TIDMTIR
RNS Number : 1165O
Tiger Resource PLC
27 May 2020
For immediate release 27 May 2020
TIGER RESOURCE PLC
("Tiger Resource" or the "Company")
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2019
NOTICE OF ANNUAL GENERAL MEETING
The Company is pleased to announce its audited results for the
year ended 31 December 2019 and to confirm that the 2019 Annual
Report and Financial Statements ("Annual Report"), together with a
Notice of AGM ("Notice") will be posted to shareholders on 5 June
2020. Pursuant to Rule 20 of the AIM Rules for Companies, copies of
both the Annual Report and the Notice will thereafter be available
for inspection at www.tiger-rf.com.
The AGM will be convened at the Company's registered address
being 2(nd) Floor, 7/8 Kendrick Mews, London SW7 3HG on Tuesday 30
June 2020 at 11:00am. The AGM will be a closed meeting and
shareholders will not be allowed to attend in person due to ongoing
restrictions associated with the Covid-19 pandemic. The AGM notice
will contain details on how shareholders will be able to exercise
their voting rights along with other practical details.
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 2019
or 31 December 2018 but it is derived from those accounts.
Statutory accounts for 31 December 2018 have been delivered to the
Registrar of Companies and those for 31 December 2019 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
0.32p per share from 0.4p per share as at 31 December 2018,
representing a 20% fall in NAV during the period ended 31 December
2019. The decrease in NAV has resulted mainly due to the investment
portfolio reacting in a similar downward trend to the AIM market
resource sector performance. The portfolio came under further
pressure in recent weeks resulting from the pandemic which has
broken out globally and adversely impacted share valuations across
the board giving a valuation 0.17p per share on 31 March 2020.
The Company, however, benefited from the sale of 11,500 shares
in Anglo American Plc, 2,700 Royal Dutch Shell Plc - B shares and
625,000 Block Energy Plc during the year whilst prices were still
favourable. These sales helped in balancing the portfolio and
reducing exposure to oil producing assets, a sector which has, at
the time of writing this report, taken the brunt of commodity
write-downs resulting from a combination of geo-political tensions,
excess production and an unprecedented fall in demand. No
additional investments were made during the period under review
with a view of conserving cash.
The COVID-19 virus has completely shocked the world and I will
make no attempt to forecast the economic or medical outcome for
this pandemic. My only observation on the subject is that the
profound influence which media has had on political
decision-making, a development that does not bode well for the
future. This influence is extremely worrying in a climate where
lawmakers are extremely challenged by geopolitical threats and
their own country's internal turbulence.
Moving on to issues which I feel more competent to comment which
include the outlook for the natural resource sector and metal
prices. Assuming that "Armageddon" is not upon us, I see a
resurgence in metal prices and in the junior resource sector
generally which has been almost totally starved of funding for its
exploration endeavours. Prior to the Covid 19 pandemic, certain
metals were under extreme pressure and others failed to live up
their "bullish" forecasts; Copper in particular failed to meet
forecasted prices and its price languished during the year with no
particular spike or trough. In the longer term, towards 2030, the
fact remains that mankind will require double the quantum of Copper
that is currently being produced. On the basis that copper mines
are getting bigger and grades are getting lower, the gestation
period for mine development from exploration to production is
approx. 9 years. In essence, there is an imbalance between Copper
mine development and future demand which will, in my opinion, mean
that successful Copper explorers and mine finders will generate
significant commercial opportunities for their stakeholders;
superior to any other time in history.
The fortunes for Chrome have also been poor during the period
under review and opportunities will exist in that sector during the
coming year. Electric Vehicle "EV" metals all appear to be
competing for the optimal metal choice amongst the options
available for battery production. The market is fearful that there
may be shortages in the supply of Cobalt and this issue is
compounded in certain geographical regions. Nickel seems to be
gaining ground but mines producing this metal from Nickel Sulphide
deposits are few and far between and new sulphide deposits of
significant size and grades have not been discovered. The new
generation of Nickel Oxide discoveries are notoriously difficult to
process and may need a sustainable Nickel price in excess of
US$18,000 per tonne to be commercially viable. At this time of
crisis and volatility, Gold is again seen as a safe haven and this
status is likely to remain in favour for the foreseeable
future.
The Platinum Group Metals ("PGM") basket has experienced
considerable volatility with Palladium and Rhodium ascending to new
highs. Price increases in Palladium have generally been at the
expense of lack lustre prices of Platinum during the year with some
resurgence of late. The price of Rhodium may be distorted by
Exchange Traded Funds ("ETF") purchases which are obliged to
physically hold the metal consequently removing the metal from the
supply chain.
All of the above suggest that commodity prices will be volatile
and when we return to normal supply and demand fundamentals this
will result in significant opportunities for the junior explorers.
