REG - Tiger Royalties&Invs - Final Results
20/06/2023 12:30
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RNS Number : 3253D Tiger Royalties and Investments PLC 20 June 2023
For immediate
release
20 June 2022
TIGER ROYALTIES AND INVESTMENTS PLC
(FORMERLY TIGER RESOURCE PLC)
("Tiger" or the "Company")
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022
The Company is pleased to announce its audited results for the year ended 31
December 2022 and to confirm that the 2023 Annual Report and Financial
Statements ("Annual Report") will be posted to shareholders and the Annual
Report will thereafter be available for inspection at www.tiger-rf.com
(http://www.tiger-rf.com) .
Annual General Meeting (AGM)
The Company plans to hold an Annual General Meeting in late July or August
2023 and the wording of each resolution to be tabled will be sent out in due
course to shareholders in the formal Notice of Annual General Meeting.
Notes:
Extracts from the Annual Report are set out below. The financial information
set out below does not constitute the Company's
statutory accounts for the periods ended 31 December 2021 or 31 December 2022
but it is derived from those accounts.
Statutory accounts for 31 December 2021 have been delivered to the Registrar
of Companies and those for 31 December 2022
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. The audit report for the year ended 31
December 2022 did however draw attention to a material uncertainty relating to
going concern.
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
For further information please contact:
Tiger Royalties and Investments Plc Raju Samtani, +44 (0)20 7581 4477
Director
Beaumont Cornish (Nomad) Roland Cornish +44 (0)20 7628 3369
Felicity Geidt
Novum Securities Ltd Jon
Belliss
+44
(0)20 7399 9425
(Broker)
CHAIRMAN'S STATEMENT
Dear Shareholder
The year under review has disappointingly seen Tiger's net asset value per
share (NPV) decrease by 47% to 0.09 pence from 0.17 pence per share as at 31
December 2022.
During the period under review, the emerging resource sector remained in the
doldrums of uncertainty. The headwinds against confidence completely
surmounted the optimism which has been universally generated for new age
metals over recent years.
After many years of very low interest rates, the spectre of 5-6% borrowing
rates has concerned both individuals and corporations as many have never
experienced periods of high interest rates with the consequential effect on
their finances and disposal incomes. Higher inflation levels are now seen
almost globally and it has led economists to conclude that leading economies
are potentially heading into recessionary times.
It is my view that a good deal of the excess inflation was caused by erratic
supply chains, leading to short-term unavailability, and thus causing price
hikes due to a mismatch of supply and demand fundamentals. In any event, the
main precursor was the price hikes in energy, culminating with high wholesale
oil and gas prices in the late summer of 2022. The expected falls in
inflation with the subsequent retreat in energy prices have failed to
materialise and supply chain problems persist due to a very low unemployment
rate, with a view that many workers have failed to return to the workforce
following the end of the Covid restrictions.
In recent times, financial analysts and trading houses as well as CEO's of
Copper producing companies have forecast real supply concerns from 2025
onwards. Whilst this is true for Copper, the same scenario is also relevant
for a number of other commodities, including Nickel, Cobalt and Lithium.
Even as I write this report, price volatility within these metals is
considerable, but Copper and Nickel despite forecast shortages, seem to defy
this random price fluctuation.
During the year, Tiger sold its investments in Block Energy Plc, Corallian
Energy Ltd, Pantheon Resources Plc, Reabold Resources Plc and a partial
holding in Jubilee Metals Group Plc. We believe that investments currently
held by the Company in African Pioneer Plc, Galileo Resources Plc and Jubilee
Metals Group Plc are well exposed to the new age metal opportunities and as
such when these commodities recover particular so for Copper, we should see a
rerate in their share prices, thus benefitting Tiger's portfolio. The Board
continues to be proactively involved in both Kendrick Resources Plc and
African Pioneer Plc and we look forward to helping to progress these
investments.
The Board is conscious of the fact that resources currently available to the
Company for working capital purposes and to make new investments are limited
and we will consider ways to recapitalise the Company to facilitate
investments or a transaction going forward. We continue to look for new
opportunities in the new age metal space and potential mineral opportunities
which meet the Company's criteria will be targeted and reversed in existing
shells or packaged as a new listing. However, considering the ongoing
current economic climate, very few new junior deals are coming to market and
it is therefore more likely that we will look at adding value to potential
assets by reversing such assets in target companies rather than seeking new
listings.
The common theme over the last few years has been that the major mining
companies have been light on metal inventory and have generally relied on
junior exploration companies for new production. Our belief for majors to
materialise has been rather slow to materialise, but it is now assuming at
some pace and we are seeing more and more M&A activity in the in the
natural resource sector with significant mergers and takeovers currently being
considered.
We remain committed to proactive investment opportunities, and we believe that
the day of the small miner and explorer is re-emerging and that Tiger's
shareholders will benefit from the changing dynamics in the industry. We
look forward to opportunities arising from the emergence of electric vehicles
and the climate change revolution which will no doubt result in a rapidly
changing and very different commodity and investment environment.
