Last checked at 27 Sep 2016 12:00
TIGER RESOURCE FINANCE PLC
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2016
Operations Review
· Net Asset Value per share - 0.81p (30 June 2015 - 1.14p/ 31 Dec 2015 - 0.77p)
· Total assets of £1.12M (30 June 2015 - £1.63M/ 31 Dec 2015 - £1.10M)
Last year at this time, Tiger reported that it was quite optimistic despite the gloom surrounding the resource industry. The optimism expressed was justified against the events of this year and the Board is now confident that the resource sector will enter a gradual but sustained growth phase during the coming year.
We note that the major mining companies have all made significant gains in market capitalisation since the January 2016 lows and their management are making further positive statements on the future prospects for their companies. As always, it is taking time for the positive sentiment to migrate into the smaller cap sector. The Canadian market has seen much investor activity with secondary placings being common and considerable M&A activity based on opportunity rather than threat. We have little doubt that this sentiment will be evident in the UK AIM market in which the Company generally operates.
Commodity prices have been erratic with solid gains being recorded in the price of gold, silver, platinum, palladium and zinc particularly since the January 2016 lows. The price of oil has climbed from the low $30's to almost $50 per barrel and there is an expectation that it will remain close to this level in the coming months, given the decision by oil exporting countries to resist attempts to curtail their output, particularly in the short to medium term. The US shale oil and gas industry has shown resilience and seems capable of operating profitably to this longer term price deck.
We expect metal prices to generally improve but are less optimistic for the gold price than others might be. We recognise the unprecedented level of geo-political risks throughout the world but fear that the stronger dollar and better global economic conditions will eventually drive the price of gold lower. The US Presidential election will continue to weigh on sentiment but again we feel that whoever wins, the certainty will work against the gold price.
Despite their lackluster performance, year to date, we are bullish on copper and nickel and as such we will be looking at investments in these commodities. Global markets at the moment are giving very little value to companies exploring for base metals and we are confident that this phenomenon will change dramatically over the coming two years.
The Board remains convinced that passive investment alone is not the way forward and as such we will also take on investment in companies which, in our opinion, are undervalued and have significant scope for positive revaluation with improving metal prices due to the hidden value in their specific asset base. The Board is currently considering a number of strategic investments in private base metal companies on a pre IPO basis to gain exposure to these opportunities. The strategy on these investments will be to be proactive and a member of the Tiger team will be actively involved in bringing these companies to IPO and may at times join the newly listed company's board to represent Tiger's interest in the underlying investee company.
The Group had a cash balance in excess of £500,000 at 30 June 2016 giving the Board some scope to execute on suitable investment opportunities. However, the Board believes that further strengthening of the balance sheet would give the Company greater flexibility to act on potential opportunities and have therefore proposed a reorganisation of the Company's share capital structure which will be voted on by shareholders at the General Meeting on 30 September 2016. If passed, the capital reorganisation will allow the Company more flexibility with respect to issuing new shares in the case of any potential transaction or new equity fundraising.
We announced the resignation of Bruce Rowan on 31 August 2016 due to personal reasons. Bruce has been a good friend and colleague to the Board and to all members of the management team and as such he will be missed.
