REG - Tiger Resource Fin. - Final Results <Origin Href="QuoteRef">TIRU.L</Origin> - Part 2
26/05/2016 07:06
- Part 2: For the preceding part double click ID:nRSZ3376Za
IFRS 9, 'Financial instruments', addresses the classification, measurement and
recognition of financial assets and financial liabilities. The complete
version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39
that relates to the classification and measurement of financial instruments.
IFRS 9 retains but simplifies the mixed measurement model and establishes
three primary measurement categories for financial assets: amortised cost,
fair value through OCI and fair value through P&L. The basis of classification
depends on the entity's business model and the contractual cash flow
characteristics of the financial asset. Investments in equity instruments are
required to be measured at fair value through profit or loss with the
irrevocable option at inception to present changes in fair value in OCI not
recycling. There is now a new expected credit losses model that replaces the
incurred loss impairment model used in IAS 39, although this is not
anticipated to have a material effect on the group. For financial liabilities
there were no changes to classification and measurement except for the
recognition of changes in own credit risk in other comprehensive income, for
liabilities designated at fair value through profit or loss, which again will
not impact the group. IFRS 9 also relaxes the requirements for hedge
effectiveness, but this is not currently relevant to the group. The standard
is effective for accounting periods beginning on or after 1 January 2018.
Early adoption is permitted. The group is continuing the process of
determining the impact, if any, of the changes to the financial asset
measurement categories noted above.
2. OPERATING EXPENSES
Operating profit is stated after charging:
Group 2015£ Group 2014£ Company 2015 £ Company 2014 £
Auditor's remuneration:
- Audit of the financial statements (current auditors) 20,625 17,400 16,800 17,400
- Audit of the financial statements (previous auditors) - *5,538 - *5,538
- Taxation compliance services (current auditors) 3,000 2,400 3,000 2,400
- Taxation compliance services (previous auditors) - - - -
23,625 25,338 19,800 25,338
Notes
Legal fees 512 3,022 511 3,022
Accounting fees 12,096 14,100 396 -
Corporate finance costs 36,000 36,000 26,400 26,400
Directors' fees 3 224,000 224,000 200,000 200,000
Director of subsidiary company 3,600 3,600 - -
Occupancy, accounting and support costs 78,000 78,000 72,000 72,000
Other administrative overheads 54,349 66,419 47,283 51,229
Stock Exchange costs 16,657 16,350 7,219 10,103
Credit relating to investment previously written off (25,036) - (25,036) -
Administrative expenses 423,803 466,829 348,573 388,092
*This amount relates to an under provision of £5,538 relating to audit costs
for the year ended 31 December 2013 and was paid in the year ended 31 December
2014 to the Company's previous auditors.
3. DIRECTORS' EMOLUMENTS
Group2015£ Group 2014£ Company2015£ Company 2014£
Directors' fees 224,000 224,000 200,000 200,000
Other than directors, there were no employees in the current or prior year.
The emoluments of each director during the year were as follows:
Group 2015 £ Group2014£ Company 2015 £ Company 2014 £
Bruce Rowan 80,000 80,000 80,000 80,000
Colin Bird 62,000 62,000 50,000 50,000
Michael Nolan 35,000 35,000 35,000 35,000
Raju Samtani 47,000 47,000 35,000 35,000
Amounts of £40,340 and £40,865 (2014: £28,340 and £28,865) were due to C Bird
and R Samtani respectively at the balance sheet date and included in accruals
in respect of emoluments payable by African Pioneer plc. The annual amount
accrued in respect of such emoluments are included in the disclosures above
irrespective of the fact they have not been paid.
