Last checked at 26 Sep 2008 07:00
TIGER RESOURCE FINANCE PLC
Interim Results for the six months ended 30 June 2008.
CHAIRMAN'S STATEMENT
For the six months ended 30th June 2008
HIGHLIGHTS
Net Asset Value per share at 30 June 2008 4.26p (2007 - 4.90p)
Total assets of £7.3M as at 30 June 2008 (2007 - £9.4M)
During the period under review, the Company realised profits of £199,797 following the sale of 8,144,207 shares in Vatukoula Gold Mines Plc (previously known as River Diamonds Plc). Tiger continues to hold a position in this investment and will continue to follow progress at the company's gold producing mine in Fiji.
In January 2008, the Company purchased a further 2.25 million ordinary shares of 1p each as part of its buy-back program under the authority granted by shareholders at the 2007 Annual General Meeting. Consequently, Tiger held 29.5 million ordinary shares of 1p each in treasury at 30 June 2008 representing 14.59% of the Company's issued share capital.
The period under review has witnessed extreme volatility in financial markets with metal prices fluctuating daily as investors take a view on the potential for recession. Similarly, the investment community has been uncertain as to whether or not they should buy shares in financial institutions; the decision to buy often triggering a decision to sell resource stocks to raise additional funds for purchases.
The uncertainty has seen some junior mining stocks deteriorate to values down to 20% of their September 2007 valuations and specialist resource investment funds have seen massive scale redemptions putting further pressure on junior resource stocks.
In my report of 12 June 2008, I forecasted that the dollar would strengthen and that precious metal prices would retreat and this has been the case. I also stated our view that other metals would remain stable against positive supply/demand fundamentals. This has also tended to be the case, although the threat of global recession is placing pressure on metal prices. We expect this trend to continue and metal prices to correct by up to 30 % in the coming months with a consequent reduction in market capitalisation of major mining companies. This reduction will continue to affect adversely the share price performance of junior resource companies.
Against this negative scenario, we see the thirst for junior company funding remaining unfulfilled and many juniors will be focusing on going concern issues, as opposed to developing their projects. Many of these juniors have quality projects in much sought-after commodities. This should present excellent buying opportunities for resource funds with cash and Tiger will be proactive in identifying opportunities.
The balance of this year and the first half of 2009 will present threats for the resource industry and opportunities for Tiger.
BRUCE ROWAN
Portfolio Holdings as at 30 June 2008
| Investments | Number | Cost | Valuation |
| 30/06/2008 | 30/06/2008 | 30/06/2008 | |
| £ | £ | ||
| African Eagle Resource Plc | 1,241,274 | 112,264 | 93,088 |
| Africa Oil Exploration Plc (1) | 625,000 | 100,000 | 101,563 |
| Ascent Resources Plc | 24,642,857 | 550,824 | 1,478,571 |
| Franconia Minerals Corp | 475,733 | 69,939 | 273,925 |
| Gold Fields Ltd | 10,500 | 32,759 | 66,608 |
| Minmet Plc | 873,574 | 241,135 | 33,895 |
| Nautical Petroleum Plc | 9,000,000 | 180,000 | 709,200 |
| Pacific North West Corp | 566,500 | 107,682 | 82,953 |
| Pan African Resources Plc | 5,098,333 | 175,013 | 280,408 |
