TIDMMTR
Metal Tiger plc
2017 Interim Report
Unaudited interim results for the six months ended 30 June
2017
Metal Tiger plc ("Metal Tiger" or the "Company"), the AIM
listed, natural resources focused investment company, is pleased to
announce its unaudited interim results for the six months ended 30
June 2017 ("the Period").
Key Highlights:
STRATEGIC INVESTOR
In April 2017, Exploration Capital Partners, a fund operated by
Sprott Global Resource Investments, a leading global natural
resources investor; took part in a placing of 161,666,666 new
ordinary shares in Metal Tiger plc at 3p raising gross proceeds of
GBP4.85m. This marked a defining moment on Metal Tiger's
development attracting this world class fund's support as its first
institutional investor at a 9% premium to the closing price on the
previous trading day before issue.
This was the largest fund raise Metal Tiger has made to date and
positioned it to advance the exploration programme at its core 30%
joint venture project in Botswana to a position of strength.
THAILAND JOINT VENTURE IPO
The Company's Thailand interests advanced considerably with new
projects and the building of a technical team capable of developing
the project. Extensive due diligence, negotiations and preparation
for an IPO have been undertaken in respect of its Thai assets
including the Boh Yai and Song Toh lead-zinc-silver mines.
On 18 September 2017, Metal Tiger announced that it had
postponed the IPO until quarter 1 2018, principally to wait for the
publishing of the national Master Mining Plans and MDA's (Mining
Designated Areas) by the National Minerals Management
Committee.
BOTSWANAN COPPER/SILVER JOINT VENTURE
Metal Tiger's 30% joint venture interest in Botswana centres on
the high-grade copper and silver 'T3 Project' which is currently
the subject of ongoing Prefeasibility Study ("PFS") work towards
the development of an open-pit copper mine. This represents a major
copper/silver discovery by the Botswanan joint venture with MOD
Resources Limited (ASX: MOD) and the development programme
continued apace during the Period.
The PFS work programme was commenced in early 2017, following
the completion of the open-pit Scoping Study (released 6 December
2016), with the results of the PFS study expected by the end of
2017.
An updated and upgraded Mineral Resource Estimate for T3 was
released on 24 August 2017 showing a 27% increase in Total Resource
Tonnes, this incorporated the results of an infill and extensional
drilling programme which was undertaken between the release of the
maiden Mineral Resource Estimate in September 2016 and the end of
quarter 1 2017. The revised estimate constitutes a significant
upgrade to the project and is an important step towards the
prefeasibility study.
DIRECT EQUITIES
A strong pipeline of new resource exploration and mining project
opportunities has been identified and some have been executed in
2017. The targets are undervalued vehicles quoted on a recognised
international stock exchange. Extensive work is being done to
maximise the returns from these investments to increase Metal Tiger
value per share.
The Direct Equity Division performed well with a net gain on
investments at the half year of GBP2,060,300 (prior half year ended
30 June 2016: GBP2,135,200) and with investments held in the Direct
Equities Division at 30 June 2017 amounting to GBP6,353,200 (prior
half year ended 30 June 2016: GBP3,745,400).
Strategic equity and warrant holdings at the half year end in
eleven (prior half year ended 30 June 2016: fourteen) AIM, TSX or
ASX listed resource companies.
The portfolio of warrants in 11 AIM, TSX or ASX companies was
maintained; the only warrant exercised in the period being that of
29,166,666 shares at A$1 cent on 8 February 2017 in MOD
Resources.
However, the Company will continue to exit its positions in its
Direct Equities and take advantage of new opportunities which the
Board identifies.
WORKING CAPITAL AND OVERALL ASSETS
Comprehensive Loss GBP(35,000) for the half year ended 30 June
2017 (prior half year ended 30 June 2016: profit GBP559,400).
As at 30 June 2017 Cash at Bank amounted to GBP4,020,800 (prior
half year end 30 June 2016: GBP808,200) and, in addition, the
carrying of Direct Equities value amounted to GBP6,353,200 (prior
year end 30 June 2016: GBP3,745,400).
Net Current Assets at 30 June 2017 amounted to GBP10,367,200
(prior half year end 30 June 2016: GBP4,770,300).
Overall Net Assets at 30 June 2016 amounted to GBP12,860,500
(prior half year end 30 June 2016: GBP5,199,700).
KEY PERFORMANCE INDICATORS
Unaudited Audited
Unaudited Six months ended Year ended
Six months ended 30 June 31 December
30 June 2017 2016 2016
Net asset value 12,860,500 5,199,700 7,457,900
Net asset value 1.07p 0.96p 0.96p
- fully
diluted per share
Closing share price 2.175p 3.450p 1.450p
Share 103% 259% 51%
price
premium/(discount)
to
net asset value
-fully diluted
Market GBP20,957,000 GBP19,666,000 GBP11,233,000
capitalisation
Chairman's Statement
The half year ended 30 June 2017 saw a milestone in the progress
of the Company, notably the GBP4.85m share placement made by
Exploration Capital Partners and with updated mineral resource
estimate at the Company's Botswanan joint venture.
This marked a defining moment in Metal Tiger's development
attracting this world class fund's support as its first
institutional investor at a 9% premium to the closing price on the
previous trading day before issue.
This was the largest fund raise Metal Tiger has made to date and
positioned it to advance the exploration programme at its core
joint venture project in Botswana to a position of strength.
