Tiger Roylts and Inv - Half-year Report

Tiger Alpha

04/09/2020 14:00

RNS Number : 1127Y

Tiger Royalties and Investments PLC

04 September 2020

 

      

For immediate release                                                                      4 September 2020

 

TIGER ROYALTIES AND INVESTMENTS PLC ("Tiger" or the "Company")

 

UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2020

 

Chairman's Report

 

Dear Shareholders,

 

Net Asset Value per share - 30 Jun 2020 - 0.19p / 31 Dec 2019 - 0.32p (30 June 2019 - 0.39p)

 

Total assets - 30 Jun 2020 - £361k / 31 Dec 2019 - £598k (30 June 2018 - £728k)

 

The period under review has been volatile for "small cap" stocks in the resource sector and despite the recovery in markets post the "low point" in late March 2020, share valuations of junior natural resource stocks did not fully recover by the end of the current reporting period resulting in a fall in NAV as at 30 June 2020 to 0.19 pence per share.  The investment table included in this report demonstrates further share price appreciation to the end of August 2020.

 

The last six months have been unprecedented in modern times with the outbreak of Covid-19 leading to major business disruption and individual suffering.  The virus has affected all nations globally and at the time of writing considerable uncertainty exists as to the progression or reduction in the number of cases being experienced and therefore ultimate economic recovery.  I am convinced that we will see "stop-start" activity on the economic front over the next 12 months, with a real danger of the banking system suffering yet another credit freeze. 

 

It would appear that the investors are seeing a much quicker return to normality and consequent business prosperity with anomalies in many commodities including base metals, particularly with copper which is currently priced some 20% higher than when the pandemic first commenced.  Longer term investors and institutional investors, whilst alarmed by the pandemic are taking the longer view, realising that a new emerging world, post Covid-19 will have not lost its appetite for modern technology and lifestyle improvements.

 

The growing concern relating to global pollution experienced a major reality check, when only after two months post lockdown, satellite photographs showed considerably reduced pollution levels in the planet.  The build-up of electric vehicles has been moving apace with the realisation of what can be achieved over a short period of time increasing momentum.  The accelerated emergence of electric vehicles can only benefit metals including copper, cobalt, nickel, lithium and vanadium.  The interesting question is, which metals will gain dominance in the new generation of batteries and much controversy exists on this subject.  Each metal has its own advantages and limitations and the next year will see more science and funding directed towards the optimum solution.  It is our opinion, that there will be no optimum position since supply fundamentals will demand that no one metal acquires overall dominance. 

 

The gold price has been quite spectacular during this period and the current weight of geo-political tension and uncertainty continues to support higher gold prices.  The US election result may adversely affect gold prices as a result of lessening tension but conversely competing fiscal factors may well maintain a gold price in excess of US$1,800 per ounce for the foreseeable future.

 

I am pleased to say that at last, the world appears to have woken up to the fact that the junior resource companies are the pioneers of the industry and new discoveries will probably emanate from their continued efforts.  Consequently, we have seen a flurry of activity including secondary financing and IPOs over the last few months.

 

We have historically communicated to shareholders that Tiger intends to move from being a passive investor to a pro-active corporate investor actively involved in project management as well as being a royalty holder in natural resource projects.  The Board is currently considering a number of projects along these lines in various commodities located in diverse geographical regions which will enable Tiger to re-capitalise and meet its longer term objective.  The Company will differ from most other royalty companies, in that its business model will involve some corporate structuring, retention of equity, participation in project management and an expectation of a royalty once mines are built or sold. 

 

We look forward to advising our shareholders of progress over the coming months, with the expectation of new deals being consummated which will contribute significantly towards our overall portfolio.

 

 

Colin Bird

Chairman

4 September 2020

 

Portfolio Holdings as at 30 June 2020

 

Investments
Number of shares
Cost
£
Valuation at 30 June 2020
£
Valuation at 28 August 2020
£
Barkby Group Plc
23,237
100,000
4,880
5,286
Bezant Resources Plc
55,555,556
250,435
66,667
50,000
Block Energy Plc
625,000
25,100
13,438
15,625
BMR Group Plc
2,500,000
50,217
-
Corallian Energy Ltd
20,000
30,000
15,000
15,000
Galileo Resources Plc
6,516,667
78,335
48,223
58,650
Goldquest Mining Corp
173,500
30,259
17,003
41,962
Jubilee Metals Group Plc
1,169,600
100,219
43,041
65,498
Pantheon Resources Plc
31,500
30,340
4,341
7,040
Revelo Resources Corp
21,667
62,965
1,283
2,046
Royal Dutch Shell Plc B Shares
2,700
73,234
33,048
28,701
WisdomTree Copper EFTS
760
12,896
15,177
15,490
Total
262,101
305,298
African Pioneer Plc
Galileo Resources Plc
2,500,000
50,000
18,500
22,500
Jubilee Metals Group Plc
217,802
8,266
8,015
12,197
Revelo Resources Corp
151,500
53,651
9,452
14,304
South 32 Plc
13,845
28,607
15,638
15,797
Xtract Resources Plc
606,060
20,217
7,152
10,182
Total
58,757
74,980
Total Investments
320,858
380,278

