Last checked at 29 Sep 2010 07:00
TIGER RESOURCE FINANCE PLC
Unaudited Interim Results for the six months ended 30 June 2010
CHAIRMAN'S STATEMENT
For the six months ended 30 June 2010
HIGHLIGHTS
·; Net Asset Value per share at 30 June 2010 3.41p (2009 - 3.24p)
·; Total assets of £5.9M as at 30 June 2010 (2009 - £5.7M)
During the period under review, the Company realised a profit of £573,674 following the sale of 15 million shares in Ascent Resources Plc. Tiger continues to hold a position in this investment and will be following the progress of Ascent's diverse portfolio of oil and gas projects. Further profits were realised from disposals in investments including Pan African Resources Plc, Impala Platinum Ltd and Goldfields Ltd during the six month period. Investments were made in Northern Petroleum Plc and Sovereign Mines of Africa Plc availing of investment opportunities offered in these companies.
The six month period saw extreme volatility in international markets. The driving forces causing downward momentum resulted from the possibility of Greece, Portugal and Spain defaulting on their sovereign debt, together with a potential slowdown in economic and industrial growth in China and consequently South East Asia.
Commodity prices remained fairly strong despite the uncertain economic times, giving some credibility to the suggestion that whilst China may be slowing, the country's thirst for metals remains firm. Some of the loss of commodity demand from China may have been offset by more positive signs emerging from the USA, although it still appears that any recovery is at best, cautious. Manufacturing data improved although the jobless figures remained disappointing as did new housing starts.
Our forecast for commodity prices is tempered by the aforementioned and we see a year of sluggish growth, particularly in Europe. However, most major mining companies have now aggressively reduced their operating costs and we forecast that operating margins will remain competitive.
The thrust of many junior mining companies now is for bulk commodities and agricultural minerals. It is our view that exploration for nickel and copper has subsided, which may eventually result in severe shortages of these metals. To compound the situation, most of the new exploration activity is in countries which lack mining infrastructure, transparent exploration and mining codes and title reliability. The need for replacement base metals is very clear and the junior exploration community is not geared, from a resource point of view, to mount exploration programmes seen a few years ago. The price of gold and platinum has remained relatively robust. We will be seeking out opportunities in both sectors in the period ahead.
In essence, our investment policy will be geared towards junior companies with strong management working across the commodity spectrum in jurisdictions that offer transparent mining and exploration legislation. We are, in addition, seeking value investments in major cash producing mining companies. Tiger will also aim to invest in oil and gas opportunities showing good fundamentals. We see a quiet second half and will use this time to position ourselves in what should be a better emerging resource investment environment.
On behalf of the board
29 September 2010
Portfolio Holdings as at 30 June 2010
| Investments | Number | Cost | Valuation |
|
| 30/06/2010 | 30/06/2010 | 30/06/2010 |
|
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| £ | £ |
| African Eagle Resources Plc | 1,241,274 | 112,264 | 51,260 |
|
Aquarius Platinum Ltd |
18,182 |
89,238 |
59,692 |
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| Ascent Resources Plc | 9,642,857 | 400,824 | 337,500 |
|
ETFS Physical Platinum |
2,250 |
245,704 |
227,340 |
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|
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| Franconia Minerals Corp | 475,733 | 69,939 | 96,431 |
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| In-Solve Plc | 625,000 | 37,500 | 15,625 |
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| Minmet Plc | 873,574 | 15,200 | 8,736 |
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| Nautical Petroleum Plc | 450,000 | 180,000 | 744,750 |
|
Northern Petroleum Plc |
294,118 |
250,000 |
285,294 |
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|
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| Pacific North West Corp | 566,500 | 106,975 | 48,436 |
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| Sovereign Mines of Africa Plc | 2,000,000 | 100,000 | 130,000 |
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|
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| Sunrise Resources Plc | 665,000 | 6,650 | 3,990 |
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| Tertiary Minerals Plc | 1,330,000 | 119,700 | 36,575 |
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| U308 Holdings Plc | 4,166,666 | 125,000 | 15,833 |
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| Vatukoula Gold Mines Plc | 13,333,332 | 200,000 | 264,000