A revised resource model for the Botswana joint venture was
released in August 2017 and showed that the Total (Measured,
Indicated & Inferred) Mineral Resource Estimate comprises
36.0Mt @ 1.14% Cu & 12.8g/t Ag containing approximately 409kt
copper and 14.8Moz silver on a 100% basis (10.8Mt containing
approximately 123kt copper and 4.4Moz silver on a 30% attributable
basis). This constituted a 27% increase in Total Resource tonnes a
16% increase in contained copper compared with the Maiden Resource
(at 0.5% Cu cut-off grade).
25% of Total Resource tonnes was from the Measured Resource
category (8.9Mt on a 100% basis and 2.7Mt on a 30% attributable
basis @ 1.27% Cu & 12.5g/t Ag), denoting a higher degree of
Resource confidence (at 0.5% Cu cut-off grade). At a higher cut-off
grade (1.0% Cu), the revised total Mineral Resource Estimate
comprised 20.6Mt on a 100% basis (6.2Mt on a 30% attributable
basis) at average grades of 1.43% Cu and 14.7g/t Ag. An additional
low-grade Resource contains approximately 47.6kt copper on a 100%
basis (14.3kt on a 30% attributable basis) at 0.25% Cu cut-off
grade. Overall, the revised Resource model shows good grade
continuity with horizontal widths of >1% Cu mineralisation up to
180m across the planned open-pit design.
A T3 (Phase 2) 2017 drilling programme is currently underway
with four rigs to test further Resource extensions, underground
potential and geophysical targets around T3. All six new holes
completed to date have intersected significant visible copper
mineralisation and results will be announced when assays are
received and interpreted.
If the deposit is mined, the central core of the high-grade vein
hosted mineralisation may provide an opportunity for early payback
of capital and the high silver content should provide significant
concentrate credits.
This bodes well for the future and the joint venture is planning
to conduct a substantial regional exploration programme exploring
for satellite deposits at other priority targets around T3, with
several targets identified by Airborne Electromagnetics. We expect
good results from this exploration and the PFS) due (in late
2017/early 2018) is likely to confirm the Preliminary Upside Case
Model in the Scoping Study which indicates strong financial metrics
assuming a US$3.00/lb Cu price. The Scoping Study showed:
-- estimated pre-tax NPV10% approximately US$297M and IRR of 42%;
-- average pre-tax annual cash flow approximately US$65m pa;
-- C1 costs are estimated at US$1.31/lb Cu including silver credits;
-- expected payback period approximately 2 years;
-- each US 10 cent/lb rise in Cu price estimated to add approximately US$
25m to NPV.
The Thailand operations advanced considerably during the period
with new projects and the building of a team capable of developing
the project towards a decision to mine. Extensive due diligence and
negotiations have been undertaken and concluded in respect of Boh
Yai and Song Toh lead-zinc-silver mines and the requisite corporate
structures put in place for the future. Post Period end, on 18
September 2017, Metal Tiger announced that it had postponed the IPO
of its interests in the two Thai Lead Zinc Silver mines through a
new vehicle, KEMCO Mining Plc, until quarter 1 2018, principally
awaiting the publishing of the national Master Mining Plans and
MDAs (Mining Designated Areas) by the Thai National Minerals
Management Committee.
Following initial conversations with government officials, we
remain confident that the areas in which the Thai operations have
Mining Lease Applications will be designated as MDAs. The
forthcoming release of the Master Plan and designated MDAs will
provide further clarification to potential investors whilst also
delivering what we believe will be a boost to the proposed PLC's
valuation.
The Company believes waiting for clarification on the first
Master Plan will significantly improve the valuation at which it is
able to gain investor support. The Company notes that the
attributable NPV10 (post tax) for 80% of the project would be
valued at US$36,720,000 (GBP27,172,800) based on the Competent
Persons Report and therefore any valuation would typically apply
suitable permitting, country and corporate overhead risk discounts
to the valuation to determine the pre-money valuation as well as
look at comparable listed companies' valuations.
We are highly encouraged by the positive feedback we have had so
far in our meetings with potential new investors, with six family
offices expressing substantial interest and we remain convinced by
the strengths of the assets within our Thai interests and the
suitability of KEMCO Mining Plc as a public company. The Company
believes it will also get a far better valuation by postponing the
IPO until Q1 2018 than it could have achieved if it marketed prior
to the first Master Plan being published. Since the majority of
pre-IPO expense has been incurred, the day to day costs of
maintaining this project until Q1 2018 are modest.
In Spain work at the Logrosan Project has concentrated on infill
soil and outcrop sampling, geophysics and mapping. A total of 7,345
samples have been assayed for gold between 1 January and 26 June
2017; these have helped delineate three current gold targets, with
a combined total strike of over 13.5km, associated with a
regional-scale 19km long, arsenic in soil anomaly. Also during this
period, the new Logrosan East Tungsten Target was delineated by
soil geochemistry and ground magnetics, this extends 2.3km by 0.9km
and sits along strike from the project's Tungsten Target 2 where
shallow drilling during 2016 intersected over 8m at 0.32% WO3.
The Company also has a pipeline of new exploration and mining
project opportunities identified and suitable for investment, being
other existing AIM vehicles or new vehicles quoted or listed on a
recognised stock exchange or other trading platforms in which Metal
Tiger has invested. Extensive work is being undertaken to monetise
the additional pipeline interests to increase Metal Tiger value per
share with new opportunities which, as of yet, have not been made
public.
During the half year the Company has continued to exit
notifiable positions in its Direct Equities Division raising
GBP1.1m in proceeds to crystallise gains made since acquisition.
The Company continues to hold material equity warrants in eleven
resource companies and expects these to deliver significant value
in the medium term.
The Company's focus continues to be on its Direct Projects,
whilst having exposure to a resource sector recovery and
commodities price increases from its Direct Equities Division.
