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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Metal Tiger Plc | LSE:MTR | London | Ordinary Share | GB00BMQC0691 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 9.06 | 8.00 | 10.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMTR
Metal Tiger Plc
2018 Interim Report
Unaudited interim results for the six months ended 30 June 2018
Metal Tiger Plc ("Metal Tiger" or the "Company"), the AIM listed natural resources investment company, is pleased to announce its unaudited interim results for the six months ended 30 June 2018.
Key Highlights:
Six months to 30 June 2018
Hot Features
Premium
-- Completion of the pre-feasibility study for the T3 Project
demonstrating robust economics (base case NPV US$281m, expansion case
NPV US$402m) and in addition an upgraded T3 resource (60MT containing
590kt of Cu).
-- Substantially negotiated an agreement for the sale of MTR's 30% stake
in the T3 Project to the Company's joint venture partner MOD Resources
Limited ("MOD"), subject to conditions precedent. The binding
agreement was finalised and announced on 18 July 2018 following the
period end. The consideration upon completion will comprise circa
17.2m MOD shares and 40.6m options to receive a further 40.6m shares
for nil consideration (subject to certain conditions), with completion
expected in October 2018.
-- Drilling within the Company's 30% Botswanan JV with MOD commenced at
T3-Dome following receipt of environmental approvals and early visual
drilling results were highly encouraging.
-- Binding agreement signed to acquire up to 50% of Botswana focused
Kalahari Metals Limited ("KML") that holds interest in seven highly
prospective exploration licences covering 4,036 square kilometres in
the Kalahari Copper Belt. First tranche invested giving the Company
18% of KML.
-- Loss for the period 1 January to 30 June 2018 of GBP4.5m, of which GBP3.1m
was accounted for by the loss in fair value of Direct Equities
investments.
Post period end
-- Successfully raised GBP6.2m at 2.8p per share (with warrants), in August
2018, from existing and new shareholders based in the UK and North
America.
KEY PERFORMANCE INDICATORS
UnauditedSix UnauditedSix months AuditedYear ended31
months ended30 June2017 December2017
ended30 June
2018
Net asset value GBP11,451,800 GBP12,860,500 GBP15,443,700
Net asset value 0.97p 1.07p 1.328p
- fully
diluted per
share
Closing share 2.825p 2.175p 2.330p
price
Share price 191% 103% 75%
premium
to net
asset value
-fully
diluted
Market GBP31,615,000 GBP20,957,000 GBP25,326,000
capitalisation
Chairman's Statement
The first half of 2018 has seen substantial progress made by the Company with respect to its core investments, although the fall in value of its minority equity investments as a result of challenging market conditions has disguised much of the work done during the period.
The culmination of this work has been the signing of a binding agreement for the sale of Metal Tiger's 30% stake in the Botswana T3 Project to our joint venture partner MOD which was announced just after the period end on 18 July 2018. Consideration for the sale amounts to 17,200,000 MOD shares and options to receive a further 40,563,566 MOD shares for nil consideration ("Options"), exercisable under certain conditions, for a total value equivalent to A$27.7 million on the date of announcement. The allocation between shares and Options may vary subject to Metal Tiger's shareholding at the date of completion. The deal with MOD will occur five business days after the satisfaction of all conditions precedent and is expected to complete by the end of October 2018. On 19 September 2018, MOD held a shareholders meeting to vote on a resolution to approve the deal, which was passed by MOD shareholders unanimously. This was a very encouraging development, since the shareholder vote was a condition precedent outside the direct control of the parties. Metal Tiger has invested circa GBP3.8m to date in the MOD/Metal Tiger joint venture including contributions made to both T3 and other exploration licenses which will remain in a new 30/70 JV with MOD.
On completion, the sale of the T3 Project will provide Metal Tiger shareholders with exposure to the development of the T3 Project, without a requirement to contribute to mine construction costs, and provides increased exposure to MOD's successful ongoing exploration programme.
In addition, consolidation of the T3 Project to 100% MOD direct ownership is expected to make the asset more attractive with regard to development financing options. Metal Tiger will benefit from this through its substantial shares and Options sale consideration and current equity position in MOD.
In the event of a successful takeover offer for MOD any remaining Metal Tiger Options will be automatically converted to MOD shares.