Now is the time for "stock picking" to identify explorers with
strong management, robust projects that are located and well
positioned in politically favourable and transparent
jurisdictions.
The major mining companies were performing poorly prior to the
outbreak of the virus compared to the market and the outbreak of
the pandemic decimated valuations to levels well below the
imagination of those of us who have been involved in the industry
for many years. This means that when a recovery is finally
underway, the natural resource sector will have the greatest
potential to restore value and outperform other industrial sectors.
I believe that this will be the case over the next 2 to 3 years and
hope that this resurgence will also boost the junior resource
sector, the sector major conglomerates depend on to provide future
ore resources. The Board is conscious of the fact that resources
currently available for investing are limited and we will consider
ways to recapitalise the Company to facilitate investments or a
transaction in the foreseeable future. We are active in trying to
put finance and projects together in this difficult market place
and we will seek to apply fresh perspectives to regions and
geographies with an eye to those metals and minerals that will be
in demand as we move towards 2030. Opportunities that offer earlier
commercialisation will be tested and we will position the portfolio
to the needs of a low carbon and EV focussed future economy.
It feels almost surreal to be writing this report in the midst
of the Covid-19 pandemic and I sincerely hopes that the economic
effects related to the breakout of the virus subsides and that
global industry reverts back to normality providing a more stable
background for investment. We have collectively operated in many of
the countries with limited infrastructure and economic means to
effectively protect themselves against this pandemic and sympathise
with those where circumstances are extremely challenging and after
many years of association feel for their predicament and we do hope
for a satisfactory outcome.
I would like to thank my fellow Directors for their efforts in
the year and express hope for the future.
Colin Bird
Executive Chairman
26 May 2020
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
31/12/19 31/12/19 31/12/19 31/12/18 31/03/20
GBP GBP GBP GBP
Anglo American Plc - - - 200,997 -
BMR Group Plc 2,500,000 50,217 - - -
Bezant Resources Plc 55,555,556 250,435 111,111 66,667 38,889
Barkby Group Plc (previously
- Sovereign Mines of Africa
Plc) 60,606 100,000 5,909 2,500 4,182
Block Energy Plc 625,000 25,100 28,125 34,375 16,875
Corallian Energy Limited 20,000 30,000 30,000 30,000 15,000
ETFS Copper 1,760 29,864 34,436 34,147 28,984
Galileo Resources Plc 6,516,667 78,335 32,583 46,920 16,943
Goldquest Mining Corporation 173,500 30,259 14,392 10,722 10,080
Jubilee Metals Group Plc 1,169,600 100,219 45,614 28,070 29,240
Pantheon Resources 31,500 30,340 5,197 5,040 4,095
Revelo Resources Corp 216,667 62,965 637 1,278 1,235
Royal Dutch Shell Plc B
Shares 2,700 73,234 60,466 126,357 36,715
TOTAL FOR THE PARENT COMPANY 860,968 368,470 587,073 202,238
------------- ------------ ----------- ----------
Europa Metals Ltd (previously
Ferrum Crescent Linited) 130,499,858 65,250 26,100 52,200 26,100
Jubilee Metals Group Plc 917,802 34,834 35,794 22,027 22,945
Galileo Resources Plc 2,500,000 50,000 12,500 18,000 6,500
Revelo Resources Corp 1,515,000 53,561 6,614 10,887 6,438
South 32 Limited 13,845 28,607 19,522 25,475 12,530
Xtract Resources Plc 606,060 20,217 5,939 4,121 4,242
------------- ------------ ----------- ----------
TOTAL FOR AFRICAN PIONEER
PLC 252,469 106,469 132,710 78,755
------------- ------------ ----------- ----------
TOTAL INVESTMENTS FOR THE
GROUP 1,113,437 474,939 719,783 280,993
============= ============ =========== ==========
PARENT COMPANY:
(1) The Anglo American Plc
shares were sold on 4 July
2019.
(2) The investment in BMR
Group Plc is carried at
nil value on 31 December
2019 following the cancellation
of the
company's shares from trading
on AIM on 3 August 2018.
(3) Half of the Block Energy
Plc shares held at the beginning
of the financial year were
sold on 23 April 2019.
(4) Half of the Royal Dutch
Shell Plc B shares at the
beginning of the financial
year were sold on 26 February
2019.
AFRICAN PIONEER PLC ("APP"):
(1) No share movements took
place in the year ended
31 December 2019.
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 Resource Plc ("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 (see note 6).
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, Philippines and Zambia. It is focused on developing its
pipeline of copper gold projects to provide a new generation of
economically and socially sustainable mines. The company's
portfolio includes the Mankayan project, a porphyry system located
on Luzon Island in the Philippines as well as the Philippine's
Eureka project located under a historic underground mine in Jujuy
province, Argentina. More recently, Bezant has entered into a joint
venture agreement with KPZ International Limited in relation to a
30% acquisition interest in the exploration license numbered
24401-HQ-LEL. The Kalengwa area is a well-recognised Copper
exploration target based on a history of the high grade open pit
mines as well as further identified targets, many of which have not
yet been tested. The company will seek to pursue an aggressive
reconnaissance work programme to unlock the asset's inherent value
potential.