The Company has good support from high net worth investors for
which it is grateful and now has support from one of the world's
largest natural resource institutional investor groups and this
position should continue given the success which it has had in its
Direct Projects.
Net Assets Value per fully diluted share at 30 June 2017 has
grown by 11% since 31 December 2016 and there is significant upside
in this when the Direct Projects are realised.
I would like to take this opportunity to thank to all our
advisers and partners, the Company's success has been helped by the
quality of those engaged around the world. Thanks also belong to
our shareholders, who share our resolve to create high investment
returns, many of these investors have held their shares in the
Company for the past three years.
We are working hard and we will continue to deliver significant
value from every facet of our business.
Charles HallChairman
Condensed Statement of Comprehensive Income
For the six months ended 30 June 2017
Unaudited Six Unaudited
months Six months Audited
Ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
Notes GBP'000 GBP'000 GBP'000
Net gains on disposal 595.0 78.8 296.3
of investments
Movement in fair 1,465.3 2,056.4 2,346.8
value of Direct
Equities Division
investments
Share of post tax (14.2) (7.1) (21.1)
losses of equity
accounted associates
Share of post tax (47.4) (53.8) (233.7)
losses of equity
accounted joint
ventures
Provision against - (216.3) (156.9)
cost of joint
venture investments
Investment income 0.1 0.2 0.3
Net gain on investments 1,998.8 1,858.2 2,231.7
Administrative expenses (1,994.8) (1,486.8) (3,238.1)
Bargain purchase - 178.4 155.6
on acquisition
of subsidiary
Operating profit/(loss) 4.0 549.8 (850.8)
Finance income 0.4 0.1 130.6
Finance costs (38.5) (0.1) (0.1)
(Loss)/profit before 3 (34.1) 549.8 (720.3)
taxation
Tax on profit/(loss) on 4 - - -
ordinary activities
(Loss)/profit (34.1) 549.8 (720.3)
on ordinary
activities
after taxation
Other comprehensive
income
- Items which may be
subsequently
reclassified
to profit or loss:
Exchange differences (0.9) 9.6 (207.4)
on translation
of foreign operations
Total comprehensive (35.0) 559.4 (927.7)
(loss)/profit
for the period
(Loss)/profit for
the period
attributable to:
Owners of the parent (31.7) 583.1 (651.4)
Non-controlling (2.4) (33.3) (68.9)
interest
(34.1) 549.8 (720.3)
Total comprehensive
(loss)/profit
for the period
attributable
to:
Owners of the parent (32.4) 671.6 (719.0)
Non-controlling (2.6) (112.2) (208.7)
interest
(35.0) 559.4 (927.7)
Earnings per share
Basic (loss)/earnings 5 (0.004p) 0.11p (0.12p)
per share
Fully 5 (0.004p) 0.10p (0.12p)
diluted(loss)/earnings
per share
Condensed Consolidated Statement of Financial Position
At 30 June 2017
Notes Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 35.7 - 26.7
Property, plant and equipment 39.7 19.5 46.3
Investment in associates 1,294.0 204.7 743.4
Investment in joint ventures 1,246.9 340.1 1,097.6
Other non-current assets - 49.6 -
Total non-current assets 2,616.3 613.9 1,914.0
Current assets
Direct Equities Division 6,353.2 3,745.4 4,067.4
investments
Trade and other receivables 604.1 390.2 705.5
Cash and cash equivalents 4,020.8 808.2 1,389.8
Total current assets 10,978.1 4,943.8 6,162.7
Current liabilities
Trade and other payables (562.1) (173.5) (439.0)
Loans and borrowings (48.8) - (48.4)
Total current liabilities (610.9) (173.5) (487.4)
Net current assets 10,367.2 4,770.3 5,675.3
Non-current liabilities
Trade and other payables - (53.1) -
Contingent consideration (123.0) (131.4) (131.4)
Total non-current liabilities (123.0) (184.5) (131.4)
Net assets 12,860.5 5,199.7 7,457.9
Capital and reserves
Called up share capital 96.4 669.8 77.5
Share premium account 3,302.7 7,761.6 1,274.6
Share based payment reserve 695.3 514.2 532.5
Warrant reserve 4,095.5 535.8 1,087.5
Translation reserve (68.3) 88.5 (67.6)
Profit and loss account 4,768.9 (3,409.0) 4,527.2
Total shareholders' funds 12,890.5 6,160.9 7,431.7
Equity non-controlling (30.0) (961.2) 26.2
interests
Total equity 12,860.5 5,199.7 7,457.9
Condensed Statement of Cash Flows
For the six months ended 30 June 2017
Unaudited Unaudited Six Audited
Six months months ended Year ended
ended 30 30 June 31 December
June 2017 2016 2016
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
(Loss)/profit before taxation (34.1) 549.8 (720.3)
Adjustments for:
Profit on disposal (595.0) (78.8) (296.3)
of Direct Equities
Division investments
Movement in fair value (1,465.3) (2,056.4) (2,346.8)
of investments
Share of post tax 14.2 7.1 21.1
losses of equity
accounted investments
Share of post tax 47.4 53.8 233.7
losses of equity
accounted joint ventures
Movement in provision against - 216.3 156.9
joint venture investments
Share based payment 425.9 358.9 475.7
charge for year
Equity settled trading 21.0 77.9 331.6
liabilities
Depreciation and amortisation 9.1 1.0 6.5
Bargain purchase on acquisition - (178.4) (155.6)
Net acquired non-controlling - - 111.5
interest
on change of control
