REG - Tiger Resource PLC - Half-year Report

Tiger Royalties and InvestmentsAnnouncement

25/09/2018 11:15

RNS Number : 8667B
Tiger Resource PLC
25 September 2018
 


      
 
 
 
For immediate release                                                                     25 September 2018
 
TIGER RESOURCE PLC ("Tiger" or the "Company")
 
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2018
 
Operations Review
 
Net Asset Value per share - 30 Jun 2018 - 0.69p / 31 Dec 2017 - 0.62p (30 June 2017 - 1.03p)
Total assets - 30 Jun 2018 £1.27M / 31 Dec 2017 - 1.17M (30 June 2017 - £1.42M)
 
The period under review has been volatile compared to more recent reporting periods although global prosperity, company earnings and a general "feel good" factor continue to prevail.  The underlying threats relating to the introduction of trade tariffs has resulted in caution and consequently we have seen some level of uneasiness in smaller cap stocks.  The major indices have continued to surge forward although the resource sector has not fully participated in this upward trajectory in more recent months and most major mining companies are trading lower compared to prior period levels.
 
The threat of serious trade wars and the strong US Dollar have again disrupted global economies although the key global indices continue to "shrug off" this underlying threat. The investment community is at a stage where just about every asset class is aligned positively, a phenomenon which has not been historically sustainable and the break-out of any one significant asset class could result in further volatility in the foreseeable future. The aforementioned philosophical comments may be challenged in the corridors of Wall Street and in other major financial centres, but the Board has no doubt that these factors can affect the performance of smaller cap resource companies.  Investors in the junior resource sector tend to bank profits from investments on an ongoing basis as opposed to taking a longer term view and this can also result in a volatile environment, with investors at times focusing on stocks with poor fundamentals trading for "casino type" returns as opposed to investing in quality assets which have good potential over a longer term horizon.
 
The aforementioned points produce a challenging backdrop for our investment strategy. However, since the inception of Tiger, it has never been the intention to join the herd but instead to back assets which have good fundamentals together with strong and experienced management able to develop and add value to projects to deliver good medium-term returns.  The current environment is extremely positive for asset selection as opposed to stock selection and as such we remain convinced that our proactive participation in underlying investments is the best way forward and our focus will remain on quality assets at the right valuation as opposed to second guessing how individual shares might perform against their peers in a volatile market.
 
During the period under review, Tiger sold 95,000 shares in Rockrose Energy Plc ("Rockrose") realising net proceeds of £341,354 realising a net gain of £293,854 and received a special dividend of £142,500 which was paid out to qualifying RockRose shareholders on 23 February 2018.  The Company made an investment of £250,000 in Bezant Resources Plc which has a major porphyry Copper project in the Philippines; this asset is well defined and positioned compared to similar sized projects held by its peer groups.  Further investments were made in Block Energy Plc and Corrallian Energy Limited positioning the portfolio to benefit from the improving prospects in the energy sector.
 
Although the net asset valuation reflects only a marginal improvement in the six months period to 30 June 2018, mainly due to relatively volatile markets and general bearishness towards the resource sector in recent months, we are confident that the mix of investments currently held by Tiger and our proactive investment approach will pay off going forward.  We would like to thank our stakeholders for their resilience and support during the period under review and we will focus our efforts on increasing the Company's asset base during the second half of 2018.
 
 
 
By order of the Board.
XX September 2018
 
 
Portfolio Holdings as at 30 June 2018
 
 
 




Investments


Number


Cost
£


Valuation
 £




Anglo American PLC


11,500


250,117


194,902




Barkby Group PLC


60,606


100,000


4,848




Bezant Resources PLC


55,555,556


250,017


233,333




Block Energy PLC


1,250,000


50,200


42,500




BMR Group PLC


2,500,000


50,217


47,500




Corralion Energy LTD


20,000


30.000


30,000




ETFS Copper


1,760


29,864


36,819




Galileo Resources Plc


6,516,667


78,200


91,885




Goldquest Mining Corp


173,500


30,259


19,223




Jubilee Platinum PLC


1,169,600


100,219


28,304




Pantheon Resources


31,500


30,340


5,903




Revelo Resources Corp


216,667


      62,965


2,492




Royal Dutch Shell PLC B Shares


5,400


146,468


146,470




 