Block Energy Plc (AIM - BLOE: LN) www.blockenergy.co.uk
Block Energy Plc ("Block Energy") is an AIM-listed exploration
and production company with crude oil and natural gas projects
serving customers worldwide. Given the prevailing low oil prices,
the company has postponed all new capital expenditure and has
reduced the monthly cash burn in Georgia by 40% US$64k, through a
combination of cost-cutting and deferral of operating and
administration expenses to help it navigate through this temporary
glut in the energy sector. Elsewhere, the Company has purchased an
early production facility ("EPF") for its west Rustavi project with
a view to converting its contingent gas resources to production and
hence monetise the project. At current flow rates, this is expected
to generate net revenue from gas sales of US$120,000 per month.
Additionally, whilst crude oil prices remain low, Block Energy has
resolved to suspend production from WR-38Z and WR-16aZ, which have
proved to have high gas-to-oil ratios to conserve valuable gas
resources until gas sales commence.
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. Europa has recently announced
that it will focus on engineering and processing work streams in
order to optimise development options for its Toral project. Recent
results from drill holes TOD-024 and TOD-025 have produced the
highest-grade intersections obtained by the company from its
drilling campaign to date. We look forward to further updates from
Europa including phase 2 of the metallurgical test work undertaken
by Wardell Armstrong International.
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 holds a 95% beneficial interest in the Star
Zinc Project near Lusaka which has an inferred Mineral Resource
Estimate comprising of 500 000 tonnes at 16% Zinc for 77 000 tonnes
of contained metal above a cut-off grade of 2% Zinc including
approximately 340 000 tonnes at 21% Zinc for 72 000 tonnes of metal
above a cut-off grade of 8%. Galileo subsequently acquired the
Kabwe Residual Rights from BMR which include the Kashitu prospect
area and under the same agreement the Company and has also served a
Notice of Completion of the Conditions Precedent to Complete the
Acquisition of the Star Zinc Project. The Company owns a 36%
interest in Glenover Project where management is negotiating
options on the Project including sale or a long-term off-take
definitive supply agreement with a major producer of fertiliser. A
favourable conclusion to these negotiations may well further
accelerate Galileo's share price in the near future.
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 continued to invest
significantly in its business and future growth with the
acquisition of the Zambian based Sable Zinc Refinery, which
completed in August 2019 and the acquisition of a 100 % interest in
the PGM and chrome surface rights at the Inyoni Operations. The
Sable Zinc Refinery has further enhanced the Company's operational
earnings capability expanding Jubilee's operations to other
geographical areas and metals. These strategic investments are
helping to generate excellent cash flow for the company generation.
We feel that Jubilee has a robust business model we are confident
that the business will be able to withstand this disruption caused
by Covid19. Following the lockdown implemented by government in SA,
the company's Inyoni Surface PGM and Chrome Operation have recently
recommenced production and its Windsor JV PGM Operation is
preparing to recommence production shortly. Jubilee's Zambian Kabwe
Operation continues to operate its copper refinery with all other
project related work on-hold during this time.
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 2019
was $16,432 million compared with $23,906 million in 2018. After
current cost of supplies adjustment, total segment earnings were
$15,827 million in the year ended 31 December 2019, compared with
$24,364 million in 2018.
CONSOLIDATED AND PARENT COMPANY STATEMENTS OF COMPREHENSIVE
INCOME YEARED 31 DECEMBER 2019
Notes Group Group Company Company
2019 2018 2019 2018
GBP GBP GBP GBP
Change in fair
value of investments 8 142,768 (104,110) 169,009 (2,248)
Revenue:
Investment income 12,230 11,784 11,210 11,030
Interest receivable 109 214 106 199
Administrative
expenses 2 (309,727) (327,937) (285,887) (333,350)
Impairment charge 6 - - (67,686) (167,605)
----------------------- ----------------------- ----------- -------------
LOSS BEFORE TAXATION (154,620) (420,049) (173,248) (491,974)
Taxation 4 - - - -
TOTAL COMPREHENSIVE
(LOSS)/FOR THE YEAR (154,620) (420,049) (173,248) (491,974)
----------------------- ----------------------- ----------- -------------
LOSS FOR THE YEAR ATTRIBUTABLE
TO:
Shareholders of
the company (130,464) (380,037) (173,248) (491,974)
Non-controlling
interest (24,156) (40,012) - -
----------------------- ----------------------- ----------- -------------
(154,620) (420,049) (173,248) (491,974)
----------------------- ----------------------- ----------- -------------
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:
Shareholders of
the company (130,464) (380,037) (173,248) (491,974)
Non-controlling
interest (24,156) (40,012) - -
----------------------- ----------------------- ----------- -------------
(154,620) (420,049) (173,248) (491,974)
----------------------- ----------------------- ----------- -------------
Basic earnings
per share 5 (0.07)p (0.20)p
Diluted earnings
per share 5 (0.07)p (0.20)p
All profits are derived from continuing operations.