I would like to thank my fellow directors and management for the efforts
during the year and look forward to enjoying a more upbeat and vibrant
environment in which to implement our strategy.
Colin Bird
Chairman
19 June 2023
PORTFOLIO REVIEW
The table below includes investments held by the Company, and are disclosed in
note 6 to the financial statements.
Number Cost Valuation Valuation Valuation
31/12/22 31/12/22 31/12/22 31/12/21 31/03/23
£ £ £ £
African pioneer Plc 8,810,056 100,000 202,631 190,297 183,249
Bezant Resources Plc 83,870,371 326,885 71,290 125,806 50,322
Block Energy Plc - - - 5,625 -
Caerus Mineral Resources Plc 1,000,000 100,603 45,000 140,000 40,000
Corallian Energy Limited - - - 20,427 -
Galileo Resources Plc 6,516,667 78,335 84,717 63,863 65,167
Goldquest Mining Corporation 173,500 30,259 14,796 13,437 15,034
Jubilee Metals Group Plc 869,600 74,513 88,264 190,060 70,002
Kendrick Resources Plc 83,333 50,217 812 - 775
Pantheon Resources Plc - - - 24,349 -
Reabold Resources Plc - - - 5,445 -
TOTAL 760,812 507,510 779,309 424,549
The Company sold 625,000 shares of Block Energy Plc, 13,618 shares of
Corallian Energy Ltd, 300,000 shares of Jubilee Metals Group Plc, 31,500
shares of Pantheon Resources Plc and 3,025,068 share of Reabold Resources Plc,
during the year.
Details of changes in the fair value of investments are shown in note 6 of the
Financial Statements.
African Pioneer Plc (LSE: AFP) www.africanpioneerplc.com
(http://www.africanpioneerplc.com)
African Pioneer Plc's (APP's) principal business is to explore opportunities
within the natural resources sector in Sub-Saharan Africa with a focus on base
metals including copper, nickel, lead and zinc. Tiger's current holding in
APP is 8,810,056 ordinary shares representing a 4.6% interest in the
company. During the last 12 months, APP has carried out a drilling exercise
on its Ongombo licence which has had considerable success in identifying near
surface material. These drilling results will allow the company to consider
an open pit /2-3 year mine project when evaluating a potential mine which
should facilitate entry into the proposed underground mine. The
re-evaluation of the Mineral Resource completed by independent consultants
Addison Mining Services and announced by APP in May 2023 achieved a
significant milestone for the company. On APP's Zambian licences, First
Quantum has reported considerable success with their initial fieldwork and
drilling programmes including some deeper holes drilled. The outcome has
shown the project to be extremely high in potential with First Quantum stating
their belief that the orebody style resembles that of the Kamoa-Kakula mine in
the nearby Congo and the Western Foreland style mineralisation associated with
Kamoa. This represents a potential significant major discovery for Zambia,
First Quantum and of course, APP. Apart from these deeper holes drilled,
there has been near surface mineral discoveries with indication of grades
somewhat higher than traditional Copperbelt expectations. Tiger remains
excited on the prospects of further news on APP's project and believes that
further progress on APP's assets should have a positive impact on the
performance of this investment.
Bezant Resources Plc (AIM - BZT: LN) www.bezantresources.com
(http://www.bezantresources.com)
Bezant Resources Plc ("Bezant") is a mineral exploration and development
company quoted on AIM and focused on developing a pipeline of copper-gold
projects to provide a new generation of economically and socially sustainable
mines. The company's portfolio of assets includes their flagship Hope and
Gorob Copper-Gold project in Namibia which covers a significant portion of the
highly prospective Matchless Copper Belt. The company also has an interest in
the Mankayan Project in the Philippines which is a porphyry system via its
26.36% shareholding in IDM International which, through Crescent Mining
Development Corporation continues to make good progress on initial
Pre-Feasibility Studies on the Mankayan copper-gold project in the
Philippines. The company's Kanye Manganese Project in Botswana comprises a
collection of prospecting licenses covering a total area of approximately
4,043km2 and is located in south-central Botswana south of the town of
Jwaneng. Kanye has the potential for the discovery of high-quality manganese
deposits suitable for supplying the valuable battery market.
Galileo Resources Plc (AIM - GLR - LN) www.galileoresources.com
(http://www.galileoresources.com)
Galileo Resources PLC ("Galileo") is an AIM quoted natural resource
exploration company specializing in the acquisition and development of base
metal projects with a focus on copper. The company recently announced the
results of an initial Inferred Mineral Resource Estimate ("MRE") in accordance
with the JORC code 2012 edition for its Luansobe copper project in Zambia,
completed by independent consultants Addison Mining Services. Galileo holds a
75% interest in the Project. Highlights of the MRE included approximately
5.8 million tonnes gross at 1% total Cu above a cut-off grade of 0.25% total
Cu for 56,000 tonnes of contained Cu, potentially amenable to open pit mining
and approximately 6.3 million tonnes gross at 1.5% total Cu above a cut-off
grade of 1% total Cu for 97,000 tonnes of contained Cu, potentially amenable
to underground mining. Elsewhere, Galileo is committed to a substantial
reconnaissance programme over the potentially prospective lithium terrain on
its Kamativi licence in western Zimbabwe comprising of stream sediment, rock
chip and soil sampling. The company has to date collected 4,359 samples of
which 1,282 were sent for laboratory analysis. The programme has identified
several targets in a number of areas within the Licence area where the peak
analytical values, metal associations and continuity are sufficiently coherent
to allow an early follow up programme including trenching and where warranted,
drilling.