 


 


 




Total


 


 


884,179




 


 


 


 
 




African Pioneer Plc


 


 


 




Europa Minerals Plc


130,499,858


65,250


91,350




Galileo Resources Plc


2,500,000


50,000


35,250




Jubilee Metals Plc


917,802


34,834


22,303




Revelo Resources Corp


1,515,000


53,778


15,266




South 32 Plc


1,800


28,607


28,188




Xtract Resources Plc


121,212,121


20,217


6,242




 


 


 


 




Total


 


 


198,599




 


 


 


 




Total Investments


 


 


1,082,778




 
 
 
 
 




 
 
 
 
Tiger Resource Plc


 
 
 
 
Raju Samtani, Director                                              


 
 
 
 
+44 (0)20 7581 4477




Beaumont Cornish
(Nomad)


Roland Cornish
Felicity Geidt


+44 (0)20 7628 3369




 


Email:corpfin@bcornish.co.uk
 


 




First Equity Limited
 (Joint Broker)
 


Jason Robertson
 


+44 (0)20 7374  2212




Novum Securities Plc
(Joint Broker)
 


Jon Belliss


+44 (0)20 7399 9425




 
 
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2018
 
 




 


 
(Unaudited)
Group Six months ended
30 June 18


(Restated)
(Unaudited)
Group Six months ended
30 June 17
 


 
(Audited)
Group Year
ended
31 Dec 17
 




 


£


£


£




Gain on sale of available for sale assets


476,252


213,450


217,125




Income:


 


 


 




Investment income


93


1,540


7,089




Interest receivable


163


181


281




Administrative expenses


(190,719)


(172,772)


(387,647)




Impairment


(71,720)


(47,760)


(30,921)




(LOSS) /PROFIT BEFORE TAXATION


214,069


(5,361)


(194,073)




 


 


 


 




Taxation


-


-


-




 (LOSS) /PROFIT FOR THE PERIOD


214,069


(5,361)


(194,073)




 


 


 


 




Other Comprehensive Income


 


 


 




 


 


 


 




Available-for-sale financial assets unrealised profit/(loss)


(167,548)


390,091


335,766




Reclassification to profit or loss


46,392


(119,850)


(237,284)




 


 


 


 




Transfer to Impairment


-


-


(4,943)




 


 


 


 




OTHER COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD, NET OF TAX


(121,156)


270,241


93,539




TOTAL COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD


92,913


264,880


 
(100,534)




 
(Loss)/profit for the period attributable to:
 


 


 


 




Shareholders of the Company


229,659


(25,893)


(204,296)




Non-controlling interest


(15,590)


20,532


10,223




 


 


 


 




 


214,069


(5,361)


(194,073)




 


0.12p


0.1p


(0.11)p




Basic earnings per share


0.12p


0.1p


(0.11)p




Diluted earnings per share


 


 


 




 
 
 
 
 
 
All profits are derived from continuing operations.



Consolidated Statement of Financial Position
As at 30 June 2018
 
 




 


 
(Unaudited)
Group
30 June 18


(Restated)
(Unaudited) Group
30 June 17


 
(Audited) Group
31 Dec 17
 




 


£


£


£




NON CURRENT ASSETS


 


 


 




Financial assets at fair value through profit or loss


1,082,778


1,070,917


 




Available-for-sale investments


 


 


1,058,145




 


1,082,778


1,070,917


1,058,145




CURRENT ASSETS


 


 


 




Trade and other receivables


34,397


82,424


39,459




Cash and cash equivalents


205,269


414,437


255,805




 


239,666


496,861


295,264




 


 


 


 




TOTAL ASSETS


1,322,444


1,567,778


1,353,409




 
 


 


 


 




 


 


 


 




66EQUITY AND LIABILITIES


 


 


 




 


 


 


 




EQUITY ATTRIBUTABLE TO SHAREHOLDERS


 


 


 




Share capital


1,474,334


1,428,319


1,474,334




Share premium


1,669,216


1,597,231


1,669,216




Other components of equity


1,302,999


1,600,860


1,421,963




Retained earnings


(3,228,496)


(3,279,752)


(3,458,155)




EQUITY ATTRIBUTABLE TO THE OWNERS


1,218,053


1,346,658


1,107,358




 


 


 


 