4. TAXATION
Group 2015£ Group 2014£ Company 2015 £ Company 2014 £
Corporation tax:Current year - - - -
The major components of tax expense and the reconciliation of the expected tax expense based on the domestic effective tax rate of 20% (2014 20%) and the reported tax expense in the statement of comprehensive income are as follows:
Group 2015£ Group 2014£ Company 2015 £ Company 2014 £
(Loss) on ordinary activities before tax 731,669 (1,498,881) (607,842) (1,420,215)
Expected tax charge at 20% (2014 - 20 %) (146,334) (299,776) (121,569) (284,043)
Effects of:
Unrealised gains on financial assets at fair value through profit or loss (2,550) 111,776 (2,550) 111,776
Exempt dividend income (1,380) (1,173) (1,380) (1,173)
Impairment adjustment 66,215 101,294 66,215 101,294
Difference between accounting gain and taxable loss on investment (18,551) (9,819) (18,551) (9,819)
Excess management expenses carried forward (5,421) 77,435 (5,421) 77,435
Excess management expenses carried forward in subsidiary 24,765 15,733 - -
Non-trade loan relationship deficit carried forward 2,058 1,783 2,058 1,783
Chargeable gains 81,198 2,747 81,198 2,747
Actual tax charge - - - -
5. EARNINGS PER SHARE
Basic 2015 2014
(Loss) after tax for the purposes of earnings per share attributable to equity shareholders of the parent £(670,693) £(1,460,073)
Weighted average number of shares 138,331,939 138,331,939
Basic earnings per ordinary share (0.48)p (1.06)p
Diluted
(Loss) for year after tax £(670,693) £(1,460,073)
Weighted average number of shares 138,331,939 138,331,939
Dilutive effect of options - -
Diluted weighted average number of shares 138,331,939 138,331,939
Diluted earnings per ordinary share (0.48)p (1.06)p
Potentially dilutive options - -
In 2015 the potentially dilutive options were not included within the
calculation of diluted earnings per ordinary share because they are
anti-dilutive (2014 not included).
6. INVESTMENT IN SUBSIDIARIES
On 20 July 2012, Tiger Resource Finance Plc made an investment in African
Pioneer Plc ("APP"), an Isle of Man based business, thereby gaining control.
African Pioneer Plc is an investment vehicle quoted on the ISDX exchange and
was incorporated to facilitate pro-active investments being undertaken by
Tiger Resource Finance Plc in the resource sector. At 31 December 2015, the
Group had an interest of 50.75% of the voting equity rights in its subsidiary,
African Pioneer Plc.
The subsidiary company was incorporated on 20 July 2012, and later issued
shares through a placing of shares for cash and there were, therefore, no
assets or liabilities acquired at the time acquisition. No acquisition costs
were incurred. African Pioneer Plc issued 4,998,258 Ordinary shares of nil
par on 2 June 2015 at 1 pence per share. Tiger Resource Finance Plc
subscribed for a further 2,529,130 shares in this placing and currently holds
59,529,132 shares representing a holding of 50.75% in African Pioneer Plc.
2015£ 2014 £
At 1 January 2015 210,000 210,000
Purchase of additional shares during the year 25,291 -
Total cost at 31 December 2015 235,291 210,000
African Pioneer Plc's capital and reserves were as follows:
2015 2014
£ £
Share capital 452,983 403,000
Loss for the year (123,827) (78,667)
Revaluation reserve 3,384 -
Reserves (239,472) (160,806)
Total equity 93,068 163,527
7. 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 company quoted on
AIM (XTR). The acquisition of the 344,827,584 shares in Xtract was paid for
in cash at 0.0435p per Ordinary share. The investment has been revalued to
fair value at year end to reflect the market value of 0.23 pence per share
(2014: 0.145p per share). 329,827,584 Xtract shares were sold during the
current year for a total consideration of £571,008.