Jubilee Metals Group Plc (AIM - JLP: LN) www.jubileemetalsgroup.com
Jubilee Metals Group Plc ("Jubilee") is a diversified metal recovery business
with a world-class portfolio of projects in South Africa and Zambia. Jubilee's
shares are traded on the AIM Market of the London Stock Exchange (JLP) and the
South African Alt-X of JSE Limited (JBL). The company's business model focuses
on the retreatment and metals recovery from mine tailings, waste, slag, slurry
and other secondary materials generated from mining operations. Effectively,
whilst extracting maximum financial returns from its operations, Jubilee
responsibly rehabilitates environments scarred by the surface footprint of
historical mining operations and solving air and water pollution issues
associated with those installations. The company's expanding multi-project
portfolio across South Africa and Zambia provides exposure to a broad
commodity basket including Platinum Group Metals ('PGMs'), chrome, lead, zinc,
vanadium, copper and cobalt.
STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31 DECEMBER 2022
2022 2021
Notes
£ £
Change in fair value of investments 6 (159,847) 26,695
Revenue:
Investment income - 1,610
Other income - 32,864
Administrative expenses 2 (297,115) (313,214)
LOSS BEFORE TAXATION (456,962) (252,045)
Taxation 4 - -
(456,962) (252,045)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
Basic loss per share 5 (0.10)p (0.06)p
Diluted loss per share 5 (0.10)p (0.06)p
All profits are derived from continuing operations.
STATEMENT OF CHANGES IN EQUITY YEAR ENDED 31 DECEMBER 2022
Other components of equity
Share capital Share premium Warrants reserve Capital redemption reserve Retained earnings Total
Equity
£ £ £ £ £ £
As at 1 January 2021 1,724,930 1,949,871 - 1,100,000 (3,797,955) 976,846
Shares issued during the year 8,500 36,550 - - - 45,050
Total comprehensive income for the year - - - - (252,045) (252,045)
As at 31 December 2021 1,733,430 1,986,421 - 1,100,000 (4,050,000) 769,851
1,733,430 1,986,421 1,100,000 (4,050,000) 769,851
As at 1 January 2022
Shares issued during the year 91,686 26,619 65,067 - - 183,372
Total comprehensive income for the year - - - - (456,962) (456,962)
As at 31 December 2022 1,825,116 2,013,040 65,067 1,100,000 (4,506,962) 496,261
STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
Notes 2022 2021
£ £
NON- CURRENT ASSETS
Investments in financial assets at fair value through profit or loss 6 507,510 779,309
Total Non-Current Assets 507,510 779,309
CURRENT ASSETS
Trade and other receivables 7 45,819 4,723
Cash and cash equivalents 150,631 34,394
Total Current Assets 196,450 39,117
TOTAL ASSETS 703,960 818,426
CURRENT LIABILITIES
Trade and other payables 9 (207,699) (48,575)
Total Current Liabilities (207,699) (48,575)
NET ASSETS 496,261 769,851
EQUITY
Share capital 10 1,825,116 1,733,430
Share premium 2,013,040 1,986,421
Warrants reserve 11 65,067 -
Capital redemption reserve 1,100,000 1,100,000
Retained earnings (4,506,962) (4,050,000)
TOTAL EQUITY 496,261 769,851
CASH FLOW STATEMENTS YEAR ENDED 31 DECEMBER 2022
Notes 2022 2021
£ £
CASH FLOW FROM OPERATIONS
Loss before taxation (456,962) (252,045)
Adjustments for:
Dividends receivable - (1,610)
Change in fair value of investments 159,847 (26,695)
Other income - (32,864)
Operating loss before movements in working capital (297,115) (313,214)
(Increase)/Decrease in receivables (1,092) 18,513
Increase/(Decrease) in payables 159,120 (58,909)
NET CASH OUTFLOW FROM OPERATING ACTIVITIES (139,087) (353,610)
CASH FLOW FROM INVESTING ACTIVITIES
Other income - 2,664
Dividends received - 1,610
Sale of investments 111,952 63,634
Purchase of investments - (100,603)
NET CASH INFLOW FROM INVESTING ACTIVITIES 111,952 (32,695)
CASH FLOW FROM FINANCING ACTIVITIES
Issue of shares 143,372 -
NET CASH INFLOW FROM FINANCING ACTIVITIES 143,372 -
Net Increase/(decrease) in cash and cash equivalents in the year 116,237 (386,305)
Cash and cash equivalents at the beginning of the year 34,394 420,699
150,631 34,394
Cash and cash equivalents at the end of the year
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. ACCOUNTING POLICIES
Basis of preparation
Tiger Royalties and Investments Plc ("Tiger" or the "Company") is a public
investment company limited by shares incorporated and domiciled in England and
Wales. The principal activities are discussed in the Strategic Report and the
address of the registered office is included on page 1 of the annual report.