Botswana/MOD
As part of the deal, Metal Tiger and MOD will enter into a new JV comprising all of the joint venture exploration licenses (excluding the sold T3 Project), covering circa 7,978 square kilometres of prospective land in the Kalahari Copper Belt providing Metal Tiger shareholders with a 30% interest in any future discoveries. Metal Tiger will also retain a 2% net smelter royalty over the T3 Project capped at US$2 million. Metal Tiger may also receive a 2% net smelter royalty over all Exploration Assets under specific scenarios.
Prior to the announcement of the deal to sell the T3 Project to MOD, MOD issued a statement advising an increase in the T3 Indicated Resource to 60MT with 590kt of contained copper. This followed on from the T3 Mineral Resource update announced on the 2 July 2018. The project's technical team consider the Resource upgrade may well support an increase in the design throughput of the planned T3 processing plant, and that there is now the potential that the Feasibility Study Ore Reserve could significantly exceed the Ore Reserve used in the Pre Feasibility Study.
On 12 June 2018 MOD announced drilling on the A4 Dome had yielded an outstanding drill intersection and subsequent drilling results have confirmed further copper intersections in the area. The circa 5km A4 Dome is located just 8km from the 60MT T3 Pit Project and planned processing plant. Drilling at the A1 Dome has also intersected visible copper mineralisation. The A4 Dome and the A1 Dome together with the T3 Deposit, form part of the 700 square kilometres T3 Dome complex.
Mineralisation is stockwork-type, hosted in a sandstone sequence and remains completely open at depth and along strike.
Botswana/Kalahari Metals Limited
On 6 June 2018 Metal Tiger signed a binding Investment Agreement to acquire up to 50 % of Botswana focused explorer Kalahari Metals Limited ("KML") and at 30 June 2018 had exercised the first option and held an 18% interest in the company. KML is privately owned and holds interests in seven highly prospective exploration licences covering 4,036 square kilometres in the Kalahari Copper Belt, consisting of two 100% owned exploration licences and five exploration licences subject to a binding earn-in agreement with Triprop Holdings (Pty) Limited. Licences cover the prospective D'Kar and Ngwako Pan Formations with favourable structural positions and are associated with major copper deposits. The deal gives Metal Tiger exposure to a further 4,063 square kilometres of largely unexplored ground, adjacent to significant recent discoveries in the highly prospective Kalahari Copper Belt. The 100% KML owned exploration licences are situated northeast along strike of the Cupric Canyon Capital (circa 50km) and the MOD / Metal Tiger JV projects (circa 170km).
Since the period end, Metal Tiger and KML have announced that airborn high resolution electromagnetic (AEM) surveys had been completed over the prospective Okavango Project (Eastern Block) and Ngami Copper Project (Western Block) concessions. Processed survey data will help target the mineralised redox contact at the base of the D'Kar Group as well as identifying favourable regional structures and anticlines which have the potential to host mineralisation in analogous settings to the MOD T3 Deposit. Results from the AEM will be used to provide priority areas for follow-on drill testing.
Thailand
The Thai IPO for KEMCO was scheduled to launch in the first quarter 2018 but was postponed pending release of the Thai Minerals Management Master Plan. The Thai Cabinet has now approved the 20-year mineral management strategy (2017-2036) and the five-year mineral management master plan for 2017-2021 (the Master Plan). Importantly, the historical mining lease application areas under the KEMCO project fall into the Mineral Deposit Area classification. The Company has been informed that the formation of a new Minerals Act Committee (as per the new regulations) is underway and it is anticipated that once this has been formed then both mining licence applications and prospecting licence applications will be able to be processed.
Direct Equities
Direct Equities have shown a fall in value since the year end resulting in an unrealised loss of GBP3.1m in the period reversing the gains of previous periods although still showing a small gain over cost.
Metal Tiger built up an 8.6% equity stake in ASX listed, Kingsgate Consolidated Limited (KCN), towards the end of 2017. A notice of a General Meeting was requisitioned to seek to remove the majority of the Directors. Although the vote was close the motion was not passed. Metal Tiger had the support of both Institutional and Private Investors. It was decided not to pursue KCN and the equity holding was sold at the end of January 2018 and the proceeds directed to meeting continued costs in our JV project with MOD.
Metal Tiger continues to increase its direct equity investment in MOD by buying on market. At 30 June 2018 the Company held 13,880,042 shares in MOD and as at 26 September 2018 holds 13,974,220 shares in MOD representing 6.1% of its issued share capital.
