Last checked at 24 May 2011 07:00
TIGER RESOURCE FINANCE PLC ("Tiger" or the "Company")
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010
OPERATIONS REVIEW
Dear Shareholder,
The year under review has seen Tiger's net asset value rise to 4.27p (3.36p at 31 December 2009) representing a 27% increase in the year. This positive performance from Tiger has mirrored the general buoyancy in the mineral and oil and gas sectors generally and marks a welcome change from the poor market conditions experienced in 2009.
Demand from the Chinese market continues to lead the way in terms of economic development however India and Brazil's growth has seen a definite shift in the world economic balance and with huge populations in these countries and the emergence of new consumers in their markets has propelled natural resource demand from these regions to unprecedented levels.
The demands from these emerging markets have been a huge contributory factor for growth levels in the likes of Canada and Australia and the currencies of these "commodity countries" have also appreciated significantly in the period.
The spotlight on commodities has lured a significant new community of investors into our more traditional market place and our ability to support high risk ventures backed by experienced management has seen us face competition in the investment terms that we were prepared to offer. This has led to companies securing new funding at levels the Tiger Investment Committee have deemed too generous and consequently some investment opportunities have been turned down due to these circumstances.
During 2010, we made a new investment in the oil and gas sector, taking advantage of what we analysed as being an excellent value proposition in Northern Petroleum. The discoveries in the UK North Sea, where Nautical Petroleum participates, have resulted in very favourable share price appreciation for this stock. More recently, we also took advantage of the increasing interest in East Africa, following the BG Group and Anadarko gas discoveries, to take an investment in Dominion Petroleum. We believe that Dominion's exposure to both Kenya and Tanzania offshore, with material participating interests in both jurisdictions bodes well for this investment. Ascent Resources has lagged the market somewhat during 2010 but we are confident that the company's spread of interests and strong management team will produce superior returns in the period ahead.
We continue to be positive in respect of new gold opportunities and we have taken an investment in Sovereign Mines of Africa which trades on the PLUS market but which we believe will elevate itself to AIM shortly and is in an area of West Africa that has produced some significant gold discoveries in recent years and led to the opening of significant mining operations.
More recently, Tiger has made investments in Aurum Mining Plc and New World Oil and Gas Plc providing early stage exploration exposure to the portfolio. Our pipeline of opportunities has accelerated during 2011 with better investment opportunities being negotiated by Tiger and a number of new investments will be announced shortly.
Tiger is also conscious of the role its Board have played individually in the promotion, formation and early funding of several successful natural resource focussed companies and we are in discussion with like minded individuals with interesting, but early stage, opportunities who may partner with Tiger in establishing new enterprises. This policy was enunciated in 2009 and whilst it may involve higher risk and pre-IPO exposure, successful execution of such deals should give Tiger and its shareholders additional value leverage when these companies are brought to a regulated stock market. This area will be specifically targeted in 2011 and our expertise across opportunities in minerals, mining and oil and gas will see developments in the coming year.
We have been careful to preserve shareholder value within Tiger and the NAV per share at the 4.27p level reflects this. We are conscious that the market also needs to value Tiger at the sum of its parts and we will work to bridge the current discount between share price and NAV and to position Tiger as capable of underpinning its Balance Sheet value with the potential to secure superior returns from well negotiated investment decisions. The level of cash held for future investment purposes has been overly conservative and the Board will seek to utilise the Company's cash more efficiently to benefit the Company's performance and to give value to shareholders in the period ahead.
The Board of Tiger are optimistic about the prospects for the natural resource sector and we are determined to ensure that the true value of the Company is reflected for the benefit of all shareholders.
