Half-year Report

RNS Number : 8667B
Tiger Resource PLC
25 September 2018
 

      

 

 

 

For immediate release                                                                     25 September 2018

 

TIGER RESOURCE PLC ("Tiger" or the "Company")

 

INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2018

 

Operations Review

 

Net Asset Value per share - 30 Jun 2018 - 0.69p / 31 Dec 2017 - 0.62p (30 June 2017 - 1.03p)

Total assets - 30 Jun 2018 £1.27M / 31 Dec 2017 - 1.17M (30 June 2017 - £1.42M)

 

The period under review has been volatile compared to more recent reporting periods although global prosperity, company earnings and a general "feel good" factor continue to prevail.  The underlying threats relating to the introduction of trade tariffs has resulted in caution and consequently we have seen some level of uneasiness in smaller cap stocks.  The major indices have continued to surge forward although the resource sector has not fully participated in this upward trajectory in more recent months and most major mining companies are trading lower compared to prior period levels.

 

The threat of serious trade wars and the strong US Dollar have again disrupted global economies although the key global indices continue to "shrug off" this underlying threat. The investment community is at a stage where just about every asset class is aligned positively, a phenomenon which has not been historically sustainable and the break-out of any one significant asset class could result in further volatility in the foreseeable future. The aforementioned philosophical comments may be challenged in the corridors of Wall Street and in other major financial centres, but the Board has no doubt that these factors can affect the performance of smaller cap resource companies.  Investors in the junior resource sector tend to bank profits from investments on an ongoing basis as opposed to taking a longer term view and this can also result in a volatile environment, with investors at times focusing on stocks with poor fundamentals trading for "casino type" returns as opposed to investing in quality assets which have good potential over a longer term horizon.

 

The aforementioned points produce a challenging backdrop for our investment strategy. However, since the inception of Tiger, it has never been the intention to join the herd but instead to back assets which have good fundamentals together with strong and experienced management able to develop and add value to projects to deliver good medium-term returns.  The current environment is extremely positive for asset selection as opposed to stock selection and as such we remain convinced that our proactive participation in underlying investments is the best way forward and our focus will remain on quality assets at the right valuation as opposed to second guessing how individual shares might perform against their peers in a volatile market.

 

During the period under review, Tiger sold 95,000 shares in Rockrose Energy Plc ("Rockrose") realising net proceeds of £341,354 realising a net gain of £293,854 and received a special dividend of £142,500 which was paid out to qualifying RockRose shareholders on 23 February 2018.  The Company made an investment of £250,000 in Bezant Resources Plc which has a major porphyry Copper project in the Philippines; this asset is well defined and positioned compared to similar sized projects held by its peer groups.  Further investments were made in Block Energy Plc and Corrallian Energy Limited positioning the portfolio to benefit from the improving prospects in the energy sector.

 

Although the net asset valuation reflects only a marginal improvement in the six months period to 30 June 2018, mainly due to relatively volatile markets and general bearishness towards the resource sector in recent months, we are confident that the mix of investments currently held by Tiger and our proactive investment approach will pay off going forward.  We would like to thank our stakeholders for their resilience and support during the period under review and we will focus our efforts on increasing the Company's asset base during the second half of 2018.

 

 

 

By order of the Board.

XX September 2018

 

 

Portfolio Holdings as at 30 June 2018

 

 

 

Investments

Number

Cost

£

Valuation

 £

Anglo American PLC

11,500

250,117

194,902

Barkby Group PLC

60,606

100,000

4,848

Bezant Resources PLC

55,555,556

250,017

233,333

Block Energy PLC

1,250,000

50,200

42,500

BMR Group PLC

2,500,000

50,217

47,500

Corralion Energy LTD

20,000

30.000

30,000

ETFS Copper

1,760

29,864

36,819

Galileo Resources Plc

6,516,667

78,200

91,885

Goldquest Mining Corp

173,500

30,259

19,223

Jubilee Platinum PLC

1,169,600

100,219

28,304

Pantheon Resources

31,500

30,340

5,903

Revelo Resources Corp

216,667

      62,965

2,492

Royal Dutch Shell PLC B Shares

5,400

146,468

146,470

 

 

Total

 

 

884,179

 

 

 

 

 

African Pioneer Plc

 

 

 

Europa Minerals Plc

130,499,858

65,250

91,350

Galileo Resources Plc

2,500,000

50,000

35,250

Jubilee Metals Plc

917,802

34,834

22,303

Revelo Resources Corp

1,515,000

53,778

15,266

South 32 Plc

1,800

28,607

28,188

Xtract Resources Plc

121,212,121

20,217

6,242

 