The company has also made further acquisitions in the period in its investment in Thor Mining plc, which has tungsten and copper projects in Australia and the USA and, at 30 June 2018 held 73,430,000 ordinary shares in the company representing 10.7% of its issued ordinary share capital. The Company is actively pursuing strategies to maximise the value of its investment in Thor. Small investments have also been made in Veta Resources Inc and Pan Asia Metals Limited.
Results for the period
Administration costs for the period were GBP1,678,400, a reduction from those in the first half of 2017 (2017 H1: GBP1,994.800) and are significantly down on the full year comparatives (2018: GBP4,927,100) due mainly to reduced activity in Thailand and lower costs in administering Direct Equities Division deals. After reflecting the decline of market value in the Direct Equities Division and the sale of the KCN holding, the Group had an operating loss for the period of GBP5,110,300 (2017 H1: profit of GBP4,000; 2017 full year: profit of GBP510,200).
With the reinvestment of the proceeds of KCN into our joint ventures and associates, cash at bank and in hand fell from GBP2.8m to GBP0.7m at the end of the period. As described below, new funds were introduced into the Company in August 2018 to provide additional resources for the future without the need to liquidate further Direct Equity division holdings.
Fund raising post 30 June 2018
At the end of August 2018 Metal Tiger raised GBP6.2m at a price of 2.8p per ordinary share with attached warrants at 5p exerciseable within a 3 year period . This represents that largest fundraise to date. The proceeds of the fundraising will be used to fund Metal Tiger's portion of its commitment to 2018 budget for its Joint Venture project with partners MOD in the Kalahari Copper Belt in Botswana (30% Metal Tiger / 70% MOD), for its commitment to its recently acquired Joint Venture with KML in the same region, as well as for working capital and general corporate purposes. It is particularly pleasing to see our biggest shareholder Sprott Capital Partners contributed a further GBP2.6m towards the fundraise.
Conclusions
Metal Tiger remains positive on the outlook for copper prices given limitations on supply and the important role of copper in the global economy.In the year to date the Company has focussed the majority of its resources on the highly prospective Kalahari Copper Belt in Botswana and this will continue to be its priority. Metal Tiger believes that its JV with MOD has the potential to become a world class copper asset. The investment in KML, which is in the early days, will provide further exposure in this exciting region. I look forward to reporting continued success here.
I would like to take this opportunity to thank 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 four years.
We are working hard and will continue to strive to deliver significant value from all our investments.
Charles Hall
Chairman
Condensed Statement of Comprehensive Income
For the six months ended 30 June 2018
Notes Unaudited Unaudited AuditedYear ended31
Sixmonthsended30 Sixmonthsended30 December2017
June2018GBP'000 June2017GBP'000 GBP'000
Net gains on (183.3) 595.0 3,916.4
disposal
of investments
Movement (3,063.1) 1,465.3 1,541.0
in fair
value of
Direct
Equities
Division
investments
Share of (195.5) (14.2) 79.6
post tax
(losses)/profits
of
equity
accountedassociates
Share of 9.8 (47.4) (100.2)
post tax
profits/(losses)
of
equity
accountedjoint
ventures
Investment 0.2 0.1 0.5
income
Net (3,431.9) 1,998.8 5,437.3
(loss)/gain
on investments
Administrative (1,678.4) (1,994.8) (4,927.1)
expenses
Operating (5,110.3) 4.0 510.2
(loss)/profit
Finance income 73.0 0.4 0.4
Finance costs (9.9) (38.5) (163.6)
Loss before 2 (5,047.2) (34.1) 347.0
taxation
Tax 3 545.0 - (545.0)
on
(loss)/profit
on
ordinary
activities
(Loss)/profit (4,502.2) (34.1) (198.0)
on ordinary
activities