On behalf of the Board
PORTFOLIO REVIEW
| Number | Cost | Valuation | Valuation |
| 31/12/10 | 31/12/10 | 31/12/10 | 31/03/11 |
|
| £ | £ | £ |
INVESTMENTS: |
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African Eagle Resources Plc | 1,241,174 | 112,264 | 145,838 | 164,456 |
Aquarius Platinum Ltd | 18,181 | 89,238 | 63,064 | 62,834 |
Ascent Resources Plc | 9,642,857 | 400,824 | 843,750 | 518,786 |
Dominion Petroleum Ltd (1) | - | - | - | 151,200 |
Duluth Metals Ltd | - | - | - | 127,621 |
ETFS Physical Platinum | 2,250 | 245,704 | 249,059 | 245,138 |
Franconia Minerals Corp (2) | 475,733 | 69,939 | 261,442 | - |
In-Solve Plc | 625,000 | 37,500 | 31,250 | 40,625 |
Nautical Petroleum Plc | 150,000 | 60,000 | 594,000 | 610,500 |
Northern Petroleum Plc (3) | 294,118 | 250,000 | 319,853 | 379,412 |
Pacific North West Capital Corp | 566,500 | 107,682 | 45,783 | 110,864 |
Sovereign Mines of Africa Plc (4) | 2,000,000 | 100,000 | 205,000 | 220,000 |
Sunrise Resources Plc | 665,000 | 6,650 | 38,238 | 19,285 |
Tertiary Minerals Plc | 1,330,000 | 119,700 | 89,775 | 174,629 |
U308 Holdings Plc | 4,166,666 | 125,000 | 31,250 | 35,417 |
Vatukoula Gold Mines Plc (5) | 266,666 | 200,000 | 535,332 | 360,666 |
TOTAL |
| 1,924,501 | 3,453,634 | 3,221,433 |
(1) Dominion Petroleum Ltd - 2,400,000 were shares purchased on 7 February 2011
(2) Franconia Minerals Corp was acquired by Duluth Metals Ltd on 7 March 2011 in a cash and share deal
(3) Northern Petroleum Plc - 294,118 shares were purchased on 24 June 2010
(4) Sovereign Mines of Africa Plc - 2,000,000 shares were purchased on 14 May 2010
(5) Vatukoula Gold Mines Plc consolidated its shares on a 50 for 1 basis
(6) The Pan African Resources Plc and Goldfields Ltd investments were sold during the year; Nautical Petroleum plc and Ascent Resources plc were partly sold during the year
(7) The Minmet Plc investment was fully impaired on 31 December 2010
(8) Investments in Aurum Mining Plc and New World Oil and Gas Plc were made post 31 March 2011
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2010
2010 | 2009 | ||
£ | £ | ||
Profit/(loss) on sale of available for sale assets | 1,528,858 | (48,754) | |
Income: | |||
Investment income | 3,168 | 13,848 | |
Interest receivable | 15,818 | 16,165 | |
Administrative expenses | (364,484) | (277,859) | |
Impairment | (8,736) | - | |
PROFIT/(LOSS) BEFORE TAXATION | 1,174,624 | (296,600) | |
Taxation | (158,489) | - | |
PROFIT (LOSS) FOR THE YEAR | 1,016,135 | (296,600) | |
OTHER COMPREHENSIVE INCOME Available-for-sale financial assets Unrealised gains Reclassification to profit or loss | 1,662,826 (880,696) | 1,073,280 72,739 | |
Tax relating to components of other comprehensive income | (218,995) | (208,805) | |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX | 563,135 | 937,214 | |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,579,270 | 640,614 | |
Basic earnings per share | 0.59p | (0.17)p | |
Diluted earrings per share | 0.57p | (0.17)p |
All profits are derived from continuing operations.