| Ridge Mining Plc | 100,000 | 178,477 | 116,000 |
| Sunrise Diamonds Plc | 665,000 | 6,650 | 7,481 |
| Tertiary Minerals Plc | 1,330,000 | 119,700 | 71,488 |
| U308 Holdings Plc (2) | 4,166,666 | 125,000 | 333,333 |
| Vatukoula Gold Mines Plc (formerly River Diamonds Plc) (3) | 13,333,332 | 200,000 | 516,667 |
| Fair value of warrants & loan notes | |||
| MIT Ventures Corp loan note | - | 40,000 | 40,000 |
| TIGER RESOURCE FINANCE PLC | |||||||
| INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2008 | |||||||
| (Unaudited) | (Unaudited) | (Audited) | |||||
| Six months | Six months | Year | |||||
| ended | ended | ended | |||||
| 30 June 08 | 30 June 07 | 31 Dec 07 | |||||
| £ | £ | £ | |||||
| Administrative expenses | (121,949) | (121,655) | (375,687) | ||||
| Profit on sale of non-current investments | 199,797 | 333,914 | 1,114,378 | ||||
| Investment income | - | 654 | 1,387 | ||||
| Interest receivable | 103,682 | 95,618 | 230,498 | ||||
| PROFIT BEFORE TAXATION | 181,530 | 308,531 | 970,576 | ||||
| Taxation | (54,459) | (92,559) | (255,120) | ||||
| PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS | 127,071 | 215,972 | 715,456 | ||||
| Basic earnings per share | 0.07p | 0.11p | 0.39p | ||||
| Diluted earnings per share | 0.07p | 0.10p | 0.37p | ||||
| TIGER RESOURCE FINANCE PLC | ||||
| BALANCE SHEET AT 30 JUNE 2008 | ||||
| (Unaudited) | (Unaudited) | (Audited) | ||
| 30 June 08 | 30 June 07 | 31 Dec 07 | ||
| £ | £ | £ | ||
| NON CURRENT ASSETS | ||||
| Financial assets | ||||
| Investments at fair value | 4,205,180 | 6,584,395 | 7,193,618 | |
| CURRENT ASSETS | ||||
| Debtors | 23,234 | 11,810 | 113,621 | |
| Cash and cash equivalent | 4,077,954 | 4,477,709 | 4,204,464 | |
| 4,101,188 | 4,489,519 | 4,318,085 | ||
| TOTAL ASSETS | 8,306,368 | 11,073,914 | 11,511,703 | |
| NON CURRENT LIABILITIES | ||||
| Deferred tax liabilities | (589,721) | (1,395,484) | (1,471,170) | |
| CURRENT LIABILITIES | ||||
| Creditors | (372,890) | (289,593) | (340,115) | |
| TOTAL LIABILITIES | (962,611) | (1,685,077) | (1,811,285) | |
| NET ASSETS | 7,343,757 | 9,388,837 | 9,700,418 | |
| EQUITY ATTRIBUTABLE TO SHAREHOLDERS | ||||
| Called up share capital | 2,020,719 | 2,020,719 | 2,020,719 | |
| Share premium account | 1,557,831 | 1,557,831 | 1,557,831 | |
| Share capital redemption | 350,000 | 350,000 | 350,000 | |
| Revaluation reserve account | 1,376,016 | 3,256,130 | 3,783,008 | |
| Share based payment reserves | 130,118 | 130,118 | 130,118 | |
| Profit and loss account | 1,909,073 | 2,074,039 | 1,858,742 | |
| TOTAL EQUITY | 7,343,757 | 9,388,837 | 9,700,418 | |
| TIGER RESOURCE FINANCE PLC | |||||||
| STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2008 | |||||||
| Share capital | Share premium | Capital redemption reserves | Revaluation reserves | Share based payment reserves | Accumulated profit | Total | |
| £ | £ | £ | £ | £ | £ | £ | |
| As at 1 January 2007 | 2,008,819 | 1,554,856 | 350,000 | 2,205,480 | 130,118 | 1,938,314 | 8,187,587 |
| Issue of share capital | 11,900 | - | - | - | - | - | 11,900 |
| Premium on issue of share capital | - | 2,975 | - | - | - | - | 2,975 |
| Shares cancellation | - | - | - | - | - | - | - |
| Revaluation of investment | - | - | - | 1,500,929 | - | - | 1,500,929 |
| Deferred tax liability | - | - | - | (450,279) | - | - | (450,279) |
| Costs of options payments | - | - | - | - | - | - | - |
| Share buy back | - | - | - | - | - | (80,247) | (80,247) |