Investment income (0.1) (0.2) (0.3)
Finance income (0.4) (0.1) (130.6)
Finance costs 38.5 0.1 0.1
Operating cash flow before (1,538.8) (1,049.0) (2,312.8)
working capital changes
Increase in trade and (242.1) (202.7) (188.6)
other receivables
Increase in trade and 122.0 64.6 298.7
other payables
Unrealised foreign (15.2) (6.0) (31.9)
exchange gains
Net cash outflow from (1,674.1) (1,193.1) (2,234.6)
operating activities
Cash flow from Investing
activities
Proceeds from investment 1,095.3 367.4 1,153.4
disposals
Purchase of intangible assets (10.6) - (25.7)
Purchase of fixed assets (0.3) (16.8) (47.4)
Purchase of investment - (164.2) (164.2)
in subsidiary
Purchase of investment in, (597.8) (153.4) (669.2)
and loans to, associates
Purchase of investment in, and (196.7) (296.1) (948.5)
loans to joint ventures
Purchase of investments (1,320.8) (1,134.7) (1,734.7)
Finance income 0.3 0.3 0.5
Cash acquired with subsidiary - 5.2 5.2
undertakings
Net cash outflow from (1,030.6) (1,392.3) (2,430.6)
investing activities
Cash flows from financing
activities
Proceeds from issue of shares 5,678.0 3,080.9 5,848.5
Share issue costs (342.3) (50.3) (148.2)
Interest paid (0.1) (0.1) (0.1)
Net cash inflow from 5,335.6 3,030.5 5,700.2
financing activities
Net increase in cash 2,630.9 445.1 1,035.0
in the period
Cash and cash equivalents 1,389.8 353.9 353.9
at beginning of period
Effect of exchange rate changes 0.1 9.2 0.9
Cash and cash equivalents 4,020.8 808.2 1,389.8
at end of period
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017 (unaudited)
Called up Share Share based Total equity Non-
Share premium payment Warrant Translation Retained shareholders ' controllin g Total
capital account reserve reserve reserve losses funds interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance 650.3 4,283.2 155.3 415.0 - (3,992.1) 1,511.7 - 1,511.7
at 1
January
2016
Period
to 30
June 2016:
Profit for - - - - - 583.1 583.1 (33.3) 549.8
the period
and total
comprehensive
income
Other - - - - 88.5 - 88.5 (78.9) 9.6
comprehensive
income
Total - - - - 88.5 583.1 671.6 (112.2) 559.4
comprehensive
income
Acquisition - - - 68.4 - - 68.4 (849.0) (780.6)
of
subsidiaries
Cost of - - 358.9 - - - 358.9 - 358.9
share
based
payments
Exercise - 212.2 - (212.2) - - - - -
of
options
and
warrants
Share 19.5 3,316.5 - 264.6 - - 3,600.6 - 3,600.6
issues
Share (50.3) - - - - (50.3) - (50.3)
issue
expenses
Total 19.5 3,478.4 358.9 120.8 - - 3,977.6 (849.0) 3,128.7
recognised
directly
in equity
Balance 669.8 7,761.6 514.2 535.8 88.5 (3,409.0) 6,160.9 (961.2) 5,199.7
at 30
June 2016
Period
to 31
December
2016:
Loss for - - - - - (1,234.5) (1,234.5) (35.6) (1,270.1)
the
period
and total
comprehensive
income
Other - - - - (156.1) - (156.1) (60.9) (217.0)
comprehensive
income
Total - - - - (156.1) (1,234.5) (1,390.6) (96.5) (1.487.1)
comprehensive
income
Acquisition - - - 22.8 - - 22.8 - 22.8
of
subsidiaries
Change - - - - - (972.3) (972.3) 1,083.9 111.6
of
non-controlling
interests
without
change
in control
Cost of - - 116.8 - - - 116.8 - 116.8
share
based
payments
Exercise - 160.8 - (160.8) - - - - -
of
options
and
warrants
Share - - (98.5) - - 98.5 - - -
based
payment
reserve
no longer
required
Share 20.5 2,881.7 - 689.8 - - 3,592.0 - 3,592.0
issues
Share - (97.9) - - - - (97.9) - (97.9)
issue
expenses
Capital (612.8) (9,431.6) - - - 10,044.4 - - -
reduction
Total (592.3) (6,487.0) 18.3 551.8 - 9,170.6 2,661.4 1,083.9 3,745.3
recognised
directly
in equity
Balance 77.5 1,274.6 532.5 1,087.6 (67.6) 4,527.1 7,431.7 26.2 7,457.9
at 31
December
2016
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017 (unaudited) continued
Called up Share premium account Share based payment Warrant reserve Translation reserve Total Non-controlling Total equity
reserve equity shareholders' interests
funds
share GBP'000 GBP'000 GBP'000 GBP'000 Retained losses GBP'000 GBP'000 GBP'000
capital GBP'000
GBP'000
Balance at 1 77.5 1,274.6 532.5 1,087.6 -67.6 4,527.1 7,431.7 26.2 7,457.9
January 2017
Period to 30
June 2017:
Loss for the - - - - - -31.7 -31.7 -2.4 -34.1
period
Other - - - - -0.7 - -0.7 -0.2 -0.9
comprehensive
income
Total - - - - -0.7 -31.7 -32.4 -2.6 -35
comprehensive
income
Adjustment - - - - - 53.6 53.6 -53.6 -
to change
of non-controlling
interests without
change
in control
Cost of share - - 162.8 263.1 - - 425.9 - 425.9
based
payments
Exercise of 2.8 480.4 - - - - 483.2 - 483.2
options
and warrants
Warrant reserve no - - - -219.9 - 219.9 - - -
longer required
Share issues 16.1 1,890.0 - 2,964.7 - - 4,870.8 - 4,870.8
Share issue - -342.3 - - - - -342.3 - -342.3
expenses
Total changes 18.9 2,028.1 162.8 3,007.9 - 273.5 5,491.2 -53.6 5,437.6
directly
to equity
Balance at 30 96.4 3,302.7 695.3 4,095.5 -68.3 4,768.9 12,890.5 -30 12,860.5
June 2017
Notes to the unaudited interim accounts
For the six months ended 30 June 2017
1.Basis of preparation
The financial statements included in the interim accounts have
been prepared under the historical cost convention and in
accordance with International Financial Reporting Standards
(IFRS).
