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26 Sep 2008 07:00
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TIGER RESOURCE FINANCE PLC
Interim Results for the six months ended 30 June 2008.
CHAIRMAN'S STATEMENT
For the six months ended 30thΒ June 2008
HIGHLIGHTS
Net Asset Value per share at 30 June 2008 4.26p (2007 - 4.90p)
Total assets of Β£7.3M as at 30 June 2008 (2007 - Β£9.4M)
During the period under review, the Company realised profits of Β£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 willΒ continue toΒ follow progress at the company's goldΒ producing mine inΒ Fiji.
In January 2008, the Company purchased a further 2.25 million ordinary shares of 1p each as part of its buy-back programΒ 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.
Β
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 raiseΒ additionalΒ funds for purchases.
The uncertainty has seenΒ someΒ junior mining stocksΒ deteriorate to valuesΒ down to 20% of their September 2007 valuations and specialist resource investment funds haveΒ seenΒ massiveΒ scale redemptionsΒ putting further pressure on junior resource stocks.
In my report of 12Β 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 pressureΒ onΒ 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 seeΒ theΒ thirst forΒ junior company fundingΒ 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 willΒ be proactive in identifyingΒ 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
Β Β
Portfolio Holdings as at 30 June 2008
|
Investments |
Number |
Cost |
Valuation |
|
30/06/2008 |
30/06/2008 |
30/06/2008 |
|
|
Β£ |
Β£ |
||
|
African Eagle Resource Plc |
1,241,274 |
112,264 |
93,088 |
|
Africa Oil Exploration PlcΒ (1)Β |
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 |
|
MinmetΒ 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 PlcΒ (2) |
4,166,666 |
125,000 |
333,333 |
|
Vatukoula Gold Mines Plc (formerlyΒ River Diamonds Plc) (3) |
13,333,332 |
200,000 |
516,667 |
|
Fair value of warrantsΒ & loan notes |
|||
|
MIT Ventures Corp loan note |
- |
40,000 |
40,000 |
|
TIGER RESOURCE FINANCE PLC |
|||||||
|
INCOME STATEMENTΒ FOR THE SIX MONTHS ENDED 30 JUNE 2008 |
|||||||
|
(Unaudited) |
(Unaudited) |
(Audited) |
|||||
|
Six monthsΒ |
Six monthsΒ |
Year |
|||||
|
ended |
ended |
ended |
|||||
|
30 June 08 |
30 June 07 |
31 Dec 07 |
|||||
|
Β£ |
Β£ |
Β£ |
|||||
|
Administrative expenses |
(121,949) |
(121,655) |
(375,687) |
||||
|
ProfitΒ 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 |
||||
Β
Β Β
|
TIGER RESOURCE FINANCE PLC |
||||
|
BALANCE SHEETΒ AT 30 JUNE 2008 |
||||
|
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
30 June 08 |
30 June 07 |
31 Dec 07 |
||
|
Β£ |
Β£ |
Β£ |
||
|
NON CURRENTΒ ASSETS |
||||
|
Financial assets |
||||
|
InvestmentsΒ atΒ fairΒ 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 ASSETSΒ |
8,306,368 |
11,073,914 |
11,511,703 |
|
|
NON CURRENT LIABILITIESΒ |
||||
|
Deferred tax liabilities |
(589,721) |
(1,395,484)Β |
(1,471,170) |
|
|
CURRENT LIABILITIESΒ |
||||
|
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 |
|
Β
|
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 |
|
|
Β£ |
Β£ |
Β£ |
Β£ |
Β£ |
Β£ |
Β£ |
|
|
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 liabilityΒ |
- |
- |
- |
(450,279) |
- |
- |
(450,279) |
|
Costs of options paymentsΒ |
- |
- |
- |
- |
- |
- |
- |
|
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 liabilityΒ |
- |
- |
- |
(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 ASΒ AT 30 JUNE 2008 |
||||
|
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
30 June 08 |
30 June 07 |
31 Dec 07 |
||
|
Β£ |
Β£ |
Β£ |
||
|
Cash flow from operations |
||||
|
Administrative expenses |
(121,949) |
(121,655) |
(375,687) |
|
|
Decrease/(Increase) in debtors |
(9,613) |
105,351Β |
103,540 |
|
|
DecreaseΒ in creditors |
(21,687) |
(106,279) |
(101,401) |
|
|
Share option charges |
- |
-Β |
||
|
Interest received |
103,682 |
95,618Β |
230,498 |
|
|
Other income and investment income received |
- |
654Β |
1,387 |
|
|
Receipts from sale of fixed asset investments |
324,797 |
353,914Β |
1,193,652 |
|
|
Payments to acquire fixed asset investments |
(325,000) |
-Β |
(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 |
- |
14,875Β |
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 theΒ period |
(126,510) |
262,230Β |
(11,015) |
|
|
Cash at the beginning of the period |
4,204,464 |
4,215,479Β |
4,215,479 |
|
|
Cash at the end of the period |
4,077,954 |
4,477,709Β |
4,204,464 |
|
|
Interim ReportΒ -Β Notes |
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|
1 |
The financial information for the six months ended 30 June 2008Β and 30 June 2007Β is unaudited.Β The interim accounts have been prepared using the same accounting policies that were used in the Group's statutory accounts to 31 December 2007.Β In the opinion of the directors the financial information for these periodsΒ represents fairly the financial position, operations and cash flows for the period inΒ conformity withΒ International Financial Reporting Standard (IFRS).Β The interim statement for the six months ended 30 June 2008Β wasΒ approved byΒ the directors onΒ 25Β September 2008. |
|||
|
2 |
The financial information forΒ the year ended 31 December 2007Β does not constitute full accounts, it is an extraction from theΒ Company's accounts for the yearΒ inΒ whichΒ theyΒ have been delivered to the Registrar of Companies and on which the auditors gave an unqualified report. |
|||
|
3 |
Earnings per ordinary share included in theΒ IncomeΒ StatementΒ and the NAV calculationΒ is based on weighted average number of shares ofΒ 172,621,254. |
|||
|
4 |
Copies of this interim report are available to the public, free of charge, from 4th Floor,Β 2 Cromwell Place,Β LondonΒ SW7 2JE, during normal office hours. A copy will also be posted on Tiger Resource Finance plc's website www.tiger-rf.com. |
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