2015£ 2014£
At 1 January 2015 500,000 1,068,966
Adjustment for the sale of 329,827,584 shares (478,250) -
Adjustment to fair value 12,750 (568,966)
At 31 December 2015 34,500 500,000
8. AVAILABLE-FOR-SALE INVESTMENTS
GROUP
2015
Listed Investments Other Investments (Quoted) Total
£ £ £
Canada 57,226 - 57,226
Australia 1,240 - 1,240
USA 9,277 - 9,277
UK:
-Listed 223,673 - 223,673
-AIM - 300,456 300,456
291,416 300,456 591,872
2014
Listed Investments Other Investments (Quoted) Total
£ £ £
Canada 10,194 - 10,194
Australia 9,778 - 9,778
USA 168,486 - 168,486
UK:
-Listed 138,057 - 138,057
-AIM - 362,976 362,976
326,515 362,976 689,491
Listed Investments Other Investments (Quoted) Total
£ £ £
Opening book cost 657,367 2,369,325 3,026,692
Opening unrealised depreciation (330,852) (2,006,349) (2,337,201)
Valuation at 1 January 2015 326,515 362,976 689,491
Movements in the year:
Purchase at cost 222,100 125,215 347,315
Cost relating to investments written-off - (262,264) (262,264)
Sales proceeds (56,643) - (56,643)
Realised gains/(losses) on sales 10,983 - 10,983
Increase in unrealised depreciation (211,539) (187,735) (399,274)
Adjustment to unrealised depreciation relating to investments written-off - 262,264 262,264
(35,099) (62,520) (97,619)
Book cost at year end * 833,792 2,232,276 3,066,068
Closing unrealised losses on sales (542,376) (1,931,820) (2,474,196)
Valuation at 31 December 2015 291,416 300,456 591,872
* Book cost at 31 December 2015 for other quoted investments has been reduced
by £262,264 as a result of 3 investments which were written off during the
year.
2015 2014
£ £
Realised gains based on historical cost 10,983 35,363
Realised gain on Xtract 92,758 -
Net unrealised gains recognised on these investments at previous balance sheet date - 18,804
Realised gains based on carrying value at previous balance sheet date 103,741 54,167
Unrealised depreciation for the year (399,274) (570,067)
Total recognised losses on in the year (295,533) (515,900)
There are no significant holdings (over 20%) in any of the investee
companies.
COMPANY
2015
Listed Investments Other Investments (Quoted) Total
£ £ £
Canada 37,598 - 37,598
Australia 1,240 - 1,240
USA - - -
UK:
-Listed 160,630 - 160,630
-AIM - 300,456 300,456
-ISDX-quoted - - -
199,468 300,456 499,924
2014
Listed Investments Other Investments (Quoted) Total
£ £ £
Canada 10,194 - 10,194
Australia 9,778 - 9,778
USA 168,486 - 168,486
UK:
-Listed 138,057 - 138,057
-AIM - 362,976 362,976
326,515 362,976 689,491
Listed Investments Other Investments (Quoted) Total
£ £ £
Opening book cost 657,367 2,369,325 3,026,692
Opening unrealised depreciation (330,852) (2,006,349) (2,337,201)
Valuation at 1 January 2015 326,515 362,976 689,491
Movements in the year:
Purchase at cost 25,000 125,215 150,215
Cost relating to investments written-off Sales proceeds - (262,264) (262,264)
Realised gains/(losses) on sales - - -
Increase in unrealised depreciation (152,047) (187,735) (339,782)
Adjustment to unrealised depreciation relating to investments written-off - 262,264 262,264
(127,047) (62,520) (189,567)
Book cost at year end * 682,367 2,232,276 2,914,643
Closing unrealised losses on sales (482,899) (1,931,820) (2,414,719)
Valuation at 31 December 2015 199,468 300,456 499,924
* Book cost at 31 December 2015 for other quoted investments has been reduced
by £262,264 as a result of 3 investments which were written off during the
year.
2015 2014
£ £
Realised gains based on historical cost - 35,363
Realised gain on Xtract 92,758 -
Net unrealised gains recognised on these investments at previous balance sheet date - 18,804
Realised gains based on carrying value at previous balance sheet date 92,758 54,167
Unrealised depreciation for the year (339,797) (570,067)
Total recognised losses on investments in the year (247,039) (515,900)
There are no significant holdings (over 20%) in any of the investee
companies.
The AFS investments impaired during the year are listed below. The impairment
charge booked to the profit and loss of the Group in the year is £436,233
(2014: £506,469).
