Tiger Resource : Final Results 17 May 2019

Regulatory Story

Go to market news section

Tiger Resource PLC - TIR Final Results

Released 07:00 17-May-2019

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 YEAR ENDED 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.comfrom

08.00on 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.

2The 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,	[phone]
Beaumont Cornish (Nomad)	Director
Roland Cornish	[phone]
	Felicity Geidt
	Email:[e-mail]
Novum Securities Ltd	Jon Belliss	[phone]
(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 £293,854 on the disposal and also cashed in an additional amount of £142,500 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
		£	£	£	£
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	60,606	100,000	2,500	5,400	2,697
Mines of Africa Plc)
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 NL	-	-	-	1,591	-
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	-
	130,499,858	65,250	52,200	91,350	26,100

Europa Metals Ltd (previously Ferrum
Crescent Linited)
Freeport-McMoran Inc	-
Jubilee Metals Group Plc	917,802
Galileo Resources Plc	2,500,000
Lonmin Plc	-
Revelo Resources Corp	1,515,000
South 32 Limited	13,845
Xtract Resources Plc	606,060
TOTAL FOR AFRICAN PIONEER PLC

TOTAL INVESTMENTS FOR THE

GROUP

PARENT COMPANY:

-	-	28,320	-
34,834	22,027	34,876	21,385
50,000	18,000	33,250	16,750
-	-	5,612	-
53,560	10,887	20,112	10,859
28,607	25,475	3,650	27,801
20,217	4,121	18,788	4,242
252,468	132,710	262,796	107,137
1,499,386	719,783	1,058,145	673,684

(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 Leόn, 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 £500,000, 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 YEAR ENDED 31 DECEMBER 2018

Change in fair value of investments

Revenue:

Investment income Interest receivable

Administrative expenses

Impairment charge

Notes	Group 2018	Group 2017	Company 2018	Company 2017
	£	£	£	£
8	(104,110)	217,125	(2,248)	123,429
	11,784	7,089	11,030	4,448
	214	281	199	281
2	(327,937)	(387,647)	(333,350)	(340,374)
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	93,539	89,083
OF TAX		8
TOTAL COMPREHENSIVE		(420,049)		(491,974)
(LOSS)/PROFIT		(100,534)	(125,751)
FOR THE YEAR
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Shareholders of the		(380,037)	(204,296)	(491,974)	(214,834)
company
	(40,012)		-
Non-controlling interest		10,223	-
			(420,049)	(194,073)	(491,974)	(214,834)
TOTAL COMPREHENSIVE PROFIT ATTRIBUTABLE TO:
Shareholders of the		(380,037)	(112,952)	(491,974)	(125,751)
company
		(40,012)		-
Non-controlling interest		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 YEAR ENDED 31 DECEMBER 2018

As at 31 December 2016

Loss for the year

Other comprehensive income

Available-for-sale financial assets: Current year losses

Reclassification to profit or loss Transfer to impairment Transfer on disposal

Total comprehensive income for the year

Transaction with owners

Issue of shares

Share Premium on issue of new shares Costs related to issue of new shares

As at 31 December 2017

IFRS9 Adjustment to opening reserves

As at 1 January 2018

Loss for the year

Total comprehensive income for the year

As at 31 December 2018

Share capital	Other components of equity	Available-	Retained	Equity	Non-	Total
Share	Capital
	premium	redemption	for-sale	earnings	attributable	controlling	Equity
		reserve	financial		to owners	interest
£	£	£	assets	£	£	£	£
£
1,428,319	1,597,231	1,100,000	230,619	(3,253,859)	1,102,310	53,447	1,155,757
-	-	-	-	(204,296)	(204,296)	10,223	(194,073)
-	-	-	275,193	-	275,193	60,573	335,766
-	-	-	(2,509)	-	(2,509)	(2,434)	(4,943)
-	-	-	(181,340)	-	(181,340)	(55,944)	(237,284)
-	-	-	91,344	(204,296)	(112,952)	12,418	(100,534)
46,015	-	-	-	-	46,015	-	46,015
-	115,038	-	-	-	115,038	-	115,038
-	(43,053)	-	-	-	(43,053)	-	(43,053)
46,015	71,985	-	-	-	118,000	-	118,000
1,474,334	1,669,216	1,100,000	321,963	(3,458,155)	1,107,358	65,865	1,173,223
-	-	-	(321,963)	321,963	-	-	-
1,474,334	1,669,216	1,100,000	-	(3,136,192)	1,107,358	65,865	1,173,223
-	-	-	-	(380,037)	(380,037)	(40,012)	(420,049)
-	-	-	-	(380,037)	(380,037)	(40,012)	(420,049)
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 YEAR ENDED 31 DECEMBER 2018

			Other components of equity
	Share capital	Share	Capital	Available-	Retained	Total
			premium	redemption	for-sale	earnings	Equity
				reserve	financial
					assets
	£	£	£	£	£	£
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: