REG - Tiger Resource Fin. - Interim Results <Origin Href="QuoteRef">TIRU.L</Origin>
RNS Number : 6060STiger Resource Finance PLC25 September 2014TIGER RESOURCE FINANCE PLC
INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
Operations Review
Net Asset Value per share at 30 June 2014 - 1.83p (30 June 2013 - 2.40p)
Total assets of 2.7 million as at 30 June 2014 (30 June 2013 3.5 million)
Since the previous Operations Review issued with the 2013 financial statements, little has changed with the financing fortunes of "small cap" companies in the resources sector.However, we are seeing some fundraising being completed for projects requiring the equity portion of project financing arrangements. This suggests that near term production is financially supportable and viewed with some interest by the investing community. Early stage exploration and indeed advanced exploration project companies are still finding access to finance extremely difficult.Funding of small resource companies is showing more momentum in Canada and it is not unusual for Toronto to lead financing recovery in the junior sector.
Most base metals prices are performing well whilst gold and platinum continue to show high volatility. Analysts generally agree that platinum prices should firm up in the next six months whilst the price of gold is forecast to decline during the same period.However, if political tensions worsen in Ukraine or in the Middle East, the downturn in gold prices will be more manageable.
The engine for a financing recovery in the small cap resource sector will kick in once investors recognise that the major mining companies are gearing up to a strong earnings recovery which is sustainable over the next few years.Once this phenomenon is recognized and accepted by institutional investors, new resources will have to be discovered relatively quickly to meet demand; as copper demand, for exampleis expected to double by 2032.This fact alone requires several large discoveries to be made to replace old and declining production located around the world. The copper fundamentals are mirrored by most other base metals in the same way or to a slightly less extent.
Our first proactive investment, Xtract Resources Plc, has been very active in the sector and has met all the challenges previously detailed in the Company's reporting reviews. We remain optimistic that the Xtract management team will grow the company and continue to prepare it for better times. African Pioneer Resources plc is considering a number of advanced opportunities and is confident of concluding a deal before year end.
The retail investment community has prevented a total collapse of the junior resource sector and in our opinion many small investors will recoup considerable returns in the foreseeable future. The adverse financing times have, both in the UK and North America, seen novel financing arrangements emerging where the model involves typically the advance of cash against the ability to draw shares against numerous mathematical formulas. Whilst largely criticized by the traditional financing industry, these models have enabled many companies to progress their business plan and deliver some returns to shareholders.
In essence, the Company's management sees prolonged small resource sector challenges with positive signs around the corner which could take up to a year to materialize, but will slowly develop confidence and generate renewed investment and lead to stronger valuations.
By order of the Board
25 September 2014
Portfolio Holdings as at 30 June 2014
Investments
Number
Cost
Valuation
African Eagle Resources PLC
1,241,174
112,264
4,220
Anglo American PLC
11,500
250,117
164,450
Ascent Resources PLC
9,642,857
400,824
72,321
Astar Minerals PLC
4,000,000
100,635
6,600
Aurum Mining PLC
8,333,333
250,218
135,417
ETFS Physical Platinum
2,250
246,458
189,205
Jubilee Platinum PLC
1,169,600
100,219
17,836
New World Oil and Gas PLC
5,000,000
250,218
32,500
Northern Petroleum PLC
294,118
250,519
75,368
PanContinental Oil and Gas PLC
885,714
97,827
11,293
Papua Mining PLC
230,000
101,200
51,750
Petroceltic International PLC
66,640
101,593
105,958
Polar Star Mining Corp
833,333
62,965
29,833
Praetorian Resources PLC
4000,000
200,218
48,000
Sovereign Mines of Africa PLC
2,000,000
100,000
19,500
Sunrise Resources PLC
665,000
6,650
3,159
Tertiary Minerals PLC
1,330,000
119,700
73,150
Trap Oil PLC
330,000
101,660
29,288
U3O8 Holdings PLC
4,166,666
125,000
-
Rex Bionics PLC
625,000
37,500
11,219
Vatukoula Gold Mines PLC
150,000
112,500
3,450
Wentworth Resources PLC
220,000
104,174
102,795
Total
3,232,459
1,187,312
Notes:
1) The Company also holds an investment in Xtract Resources Plc. This Investment has been classified as a Financial Asset at Fair Value through Profit or Loss and is valued at 810,345 on 30 June 2014.
2) The Company incubated a subsidiary company, African Pioneer PLC in 2012. Tiger currently holds 57,000,002 shares in African Pioneer Plc which trades on ISDX and valued at 1 pence per share on 30 June 2014.
3) The Company's investments in Xtract Resources Plc and African Pioneer Plc are not included in the investment table shown above.