after taxation
Other
comprehensive
income
- Items which
may be
subsequently
reclassified
to profit
or loss:
Exchange (11.8) (0.9) (8.4)
differences
on translation
of
foreignoperations
Total (4,514.0) (35.0) (206.4)
comprehensive
loss
for the period
Loss for the
period
attributable
to:
Owners of the (4,498.8) (31.7) (180.4)
parent
Non-controlling (3.4) (2.4) (17.6)
interest
(4,502.2) (34.1) (198.0)
Total
comprehensive
loss for
the
period
attributableto:
Owners of the (4,510.2) (32.4) (188.3)
parent
Non-controlling (3.8) (2.6) (18.1)
interest
(4,514.0) (35.0) (206.4)
Earnings per
share
Basic loss 4 (0.407p) (0.004p) (0.019p)
per share
Fully diluted 4 (0.407p) (0.004p) (0.019p)
loss
per share
Condensed Consolidated Statement of Financial Position
At 30 June 2018
Notes Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 32.1 35.7 33.8
Property, plant and equipment 23.7 39.7 30.6
Deferred tax asset - - 96.6
Investment in associates 4,224.4 1,294.0 2,203.0
Investment in joint ventures 1,233.4 1,246.9 1,223.7
Other non-current assets 107.5 - -
Total non-current assets 5,621.1 2,616.3 3,587.7
Current assets
Direct Equities Division 5,551.4 6,353.2 10,061.9
investments
Trade and other receivables 649.4 604.1 482.4
Cash and cash equivalents 736.8 4,020.8 2,845.1
Total current assets 6,937.6 10,978.1 13,389.4
Current liabilities
Trade and other payables (936.8) (562.1) (724.5)
Loans and borrowings (49.0) (48.8) (48.8)
Total current liabilities (985.8) (610.9) (773.3)
Net current assets 5,951.8 10,367.2 12,616.1
Non-current liabilities
Deferred tax liability - - (641.5)
Contingent consideration (121.1) (123.0) (118.6)
Total non-current liabilities (121.1) (123.0) (760.1)
Net assets 11,451.8 12,860.5 15,443.7
Capital and reserves
Called up share capital 111.9 96.4 108.7
Share premium account 6,757.3 3,302.7 6,124.8
Share based payment reserve 1,106.9 695.3 928.5
Warrant reserve 3,056.1 4,095.5 3,348.0
Translation reserve 1.6 (68.3) 13.1
Profit and loss account 413.7 4,715.3 4,912.5
Total shareholders' funds 11,447.5 12,836.9 15,435.6
Equity non-controlling 4.3 23.6 8.1
interests
Total equity 11,451.8 12,860.5 15,443.7
Condensed Statement of Cash Flows
For the six months ended 30 June 2018
UnauditedSix Unaudited Sixmonths AuditedYear ended31
monthsended ended30 December
30 June2018 GBP'000 June2017GBP'000 2017GBP'000
Cash flows from
operating
activities
(Loss)/profit (5,047.2) (34.1) 347.0
before
taxation
Adjustments
for:
Profit on 183.3 (595.0) (3,916.4)
disposal
of Direct
Equities
Division
investments
Movement in 3,063.1 (1,465.3) (1,541.0)
fair value
of investments
Share of 195.5 14.2 (79.6)
post tax
losses/(profits)
of
equity
accountedinvestments
Share of (9.8) 47.4 100.2
post tax
(profits)/losses
of
equity
accountedjoint
ventures
Share based 150.0 425.9 467.5
payment
charge for year
Cost of warrant 28.4 - 263.1
extension
Equity settled - 21.0 62.5
trading
liabilities
Issue of KEMCO (59.5) - 59.9
Mining
plc warrants
Depreciation 9.2 9.1 19.2
and
amortisation
Write off of - - 2.0 assets Investment (0.2) (0.1) (0.5) income Finance income (73.0) (0.4) (0.4) Finance costs 9.9 38.5 163.6 Operating cash (1,550.3) (1,538.8) (4,052.9) flow before working capital changes Increase in (211.7) (242.1) (76.1) trade and other receivables Increase in (119.9) 122.0 284.6 trade and other payables Unrealised (62.2) (15.2) (44.4) foreign exchange gains Net cash (1,944.1) (1,674.1) (3,888.8) outflow from operating activities Cash flow from Investing activities Proceeds from 3,817.1 1,095.3 5,402.0 investment disposals Purchase of - (10.6) (10.6) intangible assets Purchase (0.2) (0.3) (1.4) of fixed assets Purchase of (1,706.8) (597.8) (1,522.3) investment in, and loans to, associates Purchase (107.5) - - of other fixed asset investments Purchase of - (196.7) (228.0) investment in, and loans to joint ventures Purchase (2,552.9) (1,320.8) (5,939.2) of investments Finance income 10.2 0.3 0.1 Net cash (540.1) (1,030.6) (2,298.5) outflow from investing activities Cash flows from financing activities Proceeds from 383.1 5,678.0 8,028.5 issue of shares Share issue (1.0) (342.3) (385.9) costs Interest paid (5.8) (0.1) (1.0) Net cash inflow 376.3 5,335.6 7,642.5 from financing activities Net increase (2,107.9) 2,630.9 1,455.2 in cash in the period Cash and cash 2,845.1 1,389.8 1,389.8 equivalents at beginning of period Effect of (0.4) 0.1 0.1 exchange rate changes Cash and cash 736.8 4,020.8 2,845.1 equivalents at end of period
