TIDMTIR
RNS Number : 3355Z
Tiger Resource PLC
17 May 2019
For immediate release 17 May 2019
TIGER RESOURCE PLC
("Tiger" or the "Company")
FINAL RESULTS FOR THE YEARED 31 DECEMBER 2018
AND
NOTICE OF ANNUAL GENERAL MEETING
The Company is pleased to announce its audited results for the
year ended 31 December 2018 and to confirm that the 2018 Annual
Report and Financial Statements ("Annual Report"), together with a
Notice of AGM ("Notice") will be posted to shareholders on Friday
24 May 2019. The AGM will be convened at Fladgate LLP, 16 Great
Queen Street, London WC2B 5DG on Friday 21 June 2019 at 14.00.
Pursuant to Rule 20 of the AIM Rules for Companies, copies of
both the Annual Report and the Notice will be available for
inspection at www.tiger-rf.com from 08.00 on 24 May 2019.
Notes:
1 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 2018
or 31 December 2017 but it is derived from those accounts.
Statutory accounts for 31 December 2017 have been delivered to the
Registrar of Companies and those for 31 December 2018 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.
2 The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information please contact:
Tiger Resource Plc Raju Samtani, Director +44 (0)20 7581 4477
Roland Cornish
Beaumont Cornish (Nomad) Felicity Geidt +44 (0)20 7628 3369
Email:corpfin@bcornish.co.uk
Novum Securities Ltd Jon Belliss +44 (0)20 7399 9425
(Broker)
CHAIRMAN'S STATEMENT
Dear Shareholder,
The year under review has seen Tiger's net asset value fall to
0.4p per share from 0.62p per share as at 31 December 2017,
representing a 35% fall in NAV during the year ended 31 December
2018. The decrease in NAV has resulted mainly due to the investment
portfolio reacting in a similar downward trend in line with junior
resource markets.
The Company, however, benefited from individual stocks which
performed well during the year and has realised profits where
possible. Tiger sold 95,000 Rockrose Energy Plc ("Rockrose") shares
in February 2018 realising a net gain of GBP293,854 on the disposal
and also cashed in an additional amount of GBP142,500 as a result
of a capital distribution made by Rockrose shortly after the sale
of this investment.
During the period under review, Tiger made investments in Bezant
Resources Plc, Corallian Energy Limited, Block Energy Plc ("Block")
and Royal Dutch Shell Plc. Block has performed well in recent
months and Tiger took the opportunity to crystallise a profit by
selling half of its holding in this investment in April this year.
The portfolio has suffered due to poor market conditions affecting
the smaller cap resource sector disproportionally. Constant
geopolitical negativity has impacted confidence throughout the
business and investing communities. This being so, we are at the
time of writing, experiencing market highs in major indices
worldwide which seems to contradict the aforementioned point. I
personally believe that major stock markets resemble a
"rollercoaster" with investors keen to join in but uncertain and
frightened once invested. As we have experienced in previous
cycles, the trigger for investors pushing the "sell" button will
inevitably be when global economies start showing signs of stress,
which will probably lead to a recession. The stress will most
likely affect the banking system which again will be looking
inwards resulting in reduced funds being available to businesses
and therefore further restraining economic growth.
Against the above scenario, emerging markets are showing
relative strength and direction; a phenomenon which inevitably will
lead to greater consumer demand as disposable incomes improve and
overall fortunes improve. This setting should be beneficial for
commodities as the demand arising will put further pressure on
limited supply.
The long anticipated price appreciation for Copper has not yet
materialised, predominantly due to the threat of trade wars and
ongoing geopolitical uncertainties. The slow-down in the increase
of the price of Copper has resulted in several projects being
shelved and exploration activities reduced either from a lack of
confidence or from difficulty in accessing funding. This scenario
is building the perfect storm for Copper and certain other key base
metals and the Board of Tiger is very bullish for Copper
exploration companies which have one or more assets that can breach
the "one million tonnes of contained copper" threshold.
The aforementioned scenario, whilst not for all commodities, is
also true for most base metals. The prospect for metals required
for mass producing electric powered vehicles ("EV") is very
positive with Cobalt in particular having excellent fundamentals.
Whilst the industry recognises the efficiency of Cobalt, there are
real worries about future supplies and thus other metals such as
Nickel may benefit as evolving technology looks for substitutes.
Nonetheless, we feel that there is a very favourable investment
case for Cobalt in the coming years. The advent of this new asset
class in EV provides an impetus to our strategy and we intend to
apply our investment and operational experience of the "old world"
model to good effect in this new EV environment.
The junior natural resource sector has generally shown a
"disconnect" between metals prices and forecast demand for
commodities with much lethargy and fear prevailing. A resolution to
the China/US issues together with easing tension in the Middle-East
may well be a catalyst for improved investment conditions.
Conversely, should there be no resolution to the negotiations or
indeed an escalation to the trade war, we could well see an adverse
effect on markets across the board.
The Directors remain convinced that the best way forward is
through proactive investment with involvement in underlying
investee companies. This policy has resulted in relatively larger
sized and more focused investments with fewer companies in Tiger's
portfolio. In essence, we are gradually moving away from passive
investing to more involved investment policy with a view to
lessening risk in tougher times. A corollary to this is the fact
that retail investors are now sophisticated in their approach and
tend to make their own investment decisions. When Tiger was formed,
the Company's mission was to provide an umbrella portfolio vehicle
for an emerging investment population which had little or no
knowledge of natural resource opportunities. This model is now
largely redundant, and the Board feels that the proactive model
will produce enhanced shareholder value in the medium term.
I would like to thank my fellow Directors and the Company's
shareholders for their support in what has been a difficult year
for our Company. We look forward to improved operating conditions
and some of our investment producing above average returns, similar
to our recent achievements in RockRose and Block.
Colin Bird
Executive Chairman
16 May 2018
PORTFOLIO REVIEW
The table below includes available-for-sale investments only.
Other investments held by the Group are disclosed in notes 7 and 8
to the financial statements.
Number Cost Valuation Valuation Valuation
31/12/18 31/12/18 31/12/18 31/12/17 31/03/19
GBP GBP GBP GBP
Anglo American Plc 11,500 250,117 200,997 178,193 236,152
Ascent Resources Plc - - - 6,750 -
BMR Group Plc 2,500,000 50,217 - 40,750 -
Bezant Resources Plc 55,555,556 250,434 66,667 - 55,556
Barkby Group Plc (previously
- Sovereign Mines of Africa
Plc) 60,606 100,000 2,500 5,400 2,697
Block Energy Plc 1,250,000 50,200 34,375 - 48,750
Cabot Energy Plc - - - 15,088 -
Corallian Energy Limited 20,000 30,000 30,000 - 30,000
Duke Royalty Limited - - - 7,800 -
ETFS Physical Platinum - - - 146,767 -
ETFS Copper 1,760 29,864 34,147 40,372 36,637
Galileo Resources Plc 6,516,667 78,335 46,920 86,672 43,662
Goldquest Mining Corporation 173,500 30,259 10,722 37,112 9,716
Jersey Oil and Gas - - - 6,319 -
Jubilee Metals Group Plc 1,169,600 100,219 28,070 44,445 27,252
MX Oil Plc - - - 2,120 -
PanContinental Oil and Gas - - - 1,591 -
NL
Pantheon Resources 31,500 30,340 5,040 21,262 9,009
Papua Mining Plc - - - 2,714 -
Revelo Resources Corp 216,667 62,965 1,278 2,882 1,560
Rex Bionics Plc - 37,500 - - -
Rockrose Energy Plc - - - 120,650 -
Royal Dutch Shell Plc B
Shares 5,400 146,468 126,357 - 65,556
Sunrise Resources Plc - - - 1,197 -
Tertiary Minerals Plc - - - 27,265 -
------------- -------------- ---------- ----------
TOTAL FOR THE PARENT COMPANY 1,246,918 587,073 795,349 566,547
------------- -------------- ---------- ----------
ETFS Copper - - - 26,838 -
Europa Metals Ltd (previously
Ferrum Crescent Linited) 130,499,858 65,250 52,200 91,350 26,100
Freeport-McMoran Inc - - - 28,320 -
Jubilee Metals Group Plc 917,802 34,834 22,027 34,876 21,385
Galileo Resources Plc 2,500,000 50,000 18,000 33,250 16,750
Lonmin Plc - - - 5,612 -
Revelo Resources Corp 1,515,000 53,560 10,887 20,112 10,859
South 32 Limited 13,845 28,607 25,475 3,650 27,801
Xtract Resources Plc 606,060 20,217 4,121 18,788 4,242
------------- -------------- ---------- ----------
TOTAL FOR AFRICAN PIONEER
PLC 252,468 132,710 262,796 107,137
------------- -------------- ---------- ----------
TOTAL INVESTMENTS FOR THE
GROUP 1,499,386 719,783 1,058,145 673,684
============= ============== ========== ==========
PARENT COMPANY:
(1) Investments were made in Bezant Resources Plc, Corralian
Energy Limited, Block Energy Plc and Royal Dutch Shell Plc during
the year ended 31 December 2018.