The functional currency for the Company is Sterling as that is the currency of
the primary economic market in which the Company operates. 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 Company are set out
below. The financial statements have been prepared using International
Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board (IASB) and endorsed by the United Kingdom.
New and amended IFRS Standards that are effective for the current year
A number of new standards and interpretations have been adopted by the Company
for the first time in line with their mandatory adoption dates, but none are
applicable to the Company and hence there would be no impact on the financial
statements.
New and revised IFRS Standards in issue but not yet effective
At the date of approval of these financial statements, the Company has not
applied the following new and revised IFRS Standards that have been issued but
are not yet effective:
IFRS 17 (including the June 2020 and December 2021 amendments to IFRS 17) Insurance Contracts
Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture
Amendments to IAS 1 Classification of Liabilities as Current or Non-current
Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies
Amendments to IAS 8 Definition of Accounting Estimates
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
IFRS 3 Conceptual framework
Amendments to IFRS 3 Reference to the Conceptual Framework
Amendments to IAS 16 Property. Plant and Equipment-Proceeds before Intended Use
Amendments to IAS 1 Non-current liabilities with covenants
Amendments to IFRS 16 Lease liability sale & leaseback
The directors do not expect that the adoption of the Standards listed above
will have a material impact on the financial statements of the Company in
future periods.
Going concern
The operations of the Company have been financed mainly through operating cash
flows. As at 31 December 2022, the Company held cash balances of £150,631
(2021: £34,394) and an operating loss has been reported. Historically, the
Company has generated cash flow from the sale of investments in quoted natural
resource companies.
Cash and cash equivalents were £150.631 (2021:34,394) as at 31 December 2022
and the Company held investment in financial investments at 31 December 2022
of £507,510. Although an operating loss is not expected in the year
subsequent to the date of these accounts, it is possible, as a result of
volatile markets, that the Company may need to raise funding to provide
additional working capital to finance its ongoing activities. The management
team has successfully raised funding for similar projects and companies in the
past, however there is no guarantee that adequate funds will be available when
needed in the future.
Based on its current reserves and the Board's assessment that the Company
should be able to raise additional funds, as and when required to meet its
working capital requirements, the Board have concluded that they have a
reasonable expectation that the Company can continue in operational existence
for the foreseeable future. In addition, the Board confirms that Directors
fees will continue to accrue or be paid in shares (subject to AIM rules and
other regulatory issues) until the Company undertakes either a fundraise and
has sufficient excess working capital to settle such fees, or is involved in a
significant transaction which would significantly uplift the prospects for the
Company. For these reasons the financial statements have been prepared on the
going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and discharge of liabilities in the
normal course of business.
There is a material uncertainty relating to the conditions above that may cast
significant doubt on the Company's ability to continue as a going concern and
therefore the Company may be unable to realise its assets and discharge its
liabilities in the normal course of business.
This financial report does not include any adjustments relating to the
recoverability and classification of recorded assets amounts or liabilities
that might be necessary should the entity not continue as a going concern.
Valuation of available-for-sale Investments and adoption of IFRS9
Available-for-sale investments under both IFRS9 and IAS39 are initially
measured at fair value plus incidental acquisition costs. Subsequently, they
are measured at fair value in accordance with IFRS 13. This is either the bid
price or the last traded price, depending on the convention of the exchange on
which the investment is quoted.
All gains and losses are taken to profit and loss. In proceeding periods gains
and losses on available-for-sale investments were recognised in other
comprehensive income and accumulated in the available-for-sale assets reserve
except for impairment losses, until the assets are derecognised, at which time
the cumulative gains and losses previously recognised in other comprehensive
income are recognised in profit or loss.
Revenue
Dividends receivable from equity shares are taken to profit or loss on an
ex-dividend basis. Income from bank interest received is recognised on a
time-apportionment basis. Dividends are stated net of related tax credits.
Expenses
All expenses are accounted for on accruals basis.
Cash and cash equivalents
This consists of cash held in the Company's bank accounts.
Foreign currency
Assets and liabilities denominated in foreign currency are translated into
sterling at the rates of exchange ruling at balance sheet date. Exchange
gains or losses on monetary items are recorded in profit or loss. Exchange
gains or losses on investments in financial assets are recorded in other
comprehensive income.
Treasury shares
The cost of purchasing treasury shares and the proceeds from the sale of
treasury shares up to the original price is taken to the retained earnings
reserve; any surplus on the disposal of treasury shares (measured against the
weighted average purchase price) is taken to the share premium account.
Reserves
Share premium account
The share premium account is used to record the aggregate amount or value of
premiums paid in excess of the nominal value of share capital issued, less
deductions for issuance costs.
Capital Redemption Reserve
The Capital redemption reserve is used to redeem or purchase of Company's own
shares.
Warrants reserve
The warrant reserve presents the proceeds from issuance of warrants, net of
issue costs. Warrant reserve is non-distributable and will be transferred to
share capital account and accumulated losses upon exercise of warrants.