The notes on pages 29 to 44 are an integral part of these
financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY YEARED 31 DECEMBER
2019
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 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 - - -
Loss for the
year - - - - (380,037) (380,037) (40,012) (420,049)
Other -
comprehensive
income - - - - - - -
Total
comprehensive
loss
for the year - - - - (380,037) (380,037) (40,012) (420,049)
Transaction
with owners
Issue of shares - - - - - - - -
Share Premium -
on issue
of new shares - - - - - - -
Costs related -
to issue
of new shares - - - - - - -
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
- - - - - - - -
As at 31
December 2018 1,474,334 1,669,216 1,100,000 - (3,516,229) 727,321 25,853 753,174
As at 1 January
2019 1,474,334 1,669,216 1,100,000 - (3,516,229) 727,321 25,853 753,174
Loss for the
year - - - - (130,464) (130,464) (24,156) (154,620)
Total
comprehensive
expense
for the year - - - - (130,464) (130,464) (24,156) (154,620)
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
As at 31
December 2019 1,474,334 1,669,216 1,100,000 - (3,646,693) 596,857 1,697 598,554
---------- ---------- ----------- ------------------- ------------ ------------- ---------------- ----------
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY YEARED 31 DECEMBER
2019
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 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 -
Other comprehensive income
Available-for-sale financial
assets:
current year losses - - - - (491,974) (491,974)
Reclassification to profit
or loss
Transfer on disposal - - - - - -
---------- ---------- ------------ ------------------- ------------ ----------
Total comprehensive expense
for the year - - - - (491,974) (491,974)
Transactions with owners
Issue of shares - - - - - -
Share Premium - - - - - -
Costs relating to issue
of shares - - - - - -
- - - - - -
As at 31 December 2018 1,474,334 1,669,216 1,100,000 - (3,475,194) 768,356
Loss for the year - - - - (173,248) (173,248)
Total comprehensive expense
for the year - - - - (173,248) (173,248)
---------- ---------- ------------ ------------------- ------------ ----------
As at 31 December 2019 1,474,334 1,669,216 1,100,000 - (3,648,442) 595,108
========== ========== ============ =================== ============ ==========
CONSOLIDATED AND PARENT COMPANY STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2019
Notes Group Group Company Company
2019 2018 2019 2018
GBP GBP GBP GBP
NON- CURRENT ASSETS
Investment in subsidiaries 6 - - - 67,686
Available-for-sale investments 8 474,939 719,783 368,470 587,073
------------ ------------ ------------- -------------
Total Non-Current Assets 474,939 719,783 368,470 654,759
CURRENT ASSETS
Trade and other receivables 9 11,756 9,111 109,988 108,691
Cash and cash equivalents 142,622 66,779 142,394 43,285
------------ ------------ ------------- -------------
Total Current Assets 154,378 75,890 252,382 151,976
------------ ------------ ------------- -------------
TOTAL ASSETS 629,317 795,673 620,852 806,735
------------ ------------ ------------- -------------
CURRENT LIABILITIES
Trade and other payables 11 30,763 42,499 25,744 38,379
Total Current Liabilities 30,763 42,499 25,744 38,379
------------ ------------ ------------- -------------
NET ASSETS 598,554 753,174 595,108 768,356
------------ ------------ ------------- -------------
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 1,100,000 1,100,000 1,100,000
Retained earnings (3,646,693) (3,516,229) (3,648,442) (3,475,194)
------------ ------------ ------------- -------------
EQUITY ATTRIBUTABLE TO THE OWNERS 596,857 727,321 595,108 768,356
Equity interest of non-controlling
interests 1,697 25,853 - -
------------ ------------ ------------- -------------
TOTAL EQUITY 598,554 753,174 595,108 768,356
------------ ------------ ------------- -------------
CONSOLIDATED AND PARENT COMPANY CASH FLOW STATEMENTS YEARED 31 DECEMBER 2019
Notes Group Group Company Company
2019 2018 2019 2018
GBP GBP GBP GBP
CASH FLOW FROM OPERATIONS
Loss before taxation (154,620) (420,049) (173,248) (491,974)
Adjustments for:
Interest receivable (109) (214) (106) (199)
Dividends receivable (12,230) (11,784) (11,210) (11,030)
Change in fair value
of investments (142,768) 104,110 (101,323) 169,853
---------- ---------- ---------- ----------
Operating loss before
movements in working
capital (309,727) (327,937) (285,887) (333,350)
(Increase)/Decrease
in receivables (2,596) 30,348 (1,248) (69,652)
Increase/(Decrease)
in payables (11,788) (137,700) (12,687) (7,307)
Transfer to impairment - - - -
Gain on disposal of - - - -
available-for-sale-assets
NET CASH OUTFLOW FROM
OPERATING ACTIVITIES (324,111) (435,289) (299,822) (410,309)
---------- ---------- ---------- ----------
1
CASH FLOW FROM INVESTING
ACTIVITIES
