Preliminary Results

RNS Number : 6898M

Tiger Resource Finance PLC

28 May 2010

 



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

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER, 2009

OPERATIONS REVIEW

Dear Shareholder,

The year under review has seen Tiger's net asset value rise to 3.36p (2.99p at 31 December 2008) representing a 12% increase in the year. 

Over the last two years, the world has witnessed the most unstable economic environment since the depression of the 1930s.  The results for stock markets have been catastrophic, with valuations falling significantly below net asset value and sometimes cash.  Very few companies escaped the carnage, irrespective of activity or market sector.  Towards the middle of 2009, we witnessed some restoration in market values, with the financial sector weighing heavily against any real recovery.  However, banks began to relax their lending constraints and a semblance of banking normality was restored. 

During this generally dismal period, both precious and base metal prices have been buoyant with few exceptions.  The majors saw significant share price appreciation, whilst the juniors began real recovery, when investors could see value opportunities.

The demand for metals was driven largely by China, whose building and construction programmes showed no signs of slowing down.  Whilst this was so, global markets became "jittery" as to the potential for a massive "bubble".  The market remains divided as to the potential for the "bubble" bursting against others who insist that, at worst, we will experience a so called "soft landing".  In addition, all commentators are reluctant to estimate exactly when these events may occur.  The Board is of the opinion that fiscal management in China is better than the world gives it credit for and we expect a slow-down, but not the economic chaos evidenced by the credit crisis.

The Board considers that the continuing threat of sovereign debt repayment failure is potentially a bigger area of economic concern than the credit freeze.  Throughout the period under review, Tiger has been mindful of conserving its treasury and has only made investments in well known situations where the risk is well understood.

Going forward, the Board is convinced that significant investment opportunities will be available, but on a selected basis.  Earlier in the year, the Company issued an announcement that its investment management team has been enlarged and will target significant opportunities with greater unit size investment, the key areas of investment strategy being Africa and Asia.  It is not the intention of the Board to be passive or responsive to opportunities, but more proactive in seeking out opportunities for investment.

The Investment Committee also intends to better position the Company in its investments and as such may form special purpose vehicles to pro-actively position Tiger in new junior companies.

Tiger is confident that despite the gloom and doom evident at the moment, global demand for metals will not abate and major opportunities will occur for growing the Tiger portfolio and net asset value.

PORTFOLIO REVIEW

	Number	Cost	Valuation	Valuation
	31/12/09	31/12/09	31/12/09	30/04/10
		£	£	£
INVESTMENTS:
African Eagle Resources Plc	1,241,174	112,264	52,750	46,544
Aquarius Platinum Ltd (1)	18,182	89238	74,001	79,164
Ascent Resources Plc (2)	24,642,857	550,824	1,293,750	409,821
ETFS Physical Platinum (3)	-	-	-	252,847
Franconia Minerals Corp	475,733	69,939	108,199	153,539
Gold Fields Ltd (4)	10,500	32,759	87,196	-
In-Solve Plc (formerly Africa Oil Exploration Plc) (5)	625,000	37,500	15,625	14,063
Minmet Plc (5)	873,574	15,200	8,736	8,736
Nautical Petroleum Plc	450,000	180,000	211,500	252,000
Pacific North West Capital Corp	566,500	107,682	62,726	48,017
Pan African Resources Plc (4)	5,098,333	175,013	349,236	-
Vatukoula Gold Mines Plc	13,333,332	200,000	176,000	301,333
Sunrise Diamonds Plc	665,000	6,650	4,988	3,658
Tertiary Minerals Plc	1,330,000	119,700	49,875	29,925
U308 Holdings Plc	4,166,666	125,000	72,917	10,417
TOTAL		1,821,769	2,567,499	1,610,064

1) Aquarius Platinum Ltd acquired Ridge Mining Plc in May 2009. As a result, the 50,000 Ridge Mining Plc shares held by the Company then were replaced with 18,182 Aquarius Platinum shares.

2) The valuation of the Ascent Resources Plc investment at 30 April 2010 is based on 9,642,857 shares, which was the Company's holding at that date.

3) The Company purchased 2,250 ETFS Physical Platinum units on 19 April 2010.

4) The Goldfields Ltd and Pan African Resources Plc investments were sold between 1 January 2010 and 30 April 2010.

5) The Minmet Plc and In-Solve Plc (formerly Africa Oil Exploration Plc) investments were impaired on 31 December 2008 to £15,200 and £37,500 and respectively.

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2009

	Notes	2009	2008
		£	£
(Loss)/Profit on sale of available for sale assets	6	(48,754)	159,797
Income:
Investment income		13,848	1,335
Interest receivable		16,165	189,662
Administrative expenses	2	(277,859)	(376,525)
Impairment		0	(288,435)
PROFIT/(LOSS) BEFORE TAXATION		(296,600)	(314,166)
Taxation	4	0	30,653
PROFIT (LOSS) FOR THE YEAR		(296,600)	(283,513)
OTHER COMPREHENSIVE INCOME Available-for-sale financial assets     Unrealised gains/(losses)                                                                                                                                                                                                                        Reclassification to profit or loss		1,073,280 72,739	(5,429,262) (225,202)
Income tax relating to components of other comprehensive income	9	(208,805)	1,471,170
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX		937,214	(4,183,294)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		640,614	(4,466,807)
Basic earnings per share	5	(0.17)p	(0.16)p
Diluted earrings per share	5	(0.17)p	(0.16)p

All profits are derived from continuing operations.

