Preliminary Results

RNS Number : 6898M
Tiger Resource Finance PLC
28 May 2010
 



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

 

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER, 2009

 

 

 

 

OPERATIONS REVIEW

 

Dear Shareholder,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PORTFOLIO REVIEW

 

 

 

Number

Cost

Valuation

Valuation

 

31/12/09

31/12/09

31/12/09

30/04/10

 

 

£

£

£

INVESTMENTS:

 

 

 

 

 

 

 

 

 

African Eagle Resources Plc

1,241,174

112,264

52,750

46,544

Aquarius Platinum Ltd (1)

18,182

89238

74,001

79,164

Ascent Resources Plc (2)

24,642,857

550,824

1,293,750

409,821

ETFS Physical Platinum (3)

-

-

-

252,847

Franconia Minerals Corp

475,733

69,939

108,199

153,539

Gold Fields Ltd (4)

10,500

32,759

87,196

-

In-Solve Plc

(formerly Africa Oil Exploration Plc) (5)

625,000

37,500

15,625

14,063

 

Minmet Plc (5)

873,574

15,200

8,736

8,736

Nautical Petroleum Plc

450,000

180,000

211,500

252,000

Pacific North West Capital Corp

566,500

107,682

62,726

48,017

Pan African Resources Plc (4)

5,098,333

175,013

349,236

-

Vatukoula Gold Mines Plc

13,333,332

200,000

176,000

301,333

Sunrise Diamonds Plc

665,000

6,650

4,988

3,658

Tertiary Minerals Plc

1,330,000

119,700

49,875

29,925

U308 Holdings Plc

4,166,666

125,000

72,917

10,417

 

 

 

 

 

TOTAL

 

1,821,769

     2,567,499

1,610,064

                                                                                                                                                                       

 

 

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2009

 

 

Notes

2009

2008

 

 

 

£

£

(Loss)/Profit on sale of available for sale assets

6

(48,754)

159,797

Income:

 

 

 

    Investment income

 

13,848

1,335

    Interest receivable

 

16,165

189,662

Administrative expenses

2

(277,859)

(376,525)

Impairment

 

0

(288,435)

 

 

 

 

PROFIT/(LOSS) BEFORE TAXATION

 

(296,600)

(314,166)

 

 

 

 

Taxation

4

0

30,653

 

 

 

 

PROFIT (LOSS) FOR THE YEAR

 

(296,600)

(283,513)

 

 

 

 

 

OTHER COMPREHENSIVE INCOME

 

Available-for-sale financial assets

    Unrealised gains/(losses)                                                                                                                                                                                                                   

    Reclassification to profit or loss

 

 

 

 

 

1,073,280

72,739

 

 

 

 

(5,429,262)

(225,202)

Income tax relating to components of other comprehensive income

9

 

           (208,805)

 

          1,471,170

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX

 

 

937,214

 

(4,183,294)

 

 

 

 

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

 

 

640,614

 

(4,466,807)

 

 

 

 

 

Basic earnings per share

5

(0.17)p

(0.16)p

Diluted earrings per share

5

(0.17)p

(0.16)p

 

 

 

 

 

 

All profits are derived from continuing operations.



 
 
STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 DECEMBER 2009

 


Share capital

Share premium

Capital redemption reserve

Other

 reserve

Available-for-sale financial assets

Retained             earnings 

                         

F   Share

based

reserves

               Total  

 


£

£

£

£

£

£

     £

                     £

As at 31 Dec 2007

2,020,719

1,557,831

350,000

(1,471,170)

5,254,178

1,858,742

   130,118

9,700,418










Changes in equity for 2008









Available-for-sale financial assets









Current year gains (losses)

-

-

-

-

(5,429,262)

-


(5,429,262)

Reclassification to profit or loss

-

-

-

-

(225,202)

-


(225,202)

Income tax relating to components of other comprehensive income

-

-

-

1,471,170

-



1,471,170

Loss for the year

-

-

-

-

-

(283,513)