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2018 (unaudited)
Called up Share capitalGBP'000 SharepremiumaccountGBP'000 Share WarrantreserveGBP'000 TranslationreserveGBP'000 RetainedlossesGBP'000 Total Non-controllinginterestsGBP'000 Total equityGBP'000
basedpaymentreserveGBP'000 equityshareholders'fundsGBP'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:
Profit for the period - - - - - (31.7) (31.7) (2.4) (34.1)
and total
comprehensive income
Other comprehensive - - - - (0.7) - (0.7) (0.2) (0.9)
income
Total comprehensive - - - - (0.7) (31.7) (32.4) (2.6) (35.0)
income
Cost of share based - - 162.8 263.1 - - 425.9 - 425.9
payments
Exercise of options 2.8 480.4 - - - - 483.2 - 483.2
and warrants
Share issues 16.1 1,890.0 - 2,964.7 - - 4,870.8 - 4,870.8
Share issue expenses - (342.3) - - - - (342.3) - (342.3)
Transfer of reserves - - - (219.9) - 219.9 - - -
relating to exercise
and expiry ofoptions
and warrants
Total recognised 18.9 2,028.1 162.8 3,007.9 - 219.9 5,437.6 - 5,437.6
directly
in equity
Balance at 30 June 2017 96.4 3,302.7 695.3 4,095.5 (68.3) 4,715.3 12,836.9 23.6 12,860.5
Period to 31 December
2017:
Loss for the period - - - - - (148.7) (148.7) (15.2) (163.9)
and total
comprehensive income
Other comprehensive - - - - 81.4 (88.6) (7.2) (0.3) (7.5)
income
Total comprehensive - - - - 81.4 (237.3) (155.9) (15.5) (171.4)
income
Cost of share based - - 304.8 2,701.7 - - 3,006.5 3,006.5
payments
Exercise of options (2.8) (480.4) - - - - (483.2) - (483.2)
and warrants
Issue of warrants - - - 522.1 - - 522.1 - 522.1
Share issues 15.1 2,702.4 - (2,964.7) - - (247.2) - (247.2)
Share issue expenses - (43.6) - - - - (43.6) - (43.6)
Capital reduction - 643.7 (71.6) (1,006.6) - 434.5 - - -
Total recognised 12.3 2,822.1 233.2 (747.5) - 434.5 2,754.6 - 2,754.6
directly
in equity
Balance at 31 December 108.7 6,124.8 928.5 3,348.0 13.1 4,912.5 15,435.6 8.1 15,443.7
2017
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2018 (unaudited) continued
Called upshare capitalGBP'000 SharepremiumaccountGBP'000 Share WarrantreserveGBP'000 TranslationreserveGBP'000 RetainedlossesGBP'000 Total Non-controllinginterestsGBP'000 Total equityGBP'000
basedpaymentreserveGBP'000 equityshareholders'fundsGBP'000
Balance at 1 January 2018 108.7 6,124.8 928.5 3,348.0 13.1 4,912.5 15,435.6 8.1 15,443.7
Period to 30 June 2018:
Loss for the period - - - - - (4,498.8) (4,498.8) (3.4) (4,502.2)
Other comprehensive income - - - - (11.5) - (11.5) (0.4) (11.9) Total comprehensive income - - - - (11.5) (4,498.8) (4,510.3) (3.8) (4,514.1) Cost of share based payments - - 178.4 - - - 178.4 - 178.4 Share issues 3.2 600.5 - - - - 603.7 - 603.7 Share issue expenses - (1.0) - - - - (1.0) - (1.0) Transfer of reserves - 33.0 - (291.9) - - (258.9) - (258.9) relating to exercise and expiry ofoptions and warrants Total changes directly 3.2 632.5 178.4 (291.9) - - 522.2 - 522.2 to equity Balance at 30 June 2018 111.9 6,757.3 1,106.9 3,056.1 1.6 413.7 11,447.5 4.3 11,451.8
Notes to the unaudited interim accounts
For the six months ended 30 June 2018
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 2018. These are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2017. The accounting policies adopted are consistent with those of the previous financial year. A number of amendments to IFRSs became effective for the financial year beginning on 1 January 2018.