(2) The investment in BMR Group Plc is carried at nil value on
31 December 2018 following the cancellation of the
company's shares from trading on AIM on 3 August 2018.
(3) The Rockrose Energy Plc ("Rockrose") shares were sold on 19 February 2018.
(4) The valuation of the Royal Dutch Shell Plc is lower at 31
March 2019 following the sale of 2,700 shares post year-end.
(5) Several other smaller non-core investments were sold during the year.
AFRICAN PIONEER PLC ("APP"):
(1) The Freeport-McMoran, Copper ETFS and Lonmin Plc investments
were sold in the year ended 31 December 2018.
Details of changes in the fair value of investments are shown in
note 8 of the Financial Statements.
PORTFOLIO REVIEW - SELECTED INVESTMENT COMMENTARIES
African Pioneer Plc
African Pioneer Plc ("APP") is a special purpose investment
vehicle incorporated by Tiger with a mission to identify investment
opportunities in base metals within the mining sector focussed in
Sub-Saharan Africa. Tiger currently has a 50.75 per cent equity
stake in APP.
Anglo American Plc (LSE - AAL: LN) www.angloamerican.com
Anglo American Plc ("Anglo")'s world-class portfolio of
competitive mining operations and undeveloped resources provides
raw materials to meet the growing consumer-driven demands of the
world's developed and maturing economies. The company uses the
latest technologies to find new resources, plan and build its
operations and mine processes and to move and market its products
to customers around the world. Anglo's key commodities include
diamonds (through De Beers), platinum, copper, nickel, iron ore and
coal. The company works together with its key partners and
stakeholders to unlock the long term value of the resources mined
for its shareholders and for the communities and countries in which
it operates creating sustainable value and making a real
difference.
Bezant Resources Plc (AIM - BZT: LN) www.bezantresources.com
Bezant Resources Plc ("Bezant") is a mineral exploration and
development company quoted on AIM with base metal projects in
Argentina and the Philippines. Bezant recently announced the
results of an independent study assessing the optimisation of
potential future mine development for its Mankayan copper-gold
project, located on the Island of Luzon in the Philippines. The
Mining Plus study identified and assessed a number of high-level
alternative mining options for the Mankayan project and also
substantially improved the underlying economics of the proposed
operations. The options considered were designed with the objective
of improving production processes, determining pathways with
reduced total start-up cost, identifying further potential value
from the project. The board of Bezant remains confident that the
project lends itself to potential future development by medium size
mining companies, as well as the majors, seeking to secure a
long-term source of physical copper and gold.
Block Energy Plc (AIM - BLOE: LN) www.blockenergy.co.uk
Block Energy Plc ("Block Energy") is an AIM-listed exploration
and production company seeking to develop previously discovered
fields in Georgia optimised with current western technology. On 1
April 2019, the company announced an average test flow rate of
1,100 bbl/d from its well 16aZ at the West Rustavi field. This flow
rate significantly exceeded Block Energy's target rate of 325 bbl/d
for the well triggering an immediate requirement to upgrade
production infrastructure. While the company addresses production
capacity and offtake requirements, the diameter of the choke has
been reduced as of 13 April 2019 from 1/4 inches to 1/8 inch,
scaling back production from from 1,100 bbl/d to a rate of around
700 bbl/d. This well is expected to deliver gross monthly free cash
to the company of US$1million at a price of US$70/bbl for Brent
crude oil. Block Energy is currently working on a detailed
operational market update that will cover its planned oil and gas
development from its assets in Georgia.
Corallian Energy Limited www.corallian.co.uk
Corallian Energy Limited is a private UK oil and gas exploration
and appraisal company. The company holds interests in 6 petroleum
licences in the UK and has an experienced in-house team responsible
for executing its planned programme.
Europa Metals Ltd (AIM - EUZ: LN) www.europametals.com
Europa Metals limited ("Europa") is a base metal exploration
company focused on its flagship Toral project, located in the
Province of Le n, northern Spain. The company announced the results
of an independent scoping study completed in accordance with JORC
2012 requirements for its wholly owned Toral Project. The findings
of the study were positive with a recommendation that the Toral
Project should be progressed towards a feasibility study to
determine full economics, technical and environmental parameters
for an underground mining operation focused on near-term recovery
of the higher-grade mineralised zones. We look forward to further
updates from Europa in the coming months relating to infill
drilling, metallurgical and geotechnical test work and general
progress leading up to a full feasibility study.
ETFS Copper (LSE - COPA: LN) www.etfsecurities.com
ETFS Copper ("COPA") is designed to enable investors to gain an
exposure to total return investment in copper by tracking the
Bloomberg Copper Sub-index and providing a collateral yield. COPA
is an exchange traded commodity ("ETC"). Its securities can be
created and redeemed on demand by authorised participants and
traded on the exchange just like shares in a company.
Galileo Resources Plc (AIM - GLR - LN)
www.galileoresources.com
Galileo Resources PLC ("Galileo") is an AIM quoted natural
resource exploration company specialising in the acquisition and
development of projects which can be brought into production in the
near-term. The company's Star Zinc project has an independently
modelled exploration target estimated at between 600,000 and
900,000 tonnes with an estimated average grade of 10 to 12% Zn with
a high grade (>20% Zn) component estimated at between 60,000 to
90,000 tonnes rock mass. Galileo recently announced that
negotiations are to commence with Jubilee Metals Group plc for an
off-take agreement to supply its ore from Star Zinc. The company's
recently raised GBP500,000, before expenses through a placing of
shares to progress its 80.75% owned Star Zinc project.
Jubilee Metals Group Plc (AIM - JLP: LN)
Jubilee Metals Group plc ("Jubilee") is a diversified metals
recovery company focused on the reprocessing of historical mine
waste and surface materials. Jubilee completed the acquisition of
its PlatCro chrome project in January 2019 and has delivered
positive earnings ahead of projections for January and February and
the company's DCM fine chrome plant was brought into production
during January 2019 and has been ramped up to reach commercial
production levels during March 2019. Jubilee recently announced the
acquisition of the Sable Zinc refinery in Kabwe, Zambia which is
situated immediately adjacent to the large stock piles of zinc,
lead and vanadium that Jubilee has contracted from BMR Group PLC.