2015 £ 2014 £
African Eagle Resources Plc 3,413
Anglo American Plc 103,620 Anglo American Plc 13,743
Ascent Resources Plc 21,600 Ascent Resources Plc 60,268
Aurum Mining Plc 52,500 Aurum Mining Plc 83,333
Duke Royalty Limired 11,700 ETFS Physical Platinum 11,024
ETFS Physical Platinum 42,293 Jubilee Platinum Plc 15,497
Jersey Oil & Gas Plc 8,679 MX Oil Plc (formerly Astar) (2,900)
Jubilee Platinum Plc - New World Oil and Gas Plc 20,250
MX Oil Plc (formerly Astar) - Northern Petroleum Plc 63,971
New World Oil and Gas Plc 6,500 Pan Continental Oil and Gas NL 19,302
Northern Petroleum Plc 26,088 Papua Mining Plc 24,725
Pan Continental Oil and Gas NL 8,538 Praetorean Resources Plc 14,000
Papua Mining Plc 36,800 Rex Bionics Plc (formerly Union Med) (4,531)
Rex Bionics Plc (formerly Union Med) 1,812 Revelo Resources Corp. 52,771
Revelo Resources Corp. 4,929 Sovereign Mines of Africa Plc 41,500
Sovereign Mines of Africa Plc 5,200 Sunrise Resources Plc 998
Sunrise Resources Plc 864 Tertiary Minerals Plc 53,200
Tertiary Minerals Plc 38,836 Trap Oil Plc 21,038
Trap Oil Plc - U3o8 Holdings Plc 9,280
U3o8 Holdings Plc - Vatukoula Gold Mines Plc 9,000
Vatukoula Gold Mines Plc -
506,469
Impairments booked in parent Company 373,372
BHP Billiton 9,029
ETFS Physical Platinum 3,664
Freeport-McMoran 15,884
Lonmin Plc 26,022
Royal Dutch Shell 7,204
South32 Limited 1,058
Impairments booked in subsidiary company 62,861
Total impairments for the Group 436,233
Financial instruments measured at fair value
The following table presents financial assets and liabilities measured at fair
value in the statement of financial position in accordance with the fair value
hierarchy. This hierarchy groups financial assets and liabilities into three
levels based on the significance of inputs used in measuring the fair value of
the financial assets and liabilities. The fair value hierarchy has the
following levels:
- Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities;
- Level 2: inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices); and
- Level 3: inputs for the asset or liability that are not based on
observable market data (unobserved inputs).
The level within which the financial asset or liability is classified is
determined based on the lowest level of significant input to the fair value
measurement.
The financial assets and liabilities measured at fair value in the statement
of financial position are grouped into the fair value hierarchy as follows:
(GROUP)
31 December 2015 Level 1£ Level 2£ Level 3£ Total£
Assets Available-for-sale investmentsFinancial assets at fair value through profit or loss 591,87234,500 -- -- 591,87234,500
Total 626,372 - - 626,372
31 December 2014 Level 1£ Level 2£ Level 3£ Total£
Assets Available-for-sale investmentsFinancial assets at fair value through profit or loss 689,491500,000 -- -- 689,491500,000
Total 1,189,491 - - 1,189,491
(COMPANY)
31 December 2015 Level 1£ Level 2£ Level 3£ Total£
Assets Available-for-sale investmentsFinancial assets at fair value through profit or loss 465,42434,500 -- -- 465,42434,500
Total 499,924 - - 499,924
31 December 2014 Level 1£ Level 2£ Level 3£ Total£
Assets Available-for-sale investmentsFinancial assets at fair value through profit or loss 689,491500,000 -- -- 689,491500,000
Total 1,189,491 - - 1,189,491
There have been no significant transfers between levels in the reporting
period.
Measurement of fair value
The methods and valuation techniques used for the purpose of measuring fair
value are outlined in note 1 and remain unchanged compared to the previous
reporting period. The fair values of short-term receivables, cash and
short-term payables do not differ from their carrying values due to their
short maturity profiles.
Listed / quoted securities
Equity securities held by the Group are denominated in GBP, USD, CAD$,
Australian dollar and Norwegian Krone and are publicly traded on the main
London Stock Exchange, the Alternative Investment Market of the London Stock
Exchange, the Toronto Venture Exchange, the Australian Exchange and on ISDX.
Fair values have been determined by reference to their quoted bid prices at
the reporting date.