 

 

 

 

 

Tiger Royalty and investments Plc
Raju Samtani, Director
+44 (0)20 7581 4477
Beaumont Cornish
(Nomad)
Roland Cornish
Felicity Geidt
Email:corpfin@b-cornish.co.uk
+44 (0)20 7628 3369
Novum Securities Plc
(Broker)
Jon Belliss
+44 (0)20 7399 9425

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2020

 

 

(Unaudited)
Group Six months
ended
30 June 20
(Unaudited)
Group Six months ended
30 June 19
(Audited)
Group Year
ended
31 Dec 19
£
£
£
(Loss)/profit on investments
(92,389)
114,130
142,768
Income:
Investment income
236
9,098
12,230
Interest receivable
36
12
109
Administrative expenses
(145,128)
(148,075)
(309,727)
(LOSS) BEFORE TAXATION
(237,245)
(24,835)
(154,620)
Taxation
-
-
-
(LOSS) FOR THE PERIOD
(237,245)
(24,835)
(154,620)
TOTAL COMPREHENSIVE (LOSS)/ PROFIT FOR THE PERIOD
(237,245)
(24,835)
(154,620)
(Loss)/profit for the period attributable to:
Shareholders of the Company
(229,314)
(3,827)
(130,464)
Non-controlling interest
(7,931)
(21,008)
(24,156)
(237,245)
(24,835)
(154,620)
Basic earnings per share
(0.12)p
(0.002)p
(0.07)p
Diluted earnings per share
(0.12)p
(0.002)p
(0.07)p


 

 

All profits are derived from continuing operations.

 

 

Consolidated Statement of Financial Position

As at 30 June 2020

 

 

(Unaudited)
Group
30 June 20
(Unaudited)
Group
30 June 19
(Audited) Group
31 Dec 19
£
£
£
NON CURRENT ASSETS
Financial assets at fair value through profit or loss
-
-
-
Investments
320,858
704,970
474,939
320,858
704,970
474,939
CURRENT ASSETS
Trade and other receivables
10,543
19,402
11,756
Cash and cash equivalents
74,110
42,169
142,622
84,653
61,571
154,378
TOTAL ASSETS
405,511
766,541
629,317
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Share capital
1,474,334
1,474,334
1,474,334
Share premium
1,669,216
1,669,216
1,669,216
Other components of equity
1,100,000
1,100,000
1,100,000
Retained earnings
(3,876,007)
(3,520,056)
(3,646,693)
EQUITY ATTRIBUTABLE TO THE OWNERS
367,543
723,494
596,857
Equity interest of non-controlling interest
(6,234)
4,845
1,697
TOTAL EQUITY
361,309
728,339
598,554
CURRENT LIABILITIES
Trade and other payables
44,202
38,202
30,763
Corporate tax payable
-
-
-
44,202
38,202
30,763
TOTAL LIABILITIES
44,202
38,202
30,763
TOTAL EQUITY AND LIABILITIES
405,511
766,541
629,317


 

 

 

Consolidated Statement of Changes in Equity

As at 30 June 2020

 

 

                                              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 31 December 2018
1,474,334
1,669,216
1,100,000
-
-
-
(3,516,229)
25,853
753,174
Changes in equity
Profit/ (Loss) for the period
-
-
-
-
-
-
(3,827)
(21,008)
(24,835)
Other Comprehensive (loss)
Available-for-sale Financial Assets:
Current Period Losses
Transfer to impairment
Transfer on disposal
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total comprehensive expense for the period
-
-
-
-
-
-
(3,827)
(21,008)
(24,835)
As at 30 June 2019
1,474,334
1,669,216
1,100,000
-
-
-
(3,520,056)
4,845
728,339
Changes in equity
Profit/ (Loss) for the period
-
-
-
-
-
-
(126,637)
(3,148)
(129,785)
Total comprehensive expense for the period
-
-
-
-
-
-
(126,637)
(3,148)
(129,785)

 

As at 31 December 2019
1,474,334
1,669,216
1,100,000
-
-
-
(3,646,693)
1,697
598,554

 

 