By order of the Board - 27 September 2016
Portfolio Holdings as at 30 June 2016
Investments | Number | Cost £ | Valuation £ |
Anglo American PLC | 11,500 | 250,117 | 83,594 |
Ascent Resources PLC | 482,142 | 400,824 | 3,279 |
Aurum Mining PLC | 8,333,333 | 250,218 | 75,000 |
Duke Royalty Limited | 20,000 | 200,218 | 9,600 |
ETFS Physical Platinum | 2,250 | 246,458 | 162,007 |
Galileo Resources Plc | 10,416,667 | 125,200 | 109,375 |
Jersey oil and Gas Plc | 3,300 | 101,660 | 680 |
Jubilee Platinum PLC | 1,169,600 | 100,219 | 32,749 |
MX Oil Plc | 400,000 | 100,218 | 3,520 |
New World Oil and Gas PLC | 5,000,000 | 250,218 | 3,000 |
Northern Petroleum PLC | 294,118 | 250,219 | 11,176 |
PanContinental Oil and Gas PLC | 885,714 | 97,827 | 1,505 |
Papua Mining PLC | 230,000 | 101,200 | 4,600 |
Revelo Resources Corp | 216,667 | 62,965 | 10,032 |
Rex Bionics Plc | 6,250 | 37,500 | 2,031 |
Rockrose Energy Plc | 100,000 | 50,000 | 45,500 |
Sovereign Mines of Africa PLC | 2,000,000 | 100,000 | 5,800 |
Sunrise Resources PLC | 665,000 | 6,650 | 1,131 |
Tertiary Minerals PLC | 1,330,000 | 119,700 | 18,354 |
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Investments held by African Pioneer Plc (subsidiary company) |
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| 146,324 |
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Total Investments for the Group |
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| 729,257 |
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Notes:
1) The Company incubated a subsidiary company, African Pioneer PLC in 2012. Tiger holds 59,529,132 shares in African Pioneer Plc as at 30 June 2016.
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2016
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(Unaudited) Group Six months ended 30 June 16 |
(Unaudited) Group Six months ended 30 June 15
| (Audited) Group Year ended 31 Dec 15
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| £ | £ | £ |
Gain/(loss) on sale of available for sale assets | 117,298 | 97,699 | 10,983 |
Profit on Sale of Xtract | 2,153 |
| 92,758 |
Income: |
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Investment income | 976 | 6,103 | 10,159 |
Unrealised (loss)/gain on financial assets at fair value through profit and loss | - | 65,000 | 12,750 |
Interest receivable | 551 | 955 | 1,717 |
Administrative expenses | (220,422) | (185,205) | (423,803) |
Impairment | 144,690 | (174,674) | (436,233) |
PROFIT/ (LOSS) BEFORE TAXATION | 45,246 | (190,122) | (731,669) |
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Taxation | - | - | - |
PROFIT/ (LOSS) FOR THE PERIOD | 45,246 | (190,122) | (731,669) |
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Other Comprehensive Income |
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Available-for-sale financial assets unrealised loss | (117,300) | (200,547) | (399,274) |
Transfer to Impairment | 144,690 | 174,674 | 436,233 |
OTHER COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD, NET OF TAX | 27,390 | (25,873) | 36,959 |
TOTAL COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD | 72,636 | (215,995) |
(694,710) |
Profit/(Loss) for the period attributable to:
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Shareholders of the Company | 23,954 | (173,247) | (670,693) |
Non-controlling interest | 21,292 | (16,875) | (60,976) |
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| 45,246 | (190,122) | (731,669) |
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Basic earnings per share | 0.1p | (0.13)p | (0.48)p |
Diluted earnings per share | 0.1p | (0.13)p | (0.48)p |
All profits are derived from continuing operations.Consolidated Statement of Financial Position
As at 30 June 2016
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(Unaudited) Group 30 June 16 |
(Unaudited) Group 30 June 15 |
(Audited) Group 31 Dec 15
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| £ | £ | £ |
NON CURRENT ASSETS |
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Financial assets at fair value through profit or loss | 729,257 | 137,500 | 34,500 |
Available-for-sale investments | - | 670,430 | 591,872 |
| 729,257 | 807,930 | 626,372 |
CURRENT ASSETS |
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Trade and other receivables | 13,268 | 16,349 | 59,608 |
Cash and cash equivalents | 522,525 | 905,001 | 548,023 |
| 535,793 | 921,350 | 607,631 |
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TOTAL ASSETS | 1,265,050 | 1,729,280 | 1,234,003 |
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EQUITY AND LIABILITIES |
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EQUITY ATTRIBUTABLE TO SHAREHOLDERS |
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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 | 1,239,687 | 1,255,991 | 1,267,077 |
Retained earnings | (3,203,483) | (2,729,991) | (3,227,437) |
EQUITY ATTRIBUTABLE TO THE OWNERS | 1,061,754 | 1,551,550 | 1,065,190 |