Interest received 109 214 106 199
Dividends received 12,230 11,784 11,210 11,030
Sale of investments 387,615 787,396 387,615 732,652
Purchase of investments 8 - (553,131) - (526,624)
---------- ---------- ---------- ----------
NET CASH INFLOW FROM
INVESTING ACTIVITIES 399,954 246,263 398,931 217,257
---------- ---------- ---------- ----------
Net decrease in cash
and cash equivalents
in the year 75,843 (189,026) 99,109 (193,052)
Cash and cash equivalents
at the beginning of
the year 66,779 255,805 43,285 236,337
---------- ---------- ---------- ----------
Cash and cash equivalents
at the end of the year 142,622 66,779 142,394 43,285
========== ========== ========== ==========
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER
2019
1. ACCOUNTING POLICIES
Basis of preparation
Tiger Resource Plc (Tiger") is a public investment company
limited by shares incorporated and domiciled in England and Wales.
Tiger and African Pioneer Plc's (subsidiary company) 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
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.
Going concern
The operations of the Group have been financed mainly through
operating cash flows. As at 31 December 2019, the Group held cash
balances of GBP142,622 (GBP66,779) and an operating loss has been
reported. Historically, the Group has been generating cash flow
from the appreciation and subsequent sale of investments in quoted
natural resource companies. The Directors anticipate net operating
cash flows to be neutral for the Group in the next twelve months
from the date of signing these financial statements.
The Directors have assessed the working capital requirements for
the forthcoming twelve months and have undertaken assessments which
have considered different scenarios based on a number of production
forecasts until June 2021. Upon reviewing those cash flow
projections for the forthcoming twelve months, the Directors
consider that the Group should not require additional financial
resources in the twelve-month period from the date of approval of
these financial statements to enable the Group to fund its current
operations and to meet its commitments.
Notwithstanding the above and given the ongoing uncertainties
with the ongoing Covid19 pandemic, the Directors may require to
raise some funds through equity fund raising in extremely worsening
economic circumstances. To this end, the Board has substantial
experience with capital markets within the smaller cap space and
would be in a position to access markets in such a scenario.
Nevertheless, after making enquiries and considering the
uncertainties described above, the Directors have a reasonable
expectation that the Company has adequate ability to manage its
portfolio and raise resources if necessary to continue in
operational existence for the foreseeable future. The Directors
therefore continue to adopt the going concern basis of accounting
in preparing the annual financial statement
Valuation of available-for-sale Investments and adoption of
IFRS9
The Group adopted the provisions of IFRS9 from 1 January 2018.
Upon adopting IFRS9 the Group 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 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.
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.
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
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
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.
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 Group Company Company
2019 2018 2019 2018
GBP GBP GBP GBP
Auditor's remuneration:
* Audit of the financial statements 15,000 17,982 15,000 17,982
* Taxation compliance services 1,500 3,000 1,500 3,000
------ ------ ------- -------
16,500 20,982 16,500 20,982
Notes
Legal fees 7,218 14,850 7,218 14,850
Corporate finance costs 25,200 51,504 25,200 51,504
Directors' fees 3 120,000 90,795 120,000 120,000
Director of subsidiary company 3,600 3,600 - -
Occupancy and support costs 82,800 82,800 72,000 72,000
Other administrative overheads 45,205 50,992 35,755 41,600
Stock Exchange costs 9,204 12,414 9,204 12,414
Administrative expenses 309,727 327,937 285,877 333,350
-------- -------- -------- --------
3. DIRECTORS' EMOLUMENTS
Group Group Company Company
2019 2018 2019 2018
GBP GBP GBP GBP
Directors' fees 123,600 94,395 120,000 120,000
------- ------ -------- -------
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 Company Company
2019 Group 2018 2019 2018
GBP GBP GBP GBP
James Cunningham-Davis 3,600 3,600 - -
Colin Bird 50,000 35,660 50,000 50,000
Michael Nolan 35,000 35,000 35,000 35,000
Raju Samtani 35,000 20,135 35,000 35,000
Accruals relating to Directors fees in the subsidiary company
African Pioneer Plc ("APP") were reversed during the year ended 31
December 2018 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.
