Last checked at 25 Sep 2013 07:00
TIGER RESOURCE FINANCE PLC
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2013
Operations Review
· Net asset value per share at 30 June 2013 - 2.40p (30 June 2012 - 3.53p)
· Total assets of £3.5 million as at 30 June 2013 (30 June 2012 £4.5 million)
A difficult market in the first half of the year saw the Company reporting a post tax profit of £31,989 (2012: £298,205). Unrealised losses in several stocks increased during the period following share price falls across the portfolio.
The period under review has not changed from previous reports issued over the last three years. The investment world has turned its back on commodity driven small companies and small cap stocks have continued to suffer major value loss, irrespective of their underlying fundamentals. The disenchantment with small cap resource companies is to a certain extent also being shared by the majors and many large mining companies have also suffered from internal upheaval often resulting in material write down of assets and restructured boards.
The bull run in larger cap stocks is still gathering momentum, although share price appreciation has more recently been challenged by the threatened tapering of monthly bond purchases by the US treasury. We do not necessarily see this as a major issue, since the fundamentals for the tapering programme suggest that recovery is well on its way. Similarly in Europe, economic fundamentals are improving but not at the speed we would all like to see.
Historically, at this juncture in the cycle we would reasonably expect price earnings ratios to be driven up to the point where investors start bottom fishing for better value. This is yet to happen but we do see signs of history repeating itself. The recent change in legislation allowing the inclusion of AIM quoted stocks in ISA portfolios has been a major step in encouraging investment in smaller company stocks.
Our proactive investment in Xtract Resources PLC is showing signs of appreciation; the company recently appointed Jan Nelson, the previous Chief Executive Officer of Pan African Resources PLC as its Chief Executive Officer. African Pioneer PLC is now positioned to take on new investments and the third entity incorporated as part of the pro-active strategy, Sovereign Energy PLC is currently in the embryonic stage.
Whilst it is difficult to be optimistic, when surrounded by negative influences, your board maintains a positive outlook towards Tiger's business plan and we are particularly directed toward proactive investment.
By order of the Board
24 September 2013
Portfolio Holdings as at 30 June 2013
Investments | Number | Cost | Valuation |
African Eagle Resources PLC | 1,241,174 | 112,264 | 1,551 |
Anglo American PLC | 11,500 | 250,122 | 145,590 |
Ascent Resources PLC | 9,642,857 | 400,824 | 79,554 |
Astar Minerals PLC | 4,000,000 | 100,635 | 5,000 |
Aurum Mining PLC | 8,333,333 | 250,218 | 208,333 |
BP PLC | 58,500 | 249,743 | 264,045 |
ETFS Physical Platinum | 2,250 | 246,458 | 190,424 |
Jubilee Platinum PLC | 1,169,600 | 100,219 | 68,714 |
New World Oil and Gas PLC | 5,000,000 | 250,218 | 33,750 |
Northern Petroleum PLC | 294,118 | 250,519 | 89,706 |
PanContinental Oil and Gas PLC | 885,714 | 97,827 | 26,633 |
Papua Mining PLC | 230,000 | 101,200 | 172,500 |
Petroceltic International PLC | 1,666,000 | 101,593 | 91,297 |
Praetorian Resources PLC | 4000,000 | 200,218 | 86,000 |
Sovereign Mines of Africa PLC | 2,000,000 | 100,000 | 42,500 |
Sunrise Resources PLC | 665,000 | 6,650 | 3,491 |
Taipan Resources Inc. | 310,000 | 98,262 | 45,555 |
Tertiary Minerals PLC | 1,330,000 | 119,700 | 64,838 |
Trap Oil PLC | 330,000 | 101,660 | 35,888 |
U3O8 Holdings PLC | 4,166,666 | 125,000 | - |
Union Med Tech PLC | 625,000 | 37,500 | 9,063 |
Vatukoula Gold Mines PLC | 150,000 | 112,500 | 9,368 |
Wentworth Resources PLC | 220,000 | 104,174 | 125,217 |
Total | 3,517,504 | 1,799,017 |
Note:
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 £810,344 on 30 June 2013.
2) The Company incubated a subsidiary company, African Pioneer Plc in 2012. Tiger currently holds 57,000,002 shares in African Pioneer Plc which trades on ISDX and are valued at 1 pence per share on 30 June 2013.
3) The Company's investments in Xtract Resources Plc and African Pioneer Plc are not included in the investment table shown above.