The financial statements are presented in UK pounds, which is
also the Company's functional currency.
The principal accounting policies used in preparing these
interim accounts are those expected to apply in the Group's
Financial Statements for the year ending 31 December 2017. These
are unchanged from those disclosed in the Group's Annual Report for
the year ended 31 December 2016.
On 16 February 2016, the Company exercised its option to acquire
the remainder of the Thai based assets of SouthEast Asia Mining
Corporation ("SEAM"), comprising its investment in SouthEast Asia
Exploration and Mining Co. Ltd and certain fellow subsidiaries. The
results of the acquired interests are included in the results for
the period since acquisition on 16 February 2016 in respect of
period ended 30 June 2016 and the year ended 31 December 2016 and
for the whole of the period from 1 January 2017 to 30 June 2017 on
the basis set out under note 2. Further details of the acquisition
can be found in the Group's Financial Statements for the year ended
31 December 2016
The interim accounts were approved by the Board of Metal Tiger
on 21st September 2017. Neither the interim financial information
for the six months ended 30 June 2017 nor the interim financial
information for the six months ended 30 June 2016 constitutes
statutory accounts within the meaning of section 434 of the
Companies Act 2006 and is unaudited. The comparatives for the year
ended 31 December 2016 are not the Group's full statutory accounts
for that period. A copy of the statutory accounts for that year has
been delivered to the Registrar of Companies. The auditors' report
on those accounts was unqualified and did not contain statements
under sections 498(2) or (3) of the Companies Act 2006. Copies of
the accounts for the year ended 31 December 2016 are available on
the Company's website (www.metaltigerplc.com).
2.Accounting policies
The principal accounting policies are:
Basis of consolidation
The Consolidated Statement of Comprehensive Income and Statement
of Financial Position include the financial statements of the
Company and its subsidiary undertakings made up to 30 June
2017.
Subsidiaries are all entities over which the Group has control.
The Group controls an entity when the Group is exposed to, or has
rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over
the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are deconsolidated
from the date that control ceases.
Profit or loss and each component of other comprehensive income
are attributed to the equity holders of the parent of the Group and
to non-controlling interests, even if this results in
non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to
bring their accounting policies into line with the Group's
accounting policies. All intra-group assets and liabilities,
equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on
consolidation.
A change in ownership interest of a subsidiary without a loss of
control is accounted for as an equity transaction. If the Group
loses control over a subsidiary, it:
? derecognises the assets (including goodwill) and liabilities
of the subsidiary
? derecognises the carrying amount of any non-controlling
interests
? derecognises the cumulative translation differences recorded
in equity
? recognises the fair value of the consideration received
? recognises the fair value of any investment retained
? recognises any surplus or deficit in the Statement of
Comprehensive Income
? reclassifies the parent's share of components previously
recognised in other comprehensive income to profit or loss or
retained earnings, as appropriate, as would be required if the
Group had directly disposed of the related assets or
liabilities.
When the Group ceases to have control any retained interest in
the entity is re-measured to its fair value at the date when
control is lost, with the change in carrying amount recognised in
profit or loss. The fair value is the initial carrying amount for
the purposes of subsequently accounting for the retained interest
as an associate, joint venture or financial asset. In addition, any
amounts previously recognised in other comprehensive income in
respect of that entity are accounted for as if the Group had
directly disposed of the related assets or liabilities. This may
require that the amounts previously recognised in other
comprehensive income be reclassified to profit or loss.
Business combinations
Business combinations are accounted for using the acquisition
method. The cost of an acquisition is measured as the aggregate of
the consideration transferred, measured at fair value at the date
of acquisition and the amount of any non-controlling interest in
the acquired entity. Non-controlling interests ('NCI') may be
initially measured either at fair value or at the NCI's
proportionate share of the recognised amounts of the acquiree's
identifiable net assets. The choice of measurement basis is made on
a transaction-by-transaction basis. Acquisition costs incurred are
expensed and included in administrative expenses except where they
relate to the issue of debt or equity instruments in connection
with the acquisition, in which case they are included in finance
costs.
When the business combination is achieved in stages, any
previously held equity interest is re-measured at its acquisition
date fair value and any resulting gain or loss is recognised in
profit or loss. It is then considered in determination of
goodwill.
Any contingent consideration to be transferred by the acquirer
is recognised at fair value at the acquisition date. Any subsequent
changes to the fair value of the contingent consideration are
adjusted against the cost of the acquisition if they occur within
the measurement period of twelve months following the date of
acquisition. Any subsequent changes to the fair value of the
contingent consideration after the measurement period are
recognised in the Income Statement. Contingent consideration that
is classified as equity is not re-measured and subsequent
settlement is accounted for within equity.
Going concern
The interim financial statements have been prepared on the going
concern basis as, in the opinion of the Directors, at the time of
approving the interim financial statements, there is a reasonable
expectation that the Company will continue in operational existence
for the foreseeable future. The interim financial statements do not
include any adjustments that would result from the going concern
basis of preparation being inappropriate.