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Equity interest of non-controlling interest | 60,015 | 82,824 | 38,723 |
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TOTAL EQUITY | 1,121,769 | 1,634,374 | 1,103,913 |
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CURRENT LIABILITIES |
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Trade and other payables | 143,281 | 94,906 | 130,090 |
Corporate tax payable | - | - | - |
| 143,281 | 94,906 | 130,090 |
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TOTAL LIABILITIES | 143,281 | 94,906 | 130,090 |
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TOTAL EQUITY AND LIABILITIES | 1,265,050 | 1,729,280 | 1,234,003 |
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Consolidated Statement of Changes in Equity
As at 30 June 2016
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
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| £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
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As at 30 June 2014 | 1,428,319 | 1,597,231 | 1,100,000 | - | 78,764 | 130,118 | (1,799,140) | 94,741 | 2,630,033 | ||
Changes in equity |
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(Loss) for the period | - | - | - | - | - | - | (757,604) | (19,734) | (777,338) | ||
Other Comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | (78,764) | - | - | - | (78,764) | ||
Transfer to impairment | - | - | - | - | - | - | - | - | - | ||
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Total comprehensive expense for the period | - | - | - | - | (78,764) | - | (757,604) | (19,734) | (856,102) | ||
Reserve movements | - | - | - | - | - | - |
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As at 31 December 2014 | 1,428,319 | 1,597,231 | 1,100,000 | - | - | 130,118 | (2,556,744) | 75,007 | 1,773,931 | ||
Changes in equity |
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(Loss) for the period | - | - | - | - | - | - | (173,247) | (16,875) | (190,122) |
Other comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | 200,547 | - | - | - | 200,547 |
Transfer to impairment | - | - | - | - | (174,674) | - | - | - | (174,674) |
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Total comprehensive expense for the period | - | - | - | - | 25,873 | - | (173,247) | (16,875) | (164,249) |
Acquisition of subsidiary | - | - | - | - | - | - |
| 24,692 | 24,692 |
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As at 30 June 2015 | 1,428,319 | 1,597,231 | 1,100,000 | - | 25,873 | 130,118 | (2,729,991) | 82,824 | 1,634,374 |
Changes in equity |
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(Loss) for the period | - | - | - | - | - | - | (497,446) | (44,101) | (541,547) |
Other comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | 11,086 | - | - | - | 11,086 |
Transfer to impairment | - | - | - | - | - | - | - | - | - |
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Total comprehensive expense for the period | - | - | - | - | 11,086 | - | (497,446) | (44,101) | (530,461) |
Reserve movements | - | - | - | - | - | - |
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As at 31 December 2015 | 1,428,319 | 1,597,231 | 1,100,000 | - | 36,959 | 130,118 | (3,227,437) | 38,723 | 1,103,913 |
Changes in equity |
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Profit/ (Loss) for the period | - | - | - | - | - | - | 23,954 | 21,292 | 45,246 |
Other comprehensive (loss) |
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Available-for-sale financial assets: |
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Current period (losses) | - | - | - | - | 117,300 | - | - | - | 117,300 |
Transfer to impairment | - | - | - | - | (144,690) | - | - | - | (144,690) |
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Total comprehensive expense for the period | - | - | - | - | (27,390) | - | 23,954 | 21,292 | 17,856 |
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As at 30 June 2016 | 1,428,319 | 1,597,231 | 1,100,000 | - | 9,569 | 130,118 | (3,203,483) | 60,015 | 1,121,769 |
Cash Flow Statement
For the six months ended 30 June 2016
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(Unaudited) 30 June 16 |
(Unaudited) 30 June 15 |
(Audited) 31 Dec 15 |
| £ | £ | £ |
CASH FLOW FROM OPERATIONS |
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Profit (Loss) before taxation | 45,246 | (190,122) | (731,669) |
Adjustment for: |
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Investment in subsidiary | - | - | - |
Interest received | (551) | (955) | (1,717) |
Dividends received | (976) | (6,103) | (10,159) |
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Operating profit (loss) before movement in working capital | 43,719 | (197,180) | (743,545)
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(Increase)/decrease in receivables | 46,339 | 17,054 | (50,912) |