Statement of Comprehensive Income
For the six months ended 30 June 2014
(Unaudited)
Group Six months ended
30 June 14
(Restated)
(Unaudited)
Group Six months ended
30 June 13
(Audited)
Group Year
ended
31 Dec 13
Gain/(loss) on sale of available for sale assets
42,462
-
24,643
Income:
Investment income
3,632
10,846
19,928
Unrealised (loss)/gain on financial assets at fair value through profit and loss
(258,621)
327,585
586,207
Interest receivable
1,084
3,191
4,663
Administrative expenses
(215,983)
(197,369)
(514,953)
Impairment
(294,117)
(778,113)
(924,533)
LOSS BEFORE TAXATION
(721,543)
(633,860)
(804,045)
Taxation
-
-
-
LOSS FOR THE PERIOD
(721,543)
(633,860)
(804,045)
Other Comprehensive Income
Available-for-sale financial assets unrealised loss
(260,147)
(869,238)
(988,181)
Reclassification to profit or loss
-
-
3,388
Transfer to Impairment
294,117
778,113
924,533
Tax relating to components of
other comprehensive income
-
-
183,780
Reclassification of tax to profit and loss account
-
-
(183,780)
OTHER COMPREHENSIVE PROFIT/(LOSS) FOR THE PERIOD, NET OF TAX
33,970
(91,125)
(60,260)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD
(687,573)
(724,985)
(864,305)
Loss for the period attributable to:
Shareholders of the Company
(702,469)
(616,209)
(764,027)
Non-controlling interest
(19,074)
(17,651)
(40,018)
(721,543)
(633,860)
(804,045)
Basic earnings per share
(0.51)p
(0.45)p
(0.55)p
Diluted earnings per share
(0.51)p
(0.45)p
(0.55)p
All profits are derived from continuing operations.
Statement of Financial Position
As at 30 June 2014
(Unaudited)
Group
30 June 14
(Restated)
(Unaudited) Group
30 June 13
(Audited) Group
31 Dec 13
NON CURRENT ASSETS
Financial assets at fair value through profit or loss
810,345
810,344
1,068,966
Available-for-sale investments
1,187,312
1,799,017
1,496,685
Deferred tax asset
-
-
-
1,997,657
2,609,361
2,565,651
CURRENT ASSETS
Trade and other receivables
25,549
73,564
8,384
Corporate tax receivables
15
-
15
Cash and cash equivalents
673,477
810,666
824,978
699,041
884,230
833,377
TOTAL ASSETS
2,696,698
3,493,591
3,399,028
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
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
1,308,882
1,244,047
1,274,912
Retained earnings
(1,799,140)
(948,853)
(1,096,671)
EQUITY ATRIBUTABLE TO THE OWNERS
2,535,292
3,320,744
3,203,791
Equity interest of non-controlling interest
94,741
136,182
113,815
TOTAL EQUITY
2,630,033
3,456,926
3,317,606
NON CURRENT LIABILITES
Deferred tax liabilities
-
-
-
-
-
-
CURRENT LIABILITIES
Trade and other payables
66,665
32,980
81,422
Corporate tax payable
-
3,685
-
66,665
36,665
81,422
TOTAL LIABILITIES
66,665
36,665
81,422
TOTAL EQUITY AND LIABILITIES
2,696,698
3,493,591
3,399,028
Statement of Changes in Equity
As at 30 June 2014
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 1 January 2013 (restated)
1,428,319
1,597,231
1,100,000
-
105,054
130,118
(332,644)
153,833
4,181,911
Changes in equity
(Loss) for the period
-
-
-
-
-
-
(616,209)
(17,651)
(633,860)
Other Comprehensive (loss)
Available-for-sale financial assets:
Current period (losses)
-
-
-
-
(869,238)
-
-
-
(869,238)
Transfer to impairment
-
-
-
-
778,113
-
-
-
778,113
Total comprehensive expense for the period
-
-
-
-
(91,125)
-
(616,209)
(17,651)
(724,985)
Reserve movements
-
-
-
-
-
-
-
-
As at 30 June 2013 (restated)
1,428,319
1,597,231
1,100,000
-
13,929
130,118
(948,853)
136,182
3,456,926
Changes in equity
(Loss) for the period
-
-
-
-
-
-
(147,818)
(22,367)
(170,185)
Other Comprehensive (loss)
Available-for-sale financial assets:
Current period (losses)
-
-
-
-
(118,943)
-
-
(118,943)
Transfer to impairment
-
-
-
-
146,420
-
-
146,420
Reclassification to profit or loss
-
-
-
-
3,388
-
-
3,388
Total comprehensive expense for the period
-
-
-
-
30,865
-
(147,818)
(22,367)
(139,320)
Reserve movements
-
-
-
-
-
-
-
-
-
As at 31 Dec 2013
1,428,319
1,597,231
1,100,000
-
44,794
130,118
(1,096,671)
113,815
3,317,606
Changes in equity
(Loss) for the period
-
-
-
-
-
-
(702,469)
(19,074)
(721,543)
Other Comprehensive (loss)
Available-for-sale financial assets:
Current period (losses)
-
-
-
-
(260,147)
-
-
-
(260,147)
Transfer to impairment
-
-
-
-
294,117
-
-
-
294,117
Total comprehensive expense for the period
-
-
-
-
33,970
-
(702,469)
(19,074)
(687,573)
Reserve movements
-
-
-
-
-
-
-
-
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
Cash Flow Statement
For the six months ended 30 June 2014
(Unaudited)
30 June 14
(Restated)
(Unaudited)
30 June 13
(Audited)
31 Dec 13
CASH FLOW FROM OPERATIONS
(Loss) before taxation
(721,543)
(633,860)
(804,045)
Adjustment for:
Investment in subsidiary
-
-
-
Interest received
(1,084)
(3,191)
(4,663)
Dividends received
(3,632)
(10,846)
(19,928)
Operating (loss) before movement in working capital
(726,259)
(647,897)
(828,636)