Exploration costs
Exploration costs incurred by Group companies, associates and
joint ventures are expensed in arriving at profit or loss for the
period.
Investments made are capitalised as an asset where the
underlying projects have mineral resources which are compliant with
internationally recognised mineral resource standards (JORC and NI
43-101) or where the investment is to acquire an interest in an
investment or associate that holds commercial information, assets
or strategic features against which a current commercial value can
be reasonably assessed.
The JORC Code, the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves, is a
professional code of practice that sets minimum standards for
public reporting of mineral exploration results, mineral resources
and ore reserves. NI 43-101 is a national instrument for the
Standards of Disclosure for Mineral Projects within Canada which
provides a codified set of rules and guidelines for reporting and
displaying information related to mineral properties owned by, or
explored by, companies which report these results on stock
exchanges within Canada.
Foreign currency translation
Transactions in foreign currencies are translated at the
exchange rate ruling at the date of the transaction.
The results of overseas operations are translated at rates
approximating to those ruling when the transactions took place.
Monetary assets and liabilities denominated in foreign currencies
are translated at the rates of exchange ruling at the Statement of
Financial Position reporting date. All exchange differences are
dealt with through the Statement of Comprehensive Income as they
arise.
Investments in associates and joint ventures
Associates are entities, other than subsidiaries or joint
ventures, over which the Company has significant influence.
Significant influence is the power to participate in the financial
and operating policy decisions of the investee but does not amount
to control or joint control of the investee.
A joint venture is a contractual arrangement whereby two or more
parties undertake an economic activity that is subject to joint
control. Joint control is the contractually agreed sharing of
control such that significant operating and financial decisions
require the unanimous consent of the parties sharing control. In
some situations, joint control exists even though the Company has
an ownership interest of more than 50 per cent because joint
venture partners have equal control over management decisions. The
Company's joint venture interests are held through a Jointly
Controlled Entity (JCE). A JCE is a joint venture that involves the
establishment of a corporation, partnership or other entity in
which each venturer has a long term interest.
Exploration costs in respect of investments in associates and
joint ventures are capitalised or expensed according to the policy
set out above in respect of Group exploration costs. For associates
and joint ventures which are equity accounted for, any share of
losses are offset against loans advanced.
3.Segmental reporting
Divisional segments
Six months ended Direct Direct Central Inter
30 June 2017
Equities Projects costs segment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net gain/(loss) 2,060.3 (61.6) 0.1 - 1,998.8
on investments
Administrative (49.4) (1,139.1) (806.3) - (1,994.8)
expenses
Operating 2,010.9 (1,200.7) (806.2) - 4.0
profit/(loss)
for the period
Net (1.4) (30.8) (5.9) - (38.1)
finance income/(cost)
Profit/(loss) 2,009.5 (1,231.5) (812.1) - (34.1)
on ordinary
activities
before taxation
Taxation - - - - -
Profit/(loss) for 2,009.5 (1,231.5) (812.1) - (34.1)
the period
after taxation
FINANCIAL POSITION:
Intangible assets - 35.7 - - 35.7
Property, plant - 39.7 - - 39.7
and equipment
Investment in - 1,294.0 - - 1,294.0
associates
Investment in joint - 1,246.9 - - 1,246.9
ventures
Total non-current - 2,616.3 - - 2,616.3
assets
Current assets 6,517.8 1,894.7 4,167.4 (1,601.8) 10,978.1
Current liabilities - (1,700.0) (512.7) 1,601.8 (610.9)
Net current assets 6,517.8 194.7 3,654.7 - 10,367.2
Non-current - (123.0) - - (123.0)
liabilities
Net assets 6,517.8 2,688.0 3,654.7 - 12,860.5
Six months ended Asset Metal Central Inter segment Total
30 June 2016 Trading Projects costs GBP'000 GBP'000
GBP'000 GBP'000 GBP'000
COMPREHENSIVE -
INCOME:
Net gain/(loss) 2,135.2 (277.2) 0.2 - 1,858.2
on investments
Administrative (40.5) (785.3) (661.0) - (1.486.8)
expenses
Bargain purchase - 178.4 - - 178.4
on acquisition
of subsidiary
Operating 2,094.7 (884.1) (660.8) - 549.8
profit/(loss)
for the period
Net - 0.1 (0.1) - -
finance
income/(cost)
Profit/(loss) 2,094.7 (884.0) (660.9) - 549.8
on ordinary
activities
before taxation
Taxation - - - - -
Profit/(loss) 2,094.7 (884.0) (660.9) - 549.8
for
the period
after taxation
FINANCIAL
POSITION:
Property, plant - 19.5 - - 19.5
and equipment
Investment in - 204.7 - - 204.7
associates
Investment - 340.1 - - 340.1
in joint
ventures
Other - 49.6 - - 49.6
non-current
assets