4. TAXATION
Group Group Company Company
2019 2018 2019 2018
GBP GBP 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% (2018 - 19%)
and the reported tax expense in the statement of comprehensive income are
as follows:
Group Group Company Company
2019 2018 2019 2018
GBP GBP GBP GBP
Loss on ordinary activities before
tax (154,620) (420,049) (173,249) (491,974)
---------- --------- --------- ---------
Expected tax charge at 19% (2018 -
19%) (29,378) (79,809) (32,917) (93,475)
Effects of:
Disallowed expenses - (821) - (821)
Exempt dividend income 2,324 2,239 2,130 2,096
Impairment adjustment - - 12,860 (31,845)
Difference between accounting gain
and taxable gain on investment 12,244 (18,311) 34,618 1,043
Excess management expenses carried
forward 41,459 (61,487) 54,319 (62,516)
Non-trade loan relationship deficit
carried forward 2,487 (1,429) 2,486 (1,432)
Actual tax charge - - - -
---------- --------- --------- ---------
5. EARNINGS PER SHARE
Basic 2019 2018
Loss after tax for the purposes of earnings
per share attributable to equity shareholders
of the parent GBP(130,464) GBP(380,037)
Weighted average number of shares 188,847,070 188,847,070
Basic earnings per ordinary share (0.07)p (0.20)p
Diluted
Loss for year after tax GBP(130,464) GBP(380,037)
Weighted average number of shares 188,847,070 188,847,070
Dilutive effect of options - -
Diluted weighted average number of shares 188,847,070 188,847,070
Diluted earnings per ordinary share (0.07)p (0.20)p
Potentially dilutive options
There were no share options outstanding at 31 December 2019 or
31 December 2018.
6. INVESTMENT IN SUBSIDIARIES
On 20 July 2012, Tiger Resource Plc made an investment in
African Pioneer Plc ("APP"), an Isle of Man company registered at
31-37 North Quay, Douglas, Isle of Man, IM1 4LB. 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 2019, 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.
2019 2018
GBP GBP
At 1 January 2019 67,686 235,291
Impairment (67,686) (167,605)
--------- ----------
Total at 31 December 2019 - 67,686
--------- ----------
African Pioneer Plc's capital and reserves were as follows:
2019 2018
GBP GBP
Share capital 452,983 452,983
Loss for the year (49,058) (95,681)
Revaluation reserve - -
Reserves (400,479) (304,799)
---------- ----------
Total equity 3,446 52,503
---------- ----------
7. INVESTMENTS IN FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
The Group has adopted IFRS9 in the year and 31 December 2018 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
2019
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Canada - 21,006 21,006
Australia - - -
USA
UK: - 34,436 34,436
-Listed 382,951 - 382,951
-AIM - 36,546 36,546
382,951 91,988 474,939
------------------- ------------------ --------
2018
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Canada 10,887 12,000 22,887
Australia 52,200 - 52,200
USA - - -
UK:
-Listed 398,976 - 398,976
-AIM - 245,720 245,720
462,063 257,720 719,783
------------------- ------------------ --------
Listed Investments Other Investments Total
(Quoted)
GBP GBP GBP
Opening book cost 1,155,239 344,149 1,499,388
Opening unrealised gains(losses) (524,987) (254,615) (779,602)
Valuation at 1 January 2019 630,252 89,534 719,786
Movements in the year:
Purchase at cost - - -
Sales proceeds (387,615) - (387,615)
Realised gains/(losses) on sales
based on historic cost 39,164 - 39,164
Increase/(Decrease) in unrealised
gains 101,150 2,454 103,604
(247,301) 2,454 (244,847)
------------------- ------------------ ------------
Book cost at year end 769,288 344,149 1,113,437
Closing unrealised depreciation (386,337) (252,161) (638,498)
------------------- ------------------ ------------
Valuation at 31 December 2019 382,951 91,988 474,939
------------------- ------------------ ------------
*Includes adjustment for GBP37,500 w/off of the Rex Bionics
investment which has been written off on prior year
2019 2018
GBP GBP
Realised (losses)/gains based on historical
cost 39,164 (1,012,089)
Reversal of impairment loss on disposed asset - -
(1)
Realised gains based on carrying value at
previous balance sheet date 39,164 (1,012,089)
Unrealised fair value movement for the year
- profit and loss (1) 103,604 907,979
Unrealised fair value movement for the year - -
- other comprehensive income
Total recognised gains/(losses) on in the
year 142,768 (104,110)
-------- ------------
(1) Net impairment credit/(charge) recognised - -
in profit and loss
-------- ------------
There are no significant holdings (over 20%) in any of the
investee companies.