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|
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| 2,058,994 | 2,325,462 |
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2010
|
| (Unaudited) Six months ended 30 June 10 | (Unaudited) Six months ended 30 June 09
| (Audited) Year ended 31 Dec 09
|
|
| £ | £ | £ |
| Profit/(Loss) on sale of available for sale assets | 790,974 | (48,754) | (48,754) |
| Income: |
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|
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| Investment income | 2,697 | 13,239 | 13,848 |
| Interest receivable | 7,457 | 8,554 | 16,165 |
| Administrative expenses | (178,409) | (132,963) | (277,859) |
|
|
| - | - |
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| PROFIT/(LOSS) BEFORE TAXATION | 622,719 | (159,924) | (296,600) |
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| Taxation | (186,816) | - | - |
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| PROFIT/(LOSS) FOR THE PERIOD | 435,903 | (159,924) | (296,600) |
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| Other Comprehensive Income
Revaluation on available-for-sale financial assets |
386,191 |
601,132 |
1,073,280
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| Unrealised (losses)/gains reclassified to profit or loss | (866,160) | 72,739 | 72,739 |
|
Income tax relating to components of |
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| Other comprehensive income | 134,392 | - | (208,805) |
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| OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX |
(345,577) |
673,871 |
937,214 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
90,326 |
513,947 |
640,614 |
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| Basic earnings per share | 0.25p | (0.09)p | (0.17)p |
| Diluted earnings per share | 0.24p | (0.09)p | (0.17)p |
All profits are derived from continuing operations.
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
|
| (Unaudited) 30 June 10 | (Unaudited) 30 June 09 | (Audited) 31 Dec 09
|
|
| £ | £ | £ |
| NON CURRENT ASSETS |
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|
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| Financial assets |
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| Available-for-sale investments | 2,325,462 | 2,095,350 | 2,567,499 |
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| CURRENT ASSETS |
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| Trade and other receivables | 17,403 | 17,349 | 14,904 |
| Cash and cash equivalents | 3,835,432 | 3,585,926 | 3,469,468 |
| Other debtors | 938 | 85 | 86 |
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| 3,853,773 | 3,603,360 | 3,484,458 |
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| TOTAL ASSETS | 6,179,235 | 5,698,710 | 6,051,957 |
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| EQUITY AND LIABILITIES |
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| EQUITY ATTRIBUTABLE TO SHAREHOLDERS |
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| Share capital | 2,020,719 | 2,020,719 | 2,020,719 |
| Share premium | 1,557,831 | 1,557,831 | 1,557,831 |
| Other components of equity | 541,350 | 623,585 | 886,928 |
| Retained earnings | 1,765,674 | 1,466,448 | 1,329,772 |
| TOTAL EQUITY | 5,885,574 | 5,668,583 | 5,795,250 |
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| NON CURRENT LIABILITIES |
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|
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| Deferred tax liabilities | 74,413 | - | 208,805 |
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| CURRENT LIABILITIES |
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| Trade and other payables | 32,432 | 30,127 | 47,902 |
| Corporate tax payable | 186,816 | - | - |
|
| 219,248 | 30,127 | 47,902 |
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| TOTAL LIABILITIES | 293,661 | 30,127 | 256,707 |
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| TOTAL EQUITY AND LIABILITIES | 6,179,235 | 5,698,710 | 6,051,957 |
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STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2010
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| Share capital | Share premium | Capital redemption reserve | Other reserves | Available-for-sale financial assets | Retained earnings
| F Share based reserves | Total
|
|
| £ | £ | £ | £ | £ | £ | £ | £ |
| As at 1 January 2009 | 2,020,719 | 1,557,831 | 350,000 | - | (400,286) | 1,496,254 | 130,118 | 5,154,636 |
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| Changes in equity |
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| Available-for-sale financial assets |
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| Current period gains (losses) | - | - | - | - | 601,132 | - | - | 601,132 |
| Reclassification to profit or loss | - | - | - | - | 72,739 | - | - | 72,739 |
| Income tax relating to components of other comprehensive income | - | - | - | - | - | - | - | - |