The company concurrently announced a combination of debt and equity
financing to fully complete the transaction and deliver the Kabwe
project. We feel that the coming months will be an exciting period
for Jubilee as the company expands its operational reach and
delivers rising quarterly earnings on its PlatCro, DCM and Hernic
projects and implements its newly acquired Kabwe project.
Royal Dutch Shell Plc (LSE - RDSB: LN) www.shell.com
Royal Dutch Shell Plc's ("Shell") mission is to thrive in the
energy transition cycle by responding to society's desire for
additional, cleaner, convenient and competitive energy and to make
a positive contribution to society through the company's
operations. Shell continuously seeks to improve its operating
performance and maximise sustainable free cash flow, with an
emphasis on health, safety, security, environment and asset
performance, as well as adhering to ethics and compliance
principles. The group's income for the year ended 31 December 2018
was US$23.9 billion compared with US$13.4 billion in 2017 and its
earnings increased to US$24.4 billion compared with US$12.5 billion
in 2017. Shell distributed US$15.7 billion to shareholders in
dividends in 2018.
CONSOLIDATED AND PARENT COMPANY STATEMENTS OF COMPREHENSIVE
INCOME YEARED 31 DECEMBER 2018
Notes Group 2018 Group 2017 Company 2018 Company 2017
GBP GBP GBP GBP
Change in fair
value of investments 8 (104,110) 217,125 (2,248) 123,429
Revenue:
Investment income 11,784 7,089 11,030 4,448
Interest receivable 214 281 199 281
Administrative
expenses 2 (327,937) (387,647) (333,350) (340,374)
Impairment charge 6 - (30,921) (167,605) (2,618)
----------------------- --------------------------- ------------- ---------------
LOSS BEFORE TAXATION (420,049) (194,073) (491,974) (214,834)
----------------------- --------------------------- ------------- ---------------
Taxation 4 - - - -
----------------------- --------------------------- ------------- ---------------
LOSS FOR THE YEAR (420,049) (194,073) (491,974) (214,834)
----------------------- --------------------------- ------------- ---------------
OTHER COMPREHENSIVE LOSS
Items that will be reclassified subsequently
to profit or loss
Available-for-sale
financial assets:
unrealised
gains/(losses) - 335,766 - 212,775
Reclassification to
profit or loss
Transfer to impairment - (4,943) - -
Transfer on disposal - (237,284) - (123,692)
OTHER COMPREHENSIVE
PROFIT FOR THE YEAR,
NET OF TAX 8 - 93,539 - 89,083
----------------------- --------------------------- ------------- ---------------
TOTAL COMPREHENSIVE
(LOSS)/PROFIT
FOR THE YEAR (420,049) (100,534) (491,974) (125,751)
----------------------- --------------------------- ------------- ---------------
LOSS FOR THE YEAR ATTRIBUTABLE
TO:
Shareholders of
the company (380,037) (204,296) (491,974) (214,834)
Non-controlling
interest (40,012) 10,223 - -
----------------------- --------------------------- ------------- ---------------
(420,049) (194,073) (491,974) (214,834)
----------------------- --------------------------- ------------- ---------------
TOTAL COMPREHENSIVE PROFIT ATTRIBUTABLE TO:
Shareholders of
the company (380,037) (112,952) (491,974) (125,751)
Non-controlling
interest (40,012) 12,418 - -
----------------------- --------------------------- ------------- ---------------
(420,049) (100,534) (491,974) (125,751)
----------------------- --------------------------- ------------- ---------------
Basic earnings
per share 5 (0.20)p (0.14)p
Diluted earnings
per share 5 (0.20)p (0.14)p
All profits are derived from continuing operations.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY YEARED 31 DECEMBER
2018
Other components of equity
Share capital Share Capital Available-for-sale Retained Equity Non-controlling Total
premium redemption financial earnings attributable interest Equity
reserve assets to owners
GBP GBP GBP GBP GBP GBP GBP GBP
As at 31 December
2016 1,428,319 1,597,231 1,100,000 230,619 (3,253,859) 1,102,310 53,447 1,155,757
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
Loss for the year - - - - (204,296) (204,296) 10,223 (194,073)
Other comprehensive
income
Available-for-sale
financial
assets:
Current year losses - - - 275,193 - 275,193 60,573 335,766
Reclassification to
profit
or loss
Transfer to
impairment - - - (2,509) - (2,509) (2,434) (4,943)
Transfer on disposal - - - (181,340) - (181,340) (55,944) (237,284)
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
Total comprehensive
income
for the year - - - 91,344 (204,296) (112,952) 12,418 (100,534)
Transaction with
owners
Issue of shares 46,015 - - - - 46,015 - 46,015
Share Premium on
issue
of new shares - 115,038 - - - 115,038 - 115,038
Costs related to
issue
of new shares - (43,053) - - - (43,053) - (43,053)
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
46,015 71,985 - - - 118,000 - 118,000
As at 31 December
2017 1,474,334 1,669,216 1,100,000 321,963 (3,458,155) 1,107,358 65,865 1,173,223
IFRS9 Adjustment to
opening
reserves - - - (321,963) 321,963 - - -
As at 1 January
2018 1,474,334 1,669,216 1,100,000 - (3,136,192) 1,107,358 65,865 1,173,223
Loss for the year - - - - (380,037) (380,037) (40,012) (420,049)
Total comprehensive
income
for the year - - - - (380,037) (380,037) (40,012) (420,049)
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
As at 31 December
2018 1,474,334 1,669,216 1,100,000 - (3,516,229) 727,321 25,853 753,174
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY YEARED 31 DECEMBER
2018
Other components of equity
Share capital Share Capital Available-for-sale Retained Total
premium redemption financial earnings Equity
reserve assets
GBP GBP GBP GBP GBP GBP
As at 31 December 2016 1,428,319 1,597,231 1,100,000 204,381 (3,061,850) 1,268,081
---------- ---------- ------------ ------------------- ------------ ----------
Loss for the year - - - - (214,834) (214,834)
Other comprehensive income
Available-for-sale financial
assets:
current year losses - - - 212,775 - 212,775
Reclassification to profit
or loss
Transfer on disposal - - - (123,692) - (123,692)
---------- ---------- ------------ ------------------- ------------ ----------
Total comprehensive income
for the year - - - 89,083 (214,834) (125,751)
Transactions with owners
Issue of shares 46,015 - - - - 46,015
Share Premium - 115,038 - - - 115,038
Costs relating to issue
of shares - (43,053) - - - (43,053)
46,015 71,985 - - - 118,000
As at 31 December 2017 1,474,334 1,669,216 1,100,000 293,464 (3,276,684) 1,260,330
IFRS9 Adjustment to opening
reserves - - - (293,464) 293,464 -
Loss for the year - - - - (491,974) (491,974)
Total comprehensive income
for the year - - - - (491,974) (491,974)
---------- ---------- ------------ ------------------- ------------ ----------
As at 31 December 2018 1,474,334 1,669,216 1,100,000 - (3,475,194) 768,356
========== ========== ============ =================== ============ ==========
CONSOLIDATED AND PARENT COMPANY STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
Notes Group Group Company Company
2018 2017 2018 2017
GBP GBP GBP GBP
NON- CURRENT ASSETS
Investment in subsidiaries 6 - - 67,686 235,291
Available-for-sale investments 8 719,783 1,058,145 587,073 795,349
----------------- ------------ ------------- -------------
Total Non-Current Assets 719,783 1,058,145 654,759 1,030,640
CURRENT ASSETS
Trade and other receivables 9 9,111 39,459 108,691 39,039
Cash and cash equivalents 66,779 255,805 43,285 236,337
----------------- ------------ ------------- -------------
Total Current Assets 75,890 295,264 151,976 275,376
----------------- ------------ ------------- -------------
TOTAL ASSETS 795,673 1,353,409 806,735 1,306,016
----------------- ------------ ------------- -------------
CURRENT LIABILITIES
Trade and other payables 11 42,499 180,186 38,379 45,686
Total Current Liabilities 42,499 180,186 38,379 45,686
----------------- ------------ ------------- -------------
NET ASSETS 753,174 1,173,223 768,356 1,260,330
----------------- ------------ ------------- -------------
EQUITY
Share capital 12 1,474,334 1,474,334 1,474,334 1,474,334
Share premium 1,669,216 1,669,216 1,669,216 1,669,216