Total - 613.9 - - 613.9
non-current
assets
Current assets 3,755.9 557.6 967.1 (336.8) 4,943.8
Current (0.5) (407.4) (102.4) 336.8 (173.5)
liabilities
Net current 3,755.4 150.2 864.7 - 4,770.3
assets
Non-current - (184.5) - - (184.5)
liabilities
Net assets 3,755.4 579.6 864.7 - 5,199.7
Year ended 31 Asset Metal Central Inter
December
2016
Trading Projects costs segment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net gain/(loss) 2,643.1 (411.7) 0.3 - 2,231.7
on investments
Administrative (30.8) (1,438.5) (1,768.9) - (3,238.1)
expenses
Bargain purchase - 155.6 - - 155.6
on acquisition
of subsidiary
Operating 2,612.3 (1,694.6) (1,768.9) - (850.8)
profit/(loss)
for the period
Net 2.0 127.7 (0.8) - 130.5
finance
income/(cost)
Profit/(loss) 2,614.3 (1,566.8) (1,767.8) - (720.3)
on ordinary
activities
before taxation
Taxation - - - - -
Gain/(loss) for 2,614.3 (1,566.8) (1,767.8) (720.3)
the period
after taxation
FINANCIAL
POSITION:
Intangible - 26.7 - - 26.7
assets
Property, plant - 46.3 - - 46.3
and equipment
Investment in - 743.4 - - 743.4
associates
Investment - 1,097.6 - - 1,097.6
in joint
ventures
Total - 1,914.0 - - 1,914.0
non-current
assets
Current assets 4,127.9 1,205.6 1,831.5 (1,002.3) 6,162.7
Current - (1,256.9) (232.8) (1,002.3) (487.4)
liabilities
Net current 4,127.9 (51.3) 1,598.7 - 5,675.3
assets
Non-current - (131.4) - - (131.4)
liabilities
Net assets 4,127.9 1,731.3 1,598.7 - 7,457.9
Geographical segments
Six Asia- Inter
months
ended
30 June
2017
UK EMEA Pacific Australasia segment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net 1,038.3 (61.5) - 1,022.0 - 1,998.8
gain/(loss)
on
investments
Administrative (1,033.2) (26.6) (935.0) - - (1,994.8)
expenses
Operating 5.1 (88.1) (935.0) 1,022.0 - 4.0
profit/(loss)
for the
period
Net (7.2) (33.1) 2.2 - - (38.1)
finance
income/(cost)
Profit/(loss) (2.1) (121.2) (932.8) 1,022.0 - (34.1)
on
ordinary
activities
before
taxation
Taxation - - - - -
Profit/(loss) (2.1) (121.2) (932.8) 1,022.0 - (34.1)
for
the
period
after
taxation
FINANCIAL
POSITION:
Intangible - 35.7 - - 35.7
assets
Property, - 39.7 - - 39.7
plant
and
equipment
Investment - 1,294.0 - - - 1,294.0
in
associates
Investment - 414.4 832.5 - - 1,246.9
in joint
ventures
Total - 1,708.4 907.9 - - 2,616.3
non-current
assets
Current 7,154.4 - 1,894.7 3,530.9 (1,601.9) 10,978.1
assets
Current (512.8) - (1,700.0) - 1,601.9 (610.9)
liabilities
Net 6,641.6 - 194.7 3,530.9 - 10,367.2
current
assets
Non-current (123.0) - - - - (123.0)
liabilities
Net 6.518.6 1,708.5 1,102.6 3,530.9 - 12,860.5
assets
Six months Asia- Austra- Inter
ended
30 June
2016
UK EMEA Pacific lasia segment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE -
INCOME:
Net 1,377.4 (277.0) (0.2) 758.0 - 1,858.2
gain/(loss)
on
investments
Administrative (1,276.5) (2.5) (207.8) - - (1,486.8)
expenses
Bargain - - 178.4 - - 178.4
purchase
on
acquisition
of
subsidiary
Operating 100.9 (279.5) (29.6) 758.0 - 549.8
profit/(loss)
for the
period
Net (0.1) - 0.1 - - -
finance
income/(cost)
Profit/(loss) 100.8 (279.5) (29.5) 758.0 - 549.8
on ordinary
activities
before
taxation
Taxation - - - - - -
Profit/(loss) 100.8 (279.5) (29.5) 758.0 - 549.8
for
the period
after
taxation
FINANCIAL
POSITION:
Property, - - 19.5 - - 19.5
plant
and
equipment
Investment - 204.7 - - - 204.7
in
associates
Investment - 340.1 - - - 340.1
in joint
ventures
Other - - 49.6 - - 49.6
non-current
assets
Total - 544.8 69.1 - - 613.9
non-current
assets
Current 3,738.7 - 557.6 984.3 (336.8) 4,943.8
assets
Current (120.7) - (389.6) - 336.8 (173.5)
liabilities
Net current 3,618.0 - 168.0 984.3 - 4,770.3
assets
Non-current - - (184.5) - - (184.5)
liabilities
Net assets 3,618.0 544.8 52.6 984.3 - 5,199.7
Year Asia- Austra- Inter
ended
31
December
2016
UK EMEA Pacific lasia segment Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net 1,165.7 (411.6) (0.2) 1,477.8 - 2,231.7
gain/(loss)
on
investments
Administrative (2,230.9) (122.4) (884.8) - - (3,238.1)
expenses
Bargain - - 155.6 - - 155.6
purchase
on
acquisition
of
subsidiary
Operating (1,065.2) (534.0) (729.4) 1,477.8 - 850.8
profit/(loss)
for the
period
Net 0.8 - 92.5 37.2 - 130.5
finance
income/(cost)
Profit/(loss) (1,064.4) (534.0) (636.8) 1,515.0 - (720.3)
on
ordinary
activities
before
taxation
Taxation - - - - -
Gain/(loss) (1,064.4) (534.0) (636.9) 1,515.0 - (720.3)
for
the
period
after
taxation
FINANCIAL
POSITION:
Intangible - - 26.7 - - 26.7
assets
Property, - - 46.3 - - 46.3
plant
and
equipment
Investment - 743.4 - - - 743.4
in
associates
Investment - 366.9 730.7 - - 1,097.6
in joint
ventures
Total - 1,110.3 803.7 - - 1,914.0
non-current
assets
Current 4,229.4 (0.1) 1,205.6 1,730.0 (1,002.2) 6,162.7
assets
Current (232.8) (10.2) (1,192.2) (54.4) (1,002.2) (487.4)
liabilities
Net 3,966.6 (10.3) 13.4 1,675.6 - 5,675.3
current
assets
Non-current (131.4) - - - - (131.4)
liabilities
Net 3,865.2 1,100.0 817.1 1,675.6 - 7,457.9
assets
The operations of the Group are not affected by seasonal
fluctuations.