9. TRADE AND OTHER RECEIVABLES
Group2015£ Group2014£ Company 2015£ Company 2014 £
Other debtors 50,462 - 50,462 -
Prepayments 9,146 8,695 4,841 3,685
59,608 8,695 55,303 3,685
10. DEFERRED TAX LIABILITIES
The group has tax losses carried forward in respect of excess management
charges, non-trade deficits and capital losses of £898,639 (2014: £1,403,897).
Unrealised losses on the group's financial assets are estimated at £2,474,196
(2014: £1,995,301). The resulting deferred tax asset is £674,567 (2014:
£607,840). 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. Tax losses may be carried forward indefinitely
and will only be recoverable if suitable profits arise in the future. Deferred
tax positions arising from unrealised gains and losses on the group's
financial assets will vary depending on changes in the fair values of those
assets up until the date of disposal.
11. TRADE AND OTHER PAYABLES
Group2015 Group2014 Company2015 Company2014
£ £ £ £
Trade payables 14,432 8,727 4,561 -
Other creditors 4,153 - 4,152 -
Accruals 111,505 102,540 30,300 39,336
130,090 111,267 39,013 39,336
12. 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.
2015 2015 2014 2014
Number £ Number £
Authorised:
1,000,000,000 ordinary shares 1p each 1,000,000,000 10,000,000 1,000,000,000 10,000,000
Allotted, called-up and fully paid:Ordinary shares of 1p each
At 1 January and 31 December 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.
Shares options in issue at year end
The Company has granted options to subscribe for ordinary 1p shares as
follows:
Date granted Period exercisable Exercise price per share (pence) Number of options
21 March 2006 21 March 2006 to 20 March 2016 3.50p 6,000,000
The Income Statement does not include a share-based payment charge as the six
million share options currently outstanding are fully vested options and have
been expensed in previous accounting periods. All outstanding share options
detailed above lapsed on 20 March 2016 unexercised.
13. RELATED PARTY TRANSACTIONS
(1) Lion Mining Finance Limited, a company in which Colin Bird is director
and shareholder, has provided administrative and technical services to the
Company amounting to £60,000 plus VAT in the year (2014 - £60,000). There
were no amounts outstanding at 31 December 2015 (2014- nil). The Board
considers this transaction to be on an arms' length basis.
(2) The chairman was paid an amount of £18,000 (2014 - £18,000) to cover the
cost of maintaining his office. There was no amount due to the chairman at 31
December 2015(2014- £9,000). The Board considers this transaction to be on an
arms' length basis.
(3) The emoluments of the directors are disclosed in note 3.
(4) The directors' shareholdings and options are disclosed in the Report of
the Directors.
(5) Tiger Resource Finance Plc made an investment of £210,000 on 20 July
2012, to acquire a 50.76% equity interest in a newly formed subsidiary,
African Pioneer Plc ("APP"). R B Rowan, C Bird, M H Nolan and R Samtani each
also invested £10,000 to acquire 10 Million ordinary shares each (representing
an 8.9% interest in APP). On 2 June 2015, Tiger purchased a further 2,529,130
shares at a cost £25,291 increasing its holding in APP to 59,529,132 shares
representing a 50.75% holding of the company. On the same date, R B Rowan, C
Bird and M H Nolan and R Samtani each purchased an additional 617,282 shares
in APP at cost of £6,173 increasing their individual holdings to 10,617,282
shares. See note 6 to the financial statements for further details relating
to this investment.
(6) On 10 September 2012, Tiger Resource Finance Plc acquired 344,827,584
shares in Xtract Resources Plc representing 14.9 % of the voting rights of
Xtract Resources Plc. During the year, 329,827,584 Xtract shares were sold
resulting in 15 Million shares being held by Tiger on 31 December 2015. This
investment has been designated at fair value through profit or loss. There
were no further transactions between Tiger Resource Plc and Xtract Resources
Plc since the acquisition date. See note 7 to the financial statements for
further details relating to this investment.
(7) On 19 August 2015, the Company made an investment of £125,000 in Galileo
Resources Plc ("Galileo"), acquiring 10,416,667 Ordinary shares of 0.1 pence
each (being a 6.69% stake in Galileo at the date of subscription). Colin Bird
is a Director and the Executive Chairman of Galileo and did not participate in
the decision making process for this investment.