Increase/(decrease) in payables | 13,193 | (16,377) | 18,822 |
Gain on disposal of financial asset at fair value | (117,298) | (97,699) | (10,983) |
Gain on disposal of Xtract investment | (2,153) |
| (92,758) |
Transfer to impairment | (144,690) | 174,674 | 436,233 |
(Increase)/decrease in value of financial assets at fair value through profit or loss | - | (65,000) | (12,750) |
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NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES
| (160,890) | (184,528) | (455,893) |
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TAXATION PAID |
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| - |
CASH FLOW FROM INVESTING ACTIVITIES |
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Interest received | 551 | 955 | 1,717 |
Dividends received | 976 | 6,103 | 10,159 |
Sale of investments | 194,071 | 570,859 | 627,651 |
Purchase of investments | (60,206) | (175,400) | (347,315) |
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NET CASH INFLOW FROM INVESTING ACTIVITIES
| 135,392 | 402,517 | 292,212 |
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CASH FLOW FROM FINANCING ACTIVITIES
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Purchase of shares by minorities | - | - | 24,692 |
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NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES | - | - | - |
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Net decrease in cash and cash equivalents in the period | (25,498) | 217,989 | (138,989) |
Cash and cash equivalents at the beginning of the period | 548,023 | 687,012 | 687,012 |
Cash and cash equivalents at the end of the period | 522,525 | 905,001 | 548,023 |
Selected notes to the consolidated financial statements
For the six months ended 30 June 2016
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 2016 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2015. 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 2016 | 6 months to 30 June 2015 | Year ended 31 December 2015 |
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Profit/(loss) after tax for the purpose of earnings per share | £23,954 | £(173,247) | £(670,693) |
Weighted average number of shares | 138,331,939 | 138,331,939 | 138,331,939 |
Basic earnings per ordinary share | 0.1p | (0.13)p | (0.48)p |
Diluted |
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Profit/(loss) after tax | £23,954 | £(173,247) | £(670,693) | |
Weighted average number of shares | 138,331,939 | 138,331,939 | 138,331,939 | |
Diluted effect of options | - | - | - | |
Diluted weighted average number of shares | 138,331,939 | 138,331,939 | 138,331,939 | |
Diluted earnings per ordinary share | 0.1p | (0.13)p | (0.48)p | |
Selected notes to the consolidated financial statements
For the six months ended 30 June 2016
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 ("Xtract"), a UK based mining 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.
During the current period, the 15 Million Xtract shares (held by the Company on 1 January 2016) were sold for a total consideration of £36,653 realising a net gain of £2,153 during the period. Tiger does not hold any shares in Xtract as at 30 June 2016.
| Unaudited 30 June 2016 £ | Unaudited 30 June 2015 £ | Audited 31 Dec 2015 £ |
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At 1 January 2016 | 34,500 | 500,000 | 500,000 |
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Sale of shares during the period | (34,500) | (427,500) | (478,250) |
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Adjustment to fair value | - | 65,000 | 12,750 |
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At 30 June 2016 | - | 137,500 | 34,500 |
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4. Deferred Tax
A deferred tax asset on revaluation of AFS investments arose during the period. 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.
Selected notes to the consolidated financial statements
For the six months ended 30 June 2016
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 2016 | Unaudited 30 June 2016 | Unaudited 30 June 2015 | Unaudited 30 June 2015 | Audited 31 December 2015 | Audited 31 December 2015 |
| Number | £ | Number | £ | Number | £ |
Authorised: |
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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 |
Issued: |
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At 30 June 2016 | 142,831,939 | 1,428,319 | 142,831,939 | 1,428,319 | 142,831,939 | 1,428,319 |
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Shares in issue at 31 December 2015 /30 June 2015 | 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.
Share options in issue at 30 June 2016:
The Company has no outstanding share options in issue at 30 June 2016. Six million options issued on 21 March 2006 lapsed on 21 March 2016.
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.