Geographical segments
The internal management reporting used by the chief operating decision maker
consists of one segment. Hence in the opinion of the Directors, no separate
disclosures are required under IFRS 8. The Company's revenue in the year is
not material and consequently no geographical segment information has been
disclosed.
Deferred tax
Deferred tax liabilities are generally recognised for taxable temporary
differences and deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary
differences can be utilised except for differences arising on investments in
subsidiaries where the Company is able to control the timing of the reversal
of the difference and it is probable that the difference will not reverse in
the foreseeable future.
Deferred tax is also based on rates enacted or substantively enacted at the
reporting date and expected to apply when the related deferred tax asset is
realised or liability settled.
Deferred tax is charged or credited in the statement of comprehensive income,
except when it relates to items charged or credited directly to equity, in
which case the deferred tax is also dealt within equity.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from profit as reported in the income statement because it
excludes items or expenses that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The Company's
liability for current tax is calculated using tax rates that have been enacted
or substantively enacted by the end of the reporting period.
Significant management judgement in applying accounting policies and
estimation uncertainty
When preparing the financial statements, management makes a number of
judgements, estimates and assumptions about the recognition and measurement of
assets, liabilities, income and expenses.
Fair value of financial assets
Establishing the fair value of financial assets may involve inputs other than
quoted prices. As is further disclosed in note 6, all of the Company's
financial assets which are measured at fair value are based on level 1 inputs,
which reduces the level of estimation involved in their valuation.
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an
assessment of the probability of the Company's future taxable income against
which the deductible temporary differences can be utilised. In addition,
significant judgement is required in assessing the impact of any legal or
economic limits or uncertainties in various tax jurisdictions. In the opinion
of the directors a deferred tax asset has not been recognised as future
profits cannot be forecasted with reasonable certainty.
2. OPERATING EXPENSES
Operating profit is stated after charging:
2022 2021
£ £
Auditor's remuneration:
- Audit of the financial statements 12,750 12,750
- Taxation compliance services 1,500 1,500
14,250 14,250
Notes
Legal fees 4,080 1,200
Corporate finance costs 24,278 33,402
Directors' 109,000 109,000
fees
3
Occupancy and support costs 72,000 72,000
Other administrative overheads 61,482 68,267
Stock Exchange costs 12,025 15,095
Administrative expenses 297,115 313,214
3. DIRECTORS' EMOLUMENTS
2022 2021
£ £
Directors' fees 109,000 109,000
Other than directors, there were no employees in the current or prior year. No
pensions or other benefits were paid to the Directors in the current or prior
period.
The emoluments of each director during the year were as follows:
2022 2022 2021 2021
Amount outstanding at year end Amount outstanding at year end
£ £ £ £
Colin Bird 36,000 20,616 36,000 3,414
Michael Nolan 25,000 27,083 25,000 2,083
Raju Samtani 30,000 16,548 30,000 2,745
Alex Borrelli 18,000 20,937 18,000 1,605
The amounts above shown as outstanding to the Directors relate to fees and/or
salaries for the 6 month period to 31 December 2022 for Colin Bird and Raju
Samtani and for the 13 month period to 31 December 2022 for Alex Borrelli and
Michael Nolan. Fees and/or salaries due to Alex Borrelli and Michael Nolan
for the 7 months period to 30 June 2022 were settled in January 2023.
4. TAXATION
2022 2021
£ £
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 19% (2021 - 19%) and the
reported tax expense in the statement of comprehensive income are as follows:
2022 2021
£ £
Loss on ordinary activities before tax (456,962) (252,045)
Expected tax charge at 19% (2021 - 19%) (86,823) (47,889)
Effects of:
Exempt dividend income - (306)
Difference between accounting gain and taxable gain on investment 30,524 (5,072)
Excess management expenses carried forward 56,299 53,267
Non-trade loan relationship deficit carried forward - -
- -
Actual tax charge
5. LOSS PER SHARE
Basic 2022 2021
Loss after tax for the purposes of loss per share attributable to equity (456,962) (252,045)
shareholders
Weighted average number of shares 450,705,455 445,817,308
Basic loss per ordinary share (0.10)p (0.06)p
Diluted
Loss for year after tax (456,962) (252,045)
Weighted average number of shares 450,705,455 445,817,308
Diluted weighted average number of shares 450,705,455 445,817,308
Diluted loss per ordinary share (0.10)p (0.06)p
6. INVESTMENTS IN FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
2022
Listed Investments Other Investments (Quoted/Others) Total
Canada 14,796 - 14,796
UK 248,443 244,271 492,714
263,239 244,271 507,510
2021
Listed Investments Other Investments (Quoted) Total
£ £ £
Canada 13,437 - 13,437
UK 330,297 435,575 765,872
343,734 435,575 779,309
Listed Investments Other Investments (Quoted/Others) Total
£ £ £
Opening book cost 230,861 641,096 871,957
Opening unrealised depreciation 112,873 (205,521) (92,648)
Valuation at 1 January 2022 343,734 435,575 779,309
Movements in the year:
Purchase at cost - - -
Sales proceeds - (111,952) (111,952)
Realised gains/(losses) on sales based on historic cost - 806 806
Increase/(Decrease) in unrealised depreciation (80,495) (80,158) (160,653)
263,239 244,271 507,510
Book cost at year end 281,079 479,733 760,812
Closing unrealised depreciation (17,840) (235,462) (253,302)
Valuation at 31 December 2022 263,239 244,271 507,510
2022 2021
£ £
Realised (loss)/gain based on historical cost 806 (85,461)
Realised (loss)/gain based on carrying value at previous balance sheet date 806 (85,461)
Unrealised fair value movement for the year (160,653) 112,156
Total recognised (losses)/gains on investments in the year (159,847) 26,695
The gains/(losses) on the Company's investments are analysed below.