14. POST-REPORTING DATE EVENTS
No adjusting or significant non-adjusting events have occurred between the
reporting date and the date of authorisation the financial statements.
All outstanding share options detailed in note 12 of the Financial Statements
lapsed on 31 March 2016 unexercised.
15. CONTINGENT LIABILITIES
There were no contingent liabilities at 31 December 2015 (2014 - None).
16. FINANCIAL INSTRUMENTS
Management of Risk
The Group and the Company's financial instruments comprise:
§ Investments in subsidiary companies
§ Investments designated at fair value through profit or loss
§ Available-for-sale investments held at fair value through profit or loss
§ Cash, short-term receivables and payables
Throughout the period under review, it was the Group's policy that no trading
in derivatives shall be undertaken.
The main financial risks arising from the Group and Company's financial
instruments are market price risk and liquidity risk. Credit risk is not
significant, but is monitored. The Board regularly reviews and agrees
policies for managing each of these risks and they are summarised below. These
policies have remained constant throughout the period.
Market risk
Market risk consists of interest rate risk, foreign currency risk and other
price risk. It is the Board's policy to maintain an appropriate spread of
investments in the portfolio whilst maintaining the investment policy and aims
of the Company and the Group. The Investment Committee actively monitors
market prices and other relevant information throughout the year and reports
to the Board, who is ultimately responsible for the Group's investment
policy.
Interest rate risk
Changes in interest rates would affect the Company and the Group's returns
from its cash balances. A floating rate of interest, which is linked to bank
base rates, is earned on cash deposits. The exposure to cash flow interest
rate risk at 31 December 2015 for the Group was £548,023 (2014: £687,012).
The exposure to cash flow interest rate risk at 31 December 2015 for the
Company was £460,131 (2014: £456,563).
A sensitivity analysis based on a movement of 1% on interest rates would have
a £5,480 effect on the Group's profit (2014: £6,870). A sensitivity analysis
based on a movement of 1% on interest rates would have a £4,601 effect on the
Company's' profit (2014: £4,566).
As the Group does not have any borrowings and finances its operations through
its share capital and retained revenues, it does not have any interest rate
risk except in relation to cash balances.
Foreign currency risk
The Group's total return and net assets can be affected by currency
translation movements as part of the available-for-sale assets held by the
Company are denominated in currencies other than £ Sterling. The directors
mitigate the individual currency risks through the international spread of
investments. Hedging transactions may be used but none have been employed
during the period under review.
The fair values of the Group's available-for-sale investments that have
foreign currency exposure at 31 December 2015 are shown below.
Group Group
2015 2014
CAD AUD USD CAD AUD USD
£ £ £ £ £ £
Available-for-sale investments 57,226 1,240 160,069 10,194 9,778 179,510
Company Company
2015 2014
CAD AUD USD CAD AUD USD
£ £ £ £ £ £
Available-for-sale investments 37,598 1,240 126,193 10,194 9,778 179,510
The Group accounts for movements in fair value of its available for sale
financial assets in other comprehensive income. The following table
illustrates the sensitivity of the equity in regard to the Group's financial
assets and the exchange rates for £/ Canadian Dollar, £/ US Dollar and
£/Australian Dollar, £/Norwegian Krona.
It assumes the following changes in exchanges rates:
- £/CAD +/- 10% - (2014: +/- 10%)
- £/USD +/- 10% - (2014: +/- 10%)
- £/AUD +/- 10% - (2014: +/- 10%)
- £/NOK +/- 10% - (2014: +/- 10%)
These percentages used reflect the high level of market volatility experienced
in exchange rates in recent years.
The sensitivity analysis is based on the Group's foreign currency financial
instruments held at each balance sheet date.