Equity interest of non-controlling interest


48,083


73,979


65,865




 


 


 


 




TOTAL EQUITY


1,266,136


1,420,637


1,173,223




 


 


 


 




CURRENT LIABILITIES


 


 


 
 




Trade and other payables


56,308


147,141


180,186




Corporate tax payable


-


-


-




 


56,308


147,141


180,186




 


 


 


 




TOTAL LIABILITIES


56,308


147,141


180,186




 


 


 


 
 




TOTAL EQUITY AND LIABILITIES


1,322,444


1,567,778


1,353,409




 


 


 


 




 
 
 
Consolidated Statement of Changes in Equity
As at 30 June 2018
 
 
                                                                                         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 2016


1,428,319


1,597,231


1,100,000


-


230,619


 -


(3,253,859)


53,447


1,155,757




Changes in equity


 


 


 


 


 


 


 


 


 




Profit/ (Loss) for  the period


-


-


-


-


-


-


(25,893)


20,532


(5,361)




Other Comprehensive (loss)


 


 


 


 


 


 


 


 


 




Available-for-sale financial assets:


 


 


 


 


 


 


 


 


 




Current period gains


-


-


-


-


390,091


-


-


-


390,091




Transfer to on disposal


-


-


-


-


(119,850)


-


-


-


(119,850)




 


 


 


 


 


 


 


 


 


 




Total comprehensive expense for the period


-


-


-


-


270,241


-


(25,893)


20,532


264,880




 


 


 


 


 


 


 


 


 


 




As at 30 June 2017


1,428,319


1,597,231


1,100,000


-


500,860


 -


(3,279,752)


73,979


1,420,637




Changes in equity


 


 


 


 


 


 


 


 


 




Profit/ (Loss) for  the period


-


-


-


-


-


-


(178,403)


(8,114)


(186,517)




Other Comprehensive (loss)


 


 


 


 


 


 


 


 


 




Available-for-sale financial assets:


 


 


 


 


 


 


 


 


 




Current period (losses)


-


-


-


-


77,219


-


-


-


77,219




Transfer to impairment


-


-


-


-


(256,116)


-


-


-


(256,116)




 


 


 


 


 


 


 


 


 


 




Total comprehensive expense for the period


-


-


-


-


(178,897)


-


(178,403)


(8,114)


(365,414)




 
Transactions with owners


 


 


 


 


 


 


 


 


 




Issue of shares


46,015


-


-


-


-


-


-


-


46,015




Share Premium on issue of new shares


-


115,038


-


-


-


-


-


-


115,038




Costs related to issue of new shares


-


(43,053)


-


-


-


-


-


-


(43,053)




 


46,015


  71,985


-


-


-


-


-


-


118,000




 




As at 31 December 2017


1,474,334


1,669,216


1,100,000


-


321,963


 -


(3,458,155)


65,865


1,173,223




 
 




Changes in equity


 


 


 


 


 


 


 


 


 




Profit/ (Loss) for  the period


-


-


-


-


-


-


229,659


(15,590)


214,069




Other Comprehensive (loss)


 


 


 


 


 


 


 


 


 




Available-for-sale financial assets:


 


 


 


 


 


 


 


 


 




Current period (losses)


-


-


-


-


(143,333)


-


-


(24,215)


(167,548)




Transfer to impairment


-


-


-


-


24,369


-


-


22,023


46,392




Transfer on disposal


-


-


-


-


 


 


 


-


-




Total comprehensive expense for the period
 


-


-


-


-


(118,964)                 


-


229,659


(17,782)


92,913




As at 30 June 2018


1,474,334


1,669,216


1,100,000


-


202,999


 -


(3,228,496)


48,083


1,266,136



 
 
 
 
 
 
 
 
 
 
 



 
                                                                                                                                                                       
 
 
 
 
 
 
 
 
 
Cash Flow Statement
For the six months ended 30 June 2018
 
 




 


 
(Unaudited)
30 June 18


 
(Unaudited)
30 June 17


 
(Audited)
31 Dec 17




 


£


£


£




CASH FLOW FROM OPERATIONS


 


 


 




(Loss)/profit before taxation


214,069


(5,361)


(194,073)




Adjustment for:


 


 


 




Interest received


(163)


(181)


(281)




Dividends received


(94)


(1,540)