Other components of equity 1,100,000 1,421,963 1,100,000 1,393,464
Retained earnings (3,516,229) (3,458,155) (3,475,194) (3,276,684)
----------------- ------------ ------------- -------------
EQUITY ATTRIBUTABLE TO THE OWNERS 727,321 1,107,358 768,356 1,260,330
Equity interest of non-controlling
interests 25,853 65,865 - -
----------------- ------------ ------------- -------------
TOTAL EQUITY 753,174 1,173,223 768,356 1,260,330
----------------- ------------ ------------- -------------
CONSOLIDATED AND PARENT COMPANY CASH FLOW STATEMENTS YEARED 31
DECEMBER 2018
Notes Group Group Company 2018 Company 2017
2018 2017
GBP GBP GBP GBP
CASH FLOW FROM OPERATIONS
Loss before taxation (420,049) (194,073) (491,974) (214,834)
Adjustments for:
Interest receivable (214) (281) (199) (281)
Dividends receivable (11,784) (7,089) (11,030) (4,448)
Change in fair value
of investments 104,110 - 169,853 -
---------- ---------- ------------- -------------
Operating loss before
movements in working
capital (327,937) (201,443) (333,350) (219,563)
(Increase)/Decrease
in receivables 30,348 28,330 (69,652) 31,676
Increase/(Decrease)
in payables (137,700) 34,744 (7,307) 11,400
Transfer to impairment - 30,921 - 2,618
Gain on disposal of
available-for-sale-assets - (217,125) - (123,692)
NET CASH OUTFLOW FROM
OPERATING ACTIVITIES (435,289) (324,573) (410,309) (297,561)
---------- ---------- ------------- -------------
CASH FLOW FROM INVESTING
ACTIVITIES
Interest received 214 281 199 281
Dividends received 11,784 7,089 11,030 4,448
Sale of investments 787,396 409,898 732,652 223,192
Purchase of investments 8 (553,131) (315,775) (526,624) (130,676)
---------- ---------- ------------- -------------
NET CASH INFLOW FROM
INVESTING ACTIVITIES 246,263 101,493 217,257 97,245
---------- ---------- ------------- -------------
NET CASH FROM FINANCING
ACTIVITIES
Issue of shares - 161,053 - 161,053
Expenses associated
with the issue of shares - (43,053) - (43,053)
NET CASH INFLOW FROM
FINANCING ACTIVITIES - 118,000 - 118,000
---------- ---------- ------------- -------------
Net decrease in cash
and cash equivalents
in the year (189,026) (105,080) (193,052) (82,316)
Cash and cash equivalents
at the beginning of
the year 255,805 360,885 236,337 318,653
---------- ---------- ------------- -------------
Cash and cash equivalents
at the end of the year 66,779 255,805 43,285 236,337
========== ========== ============= =============
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER
2018
1. ACCOUNTING POLICIES
Basis of preparation
The Company is an investment company incorporated and domiciled
in England and Wales. The Group's and Company's 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 Group is Sterling as that is the
currency of the primary economic market in which the Company and
Group 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 Group
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 European Union.
A number of new standards and interpretations have been adopted
by the Group for the first time in line with their mandatory
adoption dates, but the only one applicable to the Group is:
-- IFRS9 - Financial instruments
Basis of consolidation
The Group financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries). Control is achieved where the Company has the
power to govern the financial and operating policies of an entity
so as to obtain benefits from its activities. The subsidiary has a
reporting date of 31 December.
The results of subsidiaries acquired or disposed of during the
year are included in the consolidated statement of comprehensive
income from the effective date of acquisition or up to the
effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies in
line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are
eliminated in full on consolidation.
Non-controlling interests in the net assets of consolidated
subsidiaries are identified separately from the Group's equity
therein. Non-controlling interests consist of the amount of those
interests at the date of the original business combination and the
minority's share of changes in equity since the date of the
combination. Losses applicable to the non-controlling interests in
excess of the minority's interest in the subsidiary's equity are
recorded as a debit to non-controlling interest regardless of
whether there is an obligation in the part of the holders of
non-controlling interests for losses.
Valuation of available-for-sale Investments and adoption of
IFRS9
The Group has adopted the provisions of IFRS9 from 1 January
2018. Upon adopting IFRS9 the Group has elected to treat all
available for sale investments at fair value with changes through
the profit and loss. This differs to the previous policy under
IAS39 of recognising changes in fair value in Other Comprehensive
Income unless the investment was considered impaired, at which
point the impairment was charged to the profit and loss.
The group has elected not to restate prior year as permitted
under the IFRS9 transitional arrangements, and adjustments as a
result of the adoption have been made to the opening reserves
position. The effect of the adjustments can be seen in the
Statement of Changes in Equity and adoption of IFRS9 has had the
effect of combining the available for sale reserve with retained
earnings.
The adoption of IFRS9 has not impacted earnings per share or net
assets per share.
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.
In the current year and going forward, all gains and losses are
taken to profit and loss. In proceeding periods gains and losses on
available-for-sale investments are 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.
The preceding year accounting treatment was as follows. At each year end, the Group assesses
whether there is any objective evidence that a financial asset or group of financial assets
classified as available-for-sale has been impaired. In assessing impairments, management makes
a number of judgements, estimates and assumptions to compute the necessary impairment figures.
An impairment loss is recognised if there is objective evidence that an event or events since
initial recognition of the asset have adversely affected the amount or timing of future cash
flows from the asset. A significant or prolonged decline in the fair value of a security below
its cost usually indicates that an investment needs to be impaired. A significant or prolonged
decline is defined a reduction in value of an available for sale investment equal or more
than twenty per cent compared to its cost.
When a decline in the fair value of a financial asset classified as available-for-sale has
been previously recognised in other comprehensive income and there is objective evidence that
the asset is impaired, the cumulative loss is reversed from other comprehensive income and
recognised in the profit and loss. The loss is measured as the difference between the cost
of the financial asset and its current fair value less any previous impairment.
In respect of available-for-sale equity securities, impairment
losses previously recognised in profit and loss are not reversed
through profit and loss. Any increase in fair value subsequent to
an impairment loss is recognised in other comprehensive income and
accumulated in the available-for-sale assets reserve. In respect of
available-for-sale debt securities, impairment losses are
subsequently reversed through profit and loss if an increase in the
fair value of the investment can be objectively related to an event
occurring after the date of the recognition of the impairment
loss.
Investments in subsidiaries
In its separate financial statements the Company recognises its
investments in subsidiaries at cost, less any provision for
impairment. The cost of acquisition includes directly attributable
professional fees and other expenses incurred in connection with
the acquisition.
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 an accruals basis. For
available for sale assets expenses which are incidental to the
acquisition of an investment are added to the fair value on
acquisition.