Accounting standards prohibit the recognition of uplifts in the
value of impaired assets in profit and loss.
Security 31 December 2022 31 December 2021
Profit and loss Profit and loss
African Pioneer Plc 12,334 90,297
Bezant Resources Plc (54,516) (89,534)
Block Energy Plc 2,531 (14,687)
Caerus Minerals Plc (95,000) 39,398
Corallian Energy Ltd (9,533) -
WisdomTree Copper (ETFS Copper) - 3,301
Galileo Resources Plc 20,854 (43,662)
Goldquest Mining Corporation 1,359 (14,705)
Jubilee Metals Group Plc (61,295) 40,936
Kendrick Resources Plc 812 -
Pantheon Resources Plc 18,342 10,647
Reabold resources Plc 4,265 (4,128)
Royal Dutch Shell Plc - 8,832
Total movements (159,847) 26,695
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:
Level 1 Level 2 Level 3 Total
31 December 2022 £ £ £ £
Assets 507,510 - - 507,510
Investments held at fair value
Total 507,510 507,510
Level 1 Level 2 Level 3 Total
£ £ £ £
31 December 2021
Assets 758,882 20,427 779,309
Investments held at fair value
Total 758,882 - 20,427 779,309
There have been no significant transfers between levels in the reporting
period.
Reconciliation of Level 3 fair value measurements of financial instruments
Level 3 investments £
Balance at 1 January 2021 30,000
Total gains or (losses) in other comprehensive income -
Purchases/(Sales) (9,573)
Transfers in/(out) -
Balance at 1 January 2022 20,427
Total gains or (losses) in other comprehensive income -
Purchases/(Sales) (20,427)
Transfers in/(out) -
Balance at 31 December 2022 -
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 Company are denominated in GBP and CAD$, and are
publicly traded on the main London Stock Exchange, the Alternative Investment
Market of the London Stock Exchange and the Toronto Venture Exchange. Fair
values have been determined by reference to their quoted bid prices at the
reporting date.
7. TRADE AND OTHER RECEIVABLES
2022 2021
£ £
Other debtors 40,526 1,913
Prepayments 5,293 2,810
45,819 4,723
An expected credit loss impact assessment under IFRS 9 is not required, as the
Company does not hold any trade or intercompany debtors as at the balance
sheet date.
8. DEFERRED TAX
The Company has the below tax losses and related potential deferred tax:
Description 2022 2021 Potential Deferred tax asset Potential Deferred tax asset
£ £ 2022 2021
£ £
Non trade deficits 11,794 11,794 2,948 2,241
Excess management charges 2,780,941 2,483,826 695,235 471,927
Capital losses 771,434 772,240 192,858 146,726
3,564,169 3,267,860 891,041 620,894
Deferred tax assets are not recognised due to the unpredictability of future
profit streams arising from the disposal of investments held by the Company.
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 company's financial assets will vary
depending on changes in the fair values of those assets up until the date of
disposal.
9. TRADE AND OTHER PAYABLES
2022 2021
£ £
Trade payables 84,280 6,625
Directors 85,184 9,847
Accruals 38,235 32,103
207,699 48,575
10. CALLED UP SHARE CAPITAL
The share capital of Tiger consists of fully paid ordinary shares with a
nominal value of 0.1p each and deferred shares with a nominal value of 0.9p
each. Ordinary shares of 0.1p are eligible to receive dividends and the
repayment of capital and represent one vote at the shareholders' meeting of
The Company. The deferred shares carry no dividend or voting rights.
2022 2021
£ £
Authorised:
Ordinary Share Capital 10,000,000 10,000,000
142,831,939 (2021: 142,831,939) deferred shares of 0.9 p each 1,285,487 1,285,487
2022 2021
£ £
Opening Ordinary shares - 447,942,308 at 0.1p each (2021: 439,442,308 Ordinary 447,943 439,443
shares of 0.1p each)
Issued during the year
91,686,246 shares at issue price of £0.002 (nominal value of 0.1p each) - (i) 91,686 -
8,500,000 shares at issue price of 0.53p (nominal value 0.1p each) - (ii) - 8,500
Ordinary shares in issue as at 31 December 2021 - 539,628,553 at 0.1 p each 539,629 447,943
(2021 : 447,942,308 shares of 0.1p each) nominal value
142,831,939 (2021: 142,831,939) deferred shares of 0.9p each 1,285,487 1,285,487
1,825,116 1,733,430
The Deferred shares have no income or voting rights.