(7,089)




 


 


 


 




Operating (loss) before movement in working capital


213,812


(7,082)


(201,443)
 




(Increase)/decrease in receivables


27,234


(69,157)


28,330




Increase/(decrease) in payables


(123,878)


3,860


34,744




Gain on disposal of financial asset at fair value


(476,021)


(213,450)


(217,125)




Impairment of investments


71,720


47,760


30,921




 


 


 


 




NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES
 


(287,133)


(238,069)


(324,573)




 


 


 


 




TAXATION PAID


 


 


-




CASH FLOW FROM INVESTING ACTIVITIES


 


 


 




Interest received


163


181


281




Dividends received


94


1,540


7,089




Sale of investments


739,631


330,384


409,898




Purchase of investments


(503,291)


(120,049)


   (315,775)           




 


 


 


 




NET CASH INFLOW FROM INVESTING ACTIVITIES
 


236,597


212,056


101,493




 


 


 


 




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


(50,536)


53,552


(105,080)




Cash and cash equivalents at the beginning of the period


255,805


360,885


360,885




Cash and cash equivalents at the end of the period


205,269


414,437


255,805




 


 


 


 




 


 


 


 




 
 
 
 
Selected notes to the consolidated financial statements
For the six months ended 30 June 2018
 
 
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 2018 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2017. 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 2018


6 months to
30 June 2017


Year ended 31 December 2017




 


 


 


 




Profit/(Loss) after tax for the purpose of
earnings per share


£229,659


£(25,893)


£(204,296)




Weighted average number of shares


184,347,070


138,331,939


146,992,211




Basic earnings per ordinary share


0.12p


(0.01)p


(0.14)p




 




Diluted


 


 


 




 


 


 


 




 


 


 


 




Profit/(loss) after tax


£229,659


£(25,893)


£(204,296)




Weighted average number of shares


184,847,070


138,331,939


146,992,211




Diluted effect of options


-


-


-




Diluted weighted average
number of shares


184,847,070


138,331,939


146,992,211




Diluted earnings per ordinary share


0.12p


(0.01)p


(0.14)p



 
 
 
 
 



 
 
 
3.         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 2018
 
 
4.         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
2018


30 June
2017




 


£


£




Authorised:
 


 


 


 




10,000,000,000  (2016: 10,000,000,000) ordinary shares 0.1p
(30 June 2017 - 1p) each


10,000,000


10,000,000


 




 
 


 


 


 




142,831,939  deferred shares of 0.9p each  (30 June 2017:Nil)


1,285,487


-


 




 
 


 


 


 




Issued:


30 June
2018


30 June
2017


 




 


£


£


 




 


 


 


 




188,847,070 Ordinary shares 0.1p (30 June 2017: 142,831,939 Ordinary Shares of  1p each)                                                                                    


188,847


1,428,319


 




142,831,939 deferred shares of 0.9p each (30 June 2017: Nil)


1,285,487


-


 




 


1,474,334


1,428,319


 



 
 
 
 
 
 



                                                                                                                                                                                                                                                                                                                                                                             
On 24 November 2017, the Company divided each issued existing ordinary share of 1p each (Existing Ordinary Share) into one new Ordinary share of 0.1p and one deferred share of 0.9p and each unissued Existing Ordinary Share into 10 new Ordinary Shares as part of a share capital reorganisation. The Deferred shares have no income or voting rights.
 
The Company issued 46,015,131 new Ordinary shares on 29 November 2017 following an open offer to all shareholders at a price of 0.35 pence per share (representing a premium of 0.25 pence per Ordinary share) increasing the number of shares in issue to 188,847,070 at 31 December 2017.   
 
Included in allotted called and fully paid share capital are 4,500,000 shares with a nominal value of £4,500 held by the company in treasury.
 
 
Share warrants in issue at 30 June 2018.
 
The Company has granted warrants to subscribe for ordinary 1p shares as follows:
 




Date granted


Period exercisable


Exercise price per share (pence)


Number
of warrants




13 July 2016


2 years from issue date


1p


1,500,000




13 July 2016


2 years from issue date


1.5p


1,000,000




           
The Income Statement does not include a share-based payment charge as the 2.5 million warrants issued in July 2016 did not give rise to a material change.
 
 
 
5.         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.
 
 




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