-- Amendments to IFRS 2 'Share-based payments'
-- IFRS 9 'Financial Instruments;
-- IFRS 15 'Revenue from Contracts with Customers'
-- IFRIC 22 'Foreign Currency Transactions and Advance Consideration'
-- Annual Improvements 2014-2016
FRS15:Revenue from Contracts with Customers.
The Group currently has no revenue from customers which falls to be accounted for under the new standard and the introduction of the standard has no effect on current or prior year comparatives disclosed in this report.
IFRS9: Classification and measurement of financial assets and financial liabilities
The classification of financial assets under IFRS9 allows such assets to be measured at amortised cost, fair value through the profit and loss account or fair value through the profit and loss account. The Group's existing accounting policies provide for investments in the Direct Equities Division as accounted for at fair value through the profit and loss account and for trade receivables and loans to be carried at amortised cost.
Trade and other receivables are held at amortised cost in line with both with IAS 39 and IFRS9 which replaces it.
IFRS9 also requires an "expected credit loss" model to be applied to financial assets measured at amortised cost other than those held as investments in equity instruments. The financial instruments held by the Group at amortised cost consist of short term trade receivables mainly relating to tax recoverable and prepayments, cash and cash equivalents. The nature of these assets are such that the change in the model does not affect the amount at which they are held in the financial statements.
Accordingly no reclassification or changes to previous published results, assets or liabilities are required in order to comply with IFRS9.
The adoption of the remaining new standards and amendments to IFRS did not impact the condensed consolidated interim financial statements for the six months ended 30 June 2018 and no retrospective adjustments were required.
The interim accounts were approved by the Board of Metal Tiger on 26 September 2018. Neither the interim financial information for the six months ended 30 June 2018 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 2017 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 2017 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 2018.
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.
2.Segmental reporting
Divisional segments
Six months Direct Direct Central IntersegmentGBP'000 Total
ended Equities Projects costs GBP'000
30 June 2018 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net (3,246.4) (185.7) 0.2 - (3,431.9)
(loss)/gain
on investments
Intercompany - 51.8 - (51.8) -
sales
Administrative (221.0) (727.0) (782.2) 51.8 (1,678.4)
expenses
Operating loss (3,467.4) (860.9) (782.0) - (5,110.3)
for the period
Net (39.0) 100.0 2.1 - 63.1
finance
income/(cost)
Loss (3,506.4) (760.9) (779.9) - (5,047.2)
on ordinary
activities
before
taxation
Taxation 545.0 - - - 545.0
Loss for the (2,961.4) (760.9) (779.9) - (4,502.2)
period
after taxation
FINANCIAL
POSITION:
Intangible - 32.1 - - 32.1
assets
Property, - 23.7 - - 23.7
plant
and equipment
Investment in - 4,224.4 - - 4,224.4
associates
Investment - 1,233.4 - - 1,233.4
in joint
ventures
Other 107.5 - - - 107.5
non-current
assets
Total 107.5 5,513.6 - - 5,621.1
non-current
assets
Current assets 5,551.4 2,757.1 982.2 (2,353.1) 6,937.6
Current - (3,092.3) (246.6) 2,353.1 (985.8)
liabilities
Net current 5,551.4 (335.2) 735.6 - 5,951.8
assets
Non-current - (121.1) - - (121.1)
liabilities
Net assets 5,658.9 5,057.3 735.6 - 11,451.8
Six months ended Direct Direct Central IntersegmentGBP'000 Total
30 June 2017 Equities Projects costs 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) 2,009.5 (1,231.5) (812.1) - (34.1)