 

 

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 DECEMBER 2009

	Share capital	Share premium	Capital redemption reserve	Other  reserve	Available-for-sale financial assets	Retained             earnings	F   Share based reserves	Total
	£	£	£	£	£	£	£	£
As at 31 Dec 2007	2,020,719	1,557,831	350,000	(1,471,170)	5,254,178	1,858,742	130,118	9,700,418
Changes in equity for 2008
Available-for-sale financial assets
Current year gains (losses)	-	-	-	-	(5,429,262)	-		(5,429,262)
Reclassification to profit or loss	-	-	-	-	(225,202)	-		(225,202)
Income tax relating to components of other comprehensive income	-	-	-	1,471,170	-			1,471,170
Loss for the year	-	-	-	-	-	(283,513)		(283,513)
Total comprehensive income and expense for the year	-	-	-	1,471,170	(5,654,464)	(283,513)	-	(4,466,807)
Issue of share capital	-	-	-	-	-	-		-
Shares bought back and held in treasury	-	-	-	-		(78,975)		(78,975)
As at 31 Dec 2008	2,020,719	1,557,831	350,000	-	(400,286)	1,496,254	130,118	5,154,636
Changes in equity for 2009
Available-for-sale financial assets
Current year gains (losses)	-	-	-		1,073,280	-		1,073,280
Reclassification to profit or loss	-	-	-		72,739	-		72,739
Income tax relating to components of other comprehensive income	-	-	-	(208,805)	-			(208,805)
Loss for the year	-	-	-	-	-	(296,600)		(296,600)
Total comprehensive income and expense for the year				(208,805)	1,146,019	(296,600)	-	640,614
As at 31 Dec 2009	2,020,719	1,557,831	350,000	(208,805)	745,733	1,199,654	130,118	5,795,250

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2009

	Notes	2009	2008
		£	£
NON CURRENT ASSETS
Financial assets
Available-for-sale investments	6	2,567,499	1,510,718
CURRENT ASSETS
Trade and other receivables	7	14,904	8,615
Cash and cash equivalents		3,469,468	3,674,055
Other debtors		86	85
		3,484,458	3,682,755
TOTAL ASSETS		6,051,957	5,193,473
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Share capital	10	2,020,719	2,020,719
Share premium		1,557,831	1,557,831
Other components of equity		886,928	(50,286)
Retained earnings		1,329,772	1,626,372
TOTAL EQUITY		5,795,250	5,154,636
NON CURRENT LIABILITIES
Deferred tax liabilities	9	208,805	-
CURRENT LIABILITIES
Trade and other payables	8	47,902	38,837
Corporate tax payable		-	-
TOTAL LIABILITIES		256,707	38,837
TOTAL EQUITY AND LIABILITIES		6,051,957	5,193,473

CASH FLOW STATEMENT

YEAR ENDED 31 DECEMBER 2009

		2009	2008
		£	£
CASH FLOW FROM OPERATIONS
Loss before taxation		(296,600)	(314,166)
(Increase)/Decrease in receivables		(6,289)	107,622
Increase/(Decrease) in payables		9,063	(11,176)
Adjustment for (loss)/profit on sale of available for sale assets		48,754	(159,797)
Impairment of available for sale assets		-	288,435
NET CASH OUTFLOW FROM OPERATING ACTIVITIES		(245,072)	(89,082)
TAXATION PAID		-	(262,149)
CASH FLOW FROM INVESTING ACTIVITIES
Sale of assets available for sale		40,485	324,797
Purchase of assets available for sale		-	(425,000)
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES		40,485	(100,203)
CASH FLOW FROM FINANCING ACTIVITIES
Purchase of shares for treasury		-	(78,975)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES		-	(78,975)
Net increase/(decrease) in cash and cash equivalents in the period		(204,587)	(530,409)
Cash and cash equivalents at the beginning of the period		3,674,055	4,204,464
Cash and cash equivalents at the end of the period		3,469,468	3,674,055

This preliminary statement is not the Company's statutory accounts. The statutory accounts for the year ended 31 December 2009 have been approved by the directors and have received an audit report which was unqualified and did not contain statements s 498(2) and (3) of the Companies Act 2006. These statutory accounts have not been delivered to the Registrar of Companies and will be sent to shareholders on 28 May 2010.

The Annual General Meeting of the Company (AGM) will be held on Thursday 24 June 2010 at 4.00 pm at the Pelham Hotel, 15 Cromwell Place, London SW7 2LA.  

Pursuant to Rule 20 of the AIM Rules, the Annual Report and the notice of AGM will shortly be available at www.tiger-rf.com.

For further information please contact:

Colin Bird, Director	Tel: [phone]
Raju Samtani, Director	Tel: [phone]

 

END

 

 

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