Cash and cash equivalents
This consists of cash held in the Group'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 available-for-sale
financial assets are recorded in other comprehensive income.
Share options
The fair value of share options has been calculated using the
Black Scholes model which is charged in the profit or loss and
credited to equity.
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
Available-for-sale Financial Assets Reserve
In the prior year increases and decreases in the valuation of
available-for-sale investments held at year end are credited or
debited to this account. In the current year and going forward, all
changes in fair value are taken to profit and loss.
Share Based Payment Reserves
The fair value of share options which has been calculated in
accordance with the share options accounting policy is credited to
this account.
Capital Redemption Reserve
Any cancellation of shares leads to a credit to this
account.
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
Group'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
Group 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
consolidated 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 Group'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 8,
all of the Group'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.
Impairment of financial assets
Determining whether the decline in the fair value of a financial
asset constitutes an impairment and, as regards
"available-for-sale" financial assets, whether that cumulative
decline should therefore be reclassified to profit and loss is
inherently subjective. As noted above, the Group applies a
quantitate threshold of a 20% decline in fair value against cost as
being a key determinant in establishing whether an asset is
impaired. At the balance sheet date there were no material
available for sale investments where the carrying value was below
cost but the decline had been treated as a temporary fall rather
than an impairment through profit and loss. This policy was
applicable in the prior year only.
At the balance sheet date the carrying value of the parent
company's holding in its subsidiary exceeded the underlying assets
of that subsidiary, as is detailed in note 6. An impairment has
been made in the current year in respect of the subsidiary to bring
the valuation down to a level which the directors consider
represents the fair value.
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 Group'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.
Standards, amendments and interpretations to existing standards
that are not yet effective and have not been adopted early by the
Group
At the date of authorisation of these financial statements, a
number of new standards, amendments and interpretations to existing
standards have been published by the IASB but are not yet
effective, and have not been adopted early by the Group. Management
anticipates that all of the relevant pronouncements will be adopted
in the Group's accounting policies for the first period beginning
after the effective date of the pronouncement. Information on new
standards, amendments and interpretations that are expected to be
relevant to the Group's financial statements is provided below.
Certain other new standards and interpretations have been issued
but are not expected to have a material impact on the Group's
financial statements.
IFRS 16 'Leases': this standard replaces the current guidance in
IAS 17 and is a far-reaching change in accounting by lessees in
particular. Under IAS 17, lessees were required to make a
distinction between a finance lease (on balance sheet) and an
operating lease (off balance sheet). IFRS 16 now requires lessees
to recognise a lease liability reflecting future lease payments and
a 'right-of-use asset' for virtually all lease contracts. The IASB
has included an optional exemption for certain short-term leases
and leases of low-value assets; however, this exemption can only be
applied by lessees. For lessors the accounting required by IAS 17
is largely unchanged, although changes to the definition of what
constitutes a lease means lessors will also be affected. The
standard is effective for annual periods commencing on or after 1
January 2019.
On 31 October 2012, the IASB issued 'Definition of Material
(Amendments to IAS 1 and IAS 8)' to clarify the definition of
'material' and to align the definition used in the Conceptual
Framework and the standards themselves. The amendments are
effective annual reporting periods beginning on or after 1 January
2020.
Together with the revised 'Conceptual Framework' published in
March 2018, the IASB also issued 'Amendments to References to the
Conceptual Framework in IFRS Standards'. The amendments are
effective for annual periods beginning on or after 1 January
2020.
2. OPERATING EXPENSES
Operating profit is stated after charging:
Group Company 2018 Company 2017
Group 2018 2017 GBP GBP
GBP GBP
Auditor's remuneration:
* Audit of the financial statements 17,982 20,473 17,982 17,473
- Other accounting services (relates
to under accrual - 1,500 - 1,500
in prior year)
* Taxation compliance services 3,000 3,000 3,000 3,000
---------- --------------- ------------ ------------
20,982 24,973 20,982 21,973
Notes
Legal fees 14,850 7,874 14,850 7,939
Corporate finance costs 51,504 45,250 51,504 45,250
Directors' fees 3 90,795 159,000 120,000 135,000
Director of subsidiary company 3 3,600 3,600 - -
Occupancy and support costs 82,800 82,800 72,000 72,000
Other administrative overheads 50,992 53,535 41,600 47,597
Stock Exchange costs 12,414 10,615 12,414 10,615
Administrative expenses 327,937 387,647 333,350 340,374
-------- -------- -------- --------
3. DIRECTORS' EMOLUMENTS
Group 2018 Group 2017 Company 2018 Company 2017
GBP GBP GBP GBP
Directors' fees 94,395 159,000 120,000 135,000
---------- ---------- -------------------- ------------
Other than directors, there were no employees in the current or
prior year.
The emoluments of each director during the year were as follows:
Group 2018 Group 2017 Company 2018 Company 2017
GBP GBP GBP GBP
James Cunningham-Davis 3,600 3,600 - -
Colin Bird 35,660 67,000 50,000 55,000
Michael Nolan 35,000 40,000 35,000 40,000
Raju Samtani 20,135 52,000 35,000 40,000
Accruals relating to Directors fees in the subsidiary company
African Pioneer Plc ("APP") were reversed during the year resulting
in a net credit of GBP14,340 and GBP14,865 being booked in respect
of Colin Bird and Raju Samtani's fees in APP. There were no
accruals carried forward as at 31 December 2018 relating to
Directors fees.
4. TAXATION
Group 2018 Group Company 2018 Company
GBP 2017 GBP 2017
GBP GBP
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% (2017 - 19%)
and the reported tax expense in the statement of comprehensive income are
as follows:
Group 2018 Group 2017 Company 2018 Company 2017
GBP GBP GBP GBP
Loss on ordinary activities before
tax (420,049) (194,074) (491,974) (214,834)
---------- ---------- ------------ ------------
Expected tax charge at 19% (2017 -
19%) (79,809) (36,874) (93,475) (40,818)
Effects of:
Disallowed expenses 821 - 821 -
Exempt dividend income (2,239) (1,347) (2,096) (845)
Impairment adjustment - (1,527) 31,845 (630)
Difference between accounting gain
and taxable gain on investment 18,311 (257) (1,043) (257)
Excess management expenses carried
forward 61,487 42,550 62,516 42,550
Excess management expenses carried
forward in subsidiary - (2,545) - -
Non-trade loan relationship deficit
carried forward 1,429 - 1,432 -
Chargeable gains - - - -
---------- ---------- ------------ ------------
Actual tax charge - - - -
---------- ---------- ------------ ------------
5. EARNINGS PER SHARE
Basic 2018 2017
Loss after tax for the purposes of earnings
per share attributable to equity shareholders
of the parent GBP(380,037) GBP(204,296)
Weighted average number of shares 188,847,070 146,992,211
Basic earnings per ordinary share (0.20)p (0.14)p
Diluted
Loss for year after tax GBP(380,037) GBP(204,296)
Weighted average number of shares 188,847,070 146,992,211
Dilutive effect of options - -
Diluted weighted average number of shares 188,847,070 146,992,211
Diluted earnings per ordinary share (0.20)p (0.14)p
Potentially dilutive options
There were no share options outstanding at 31 December 2018.
Outstanding options at 31 December 2017 were anti-dilutive.
6. INVESTMENT IN SUBSIDIARIES
On 20 July 2012, Tiger Resource Plc made an investment in
African Pioneer Plc ("APP"), an Isle of Man based business, thereby
gaining control. African Pioneer Plc is an investment vehicle which
was incorporated to facilitate pro-active investments being
undertaken by Tiger in the resource sector. At 31 December 2018,
the Group had an interest of 50.75% of the voting equity rights in
its subsidiary, African Pioneer Plc.