If £ Sterling had weakened against the currencies shown, this would have had
the following effect:
Group Group
2015 2014
CAD AUD USD CAD AUD USD
£ £ £ £ £ £
Equity 6,358 138 17,785 (1,133) (1,085) (18,764)
If £ Sterling had strengthened against the currencies shows, this would have
had the following effect:
Group Group
2015 2014
CAD AUD USD CAD AUD USD
£ £ £ £ £ £
Equity (5,202) (113) (14,552) 1,133 1,085 18,764
If £ Sterling had weakened against the currencies shown, this would have had
the following effect:
Company Company
2015 2014
CAD AUD USD CAD AUD USD
£ £ £ £ £ £
Equity 4,178 138 14,021 (1,133) (1,085) (18,764)
If £ Sterling had strengthened against the currencies shows, this would have
had the following effect:
Company Company
2015 2014
CAD AUD USD CAD AUD USD
£ £ £ £ £ £
Equity (3,418) (113) (11,472) 1,133 1,085 18,764
Other price risk
Other price risk which comprises changes in market prices other than those
arising from interest rate risk or currency risk may affect the value of
quoted and unquoted equity investments. The Board of directors manages the
market price risks inherent in the investment portfolio by regularly
monitoring price movements and other relevant market information.
The Group accounts for movements in the fair value of its available-for-sale
financial assets in other comprehensive income and assets designated at fair
value through profit or loss in comprehensive income. The following table
illustrates the sensitivity to equity of an increase / decrease of 50% in
market prices. This level of change is considered to be reasonable based on
observation of current market conditions, in particular resource stocks and
junior mining companies. The sensitivity is based on the Group's equities at
each balance sheet date, with all other variables held constant.
Group Group
2015 2014
50% increase in fair value 50% decrease in fair value 50% increase in fair value 50% decrease in fair value
£ £ £ £
Equity (available-for-sale Financial assets) 295,936 (295,936) 344,745 (344,745)
Equity (assets held at fair Value through profit or loss) 17,250 (17,250) 250,000 (250,000)
Company Company
2015 2014
50% increase in fair value 50% decrease in fair value 50% increase in fair value 50% decrease in fair value
£ £ £ £
Equity (available-for-sale Financial assets) 249,962 (249,962) 344,745 (344,745)
Equity (assets held at fair Value through profit or loss) 17,250 (17,250) 250,000 (250,000)
Liquidity risk
The Group maintains appropriate cash reserves and the majority of the Group's
assets comprise realisable securities, most of which can be sold to meet
funding requirements if necessary. Given the Group's cash reserves, it has
been able to settle all liabilities on average within 1 month.
Credit risk
The risk of counterparty's failure to discharge its obligations under a
transaction that could result in the Group suffering a loss is minimal. The
Group holds its cash balances with a reputable bank and only transacts with
regulated institutions on normal market terms.
Included in total amounts receivables at 31 December 2015 of £59,608 is the
sum £50,000 which was lodged with the Company's brokers in relation to an
investment in Rockrose Energy plc. The placing in Rockrose Energy Plc closed
in on 7 January 2016 and the £50,000 on account with the Company's brokers was
used to settle the purchase of this investment.
Financial liabilities
There are no currency or interest rate risk exposures on financial liabilities
as they are denominated in £ Sterling and settled on average within 1 month.
Capital management
The Group actively reviews its issued share capital and reserves and manages
its capital requirements in order to maintain an efficient overall financing
structure whilst avoiding any leverage.
The Board monitors the discount level of its issued shares, which is the
difference between its Net Asset Value (NAV) and its actual share price. To
improve NAV, the Company may purchase its own shares in the market. During the
current year, the Group have not purchased any of its own shares (2014: Nil).
The consolidated and parent company financial statements have been prepared in
compliance with International Financial Reporting Standards ("IFRS") as
adopted by the European Union. The financial statements have been prepared on
the historical cost basis, except for the measurement of certain non-current
asset investments at fair value..
The financial information set out above does not constitute the Company's
statutory accounts for the periods ended 31 December 2014 or 31 December 2015
but it is derived from those accounts. Statutory accounts for 31 December 2014
have been delivered to the Registrar of Companies and those for 31 December
2015 will be delivered following the Company's Annual General Meeting. The
auditors have reported on those accounts; their reports were unqualified and
did not contain statements under section 498(2) or (3) of the Companies Act
2006
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 7220 0500
Corporate Finance - Christopher Raggett / Scott Mathieson
This information is provided by RNS
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