(283,513)

 










Total comprehensive income and expense for the year

-

-

-

1,471,170

(5,654,464)

(283,513)

-

(4,466,807)










Issue of share capital

-

-

-

-

-

-


-

Shares bought back and held in treasury

-

-

-

-


(78,975)


(78,975)










As at 31 Dec 2008

2,020,719

1,557,831

350,000

-

(400,286)

1,496,254

130,118

5,154,636










Changes in equity for 2009









Available-for-sale financial assets









Current year gains (losses)

-

-

-


1,073,280

-


1,073,280

Reclassification to profit or loss

-

-

-


72,739

-


72,739

Income tax relating to components of other comprehensive income

-

-

-

(208,805)

-



(208,805)

Loss for the year

-

-

-

-

-

(296,600)


(296,600)










Total comprehensive income and expense for the year




(208,805)

1,146,019

(296,600)

-

640,614










As at 31 Dec 2009

2,020,719

1,557,831

350,000

(208,805)

745,733

1,199,654

130,118

5,795,250



 

 

 

 

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2009

 

 

Notes

2009

 2008

 

 

 

£

£

NON CURRENT ASSETS

 

 

 

Financial assets

 

 

 

Available-for-sale investments

6

2,567,499

1,510,718

 

 

 

 

CURRENT ASSETS

 

 

 

Trade and other receivables

7

14,904

8,615

Cash and cash equivalents

 

3,469,468

3,674,055

Other debtors

 

86

85

 

 

3,484,458

3,682,755

 

 

 

 

TOTAL ASSETS

 

6,051,957

5,193,473

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

EQUITY ATTRIBUTABLE TO SHAREHOLDERS

 

 

 

Share capital

10

2,020,719

2,020,719

Share premium

 

1,557,831

1,557,831

Other components of equity

 

886,928

(50,286)

Retained earnings

 

1,329,772

1,626,372

TOTAL EQUITY

 

5,795,250

5,154,636

 

 

 

 

NON CURRENT LIABILITIES

 

 

 

Deferred tax liabilities

9

208,805

-

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade and other payables

8

47,902

38,837

Corporate tax payable

 

-

-

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

256,707

38,837

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

6,051,957

5,193,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOW STATEMENT

YEAR ENDED 31 DECEMBER 2009

 

 

 

 

 

2009

2008

 

 

£

£

CASH FLOW FROM OPERATIONS

 

 

 

Loss before taxation

 

(296,600)

(314,166)

(Increase)/Decrease in receivables

 

(6,289)

107,622

Increase/(Decrease) in payables

 

9,063

(11,176)

Adjustment for (loss)/profit on sale of available for sale assets

 

48,754

(159,797)

Impairment of available for sale assets

 

-

288,435

 

 

 

 

 NET CASH OUTFLOW FROM OPERATING ACTIVITIES

 

 

 

(245,072)

(89,082)

TAXATION PAID

 

-

(262,149)

 

 CASH FLOW FROM INVESTING ACTIVITIES

 

 

 

Sale of assets available for sale

 

40,485

324,797

Purchase of assets available for sale

 

-

(425,000)

 

 

 

 

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

 

 

40,485

(100,203)

 

 

 

 

 CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

Purchase of shares for treasury

 

-

(78,975)

 

 

 

 

NET CASH OUTFLOW FROM FINANCING ACTIVITIES

 

-

(78,975)

 

 

 

 

 

 

 

 

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

 

(204,587)

(530,409)

Cash and cash equivalents at the beginning of the period

 

3,674,055

4,204,464

Cash and cash equivalents at the end of the period

 

3,469,468

3,674,055

 

 

 

 

 

 

 

 

 

 

 

                                                                                                    

 

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

 

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

 

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

 

 

 

 

For further information please contact:

Colin Bird, Director

Tel: +0027 (0) 11 253 3280

Raju Samtani, Director

Tel: +0044 (0) 20 7581 4477



 

 


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