The subsidiary company was incorporated on 20 July 2012, and
later issued shares through a placing of shares for cash and there
were, therefore, no assets or liabilities acquired at the time
acquisition. No acquisition costs were incurred. African Pioneer
Plc issued 4,998,258 Ordinary shares of nil par on 2 June 2015 at 1
pence per share. Tiger subscribed for a further 2,529,130 shares in
this placing and currently holds 59,529,132 shares representing a
holding of 50.75% in African Pioneer Plc.
2018 2017
GBP GBP
At 1 January 2018 235,291 235,291
Impairment (167,605) -
---------- --------
Total at 31 December 2018 67,686 235,291
---------- --------
African Pioneer Plc's capital and reserves were as follows:
2018 2017
GBP GBP
Share capital 452,983 452,983
Profit/(loss) for the year (95,681) 20,761
Revaluation reserve - 52,868
Reserves (304,799) (378,428)
---------- ----------
Total equity 52,503 148,184
---------- ----------
7. INVESTMENTS IN FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
The Group has adopted IFRS9 in the current year and selected to
designate all investments at fair value through profit and loss as
of 1 January 2018. All investments are available for sale.
8. AVAILABLE-FOR-SALE INVESTMENTS
GROUP
2018
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Canada 10,887 12,000 22,887
Australia 52,200 - 52,200
UK:
-Listed 398,976 - 398,976
-AIM - 245,720 245,720
462,063 257,720 719,783
------------------- ------------------ --------
2017
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Canada 60,106 - 60,106
Australia 92,941 - 92,941
USA 28,320 - 28,320
UK:
-Listed 401,432 - 401,432
-AIM - 475,346 475,346
582,799 475,346 1,058,145
------------------- ------------------ ----------
Listed Investments Other Investments Total
(Quoted)
GBP GBP GBP
Opening book cost 915,175 1,792,933 2,708,108
Opening unrealised gains(losses) (332,376) (1,317,587) (1,649,963)
Valuation at 1 January 2018 582,799 475,346 1,058,145
Movements in the year:
Purchase at cost 172,974 380,156 553,130
Sales proceeds (201,213) (586,034) (787,247)
Realised gains/(losses) on sales
based on historic cost (219,846) (792,263) (1,012,109)
Increase/(Decrease) in unrealised
gains 127,352 780,512 907,864
(120,733) (217,629) (338,362)
------------------- ------------------ --------------
Book cost at year end 667,090 794,793 1,461,883
Closing unrealised depreciation (205,024) (537,076) (742,100)
------------------- ------------------ --------------
Valuation at 31 December 2018 462,066 257,717 719,783
------------------- ------------------ --------------
2018 2017
GBP GBP
Realised (losses)/gains based on historical
cost (1,012,089) 217,386
Reversal of impairment loss on disposed asset
(1) - 20,200
Realised gains based on carrying value at
previous balance sheet date (1,012,089) 237,586
Unrealised fair value movement for the year
- profit and loss (1) 907,979 (51,121)
Unrealised fair value movement for the year
- other comprehensive income - 335,766
Total recognised gains/(losses) on in the
year (104,110) 522,231
------------ ---------
(1) Net impairment credit/(charge) recognised
in profit and loss - (30,921)
------------ ---------
There are no significant holdings (over 20%) in any of the
investee companies.
COMPANY
2018
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Canada - 12,000 12,000
UK: -
-Listed 373,501 - 373,501
-AIM - 201,572 201,572
373,501 213,572 587,073
------------------- ------------------ --------
2017
Listed Investments Other Investments Total
(Quoted)
GBP GBP GBP
Canada 39,994 - 39,994
Australia 1,591 - 1,591
UK:
-Listed 365,332 - 365,332
-AIM - 388,432 388,432
406,917 388,432 795,349
------------------- ------------------ --------
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Opening book cost 717,490 1,687,882 2,405,372
Opening unrealised depreciation (310,753) (1,299,450) (1,610,023)
------------------- ------------------ ------------
Valuation at 1 January 2018 406,917 388,432 795,349
Movements in the year:
Purchase at cost 146,468 380,156 526,624
Investments written off - - -
Sales proceeds (146,488) (586,034) (732,522)
Realised gains/(losses) on sales
based on historic cost (197,797) (792,263) (990,060)
Decrease in unrealised depreciation 164,404 823,278 987,682
(33,413) (174,863) (208,276)
------------------- ------------------ ------------
Book cost at year end 519,673 689,746 1,209,419
Closing unrealised depreciation (146,169) (476,177) (622,346)
Valuation at 31 December 2018 373,504 213,569 587,073
------------------- ------------------ ------------
2018 2017
GBP GBP
Realised gains based on historical cost (990,060) 123,692
Realised gains based on carrying value at previous
balance sheet date (990,060) 123,692
Unrealised fair value movement for the year
- profit and loss (1) 987,812 (2,618)
Unrealised fair value movement for the year
- other comprehensive income - 212,775
Total recognised losses on investments in the
year (2,248) 333,849
---------- --------
(1) Net impairment credit/(charge) recognised
in profit and loss - (2,618)
---------- --------
The gains/(losses) on the Group's available-for-sale investments
are analysed below. Accounting standards prohibit the recognition
of uplifts in the value of impaired assets in profit and loss.
31 December 2018 31 December 2017
Profit Other comprehensive Profit and
Security and loss Total income loss Total
GBP GBP GBP GBP GBP
Anglo American Plc 22,804 22,804 44,793 - 44,793
Arc Minerals Plc (1,896) (1,896)
Ascent Resources Plc (2,589) (2,589) (1,591) - (1,591)
Bezant Resource Plc (183,768) (183,768)
Block Energy Plc (15,825) (15,825)
BMR Group Plc (40,750) (40,750) - (9,467) (9,467)
Cabot Energy Plc (previously
Northern Petroleum Plc) - - 3,000 - 3,000
Duke Royalty Limited 1,193 1,193 (1,600) - (1,600)
EFTS Physical Platinum Plc (1,516) (1,516) (31,874) 20,574 (11,300)
EFTS Copper (6,225) (6,225) 5,366 - 5,366
Galileo Resources Plc (39,775) (39,775) (27,986) - (27,986)
Goldquest Mining Corporation (26,390) (26,390) 6,853 - 6,853
Jersey Oil & Gas Plc 1,177 1,177 2,178 - 2,178
Jubilee Metals Group Plc (16,374) (16,374) 3,158 - 3,158
MX Oil Plc (388) (388) - (2,280) (2,280)
New World Oil & Gas Plc (now
Eridge Capital Limited) (2,127) (2,127) - - -
Pan Continental Oil & Gas
NL (354) (354) 3,897 (7,443) (3,546)
Pantheon Resources Plc (16,222) (16,222) (3,938) (3,938)
Pacific North West Capital - - -
Corp
Papua Mining Plc (930) (930) 345 - 345
Rex Bionics Plc - (1,219) (1,219)
Revelo Resources Corp (1,604) (1,604) (3,878) (2,383) (6,261)
Rockrose Energy Plc 363,204 363,204 78,530 - 78,530
Royal Dutch Shell Plc (20,108) (20,108)
Sovereign Mines of Africa
Plc (2,900) (2,900) (2,800) (400) (3,200)
Sunrise Resources Plc (197) (197) 399 - 399
Tertiary Minerals Plc (10,688) (10,688) 14,231 - 14,231
---------- ---------- -------------------- ----------- ---------
Movements in parent company (2,248) (2,248) 89,083 (2,618) 86,465
---------- ---------- -------------------- ----------- ---------
BHP Billiton Plc - - (14,780) 9,030 (5,750)
EFTS Physical Platinum - - (2,721) 3,966 1,245
EFTS Copper (2,286) (2,286) 3,638 - 3,638
Ferrum Crescent Limited (39,150) (39,150) 26,100 - 26,100
Freeport-McMoran Corp. (1,484) (1,484) 6,744 - 6,744
Galileo Resources Plc (15,250) (15,250) (3,314) (16,875) (20,189)
Jubilee Metals Group Plc (12,849) (12,849) 43 - 43
Lonmin Plc (2,395) (2,395) - (3,898) (3,898)
Ophir Energy Plc (609) - (609)
Pacific North West Capital - - -
Corp (2)
Revelo Resources Corp (9,002) (9,002) - (27,730) (27,730)
Royal Dutch Shell Plc - - (9,570) 7,204 (2,366)
South 32 Limited (4,779) (4,779) 743 - 743
Xtract Resources Plc (14,667) (14,667) (1,818) - (1,818)
---------- ---------- -------------------- ----------- ---------
Movements in subsidiary company (101,862) (101,862) 4,456 (28,303) (23,847)
---------- ---------- -------------------- ----------- ---------
Total movements in the Group (104,110) (104,110) 93,539 (30,921) 62,618
---------- ---------- -------------------- ----------- ---------
Financial instruments measured at fair value
The following table presents financial assets and liabilities
measured at fair value in the statement of financial position in
accordance with the fair value hierarchy. This hierarchy groups
financial assets and liabilities into three levels based on the
significance of inputs used in measuring the fair value of the
financial assets and liabilities. The fair value hierarchy has the
following levels:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2: inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
- Level 3: inputs for the asset or liability that are not based
on observable market data (unobserved inputs).