for
the period
after taxation
FINANCIAL
POSITION:
Intangible - 35.7 - - 35.7
assets
Property, plant - 39.7 - - 39.7
and equipment
Investment in - 1,294.0 - - 1,294.0
associates
Investment - 1,246.9 - - 1,246.9
in joint
ventures
Total - 2,616.3 - - 2,616.3
non-current
assets
Current assets 6,517.8 1,894.7 4,167.4 (1,601.8) 10,978.1
Current - (1,700.0) (512.7) 1,601.8 (610.9)
liabilities
Net current 6,517.8 194.7 3,654.7 - 10,367.2
assets
Non-current - (123.0) - - (123.0)
liabilities
Net assets 6,517.8 2,688.0 3,654.7 - 12,860.5
Year ended 31 Asset Direct Central IntersegmentGBP'000 Total
December Trading Projects costs GBP'000
2017 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net gain/(loss) 5,457.4 (20.6) 0.5 - 5,437.3
on investments
Intercompany - 256.1 - (256.1) -
sales
Administrative (584.7) (3,120.5) (1,478.0) 256.1 (4,927.1)
expenses
Operating 4,872.7 (2,885.0) (1,477.5) - 510.2
profit/(loss)
for the period
Net (7.0) (132.4) (23.8) - (163.2)
finance
income/(cost)
Profit/(loss) 4,865.7 (3,017.4) (1,501.3) - 347.0
on ordinary
activities
before taxation
Taxation (641.6) - 96.6 - (545.0)
Gain/(loss) for 4,224.1 (3,017.4) (1,404.7) - (198.0)
the period
after taxation
FINANCIAL
POSITION:
Intangible - 33.8 - - 33.8
assets
Property, plant - 30.6 - - 30.6
and equipment
Deferred tax - - 96.6 - 96.6
asset
Investment in - 2,203.0 - - 2,203.0
associates
Investment - 1,223.7 - - 1,223.7
in joint
ventures
Total - 3,491.1 96.6 - 3,587.7
non-current
assets
Current assets 10,089.0 2,360.6 3,050.3 (2,110.5) 13,389.4
Current (102.1) (2,601.5) (180.2) 2,110.5 (773.3)
liabilities
Net current 9,986.9 (240.9) 2,870.1 - 12,616.1
assets
Non-current (641.5) (118.6) - - (760.1)
liabilities
Net assets 9,345.4 3,131.6 2,966.7 - 15,443.7
Geographical segments
Six months ended UK EMEA Asia- Austra-lasiaGBP'000 Americas IntersegmentGBP'000 Total 30 June 2018 GBP'000 GBP'000 PacificGBP'000 GBP'000 GBP'000 COMPREHENSIVE INCOME: Net gain/(loss) (1,467.3) (20.1) - (1,944.5) - - (3,431.9) on investments Intercompany 51.8 - - - - (51.8) - sales Administrative (1,109.3) (28.1) (344.4) (239.1) (9.3) 51.8 (1,678.4) expenses Operating loss (2,524.8) (48.2) (344.4) (2,183.6) (9.3) - (5,110.3) for the period Net 2.0 (34.4) 134.5 (39.0) - - 63.1 finance income/(cost) Loss on ordinary (2,522.8) (82.6) (209.9) (2,222.6) (9.3) - (5.047.2) activities beforetaxation Taxation 545.0 - - - - - 545.0 Loss for the (1,977.8) (82.6) (209.9) (2,222.6) (9.3) - (4,502.2) period after taxation FINANCIAL POSITION: Intangible - - 32.1 - - - 32.1 assets Property, plant - - 23.7 - - - 23.7 and equipment Investment in - 3,805.0 419.4 - - - 4,224.4 associates Investment - 502.8 730.6 - - - 1,233.4 in joint ventures Non-current 107.5 - - - - - 107.5 asset Total 107.5 4,307.8 1,205.8 - - - 5,621.1 non-current assets Current assets 3,021.3 1.2 2,941.0 3,269.1 58.1 (2,353.1) 6,937.6 Current (439.7) (330.7) (2,480.7) (87.8) - 2,353.1 (985.8) liabilities Net current 2,581.6 (329.5) 460.3 3,181.3 58.1 - 5,951.8 assets Non-current (121.1) - - - - - (121.1) liabilities Net assets 2,568.0 3,978.3 1,666.1 3,181.3 58.1 - 11,451.8 Six months ended UK EMEA Asia- Pacific Austra-lasiaGBP'000 Americas IntersegmentGBP'000 Total 30 June 2017 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 COMPREHENSIVE INCOME: Net gain/(loss) 1,038.3 (61.5) - 1,022.0 - - 1,998.8 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 activitiesbefore 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, plant - 39.7 - - - 39.7 and equipment Investment in - 1,294.0 - - - - 1,294.0 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 assets 7,154.4 - 1,894.7 3,530.9 - (1,601.9) 10,978.1 Current (512.8) - (1,700.0) - - 1,601.9 (610.9) liabilities Net current 6,641.6 - 194.7 3,530.9 - - 10,367.2 assets Non-current (123.0) - - - - - (123.0) liabilities Net assets 6,518.6 1,708.4 1,102.6 3,530.9 - - 12,860.5 Year ended 31 UK EMEA Asia-PacificGBP'000 Austra-lasiaGBP'000 Americas IntersegmentGBP'000 Total December GBP'000 GBP'000 GBP'000s GBP'000 2017 COMPREHENSIVE INCOME: Net gain/(loss) 4,313.2 (20.6) - 1,144.7 - - 5,437.3 on investments Intercompany 256.1 - - - - (256.1) - sales Administrative (3,180.8) (118.1) (1,663.2) (221.1) - 256.1 (4,927.1) expenses Operating 1,388.5 (138.7) (1,663.2) 923.6 - - 510.2 profit/(loss) for the period Net (10.8) (144.0) 12.5 (20.9) - - (163.2) finance income/(cost) Profit/(loss) 1,377.7 (282.7) (1,650.7) 902.7 - - 347.0 on ordinary activitiesbefore taxation Taxation (545.0) - - - - - (545.0) Gain/(loss) for 832.7 (282.7) (1,650.7) 902.7 - - (198.0) the period aftertaxation FINANCIAL POSITION: Intangible - - 33.8 - - - 33.8 assets Property, plant - - 30.6 - - - 30.6 and equipment Deferred tax 96.6 - - - - - 96.6 asset Investment in - 2,203.0 - - - - 2,203.0 associates Investment - 493.0 730.7 - - - 1,223.7 in joint ventures Total 96.6 2,696.0 795.1 - - - 3,587.7 non-current assets Current assets 5,848.2 - 2,360.6 7,291.1 - (2,110.5) 13,389.4 Current (565.7) (6.0) (2,237.0) (75.1) - 2,110.5 (773.3) liabilities Net current 5,282.5 (6.0) 123.6 7,216.0 - - 12,616.1 assets Non-current (760.1) - - - - - (760.1) liabilities Net assets 4,619.0 2,690.0 918.7 7,216.0 - - 15,443.7
3.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.
4.Earnings/Loss per share
UnauditedSix Unaudited Six AuditedYearended31
monthsended monthsended December2017GBP'000
30 June2018GBP'000 30 June2017GBP'000
Loss attributable (4,498.8) (31.7) (180.4)
to equity
holders of the
Company
Shares used for 1,104,678.302 849,917,669 930,169,942
calculation
of basic EPS
Shares used for 1,104,678.302 849,917,669 930,169,942
calculation
of fully diluted
EPS
Earnings per
share
Basic loss (0.407p) (0.004p) (0.019p)
per share
Fully diluted (0.407p) (0.004p) (0.019p)
loss
per share
No share options or warrants outstanding at these dates 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
No new options were granted under the Company's share option schemes during the period. The lives of certain warrants due to a director were extended. The total charge to operating profit/loss for the period amounted to GBP218,400 (six months ended 30 June 2017: GBP425,900; year to 31 December 2017: GBP730,600).
7.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 Mark Potter (Chief Investment Officer) RFC Ambrian Ltd (Nominated Adviser) Stephen Allen Tel: +44 (0)20 3440 6800 Bhavesh Patel RFC Ambrian Ltd (Joint Broker) Charlie Cryer Tel: +44 (0)20 3440 6800 SI Capital (Joint Broker) Nick Emerson Tel: +44 (0)1483 413 500 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 MTR and invests in high potential mineral projects with a base, precious and strategic metals focus. The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. The Company's key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals. Metal Tiger has two investment divisions, Direct Equities and Direct Projects.
The Direct Equities division invests in undervalued natural resource companies listed on London's AIM, the ASX and the TSX. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment in the Metal Projects division. Metal Tiger's Direct 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 actively assesses new investment opportunities on an ongoing basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sector. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180926006121/en/
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(END) Dow Jones Newswires
September 27, 2018 02:00 ET (06:00 GMT)
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