TIDMMTR
Metal Tiger plc
("Metal Tiger" or the "Company")
Unaudited Interim Results for the six months ended 30 June
2021
Metal Tiger plc (AIM: MTR, ASX:MTR), the AIM and ASX listed
investor in natural resource opportunities, is pleased to announce
interim results for the six months ended 30 June 2021. The interim
accounts are unaudited but have been subject to a review by the
Group's auditors.
Key Highlights:
Six months to 30 June 2021
-- Completion of the Kalahari Metals Limited ("Kalahari Metals") / Cobre
Limited ("Cobre") transaction subject to for receipt of change of control
consent from the Minister of Mineral, Energy and Water Resources of the
Republic of Botswana ("Botswana Consent"). Metal Tiger currently holds
50.01% in Kalahari Metals and Cobre 49.99% and this will change to 49%
and 51% respectively following Botswana Consent.
-- Committed to an investment of A$1.413m in Cobre (subject to shareholder
approval) as part Cobre's A$6.7m fundraise with sophisticated and
institutional investors.
-- Kalahari Metals Joint Venture Board approved a major drilling programme
and drilling commenced at Kitlanya East (Endurance and Perseverance
targets) in May 2021.
-- On the 27 May 2021, successfully completed a compliance listing on the
Australian Securities Exchange ("ASX"), expanding the Company's profile,
with the aim to provide access to new potential investors and to improve
deal flow in Australia.
-- GBP1.8m invested in new passive investments and also completed 7 follow
on passive investments. Fully exited from 8 passive investments and
partially exited 14 passive investments.
-- Notable passive investments in the period include A$750,000 in Artemis
Resources Limited (ASX:ARV), C$1,000,000 in Camino Minerals Corporation
(TSXV:COR), C$450,000 in Pan Global Resources Inc (TSXV:PGZ) A$300,000 in
Antipa Minerals Limited (ASX:AZY), US$225,000 in Trident Royalties PLC
(AIM:TRR).
-- Active US$750,000 invested into Armada Exploration Limited ("Armada") for
an 18.5% interest alongside RCF Opportunities Fund L.P. ("RCF") and
Cobre. Armada's holds two exploration licences, prospective for Ni-Cu
sulphide, in Gabon, covering a total area of nearly 3,000km2 as part of a
frontier district-scale exploration opportunity. Armada initial public
offering ("IPO") targeted for 2021.
-- Follow up investments in Southern Gold Limited ("Southern Gold") to bring
total position to 19.1%.
-- Continued shareholder support with the exercise of 2,598,437 warrants at
an average price of 20.5p raising cash proceeds of GBP531,000.
-- Dividend received from Sandfire Resources Limited ("Sandfire") (ASX:SFR)
of GBP287k and GBP115k used to lower the amount payable under the Equity
Collar Derivative Facility.
Post period end
-- Successful completion of conditional raise of A$5,000,000 (approximately
GBP2.677m) (before costs), at a placing price of A$0.37 (approximately
20p) per CHESS Depositary Interest ("CDI") on the ASX. The Placing is
expected to facilitate additional liquidity to the Company's ASX
quotation and assist Metal Tiger to establish an increased presence in
the Australian market. The net proceeds are to be applied across Metal
Tiger's global resources investments.
-- Sandfire received the Mining Licence for the Motheo Copper Mine from the
Government of Botswana, marking the last major permitting milestone
required for full-scale construction of the US$279m capex project.
Sandfire is on-track to commence mining at Motheo in early CY2022
delivering first production in early 2023. Metal Tiger has a capped US$2m
2% net smelter return royalty ("NSR") over the Motheo Copper Mine.
-- Sandfire released an updated JORC 20121 Indicated and Inferred Mineral
Resource Estimate ("MRE") for the A4 Copper-Silver Deposit, located 8km
west of the permitted Motheo Copper Mine in Botswana of:
-- 9.8Mt at 1.4% Cu and 21g/t Ag for 134,000t of contained copper and
6.6Moz of contained silver (using a 0.5% Cu cut-off) marking a 34%
increase in total contained copper compared with the maiden
Inferred MRE announced in December 2020.