The level within which the financial asset or liability is
classified is determined based on the lowest level of significant
input to the fair value measurement.
The financial assets and liabilities measured at fair value in
the statement of financial position are grouped into the fair value
hierarchy as follows:
(GROUP)
31 December 2018 Level 1 Level 2 Level Total
GBP GBP 3 GBP
GBP
Assets
Available-for-sale investments 719,783 - - 719,783
----------- -------- ------ -----------
Total 719,783 - - 719,783
31 December 2017 Level 1 Level 2 Level Total
GBP GBP 3 GBP
GBP
Assets
Available-for-sale investments 1,058,145 - - 1,058,145
----------- -------- ------ -----------
1,058,145 - - 1,058,145
----------- -------- ------ -----------
(COMPANY)
31 December 2018 Level 1 Level 2 Level Total
GBP GBP 3 GBP
GBP
Assets
Available-for-sale investments 587,073 - - 587,073
--------- -------- ------ ---------
Total 587,073 - - 587,073
Level 1 Level 2 Level Total
GBP GBP 3 GBP
GBP
31 December 2017
Assets
Available-for-sale investments 795,349 - - 795,349
--------- -------- ------ ---------
Total 795,349 - - 795,349
There have been no significant transfers between levels in the
reporting period.
Measurement of fair value
The methods and valuation techniques used for the purpose of
measuring fair value are outlined in note 1 and remain unchanged
compared to the previous reporting period. The fair values of
short-term receivables, cash and short-term payables do not differ
from their carrying values due to their short maturity
profiles.
Listed / quoted securities
Equity securities held by the Group are denominated in GBP, USD,
CAD$, and AUS$ and are publicly traded on the main London Stock
Exchange, the Alternative Investment Market of the London Stock
Exchange, the Toronto Venture Exchange, the Australian Exchange and
on NEX. Fair values have been determined by reference to their
quoted bid prices at the reporting date, with the exception of
Rockrose plc, which are currently suspended and have been valued at
their last available market price prior to suspension.
9. TRADE AND OTHER RECEIVABLES
Group Group Company Company
2018 2017 2018 2017
GBP GBP GBP GBP
Other debtors 261 31,529 261 31,529
Amounts due from group undertakings - - 100,000 -
Prepayments 8,850 7,930 8,430 7,510
------ ------- -------- --------
9,111 39,459 108,691 39,039
------ ------- -------- --------
10. DEFERRED TAX LIABILITIES
The group has tax losses carried forward in respect of excess
management charges, non-trade deficits and capital losses of
GBP2,273,316 (2017: GBP1,247,203). Unrealised losses on the Group's
financial assets are estimated at GBP779,603 (2017: GBP1,649,963).
The resulting deferred tax asset is GBP580,055 (2017: GBP550,462).
However, deferred tax assets are not recognised due to the
unpredictability of future profit streams arising from the disposal
of investments held by the Group. Tax losses may be carried forward
indefinitely and will only be recoverable if suitable profits arise
in the future. Deferred tax positions arising from unrealised gains
and losses on the group's financial assets will vary depending on
changes in the fair values of those assets up until the date of
disposal.
11. TRADE AND OTHER PAYABLES
Group Group Company Company
2018 2017 2018 2017
GBP GBP GBP GBP
Trade payables 8,200 7,583 4,080 4,088
Other creditors 2,242 1,733 2,242 1,733
Accruals 32,057 170,870 32,057 39,865
------- -------- -------- --------
42,499 180,186 38,379 45,686
------- -------- -------- --------
12. CALLED UP SHARE CAPITAL
The share capital of Tiger Resource Plc 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 0.1 p
are eligible to receive dividends and the repayment of capital and
represent one vote at the shareholders' meeting of Tiger Resource
Plc. The deferred shares carry no dividend or voting rights.
2018 2017
GBP GBP
Authorised:
Ordinary Share Capital 10,000,000 10,000,000
----------- ------------------
142,831,939 (2017: 142,831,939) deferred shares of
0.9p each 1,285,487 1,285,487
----------- ------------------
Issued: 2018 2017
GBP GBP
188,847,070 Ordinary shares 0.1p (2017: 188,847,070
Ordinary shares of 0.1p each) 188,847 188,847
142,831,939 (2017: 142,831,939) deferred shares of
0.9p each 1,285,487 1,285,487
----------- ------------------
1,474,334 1,474,334
----------- ------------------
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 GBP4,500 held by the
company in treasury.
Share warrants
Date granted Period exercisable Exercise price per Number of warrants
share (pence)
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 above warrants expired on 31 July 2018 and consequently the
Company had no share options or warrants outstanding as at 31
December 2018.
13. RELATED PARTY TRANSACTIONS
(1) Lion Mining Finance Limited, a company in which Colin Bird
is director and shareholder, has provided administrative and
technical services to the Company amounting to GBP60,000 plus VAT
in the year (2017 - GBP60,000). There were no amounts outstanding
at 31 December 2018 (2017- nil). The Board considers this
transaction to be on an arms' length basis.
(2) The emoluments of the Directors are disclosed in note 3.
(3) Directors' shareholdings are disclosed in the Report of the Directors.
(4) Tiger made an investment of GBP210,000 on 20 July 2012, to
acquire a 50.76% equity interest in a newly formed subsidiary,
African Pioneer Plc ("APP"). C Bird, M H Nolan and R Samtani each
also invested GBP10,000 to acquire 10 Million ordinary shares each
(representing an 8.9% interest in APP). On 2 June 2015, Tiger
purchased a further 2,529,130 shares at a cost GBP25,291 increasing
its holding in APP to 59,529,132 shares representing a 50.75%
holding of the company. On the same date, C Bird and M H Nolan and
R Samtani each purchased an additional 617,282 shares in APP at
cost of GBP6,173 increasing their individual holdings to 10,617,282
shares. See note 6 to the financial statements for further details
relating to this investment.