 

 

 

Total

 

 

198,599

 

 

 

 

Total Investments

 

 

1,082,778

 

 

 

 

 

 

 

 

 

Tiger Resource Plc

 

 

 

 

Raju Samtani, Director                                              

 

 

 

 

+44 (0)20 7581 4477

Beaumont Cornish

(Nomad)

Roland Cornish

Felicity Geidt

+44 (0)20 7628 3369

 

Email:corpfin@bcornish.co.uk

 

 

First Equity Limited

 (Joint Broker)

 

Jason Robertson

 

+44 (0)20 7374  2212

Novum Securities Plc

(Joint Broker)

 

Jon Belliss

+44 (0)20 7399 9425

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2018

 

 

 

 

(Unaudited)

Group Six months ended

30 June 18

 

 

£

Gain on sale of available for sale assets

476,252

213,450

Income:

 

 

Investment income

93

1,540

Interest receivable

163

181

Administrative expenses

(190,719)

(172,772)

Impairment

(71,720)

(47,760)

(LOSS) /PROFIT BEFORE TAXATION

214,069

(5,361)

 

 

 

Taxation

-

-

 (LOSS) /PROFIT FOR THE PERIOD

214,069

(5,361)

 

 

Other Comprehensive Income

 

 

 

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

(167,548)

390,091

Reclassification to profit or loss

46,392

(119,850)

 

 

 

Transfer to Impairment

-

-

 

 

 

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

(121,156)

270,241

TOTAL COMPREHENSIVE PROFIT/ (LOSS) FOR THE PERIOD

92,913

264,880

 

(Loss)/profit for the period attributable to:

 

 

 

Shareholders of the Company

229,659

(25,893)

Non-controlling interest

(15,590)

20,532

 

 

 

 

214,069

(5,361)

 

Basic earnings per share

Diluted earnings per share

 

 

 

 

 

 

All profits are derived from continuing operations.

Consolidated Statement of Financial Position

As at 30 June 2018

 

 

 

 

(Unaudited)

Group

30 June 18

 

£

NON CURRENT ASSETS

 

Financial assets at fair value through profit or loss

1,082,778

1,070,917

Available-for-sale investments

 

 

 

1,082,778

1,070,917

CURRENT ASSETS

 

 

Trade and other receivables

34,397

82,424

Cash and cash equivalents

205,269

414,437

 

239,666

496,861

 

 

 

TOTAL ASSETS

1,322,444

1,567,778

 

 

 

 

 

66EQUITY AND LIABILITIES

 

 

 

EQUITY ATTRIBUTABLE TO SHAREHOLDERS

 

Share capital

1,474,334

1,428,319

Share premium

1,669,216

1,597,231

Other components of equity

1,302,999

1,600,860

Retained earnings

(3,228,496)

(3,279,752)

EQUITY ATTRIBUTABLE TO THE OWNERS

1,218,053

1,346,658

 

 

 

Equity interest of non-controlling interest

48,083

73,979

 

 

 

TOTAL EQUITY

1,266,136

1,420,637

 

 

CURRENT LIABILITIES

 

Trade and other payables

56,308

147,141

Corporate tax payable

-

-

 

56,308

147,141

 

 

 

TOTAL LIABILITIES

56,308

147,141

 

 

TOTAL EQUITY AND LIABILITIES

1,322,444

1,567,778

 

 

 

 

 

Consolidated Statement of Changes in Equity

As at 30 June 2018

 

 

                                                                                         Other components of equity

 

Retained             earnings

 

                       

 

 

 

As at 31 December 2016

Changes in equity

Profit/ (Loss) for  the period

Other Comprehensive (loss)

Available-for-sale financial assets:

Current period gains

Transfer to on disposal

 

Total comprehensive expense for the period

 

As at 30 June 2017

Changes in equity

Profit/ (Loss) for  the period

Other Comprehensive (loss)

Available-for-sale financial assets:

Current period (losses)

Transfer to impairment

 

Total comprehensive expense for the period

 

Transactions with owners

 

 

 

 

 

 

 

 

 

Issue of shares

-

-

-

-

-

Share Premium on issue of new shares

Costs related to issue of new shares

 

-

-

118,000

 

As at 31 December 2017

(3,458,155)

 

 

Changes in equity

Profit/ (Loss) for  the period

Other Comprehensive (loss)

Available-for-sale financial assets:

Current period (losses)

Transfer to impairment

Transfer on disposal

Total comprehensive expense for the period

 

As at 30 June 2018

                     

 

                                                                                                                                                                       

 

 

 

 

 

 

 

 

 

Cash Flow Statement

For the six months ended 30 June 2018

 