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.
(i) This share issue included 10,936,246 shares allotted
to two directors in lieu of accrued net salary of £21,872. Please see note
12(4) for further details.
(ii) On 15 March 2021, The Company issued 8.5 million
shares of 0.1 p each at an issue price of 0.53p each share each to settle
outstanding fees due to Sanderson Capital Partners td (existing shareholder in
the Company), totalling £45,050.
11. Share Warrants
2022 2021
Number of warrants Exercise price Number of warrants Exercise price
Outstanding at 1 January - - - -
Issued 91,686,246 0.3p - -
Outstanding at 31 December 91,686,246 -
Each of the participants in the Fundraising/shares issue on 20 December 2022
received one warrant exercisable at 0.3 pence for each Fundraising Share which
they subscribed, valid for two years.
As a result of this, the fair value of the share options was determined at the
date of the grant using the Black Scholes model, using the following inputs
Start date Expiry date Warrant price pence Risk free rate Volatility Fair value of warrants
20 December 2021 20 December 2024 0.3 6% 110% £65,067
12. 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 (2021 - £60,000). There
was an amount of £69,000 outstanding at 31 December 2022 (2021- 6,000). The
Board considers this transaction to be on an arms' length basis.
(2) The emoluments of the Directors and amounts due to each director at
year end are disclosed in note 3.
(3) Directors' shareholdings are disclosed in the Report of the Directors.
(4) As part of a fundraising completed on 20 December 2022, Mr Colin Bird
and Mr Raju Samtani each invested £25,000 to subscribe for 12,500,000 shares
of 0.1 pence each at a price of 0.2 pence per share. Additionally outstanding
salary due to Colin Bird of £12,600 was converted into 6,300,000 Placing
Shares and outstanding salary due to Mr Raju Samtani of £9,272 was converted
into 4,636,246 Placing Shares. All shares received as part of the placing
and salary conversion attracted one warrant exercisable at 0.3 pence per share
for a period of 2 years from the date of the placing.
(5) On 18 February 2021, the Company received 28,314,815 shares in Bezant
Resources Plc (Mr Colin Bird and Mr Raju Samtani are executive directors of
the Company and also executive directors and shareholders of Bezant. In
addition, Mr Colin Bird held 2.7% interest in Metrock), as settlement of
outstanding loans of £46,250 which the Company had advanced to Metrock
Resources Ltd during Q4 2020 and fee due of £30,200 from Metrock. Initially,
on 12 October 2020, the Company negotiated an exclusive mandate to facilitate
an IPO for Metrock. However, subsequently on 22 December 2020, under a revised
mandate, both parties mutually agreed not to proceed with an IPO. Metrock was
then acquired by Bezant. As part of Bezant's Shareholders Purchase Agreement
(SPA) with the shareholders of Metrock, it was agreed that outstanding loans
in Metrock's books will be acquired by Bezant and settled in newly issued
Bezant ordinary shares of 0.002p each at a price of 0.27 pence per share on
completion of the SPA ("Bezant Shares"). Accordingly, Tiger was issued
28,314,815 Bezant Shares on completion of the SPA to settle loans of £46,250
which it has made to Metrock and the £30,200 fee referred to above. Upon
issue of the 28,314,815 Bezant Shares, Tiger's total shareholding in Bezant
increased to 83,870,371 shares representing 2.37% of the Bezant's enlarged
issued share capital on completion.
(6) The Company held a 50.75% equity stake in African Pioneer Plc ("APP").
On 1 June 2021, APP's shares comprising 189,459,550 Ordinary shares of zero
par value each ("Ordinary Shares") were admitted to the Official List
(Standard Segment), and to trading on the Main Market for listed securities of
the London Stock Exchange. Consequently, the Company's shareholding in APP was
reduced to 4.65% and APP is no longer a subsidiary of the Company. Tiger's
current holding in APP is 8,810,056 Ordinary Shares, which have been included
in the Company's balance sheet at market valuation under investment in
financial assets at fair value through profit or loss. Mr Colin Bird and Mr
Raju Samtani, who are both Directors of Tiger and African Pioneer Plc and
co-vendors of African Pioneer Zambia to APP, each received 15,000,000 APP
Shares on Standard Listing. Campden Park Trading, a company owned and
controlled by Mr Colin Bird, received 5,000,000 APP Shares on Standard Listing
carrying a total value of £700,000 attributable to Colin Bird and related
companies and £525,000 to Raju Samtani upon Standard Listing.
(7) On 31 March 2021, African Pioneer Plc (Mr Colin Bird and Mr Raju
Samtani, are both Executive Directors & shareholders of the Company and
African Pioneer Plc) repaid £18,385 due to the Company as at 31 December 2020
plus an interest amount of £760.71. Under a loan agreement dated 28 January
2021, Tiger advanced an unsecured loan of £112,981 to African Pioneer plc at
a coupon rate of 10%. African Pioneer Plc repaid this balance plus an interest
amount of £1,903.78 on 31 March 2021.
