826 | 4,299,556 |
NON CURRENT LIABILITES | |||
Deferred tax liabilities | - | 97,115 | 32,292 |
- | 97,115 | 32,292 | |
CURRENT LIABILITIES |
| ||
Trade and other payables | 39,799 | 38,694 | 62,305 |
Corporate tax payable | 64,576 | 186,877 | (15) |
104,375 | 225,571 | 94,582 | |
TOTAL LIABILITIES | 104,375 | 322,686 | 94,582 |
TOTAL EQUITY AND LIABILITIES | 4,517,920 | 6,923,512 | 4,394,138 |
STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2012
Other components of equity
Share capital | Share premium | Capital redemption reserve | Other reserves | Available-for-sale financial assets | Share based reserves | Retained earnings
| Total
| |
£ | £ | £ | £ | £ | £ | £ | £ | |
As at 1 January 2011 | 2,020,719 | 1,557,831 | 350,000 | (427,800) | 1,527,863 | 130,118 | 2,215,789 | 7,374,520 |
Changes in equity | ||||||||
Available-for-sale financial assets | ||||||||
Current period gains (losses) | - | - | - | - | (882,829) | - | - | (882,829) |
Reclassification to profit or loss | - | - | - | - | (298,189) | - | - | (298,189) |
Tax relating to components of other comprehensive income | - | - | - | 330,685 | - | - | - | 330,685 |
Profit (loss) for the period | - | - | - | - | - | - | 76,639 | 76,639 |
Total comprehensive income and expense for the period
Reserve movements | - | - | - | 330,685 | (1,181,018) | - | 76,639 | (773,694) |
Cancellation of shares held in treasury | (250,000) | - | 250,000 | - | - | - | - | - |
As at 30 June 2011 | 1,770,719 | 1,557,831 | 600,000 | (97,115) | 346,845 | 130,118 | 2,292,428 | 6,600,826 |
Changes in equity | ||||||||
Available-for-sale financial assets | ||||||||
Current period gains (losses) | - | - | - | (231,512) | - | - | (231,512) | |
Reclassification to profit or loss | - | - | - | - | - | - | - | |
Tax relating to components of other comprehensive income | - | - | - | 64,823 | - | - | - | 64,823 |
Profit (loss) for the period | - | - | - | - | - | - | (131,426) | (131,426) |
Total comprehensive income and expense for the period | - | - | - | 64,823 | (231,512) |
| (131,426) | (298,115) |
Reserve movements | ||||||||
Cancellation of shares held in treasury | (500,000) | - | 500,000 | - | ||||
Purchase of own shares | - | - | - | - | - | - | (1,875,000) | (1,875,000) |
Cost relating to purchase of own shares | - | - | - | - | - | - | (128,155) | (128,155) |
As at 31 Dec 2011 | 1,270,719 | 1,557,831 | 1,100,000 | (32,292) | 115,333 | 130,118 | 157,847 | 4,299,556 |
Changes in equity | ||||||||
Available-for-sale financial assets | ||||||||
Current period gains (losses) | - | - | - | - | (209,491) | - | - | (209,491) |
Reclassification to profit or loss | - | - | - | - | (298,179) | - | - | (298,179) |
Tax relating to components of other comprehensive income | - | - | - | 126,454 | - | - | - | 126,454 |
Profit (loss) for the period | - | - | - | - | - | - | 298,205 | 298,205 |
Total comprehensive income and expense for the period | - | - | - | 126,454 | (507,670) | - | 298,205 | (83,011) |
Reserve movements | ||||||||
Share options exercised | 157,600 | 39,400 | - | - | - | - | - | 197,000 |
As at 30 June 2012 | 1,428,319 | 1,597,231 | 1,100,000 | 94,162 | (392,337) | 130,118 | 456,052 | 4,413,545 |
CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2012
(Unaudited) 30 June 12 | (Unaudited) 30 June 11 | (Audited) 31 Dec 11 | |
£ | £ | £ | |
CASH FLOW FROM OPERATIONS | |||
Profit/(loss) before taxation | 362,796 | 106,639 | (54,787) |
(Increase)/Decrease in receivables | (203,344) | 3,560 | 2,986 |
Increase/(Decrease) in payables | (22,506) | (7,887) | 15,724 |
Adjustment for (profit)/loss on sale of available for sale assets | (550,872) | (304,696) | (304,696) |
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES
| (413,926) | (202,384) | (340,773) |
TAXATION PAID
| - | - | (156,892) |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Sale of assets available for sale | 765,642 | 664,455 | 664,454 |
Purchase of assets available for sale | (1,106,953) | (660,605) | (660,605) |
Adjustment for additional investment income | - | - | - |
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
| (341,311) | 3,850 | 3,849 |
CASH FLOW FROM FINANCING ACTIVITIES
| |||
Share buy-back programme | - | - | (1,875,000) |
Share buy - Tender Offer expenses | - | - | (128,155) |
Purchase of shares (through exercise of share options) | 197,000 | - | - |
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES | 197,000 | - | (2,003,155) |
Net increase/(decrease) in cash and cash equivalents in the period | (558,237)
| (198,534) | (2,496,971) |
Cash and cash equivalents at the beginning of the period | 2,038,535 | 4,535,506 | 4,535,506 |
Cash and cash equivalents at the end of the period | 1,480,298 | 4,336,972 | 2,038,535 |
Interim Report - Notes | ||||
1 | The financial information for the six months ended 30 June 2012 and 30 June 2011 is unaudited. The interim accounts have been prepared using the same accounting policies that were used in the Group's statutory accounts to 31 December 2011. In the opinion of the directors the financial information for these periods represents fairly the financial position, operations and cash flows for the period in conformity with International Financial Reporting Standard (IFRS). The interim statement for the six months ended 30 June 2012 was approved by the directors on 27 September 2012. | |||
2 | The financial information for the year ended 31 December 2011 does not constitute full accounts, it is an extraction from the Company's accounts for the year in which they have been delivered to the Registrar of Companies and on which the auditors gave an unqualified report. | |||
3 | Earnings per ordinary share included in the Income Statement and the NAV calculation is based on weighted average number of shares of 125,198,606. | |||
4 | Copies of this interim report are available to the public, free of charge, from 4th Floor, 2 Cromwell Place, London SW7 2JE, during normal office hours. A copy will also be posted on Tiger Resource Finance plc's website www.tiger-rf.com. | |||