| Net profit for the period | - | - | - | - | - | 215,972 | 215,972 |
| As at 30 June 2007 | 2,020,719 | 1,557,831 | 350,000 | 3,256,130 | 130,118 | 2,074,039 | 9,388,837 |
| Issue of share capital | - | - | - | - | - | - | - |
| Premium on issue of share capital | - | - | - | - | - | - | - |
| Shares cancellation | - | - | - | - | - | - | - |
| Revaluation of investment | - | - | - | 1,135,460 | - | - | 1,135,460 |
| Deferred tax liability | - | - | - | (75,686) | - | - | (75,686) |
| Transfer to profit on sale of investments | - | - | - | (532,896) | - | - | (532,896) |
| Costs of options payments | - | - | - | - | - | - | - |
| Share buy back | - | - | - | - | - | (714,781) | (714,781) |
| Net profit for the period | - | - | - | - | - | 499,484 | 499,484 |
| As at 31 Dec 2007 | 2,020,719 | 1,557,831 | 350,000 | 3,783,008 | 130,118 | 1,858,742 | 9,700,418 |
| Issue of share capital | - | - | - | - | - | - | - |
| Premium on issue of share capital | - | - | - | - | - | - | - |
| Shares cancellation | - | - | - | - | - | - | - |
| Revaluation of investment | - | - | - | (2,681,318) | - | - | (2,681,318) |
| Deferred tax liability | - | - | - | 881,449 | - | - | 881,449 |
| Transfer to profit on sale of investments | - | - | - | (225,202) | - | - | (225,202) |
| Exercise of warrants | - | - | - | (381,921) | - | - | (381,921) |
| Costs of options payments | - | - | - | - | - | - | - |
| Share buy back | - | - | - | - | - | (76,740) | (76,740) |
| Net profit for the period | - | - | - | - | - | 127,071 | 127,071 |
| As at 30 June 2008 | 2,020,719 | 1,557,831 | 350,000 | 1,376,016 | 130,118 | 1,909,073 | 7,343,757 |
| TIGER RESOURCE FINANCE PLC | ||||
| CASH FLOW STATEMENT AS AT 30 JUNE 2008 | ||||
| (Unaudited) | (Unaudited) | (Audited) | ||
| 30 June 08 | 30 June 07 | 31 Dec 07 | ||
| £ | £ | £ | ||
| Cash flow from operations | ||||
| Administrative expenses | (121,949) | (121,655) | (375,687) | |
| Decrease/(Increase) in debtors | (9,613) | 105,351 | 103,540 | |
| Decrease in creditors | (21,687) | (106,279) | (101,401) | |
| Share option charges | - | - | ||
| Interest received | 103,682 | 95,618 | 230,498 | |
| Other income and investment income received | - | 654 | 1,387 | |
| Receipts from sale of fixed asset investments | 324,797 | 353,914 | 1,193,652 | |
| Payments to acquire fixed asset investments | (325,000) | - | (165,934) | |
| Corporate tax paid | - | - | (116,917) | |
| Net cash flow from operations | (49,770) | 327,603 | 769,138 | |
| Cash flow from financing activities | ||||
| Issue of shares | - | 14,875 | 14,875 | |
| Purchase of own shares for treasury | (76,740) | (80,248) | (795,028) | |
| Net cash flow from financing | (76,740) | (65,373) | (780,153) | |
| Net increase/(decrease) in cash in the period | (126,510) | 262,230 | (11,015) | |
| Cash at the beginning of the period | 4,204,464 | 4,215,479 | 4,215,479 | |
| Cash at the end of the period | 4,077,954 | 4,477,709 | 4,204,464 | |
| Interim Report - Notes | ||||
| 1 | The financial information for the six months ended 30 June 2008 and 30 June 2007 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 2007. 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 2008 was approved by the directors on 25 September 2008. | |||
| 2 | The financial information for the year ended 31 December 2007 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 172,621,254. | |||
| 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. | |||