(8) On 1 June 2021, an amount of £100,000 due from African Pioneer Plc to
the Company (Mr Colin Bird and Mr Raju Samtani, are both Executive Directors
& shareholders of the Company and African Pioneer Plc), was converted to
2,857,143 (zero nominal value) shares of African Pioneer Plc.
(9) Colin Bird and Alex Borrelli are directors of Kendrick Resources Plc.
Refer to portfolio valuation on page 3 for details for Tiger's current
holding in Kendrick Resources Plc.
(10) Colin Bird is a director of Galileo Resources Plc. Refer to portfolio
valuation on page 3 for details for Tiger's current holding in Galileo
Resources Plc.
13. POST-REPORTING DATE EVENTS
There are no events after the balance sheet date that may warrant disclosure
or may require adjustments to these financial statements.
14. CONTINGENT LIABILITIES
There were no contingent liabilities at 31 December 2022 (2021 - None).
There were no operating or financial commitments or contracts for capital
expenditure in place for the Company as at the reporting date (2021: £nil).
15. FINANCIAL INSTRUMENTS
Management of Risk
The Company's financial instruments comprise:
§ Investments held at fair value through profit or loss
§ Cash, short-term receivables and payables
Throughout the period under review, it was the Company's policy that no
trading in derivatives shall be undertaken.
The main financial risks arising from the Company's financial instruments are
market price risk and liquidity risk.
Liquidity risk arises principally from cash and cash equivalents, which
comprise cash at bank (repayable on demand). The Company has no overdraft
facilities. The carrying amount of these assets are approximately equal to
their fair value.
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.
Financial Assets and Liabilities
Financial Assets
Financial Assets at amortised cost 2022 2021
Other debtors 40,526 1,913
Prepayments 5,293 2,810
Cash and cash equivalents 150,631 34,394
Financial Assets at fair value through other comprehensive income 507,510 779,309
Total 703,960 818,426
Financial Liabilities
Financial Assets at amortised cost 2022 2021
Trade Creditors 111,363 8,708
Other creditors 58,101 7,764
Accrued expenses 38,235 32,103
Total 207,699 48,575
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. 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 Company's investment policy.
Interest rate risk
Changes in interest rates would affect the Company 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 2022 for the Company was £150,631 (2021: £34,394).
A sensitivity analysis based on a movement of 1% on interest rates would have
a £1,506 effect on the Company's' profit (2021: £344).
As the Company 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 Company's total return and net assets can be affected by currency
translation movements as part of the investments 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 (2021: none).
The fair values of the Company's investments that have foreign currency
exposure at 31 December 2022 are shown below.
2022 2021
CAD CAD
£ £
Investments in financial assets at fair value through profit or loss 14,796 13,437
The Company accounts for movements in fair value of its financial assets in
other comprehensive income. The following table illustrates the sensitivity of
the equity in regard to the Company's financial assets and the exchange rates
for £/ Canadian Dollar.
It assumes the following changes in exchanges rates:
- £/CAD +/- 20% - (2021: +/- 20%)
These percentages used reflect the high level of market volatility experienced
in exchange rates in recent years.
The sensitivity analysis is based on the Company's foreign currency financial
instruments held at each balance sheet date.
If £ Sterling had weakened against the currencies shows, this would have had
the following effect:
2022 2021
CAD CAD
£ £
Equity 2,959 2,687
If £ Sterling had strengthened against the currencies shows, this would have
had the following effect:
CAD CAD
£ £
Equity (2,466) (2,240)
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 Company accounts for movements in the fair value of investments in
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 Company's equities at
each balance sheet date, with all other variables held constant.
2022 2021
50% increase in fair value 50% decrease in fair value 50% increase in fair value 50% decrease in fair value
£ £ £ £
Equity 253,755 (253,755) 389,655 (389,655)
Liquidity risk
The Company maintains appropriate cash reserves and the majority of the
Company's assets comprise realisable securities, most of which can be sold to
meet funding requirements if necessary. Given the Company'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 Company suffering a loss is minimal. The
Company holds its cash balances amounting to £150,631 (2021: £ 34,394) with
a reputable bank and only transacts with regulated institutions on normal
market terms, and this is the only significant credit risk exposure. The
credit rating for the bank is A+.
Included in total amounts receivable at 31 December 2022 is the sum of £457
(2021 - £1,844) which was lodged with the Company's brokers in relation to
future investments.
Concentration risk
The cash balance held with bank of £150,631 (2021: £34,394) is the only
significant credit risk exposure
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 one
month.
Capital management
The Company 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 capital structure of the Company
consists of only equity (comprising issued capital, reserves, and retained
earnings as disclosed below and the Statements of Changes in Equity) and no
debt.
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 Company has not purchased any of its own shares (2021: Nil).
Company At 1 January 2022 Cash flows Other non-cash changes At 31 December 2022
Cash and cash equivalents £ £ £ £
Cash 34,394 116,237 - 150,631
Borrowings - -
Debt due within one year - -
Debt due after one year - -
Total 34,394 116,237 - 150,631
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