Changes in equity
Profit/(Loss) for the period
-
-
-
-
-
-
(229,314)
(7,931)
(237,245)
Total comprehensive expense for the period
-
-
-
-
-
-
(229,314)
(7,931)
(237,245)
As at 30 June 2020
1,474,334
1,669,216
1,100,000
-
-
-
(3,876,007)
(6,234)
361,309


 

                                                                                                                                                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow Statement

For the six months ended 30 June 2020

 

 

(Unaudited)
30 June 20
(Unaudited)
30 June 19
(Audited)
31 Dec 19
£
£
£
CASH FLOW FROM OPERATIONS
(Loss)/profit before taxation
(237,245)
(24,835)
(154,620)
Adjustment for:
Interest received
(36)
(12)
(109)
Dividends received
(236)
(9,098)
(12,230)
Change in fair value of investments
87,868
-
(142,768)
Operating (loss) before movement in working capital
(149,649)
(33,945)
(309,727)
(Increase)/decrease in receivables
1,214
(10,290)
(2,596)
Increase/(decrease) in payables
13,454
(4,323)
(11,788)
Gain on disposal of financial asset at fair value
48,625
(114,130)
-
Impairment of investments
(44,104)
-
-
NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES
(130,460)
(162,688)
(324,111)
TAXATION PAID
-
-
-
CASH FLOW FROM INVESTING ACTIVITIES
Interest received
36
12
109
Dividends received
236
9,098
12,230
Sale of investments
61,676
128,968
387,615
Purchase of investments
-
-
-
NET CASH INFLOW FROM INVESTING ACTIVITIES
61,948
138,078
399,954
CASH FLOW FROM FINANCING ACTIVITIES
Purchase of shares by minorities
-
-
-
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES
-
-
-
Net increase/(decrease) in cash and cash equivalents in the period
(68,512)
(24,610)
75,843
Cash and cash equivalents at the beginning of the period
142,622
66,779
66,779
Cash and cash equivalents at the end of the period
74,110
42,169
142,622


 

 

 

Selected notes to the consolidated financial statements

For the six months ended 30 June 2020

 

 

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 basis 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 2020 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2019. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Reporting".

 

The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The group's statutory financial statements for the period ended 31 December 2019, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

 

2.         Earnings Per Share     

 

 

Basic
Unaudited
Unaudited
Audited
6 months to
30 June 2020
6 months to
30 June 2019
Year ended 31 December 2019
Profit/(Loss) after tax for the purpose of earnings per share
£(229,314)
£(3,827)
£(130,464)
Weighted average number of shares
188,847,070
188,847,070
188,847,070
Basic earnings per ordinary share
(0.12)p
(0.002)p
(0.07)p

 

Diluted
Profit/(loss) after tax
£(229,314)
£(3,827)
£(130,464)
Weighted average number of shares
188,847,070
188,847,070
188,847,070
Diluted effect of options
-
-
-
Diluted weighted average
number of shares
188,847,070
188,847,070
188,847,070
Diluted earnings per ordinary share
(0.12)p
(0.002)p
(0.07)p


 

 

 

 

3.         Current liabilities

 

The current liability figure of £44,202 includes an accrual of £30,000 relating to unpaid Director's salaries/ fees relating to the 3 months ended 30 June 2020.  These outstanding fees will be settled either in cash or Ordinary shares of 0.1 pence in the Company at the discretion of the Board. The conversion price, if settled in shares will be equal to the volume weighted average share price applicable for each month during which the relevant Director salary/ fees were accrued.  If settled in shares, the issue of new Ordinary shares will be subject to regulatory and statutory regulations.

 

 

 

 

 

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.

 

 

5.         Called Up Share Capital

                                                                                                                                                                 

The share capital of Tiger Resource Plc consists only of fully paid ordinary shares with a nominal value of 0.1p each. All Ordinary shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders' meeting of the Company.

 

30 June
2020
30 June
2019
£
£
Authorised:
10,000,000,000 (30 June 2019: 10,000,000,000) ordinary shares 0.1p
(30 June 2019 - 1p each)
10,000,000
10,000,000
142,831,939 deferred shares of 0.9p each (30 June 2019: 142,831,939 deferred shares of 0.9p each )
1,285,487
1,285,487
5. Called Up Share Capital (continued)
Issued:
30 June
2020
30 June
2019
£
£
188,847,070 Ordinary shares 0.1p (30 June 2019: 142,831,939 Ordinary Shares of 0.1p each)
188,847
188,847
142,831,939 deferred shares of 0.9p each (30 June 2019: 142,831,939 deferred shares of 0.9p each)
1,285,487
1,285,487
1,474,334
1,474,334


                                                                                                                                                                                                                                                                                                                                                                           

Included in allotted called and fully paid share capital are 4,500,000 shares with a nominal value of £450 held by the company in treasury.

 

 

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.

 

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

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