(Increase)/decrease in receivables
(17,166)
(20,544)
44,636
Increase/(decrease) in payables
(14,756)
(52,347)
(7,605)
Gain on disposal
(42,462)
-
(24,643)
Transfer to impairment
294,117
778,113
924,533
(Increase)/decrease in value of financial assets at fair value through profit or loss
258,621
(327,584)
(586,207)
Sale of assets available for sale
91,688
-
274,386
Purchase of assets available for sale
-
-
(62,965)
NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES
(156,217)
(270,259)
562,135
TAXATION PAID
-
-
CASH FLOW FROM INVESTING ACTIVITIES
Interest received
1,084
3,191
4,663
Dividends received
3,632
10,846
19,928
NET CASH INFLOW FROM INVESTING ACTIVITIES
4,716
14,037
24,591
CASH FLOW FROM FINANCING ACTIVITIES
Purchase of shares (through exercise of share options)
-
-
-
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES
-
-
-
Net decrease in cash and cash equivalents in the period
(151,501)
(256,222)
(241,910)
Cash and cash equivalents at the beginning of the period
824,978
1,066,888
1,066,888
Cash and cash equivalents at the end of the period
673,477
810,666
824,978
Selected notes to the consolidated financial statements
For the six months ended 30 June 2014
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 2014 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2013. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Reporting".
Prior period adjustment: Valuation of available-for-sale Investments
At 31 December 2013, the Group adjusted the criteria it uses in considering whether a decline in the value of its available for sale investments was significant or prolonged to better reflect what the directors consider to be a significant decline in value based on current market conditions.
Such a decline requires previous reductions in fair value recognised in other comprehensive income to be recognised as impairment charges in the income statement.
As the investments are always carried on the balance sheet in accordance with market price, the change in the trigger point for assessing impairment does not alter the balance sheet value. This is, therefore, not deemed a change in estimate. By default, IAS 8 implies that this must be a change in accounting policy and therefore requires a retrospective assessment. Accordingly the comparative figures for the six months period ending 30 June 2013 have been restated.
A third statement of financial position is not presented as the impact on the statement of financial position is limited to a reallocation between other components of equity and retained earnings reserves.
2. Earnings Per Share
Basic
Unaudited
Unaudited
Audited
6 months to
30 June 2014
6 months to
30 June 2013
Year ended 31 December 2013
Profit/(loss) after tax for the purpose of
earnings per share
(702,469)
(616,209)
(764,027)
Weighted average number of shares
138,331,939
138,331,939
138,331,939
Basic earnings per ordinary share
(0.51)p
(0.45)p
(0.55)p
Diluted
Profit/(loss) after tax
(702,469)
(616,209)
(764,027)
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
(0.51)p
(0.45)p
(0.55)p
Selected notes to the consolidated financial statements
For the six months ended 30 June 2014
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 (formally Xtract Energy PLC,) a UK based mining 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. The investment has been revalued to fair value at 31 December 2013 to reflect the market value of 0.310 pence per share and at 30 June 2014 to reflect the market value of 0.235 pence.
Unaudited
30 June 2014
Audited
31 December
2013
At 1 January
1,068,966
482,759
Additions
-
-
Adjustment to fair value
(258,621)
586,207
At 30 June 2014/ 31 December 2013
810,345
1,068,966
4. Deferred Tax
A deferred tax asset of 276,960 arose on revaluation of investments held as at 30 June 2014. However, deferred tax assets are not recognized 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 2014
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
2014
Unaudited30 June 2014
Unaudited
30 June
2013
Unaudited30 June 2013
Audited
31 December 2013
Audited
31 December 2013
Number
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
1,000,000,000
10,000,000
At 1 January
142,831,939
1,428,319
142,831,939
1,428,319
142,831,939
1,428,319
Issued/(cancelled) during the year
-
-
-
-
-
-
Shares in issue at 31 December 2012 /30 June 2013
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 2014
The Company has granted options to subscribe for ordinary 1p shares as follows:
Date granted 21 March 2006
Period exercisable21 March 2006 to 20 March 2016
Exercise price per share (pence) 3.50p
Number of options6,000,000
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 information is provided by RNSThe company news service from the London Stock ExchangeENDIR LLFFIAIIEFIS
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