COMPANY
2019
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Canada - 14,392 14,392
USA
UK: - 34,436 34,436
-Listed 283,096 - 283,096
-AIM - 36,546 36,546
283,096 85,374 368,470
------------------- ------------------ --------
2018
Listed Investments Other Investments Total
(Quoted)
GBP GBP GBP
Canada - 12,000 12,000
USA - - -
UK:
-Listed 373,501 - 373,501
-AIM - 201,572 201,572
373,501 213,572 587,073
------------------- ------------------ --------
Listed Investments Other Investments Total
(Quoted/Others)
GBP GBP GBP
Opening book cost 956,331 290,588 1,246,919
Opening unrealised depreciation (447,902) (211,941) (659,843)
------------------- ------------------ ----------
Valuation at 1 January 2019 508,429 78,647 587,076
Movements in the year:
Purchase at cost - - -
Investments written off - - -
Sales proceeds (387,615) - (387,615)
Realised gains/(losses) on sales
based on historic cost 39,164 - 39,164
Decrease in unrealised depreciation 123,118 6,727 129,845
(225,333) 6,727 (218,606)
------------------- ------------------ ----------
Book cost at year end* 570,380 290,588 860,968
Closing unrealised depreciation* (287,284) (205,214) (492,498)
Valuation at 31 December 2019 283,096 85,374 368,470
------------------- ------------------ ----------
*Includes adjustment for GBP37,500 w/off of the Rex Bionics
investment which has been written off on prior year
2019 2018
GBP GBP
Realised gains based on historical cost 39,164 (990,060)
Realised gains based on carrying value at previous
balance sheet date 39,164 (990,060)
Unrealised fair value movement for the year
- profit and loss (1) 129,845 987,812
Unrealised fair value movement for the year - -
- other comprehensive income
Total recognised losses on investments in the
year 169,009 (2,248)
-------- ----------
(1) Net impairment credit/(charge) recognised - -
in profit and loss
-------- ----------
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 2019 31 December 2018
Profit Profit and
Security and loss Total loss Total
GBP GBP GBP GBP
Anglo American Plc 57,650 57,650 22,804 22,804
Arc Minerals Plc - - (1,896) (1,896)
Ascent Resources Plc - - (2,589) (2,589)
Bezant Resource Plc 44,444 44,444 (183,768) (183,768)
Block Energy Plc 57,785 57,785 (15,825) (15,825)
BMR Group Plc - - (40,750) (40,750)
Duke Royalty Limited - - 1,193 1,193
EFTS Physical Platinum Plc - - (1,516) (1,516)
EFTS Copper 289 289 (6,225) (6,225)
Galileo Resources Plc (14,337) (14,337) (39,775) (39,775)
Goldquest Mining Corporation 3,670 3,670 (26,390) (26,390)
Jersey Oil & Gas Plc - - 1,177 1,177
Jubilee Metals Group Plc 17,544 17,544 (16,374) (16,374)
MX Oil Plc - - (388) (388)
New World Oil & Gas Plc (now
Eridge Capital Limited) - - (2,127) (2,127)
Pan Continental Oil & Gas
NL - - (354) (354)
Pantheon Resources Plc 157 157 (16,222) (16,222)
Papua Mining Plc - - (930) (930)
Revelo Resources Corp (641) (641) (1,604) (1,604)
Rockrose Energy Plc - - 363,204 363,204
Royal Dutch Shell Plc (961) (961) (20,108) (20,108)
Sovereign Mines of Africa
Plc 3,409 3,409 (2,900) (2,900)
Sunrise Resources Plc - - (197) (197)
Tertiary Minerals Plc - - (10,688) (10,688)
---------- --------- ----------- ----------
Movements in parent company 169,009 169,009 (2,248) (2,248)
---------- --------- ----------- ----------
EFTS Copper - - (2,286) (2,286)
Ferrum Crescent Limited (26,100) (26,100) (39,150) (39,150)
Freeport-McMoran Corp. - - (1,484) (1,484)
Galileo Resources Plc (5,500) (5,500) (15,250) (15,250)
Jubilee Metals Group Plc 13,767 13,767 (12,849) (12,849)
Lonmin Plc - - (2,395) (2,395)
Revelo Resources Corp (4,273) (4,273) (9,002) (9,002)
South 32 Limited (5,953) (5,953) (4,779) (4,779)
Xtract Resources Plc 1,818 1,818 (14,667) (14,667)
---------- --------- ----------- ----------
Movements in subsidiary company (26,241) (26,241) (101,862) (101,862)
---------- --------- ----------- ----------
Total movements in the Group 142,768 142,768 (104,110) (104,110)
---------- --------- ----------- ----------
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 2019 Level 1 Level 2 Level Total
GBP GBP 3 GBP
GBP
Assets
Available-for-sale investments 474,939 - - 474,939
--------- -------- ------ ---------
Total 474,939 - - 474,939
31 December 2018 Level 1 Level 2 Level Total
GBP GBP 3 GBP
GBP
Assets
Available-for-sale investments 719,783 - - 719,783
--------- -------- ------ ---------
719,783 - - 719,783
--------- -------- ------ ---------
(COMPANY)
31 December 2019 Level 1 Level 2 Level Total
GBP GBP 3 GBP
GBP
Assets
Available-for-sale investments 368,470 - - 368,470
--------- -------- ------ ---------
Total 368,470 - - 368,470
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
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
2019 2018 2019 2018
GBP GBP GBP GBP
Other debtors 2,624 261 1,276 261
Amounts due from group undertakings - - 100,000 100,000
Prepayments 9,132 8,850 8,712 8,430
------- ------ -------- --------
11,756 9,111 109,988 108,691
------- ------ -------- --------
The amounts owed by group undertakings are interest free,
unsecured and repayable on demand
10. DEFERRED TAX LIABILITIES
The group has tax losses carried forward in respect of excess
management charges, non-trade deficits and capital losses of
GBP2,525,819 (2018: GBP2,273,316). Unrealised losses on the Group's
financial assets are estimated at GBP675,998 (2018: GBP779,603).