STATEMENT OF CHANGES IN EQUITYYEAR ENDED 31 DECEMBER 2010
Other components of equity
Share capital | Share premium | Capital redemption reserve | Other Reserve | Available-for-sale financial assets | F Share based reserves | Retained earnings
| Total
| |
£ | £ | £ | £ | £ | £ | £ | £ | |
As at 31 Dec 2008 | 2,020,719 | 1,557,831 | 350,000 | - | (400,286) | 130,118 | 1,496,254 | 5,154,636 |
Changes in equity for 2009 | ||||||||
Available-for-sale financial assets | ||||||||
Current year gains (losses) | - | - | - | - | 1,073,280 | - | - | 1,073,280 |
Reclassification to profit or loss | - | - | - | - | 72,739 | - | - | 72,739 |
Tax relating to components of other comprehensive income | - | - | - | (208,805) | - | - | - | (208,805) |
Loss for the year | - | - | - | - | - | - | (296,600) | (296,600) |
Total comprehensive income and expense for the year | - | - | - | (208,805) | 1,146,019 | - | (296,600) | 640,614 |
As at 31 Dec 2009 | 2,020,719 | 1,557,831 | 350,000 | (208,805) | 745,733 | 130,118 | 1,199,654 | 5,795,250 |
Changes in equity for 2010 | ||||||||
Available-for-sale financial assets | ||||||||
Current year gains (losses) | - | - | - | - | 1,662,826 | - | - | 1,662,826 |
Reclassification to profit or loss | - | - | - | - | (880,696) | - | - | (880,696) |
Tax relating to components of other comprehensive income | - | - | - | (218,995) | - | - | - | (218,995) |
Profit (loss) for the year | - | - | - | - | - | - | 1,016,135 | 1,016,135 |
Total comprehensive income and expense for the year | - | - | - | (218,995) | 782,130 | - | 1,016,135 | 1,579,270 |
As at 31 Dec 2010 | 2,020,719 | 1,557,831 | 350,000 | (427,800) | 1,527,863 | 130,118 | 2,215,789 | 7,374,520 |
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2010
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| 2010 | 2009 |
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| £ | £ |
NON CURRENT ASSETS |
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Financial assets |
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Available-for-sale investments |
| 3,453,633 | 2,567,499 |
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CURRENT ASSETS |
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Trade and other receivables |
| 16,639 | 14,904 |
Other debtors |
| - | 86 |
Cash and cash equivalents |
| 4,535,506 | 3,469,468 |
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| 4,552,145 | 3,484,458 |
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TOTAL ASSETS |
| 8,005,778 | 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 |
Share premium |
| 1,557,831 | 1,557,831 |
Other components of equity |
| 1,580,181 | 1,017,046 |
Retained earnings |
| 2,215,789 | 1,199,654 |
TOTAL EQUITY |
| 7,374,520 | 5,795,250 |
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NON CURRENT LIABILITIES |
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| 427,800 | 208,805 |
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CURRENT LIABILITIES |
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| 46,581 | 47,902 |
Corporate tax payable |
| 156,877 | - |
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TOTAL LIABILITIES |
| 631,258 | 256,707 |
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TOTAL EQUITY AND LIABILITIES |
| 8,005,778 | 6,051,957 |
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CASH FLOW STATEMENT
YEAR ENDED 31 DECEMBER 2010
|
| 2010 | 2009 |
|
| £ | £ |
CASH FLOW FROM OPERATIONS |
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Profit/(loss) before taxation |
| 1,174,624 | (296,600) |
(Increase)/Decrease in receivables |
| (1,735) | (6,289) |
Increase/(Decrease) in payables |
| (2,846) | 9,063 |
Adjustment for (profit)/loss on sale of available for sale assets |
| (1,520,122) | 48,754 |
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NET CASH OUTFLOW FROM OPERATING ACTIVITIES
|
| (350,079) | (245,072) |
CASH FLOW FROM INVESTING ACTIVITIES |
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Sale of assets available for sale |
| 2,310,129 | 40,485 |
Purchase of assets available for sale |
| (894,012) | - |
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NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
|
| 1,416,117 | 40,485 |
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| - | - |
CASH FLOW FROM FINANCING ACTIVITIES |
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| - | - |
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NET CASH OUTFLOW FROM INVESTING ACTIVITIES |
| - | - |
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Net (decrease) /increase in cash and cash equivalents in the period |
| 1,066,038 | (204,587) |
Cash and cash equivalents at the beginning of the period |
| 3,469,468 | 3,674,055 |
Cash and cash equivalents at the end of the period |
| 4,535,506 | 3,469,468 |
This preliminary statement is not the Company's statutory accounts. The statutory accounts for the year ended 31 December 2010 have been approved by the directors and have received an audit report which was unqualified and did not contain statements s 498(2) and (3) of the Companies Act 2006. These statutory accounts have not been delivered to the Registrar of Companies and will be sent to shareholders on 26 May 2010.
The Annual General Meeting of the Company will be held on Thursday 21 June 2011 at 3.00 pm at the Pelham Hotel, 15 Cromwell Place, London SW7 2LA.
By order of the Board
24 May 2011
For further information please contact:
Tiger Resource Finance plc | |
Bruce Rowan, Chairman | Tel: +00 44 20 7486 3997 |
Raju Samtani, Director | Tel: +00 44 20 7581 4477 |
finnCap | Tel: +00 44 20 7600 1658 |
Corporate Finance - Matthew Robinson/ Charlotte Stranner | |
Corporate Broking - Joanna Weaving/Simon Starr |