| Loss for the period | - | - | - | - | - | (159,924) | - | (159,924) |
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| Total comprehensive income and expense for the period | - | - | - | - | 673,871 | (159,924) | - | 513,947 |
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| Issue of share capital | - | - | - | - | - | - |
| - |
| Shares bought back and held in treasury | - | - | - | - |
| - |
| - |
| As at 30 June 2009 | 2,020,719 | 1,557,831 | 350,000 | - | 273,585 | 1,336,330 | 130,118 | 5,668,583 |
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| Changes in equity |
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| Available-for-sale financial assets |
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|
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|
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| Current period gains (losses) | - | - | - |
| 472,148 | - | - | 472,148 |
| Reclassification to profit or loss | - | - | - |
| - | - | - | - |
| Income tax relating to components of other comprehensive income | - | - | - | (208,805) | - | - | - | (208,805) |
| Loss for the period | - | - | - | - | - | (136,676) | - | (136,676) |
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| Total comprehensive income and expense for the period |
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| (208,805) | 472,148 | (136,676) | - | 126,667 |
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| As at 31 Dec 2009 | 2,020,719 | 1,557,831 | 350,000 | (208,805) | 745,733 | 1,199,654 | 130,118 | 5,795,250 |
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| Changes in equity |
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| Available-for-sale financial assets |
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|
|
|
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| Current period gains (losses) | - | - | - | - | 386,191 | - | - | 386,191 |
| Reclassification to profit or loss | - | - | - | - | (866,160) | - | - | (866,160) |
| Income tax relating to components of other comprehensive income | - | - | - | 134,392 | - | - | - | 134,392 |
| Profit for the period | - | - | - | - | - | 435,901 | - | 435,901 |
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| Total comprehensive income and expense for the period | - | - | - | 134,392 | (479,969) | 435,901 | - | 90,324 |
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| As at 30 June 2010 | 2,020,719 | 1,557,831 | 350,000 | (74,413) | 265,764 | 1,635,555 | 130,118 | 5,885,574 |
CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2010
|
| (Unaudited) 30 June 10 | (Unaudited) 30 June 09 | (Audited) 31 Dec 09 |
|
| £ | £ | £ |
| CASH FLOW FROM OPERATIONS |
|
|
|
| Loss before taxation | 622,719 | (159,924) | (296,600) |
| (Increase)/Decrease in receivables | (4,479) | (8,734) | (6,289) |
| Increase/(Decrease) in payables | (15,470) | 6,141 | 9,063 |
| Adjustment for (loss)/profit on sale of available for sale assets | (790,754) | 48,754 | 48,754 |
|
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| NET CASH OUTFLOW FROM OPERATING ACTIVITIES
| (187,984) | (113,763) | (245,072) |
| TAXATION PAID
| - | (1,612) | - |
| CASH FLOW FROM INVESTING ACTIVITIES |
|
|
|
| Sale of assets available for sale | 1,445,781 | 40,485 | 40,485 |
| Purchase of assets available for sale | (891,833) | - | - |
| Adjustment for additional investment income | - | (13,239) | - |
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| NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
| 553,948 | 27,246 | 40,485 |
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| CASH FLOW FROM FINANCING ACTIVITIES |
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| Purchase of shares for treasury | - | - | - |
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| NET CASH OUTFLOW FROM INVESTING ACTIVITIES |
| - | - |
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| Net increase/(decrease) in cash and cash equivalents in the period | 365,964 | (88,129) | (204,587) |
| Cash and cash equivalents at the beginning of the period | 3,469,468 | 3,674,055 | 3,674,055 |
| Cash and cash equivalents at the end of the period | 3,835,432 | 3,585,926 | 3,469,468 |
| Interim Report - Notes |
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| 1 | The financial information for the six months ended 30 June 2010 and 30 June 2009 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 2009. 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 2010 was approved by the directors on 28 September 2010. | |||
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| 2 | The financial information for the year ended 31 December 2009 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. | |||
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| 3 | Earnings per ordinary share included in the Income Statement and the NAV calculation is based on weighted average number of shares of 172,571,939. | |||
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| 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. | |||
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