(5) On 19 August 2015, the Company made an investment of
GBP125,000 in Galileo Resources Plc ("Galileo"), acquiring
10,416,667 Ordinary shares of 0.1 pence each (being a 6.69% stake
in Galileo at the date of subscription). Tiger sold 3,900,000
Galileo shares on 3 February 2017 for a total consideration of
GBP161,346 and held 6,516,667 shares in Galileo Resources Plc on 31
December 2017 and 31 December 2018.
On 4 February 2017, African Pioneer Plc ("APP") sold its brought
forward holding of 1,500,000 Ordinary shares in Galileo Resources
Plc realising a profit of GBP94,285. APP bought a further 2,500,000
Galileo shares for GBP50,000 in September 2017.
Colin Bird is a Director and the Executive Chairman of Galileo
and did not participate in the decision making process for the
Galileo investment decisions.
(6) APP purchased 130,499,858 shares in Europa Metals Ltd
(previously Ferrum Crescent Ltd) for a total consideration of
GBP65,000 on 8 November 2017 as part of the Group's proactive
investment policy. Colin Bird was subsequently appointed
Non-Executive Chairman of Europa Metals Ltd on 12 January 2018.
14. POST-REPORTING DATE EVENTS
No adjusting or significant non-adjusting events have occurred
between the reporting date and the date of authorisation the
financial statements.
15. CONTINGENT LIABILITIES
There were no contingent liabilities at 31 December 2018 (2017 -
None).
16. FINANCIAL INSTRUMENTS
Management of Risk
The Group and the Company's financial instruments comprise:
-- Investments in subsidiary companies
-- Investments held at fair value through profit or loss
-- Cash, short-term receivables and payables
Throughout the period under review, it was the Group's policy
that no trading in derivatives shall be undertaken.
The main financial risks arising from the Group and Company's
financial instruments are market price risk and liquidity risk.
Credit risk is not significant, but is monitored. The Board
regularly reviews and agrees policies for managing each of these
risks and they are summarised below. These policies have remained
constant throughout the period.
Market risk
Market risk consists of interest rate risk, foreign currency
risk and other price risk. It is the Board's policy to maintain an
appropriate spread of investments in the portfolio whilst
maintaining the investment policy and aims of the Company and the
Group. The Investment Committee actively monitors market prices and
other relevant information throughout the year and reports to the
Board, who is ultimately responsible for the Group's investment
policy.
Interest rate risk
Changes in interest rates would affect the Company and the
Group's returns from its cash balances. A floating rate of
interest, which is linked to bank base rates, is earned on cash
deposits. The exposure to cash flow interest rate risk at 31
December 2018 for the Group was GBP66,779 (2017: GBP255,805). The
exposure to cash flow interest rate risk at 31 December 2018 for
the Company was GBP43,285 (2017: GBP236,337).
A sensitivity analysis based on a movement of 1% on interest
rates would have a GBP668 effect on the Group's profit (2017:
GBP2,558). A sensitivity analysis based on a movement of 1% on
interest rates would have a GBP433 effect on the Company's' profit
(2017: GBP2,363).
As the Group does not have any borrowings and finances its
operations through its share capital and retained revenues, it does
not have any interest rate risk except in relation to cash
balances.
Foreign currency risk
The Group's total return and net assets can be affected by
currency translation movements as part of the available-for-sale
assets held by the Company are denominated in currencies other than
GBP 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 (2017: none).
The fair values of the Group's available-for-sale investments
that have foreign currency exposure at 31 December 2018 are shown
below.
Group Group
2018 2017
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Available-for-sale investments 22,887 52,200 - 60,106 1,591 242,297
Company Company
2018 2017
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Available-for-sale investments 12,000 - - 39,994 1,591 187,139
The Group accounts for movements in fair value of its available
for sale financial assets in other comprehensive income. The
following table illustrates the sensitivity of the equity in regard
to the Group's financial assets and the exchange rates for GBP/
Canadian Dollar, GBP/ US Dollar and GBP/Australian Dollar.
It assumes the following changes in exchanges rates:
- GBP/CAD +/- 20% - (2017: +/- 20%)
- GBP/USD +/- 20% - (2017: +/- 20%)
- GBP/AUD +/- 20% - (2017: +/- 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 Group's foreign
currency financial instruments held at each balance sheet date.
If GBP Sterling had weakened against the currencies shown, this
would have had the following effect:
Group Group
2018 2017
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity 4,577 10,440 - 12,021 318 48,459
If GBP Sterling had strengthened against the currencies shows,
this would have had the following effect:
Group Group
2018 2017
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity (3,815) (8,700) - (10,018) (265) (40,383)
If GBP Sterling had weakened against the currencies shown, this
would have had the following effect:
Company Company
2018 2017
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity 2,400 - - 7,999 318 37,428
If GBP Sterling had strengthened against the currencies shows,
this would have had the following effect:
Company Company
2018 2017
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity (2,000) - - (6,666) (265) (31,190)
Other price risk
Other price risk which comprises changes in market prices other
than those arising from interest rate risk or currency risk may
affect the value of quoted and unquoted equity investments. The
Board of directors manages the market price risks inherent in the
investment portfolio by regularly monitoring price movements and
other relevant market information.
The Group accounts for movements in the fair value of its
available-for-sale financial assets in other comprehensive income
and assets designated at fair value through profit or loss in
comprehensive income. The following table illustrates the
sensitivity to equity of an increase / decrease of 50% in market
prices. This level of change is considered to be reasonable based
on observation of current market conditions, in particular resource
stocks and junior mining companies. The sensitivity is based on the
Group's equities at each balance sheet date, with all other
variables held constant.
Group Group
2018 2017
50% increase 50% decrease 50% increase 50% decrease
in fair in fair in fair in fair
value value value value
GBP GBP GBP GBP
Equity (available-for-sale Financial
assets) 359,892 (359,892) 529,073 (529,073)
Company Company
2018 2017
50% increase 50% decrease 50% increase 50% decrease
in fair in fair in fair in fair
value value value value
GBP GBP GBP GBP
Equity (available-for-sale Financial
assets) 293,537 (293,537) 397,674 (397,674)
Equity (assets held at fair Value - -
through profit or loss)
Liquidity risk
The Group maintains appropriate cash reserves and the majority
of the Group's assets comprise realisable securities, most of which
can be sold to meet funding requirements if necessary. Given the
Group's cash reserves, it has been able to settle all liabilities
on average within 1 month.
Credit risk
The risk of counterparty's failure to discharge its obligations
under a transaction that could result in the Group suffering a loss
is minimal. The Group holds its cash balances with a reputable bank
and only transacts with regulated institutions on normal market
terms.
Included in total amounts receivable at 31 December 2018 of
GBP9,111 (2017 - GBP39,459) is the sum of GBPnil (2017 - GBP31,267)
which was lodged with the Company's brokers in relation to future
investments. At the Company level the amount of GBP100,000 (2017 -
Nil) due from the Company's subsidiary represents a concentration
of credit risk.
Financial liabilities
There are no currency or interest rate risk exposures on
financial liabilities as they are denominated in GBP Sterling and
settled on average within 1 month.
Capital management
The Group actively reviews its issued share capital and reserves
and manages its capital requirements in order to maintain an
efficient overall financing structure whilst avoiding any
leverage.
The Board monitors the discount level of its issued shares,
which is the difference between its Net Asset Value (NAV) and its
actual share price. To improve NAV, the Company may purchase its
own shares in the market. During the current year, the Group has
not purchased any of its own shares (2017: Nil).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UNABRKKAVAAR
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May 17, 2019 02:00 ET (06:00 GMT)
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