Statement of Comprehensive Income
For the six months ended 30 June 2013
(Unaudited) Six months ended 30 June 13 | (Unaudited) Six months ended 30 June 12
| (Audited) Group Year ended 31 Dec 12
| |
£ | £ | £ | |
Profit/(loss) on sale of available for sale assets | - | 550,872 | 550,872 |
Income: | |||
Investment income | 10,846 | - | 8,483 |
Unrealised gain on financial assets at fair value through profit and loss | 327,585 | - | 332,759 |
Interest receivable | 3,191 | 8,313 | 13,253 |
Administrative expenses | (197,369) | (196,389) | (477,027) |
Impairment | (112,264) | - | (244,905) |
PROFIT/(LOSS) BEFORE TAXATION | 31,989 | 362,796 | 183,435 |
Taxation | - | (64,591) | (3,700) |
PROFIT/(LOSS) FOR THE PERIOD | 31,989 | 298,205 | 179,735 |
Other Comprehensive Income | |||
Available-for-sale financial assets unrealised (loss) | (869,238) | (209,491) | (666,398) |
Reclassification to profit or loss | - | (298,179) | (298,179) |
Transfer to Impairment | 112,264 | - | 244,905 |
Tax relating to components of | |||
other comprehensive income | - | 126,454 | 32,292 |
OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX | (756,974) |
(381,216) |
(687,380) |
TOTAL COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD | (724,985) |
(83,011) |
(507,645) |
Profit/(loss) for the period attributable to:
| |||
Shareholders of the Company | 49,640 | 298,205 | 218,902 |
Non-controlling interest | (17,651) | - | (39,167) |
31,989 | 298,205 | 179,735 | |
Basic earnings per share | 0.04p | 0.24p | 0.17p |
Diluted earnings per share | 0.04p | 0.24p | 0.17p |
All profits are derived from continuing operations.Statement of Financial Position
As at 30 June 2013
(Unaudited) Group 30 June 13 | (Unaudited) Company 30 June 12 | (Audited) Group 31 Dec 12
| |
£ | £ | £ | |
NON CURRENT ASSETS | |||
Financial assets at fair value through profit or loss | 810,344 | - | 482,759 |
Available-for-sale investments | 1,799,017 | 2,726,463 | 2,668,255 |
Deferred tax asset | - | 94,162 | - |
2,609,361 | 2,820,625 | 3,151,014 | |
CURRENT ASSETS | |||
Trade and other receivables | 73,564 | 216,997 | 53,020 |
Cash and cash equivalents | 810,666 | 1,480,298 | 1,066,888 |
884,230 | 1,697,295 | 1,119,908 | |
TOTAL ASSETS | 3,493,591 | 4,517,920 | 4,270,922 |
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 | (131,195) | 931,943 | 625,779 |
Retained earnings | 426,389 | 456,052 | 376,749 |
EQUITY ATRIBUTABLE TO THE OWNERS | 3,320,744 | 4,413,545 | 4,028,078 |
Equity interest of non-controlling interest | 136,182 | - | 153,833 |
TOTAL EQUITY | 3,456,926 | 4,413,545 | 4,181,911 |
NON CURRENT LIABILITES | |||
Deferred tax liabilities | - | - | - |
- | - | - | |
CURRENT LIABILITIES |
| ||
Trade and other payables | 32,980 | 39,799 | 85,324 |
Corporate tax payable | 3,685 | 64,576 | 3,687 |
36,665 | 104,375 | 89,011 | |
TOTAL LIABILITIES | 36,665 | 104,375 | 89,011 |
TOTAL EQUITY AND LIABILITIES | 3,493,591 | 4,517,920 | 4,270,922 |
Statement of Changes in Equity
As at 30 June 2013
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 1 January 2012 | 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 |
Changes in equity | |||||||||
Available-for-sale financial assets: | |||||||||
Current period gains (losses) | - | - | - | (456,907) | - | - | - | (456,907) | |
Profit (loss) for the period | - | - | - | (94,162) | - | - | (79,303) | 39,167 | (134,298) |
Transfer to impairment | - | - | - | - | 244,905 | - | - | 244,905 | |
Acquisition of subsidiary | - | - | - | - | - | - | - | 114,666 | 114,666 |
Total comprehensive income and expense for the period | - | - | - | (94,162) | (212,002) |
| (79,303) | 153,833 | (231,634) |
Reserve movements | - | - | - | - | - | - | - | - | - |
As at 31 Dec 2012 | 1,428,319 | 1,597,231 | 1,100,000 | - | (604,339) | 130,118 | 376,749 | 153,833 | 4,181,911 |
Changes in equity | |||||||||
Available-for-sale financial assets | - | - | - | - | (869,238) | - | - | - | (869,238) |
Current period gains (losses) | - | - | - | - | - | - | - | - | - |
Transfer to impairment | - | - | - | - | 112,264 | - | - | - | 112,264 |
Profit (loss) for the period | - | - | - | - | - | - | 49,640 | (17,651) | 31,989 |
Total comprehensive income and expense for the period | - | - | - | - | (756,974) | - | 49,640 | (17,651) | (724,985) |
Reserve movements | - | - | - | - | - | - | - | - | |
As at 30 June 2013 | 1,428,319 | 1,597,231 | 1,100,000 | - | (1,361,313) | 130,118 | 426,389 | 136,182 | 3,456,926 |
Cash Flow Statement
For the six months ended 30 June 2013
(Unaudited) 30 June 13 | (Unaudited) 30 June 12 | (Audited) 31 Dec 12 | |
£ | £ | £ | |
CASH FLOW FROM OPERATIONS | |||