4.Taxation
No corporation tax charge arises in the period as a result of
utilisation of past losses. No deferred tax asset has been
recognised in respect of remaining losses as the Directors cannot
be certain that future profits will be sufficient for this asset to
be recognised.
5.Earnings/Loss per share
Unaudited
Unaudited Six months Audited
Six months ended 30 Year ended
ended 30 June 31 December
June 2017 2016 2016
GBP'000 GBP'000 GBP'000
(Loss)/profit attributable (31.7) 583.1 (651.4)
to equity
holders of the Company
Shares used for calculation 849,917,669 481,556,696 556,449,818
of basic EPS
Shares used for calculation 849,917,669 541,680,323 556,449,818
of fully diluted EPS
Earnings/Loss per share
Basic (loss)/earnings per share (0.004p) 0.11p (0.12p)
Fully diluted (loss)/earnings) (0.004p) 0.10p (0.12p)
per share
No share options or warrants outstanding at 30 June 2017 or 31
December 2016 were dilutive in view of the loss for the period/year
and all such potential ordinary shares are excluded from the
weighted average number of ordinary shares in calculating diluted
earnings per share.
6.Share options and warrants charged against operating
profit
During the period, options over 59,500,00 ordinary shares in the
Company were granted to directors under the Company's share option
schemes and the lives of certain warrants due to a director were
extended, giving rise to a charge in total to operating period
amounting to GBP425,900 (six months ended 30 June 2016: GBP358,900;
year to 31 December 2016: GBP475,700).
The fair values of these options and warrants were determined
using the Black-Scholes pricing model. The significant inputs to
the model were as follows:
Share options Warrant
extension
Date 18/1/2017 18/1/2017 11/5/2017 22/6/2017
of grant/extension
of grant
Vesting date 18/1/2018 18/1/2018 11/5/2018 22/6/2017
Number 500,000 26,000,000 33,000,000 30,000,000
of options/warrants
Share price on date 1.650 1.650p 2.175p 2.100p
of grant/extension
Exercise price 2.00p 3.00p 6.00p 1.60p
per share
Risk free rate 1% 1% 1% 1%
Expected volatility 95% 95% 93% 82%
Life 3 years 3 years 3 years 1 year
Calculated fair value 0.91p 0.77p 1.18p 0.877p
7.Events since 30 June 2017
Share issues
Since 30 June 2017, a further 23,125,000 Ordinary shares have
been issued as a result of the exercise of options and warrants
raising GBP355,000 and 1,979,373 Ordinary shares issued in respect
of payment for services amounting to GBP41,445.
8.Distribution of Interim Report and Registered Office
A copy of the Interim Report will be available shortly on the
Company's website, www.metaltigerplc.com, in accordance with rule
26 of the AIM Rules for Companies; and copies will be available
from the Company's registered office, 107 Cheapside, London EC2V
6DN.
For further information on the Company, visit:
www.metaltigerplc.com.
Metal Tiger plc
Michael McNeilly (Chief Executive Officer) Tel: +44(0)20 7099 0738
Keith Springall (Finance Director)
RFC Ambrian Ltd (Nominated Adviser)
Stephen Allen Tel: +44 (0)20 3440 6800
Bhavesh Patel
RFC Ambrian Ltd (Joint Broker)
Jonathan Williams Tel: +44 (0)20 3440 6800
SI Capital (Joint Broker)
Nick Emerson Tel: +44 (0) 1483 413 500
VSA Capital Limited (Joint Broker)
Andrew Monk Tel: +44 (0)20 3005 5000
Andrew Raca
Camarco (Financial PR)
Gordon Poole Tel: +44 (0)20 3757 4980
James Crothers
Notes to Editors:
Metal Tiger plc is listed on the London Stock Exchange AIM
Market ("AIM") with the trading code Metal Tiger and invests in
high potential mineral projects with a precious and strategic
metals focus.
The Company's target is to deliver a very high return for
shareholders by investing in significantly undervalued and/or high
potential opportunities in the mineral exploration and development
sector timed to coincide, where possible, with a cyclical recovery
in the exploration and mining markets. The Company's key strategic
objective is to ensure the distribution to shareholders of major
returns achieved from disposals.
Metal Tiger's Metal Projects Division is focused on the
development of its key project interests in Botswana, Spain and
Thailand. In Botswana Metal Tiger has a growing interest in the
large and highly prospective Kalahari copper/silver belt. In Spain,
the Company has tungsten and gold interests in the
highly-mineralised Extremadura region. In Thailand, Metal Tiger has
interests in two potentially near-production stage silver/lead/zinc
mines as well as licences, applications and critical historical
data covering antimony, copper, gold, silver, lead and zinc
opportunities.
The Company has access to a diverse pipeline of new
opportunities focused on the natural resource sector including
physical resource projects, new natural resource centred
technologies and resource sector related fintech opportunities.
Pipeline projects deemed commercially viable may be undertaken by
Metal Tiger or by an AIM or NEX Exchange (formerly ISDX) partner
with whom the Company is engaged.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170922005312/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
September 22, 2017 07:41 ET (11:41 GMT)
Metal Tiger (LSE:MTR)
Historical Stock Chart
From Apr 2024 to May 2024
Metal Tiger (LSE:MTR)
Historical Stock Chart
From May 2023 to May 2024