The resulting deferred tax asset is GBP479,906 (2018: GBP580,055).
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
2019 2018 2019 2018
GBP GBP GBP GBP
Trade payables 5,513 8,200 494 4,080
Other creditors 2,450 2,242 2,450 2,242
Accruals 22,800 32,057 22,800 32,057
------- ------- -------- --------
30,763 42,499 25,744 38,379
------- ------- -------- --------
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 0.1p
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.
2019 2018
GBP GBP
Authorised:
Ordinary Share Capital 10,000,000 10,000,000
----------- -----------
142,831,939 (2018 142,831,939) deferred shares of
0.9p each 1,285,487 1,285,487
----------- -----------
Issued: 2019 2018
GBP GBP
188,847,070 Ordinary shares 0.1p (2018: 188,847,070
Ordinary shares of 0.1p each) 188,847 188,847
142,831,939 (2018: 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.
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 (2018 - GBP60,000). There were no amounts outstanding
at 31 December 2019 (2018- 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 at 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
The NAV and share price of Tiger Resource Plc fell considerably
towards the first quarter of 2020 following the break out of the
Covid19 pandemic. This is referenced in the Portfolio Review
section of the Financial Statements which shows the Group's
portfolio of investments falling to GBP280,993 at 31 March 2020.
The Board is of the opinion that selected investments in the
portfolio will outperform the general market once the pandemic is
brought under control and as such no adjustments to the accounts is
required for this development.
15. CONTINGENT LIABILITIES
There were no contingent liabilities at 31 December 2019 (2018 -
None).
There were no operating or financial commitments or contracts
for capital expenditure in place for the Group or Company as at the
reporting date (2018: GBPnil).
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 2019 for the Group was GBP142,622 (2018: GBP66,779). The
exposure to cash flow interest rate risk at 31 December 2019 for
the Company was GBP142,394 (2018: GBP43,285).
A sensitivity analysis based on a movement of 1% on interest
rates would have a GBP1,426 effect on the Group's profit (2018:
GBP668). A sensitivity analysis based on a movement of 1% on
interest rates would have a GBP1,424 effect on the Company's'
profit (2018: GBP433).
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 (2018: none).
The fair values of the Group's available-for-sale investments
that have foreign currency exposure at 31 December 2019 are shown
below.
Group Group
2019 2018
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Available-for-sale investments 21,006 - 34,436 22,887 52,200 -
Company Company
2019 2018
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Available-for-sale investments 14,392 - 34,436 12,000 - -
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% - (2018: +/- 20%)
- GBP/USD +/- 20% - (2018: +/- 20%)
- GBP/AUD +/- 20% - (2018: +/- 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
2019 2018
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity 4,201 - 6,887 4,577 10,440 -
If GBP Sterling had strengthened against the currencies shows,
this would have had the following effect:
Group Group
2019 2018
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity (3,501) (-) (5,739) (3,815) (8,700) -
If GBP Sterling had weakened against the currencies shown, this
would have had the following effect:
Company Company
2019 2018
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity 2,878 - 6,887 2,400 - -
If GBP Sterling had strengthened against the currencies shows,
this would have had the following effect:
Company Company
2019 2018
CAD AUD USD CAD AUD USD
GBP GBP GBP GBP GBP GBP
Equity (2,399) - (5,739) (2,000) - -
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
2019 2018
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) 237,470 (237,470) 359,892 (359,892)
Company Company
2019 2018
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) 184,235 (184,235) 293,537 (293,537)
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 2019 of
GBP11,707 (2018 - GBP9,111) is the sum of GBP2,313 (2018 - GBPnil)
which was lodged with the Company's brokers in relation to future
investments.
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 (2018: 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 UBOORRAUVUAR
(END) Dow Jones Newswires
May 27, 2020 10:02 ET (14:02 GMT)
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