Profit/(loss) before taxation | 31,989 | 362,796 | 183,435 |
Adjustment for: | |||
Investment in subsidiary | - | - | 193,000 |
Interest received | (3,191) | - | (13,253) |
Dividends received | (10,846) | - | (8,483) |
Operating profit/(loss) before movement in working capital | 17,952 | 362,796 | 354,699 |
(Increase)/Decrease in receivables | (20,544) | (203,344) | (39,367) |
Increase/(Decrease) in payables | (52,347) | (22,506) | 23,021 |
Adjustment for (profit)/loss on sale of available for sale assets | - | (550,872) | (550,872) |
Transfer to impairment | 112,264 | - | 244,905 |
Increase in value of financial assets at fair value through profit or loss | (327,584) | - | (332,759) |
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES
| (270,259) | (413,926) | (300,373) |
TAXATION PAID
| - | - | |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Sale of assets available for sale | - | 765,642 | 765,642 |
Purchase of assets available for sale | - | (1,106,953) | (1,505,652) |
Investment in investments designated as at fair value through profit or loss | - | - | (150,000) |
Interest received | 3,191 | - | 13,253 |
Dividends received | 10,846 | - | 8,483 |
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
| 14,037 | (341,311) | (868,274) |
CASH FLOW FROM FINANCING ACTIVITIES
| |||
Purchase of shares (through exercise of share options) | - | 197,000 | 197,000 |
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES | - | 197,000 | 197,000 |
Net increase/(decrease) in cash and cash equivalents in the period | (256,222) | (558,237)
| (971,647) |
Cash and cash equivalents at the beginning of the period | 1,066,888 | 2,038,535 | 2038,535 |
Cash and cash equivalents at the end of the period | 810,666 | 1,480,298 | 1,066,888 |
Selected notes to the consolidated financial statements
For the six months ended 30 June 2013
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 2013 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2012. 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 2013 | 6 months to 30 June 2012 | Year ended 31 December 2012 | |
Profit after tax for the purpose of earnings per share | £49,640 | £298,205 | £218,902 |
Weighted average number of shares | 138,331,939 | 131,898,405 | 131,898,405 |
Basic earnings per ordinary share | 0.04p | 0.24p | 0.17p |
Diluted | ||||
Profit after tax | £49,640 | £298,205 | £218,902 | |
Weighted average number of shares | 138,331,939 | 131,898,405 | 131,898,405 | |
Diluted effect of options | - | - | - | |
Diluted weighted average number of shares | 138,331,939 | 131,898,405 | 131,898,405 | |
Diluted earnings per ordinary share | 0.04p | 0.24p | 0.17p | |
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 (formally Xtract Energy PLC,) a UK based natural resources exploration 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. The investment has been revalued to fair value at year end to reflect the market value of 0.14 pence per share and at 30 June 2013 to reflect the market value of 0.23 pence.
Unaudited 30 June 2013 £ | Audited 31 December 2012 £ | |
At 1 January | 482,759 | - |
Additions | - | 150,000 |
Adjustment to fair value | 327,585 | 332,759 |
At 30 June 2013/31 December 2012 | 810,344 |
482,759 |
Selected notes to the consolidated financial statements
For the six months ended 30 June 2013
4. Deferred Tax
On 30 June 2012 deferred tax asset of £94,162 was recognised arising from unrealised losses relating to available for sale assets. As at 30 June 2013 and 31 December 2012 the deferred tax asset has been netted off with the deferred tax liability arising from the unrealised gain relating to the Xtract Resources PLC investment resulting in a net deferred tax asset. 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 2013 | Unaudited 30 June 2013 | Unaudited 30 June 2012 | Unaudited 30 June 2012 | Audited 31 December 2012 | Audited 31 December 2012 | |
Number | £ | Number | £ | Number | £ | |
Authorised: | ||||||
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 |
At 1 January | 142,831,939 | 1,428,319 | 127,071,939 | 1,270,719 | 127,071,939 | 1,270,719 |
Issued/(cancelled) during the year | - | - | 15,760,000 | 157,600 | 15,760,000 | 157,600 |
Shares in issue at 31 December 2012 /30 June 2013 | 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.
On 28 May 2012 the Company issued and allotted 15,760,000 new Ordinary shares of 1p each as a result of the exercise of options. Bruce Rowan and Colin Bird, both directors of the Company, exercised 10,000,000 and 5,760,000 options respectively at a strike price of 1.25 pence per ordinary share.
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.