 

 

 

(Unaudited)

30 June 18

 

£

CASH FLOW FROM OPERATIONS

 

(Loss)/profit before taxation

214,069

(5,361)

Adjustment for:

 

 

Interest received

(163)

(181)

Dividends received

(94)

(1,540)

 

 

 

Operating (loss) before movement in working capital

213,812

(7,082)

(Increase)/decrease in receivables

27,234

(69,157)

Increase/(decrease) in payables

(123,878)

3,860

Gain on disposal of financial asset at fair value

(476,021)

(213,450)

Impairment of investments

71,720

47,760

 

 

 

NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES

 

(287,133)

(238,069)

 

 

TAXATION PAID

 

CASH FLOW FROM INVESTING ACTIVITIES

 

Interest received

163

181

Dividends received

94

1,540

Sale of investments

739,631

330,384

Purchase of investments

(503,291)

(120,049)

 

 

 

NET CASH INFLOW FROM INVESTING ACTIVITIES

 

236,597

212,056

101,493

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

Purchase of shares by minorities

-

 

 

NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES

-

 

 

 

 

Net increase/(decrease) in cash and cash equivalents in the period

(50,536)

53,552

Cash and cash equivalents at the beginning of the period

255,805

360,885

Cash and cash equivalents at the end of the period

205,269

414,437

 

 

 

 

 

 

 

 

Selected notes to the consolidated financial statements

For the six months ended 30 June 2018

 

 

1.         Basis of preparation

 

The financial statements have been prepared under the historical cost convention except for the measurement of certain non-current asset investments at fair value. The measurement basis and principal accounting policies of the Group are set out below. The financial statements have been prepared using policies based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union. These interim financial statements for the period ended 30 June 2018 have been prepared by applying the accounting policies adopted in the audited accounts for the year ended 31 December 2017. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Reporting".

 

 

2.         Earnings Per Share    

 

 

Basic

Unaudited

 

6 months to

30 June 2018

 

 

 

 

Profit/(Loss) after tax for the purpose of

earnings per share

£229,659

£(25,893)

Weighted average number of shares

184,347,070

138,331,939

Basic earnings per ordinary share

0.12p

(0.01)p

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

Profit/(loss) after tax

£229,659

£(25,893)

Weighted average number of shares

184,847,070

138,331,939

Diluted effect of options

-

-

-

Diluted weighted average

number of shares

184,847,070

138,331,939

146,992,211

Diluted earnings per ordinary share

0.12p

(0.01)p

(0.14)p

         

 

 

 

3.         Deferred Tax

 

A deferred tax asset on revaluation of AFS investments arose during the period. However, deferred tax assets are not recognised due to the unpredictability of future profit streams arising from the disposal of investments held by the Group. Losses may be carried forward indefinitely and will only be recoverable if suitable profits arise in the future.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected notes to the consolidated financial statements

For the six months ended 30 June 2018

 

 

4.         Called Up Share Capital

                                                                                                                                                                 

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

.

 

 

 

 

 

30 June

2018

30 June

2017

 

£

£

Authorised:

 

 

 

 

10,000,000,000  (2016: 10,000,000,000) ordinary shares 0.1p

(30 June 2017 - 1p) each

10,000,000

10,000,000

 

 

 

 

 

 

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

1,285,487

-

 

 

 

 

 

 

Issued:

30 June

2018

30 June

2017

 

 

£

£

 

 

 

 

 

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

188,847

1,428,319

 

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

1,285,487

-

 

 

1,474,334

1,428,319

 

           

                                                                                                                                                                                                                                                                                                                                                                             

On 24 November 2017, the Company divided each issued existing ordinary share of 1p each (Existing Ordinary Share) into one new Ordinary share of 0.1p and one deferred share of 0.9p and each unissued Existing Ordinary Share into 10 new Ordinary Shares as part of a share capital reorganisation. The Deferred shares have no income or voting rights.

 

The Company issued 46,015,131 new Ordinary shares on 29 November 2017 following an open offer to all shareholders at a price of 0.35 pence per share (representing a premium of 0.25 pence per Ordinary share) increasing the number of shares in issue to 188,847,070 at 31 December 2017.   

 

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

 

 

Share warrants in issue at 30 June 2018.

 

The Company has granted warrants to subscribe for ordinary 1p shares as follows:

 

Date granted

Period exercisable

Exercise price per share (pence)

Number

of warrants

13 July 2016

2 years from issue date

1p

1,500,000

13 July 2016

2 years from issue date

1.5p

1,000,000

           

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

 

 

 

5.         Post-reporting date

 

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of release of the Company interim financials.

 

 


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