-- 93% of contained copper now reported in the higher confidence
Indicated Mineral Resource category and available for inclusion in
Ore Reserves.
-- Metal Tiger has a 2% uncapped net smelter royalty over circa
8,000km2 of Sandfire's licence holdings in the Kalahari Copper
Belt including PL190/2008 (excluding the Motheo Copper Mine
project area), which hosts the A4 deposit.
-- A maiden Ore Reserve is expected to be published during Q4 2021
and will inform the A4 Feasibility Study for completion during the
Q1 2022.
-- Sandfire has commenced a substantial diamond drilling program to test
several targets along the A4 Dome. Drilling is focused on targets with
potential for high-grade vein hosted mineralisation in the upper part of
the Dome and the potential for extensive mineralisation associated with
the Ngwako Pan Formation (NPF) contact below the Dome.
-- Drilling is also planned to commence at other high priority targets
within 30km of the Motheo Copper Mine during Q3 2021. Targets include the
large A1 Dome located 25km along strike from A4 and the T1 and T2 East
prospects located 10km north of A1.
-- Following completion and interpretation of a fixed-wing airborne magnetic
and gravity geophysics survey, Kalahari Metals commenced drilling at
Kitlana West testing the first of two targeted airborne electromagnetic
("AEM") anomalies.
-- Invested C$500,000 in Anacortes Mining Corp and a further GBP307,262
invested post period end in 3 new passive investments.
Key Performance Indicators
Unaudited Six Unaudited Six Audited Year
months ended 30 months ended 30 ended 31
June 2021 June 2020 December 2020*
Total comprehensive
(loss)/profit
attributable to
owners of the
parent (471) (3,483) 3,970
Net asset value GBP31,285,000 GBP23,063,000 GBP31,186,000
Net asset value per
share * 20.1p 15.1p 20.3p
Closing share price 25.5p 25.0p 23.5p
Share price
premium/(discount)
to net asset
value* 27% 65% 16%
Market GBP39,757,000 GBP38,052,000 GBP36,028,000
capitalisation
* Based on shares in issue at the period end.
For further information on the Company, visit:
www.metaltigerplc.com
Enquiries:
Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 3287 5349
Mark Potter (Chief Investment Officer)
James Dance Strand Hanson Limited Tel +44 (0)20 7409 3494
James Harris (Nominated Adviser)
Robert Collins
Paul Shackleton Arden Partners plc (Broker) Tel: +44 (0)20 7614 5900
Steve Douglas
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
James Crothers
Rebecca Waterworth
Notes to Editors:
Metal Tiger PLC is admitted to the AIM market of the London
Stock Exchange AIM Market ("AIM") and the ASX Market of the
Australian Securities Exchange Market ("ASX") 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. Metal Tiger has two investment divisions: Equity
Investments and Project Investments.
Equity Investments invests in undervalued natural resource
companies. The majority of its investments are listed on AIM, the
TSX and the ASX, which includes its interest in Sandfire Resources
Limited (ASX: SFR). The Company also considers selective
opportunities to invest in private natural resource companies,
typically where there is an identifiable path to IPO. Through the
trading of equities and warrants, Metal Tiger seeks to generate
cash for investment for the Project Investments division.
Project Investments is focused on the development of its key
project interests in Botswana, where Metal Tiger has a growing
interest in the large and highly prospective Kalahari copper/silver
belt through its interest in Kalahari Metals Limited.
The Company actively assesses new investment opportunities on an
on-going basis and has access to a diverse pipeline of new
opportunities in the natural resources and mining sectors. 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.
Chairman's Statement
The first half of 2021 continued to be a challenging environment
in which to operate. Many countries were hit by a further wave of
the COVID-19 delta variant and resulted in complete or partial
lockdowns. The effects to the world economy have to some extent
been mitigated by the implementation of aggressive vaccination
programmes to many countries' adult populations. As a result, there
has not been the hard shock to the world markets that we saw in the
first half of 2020. The commodities market remains very resilient
and has built on the gains registered in 2020. The majority of the
commodities that Metal Tiger is exposed to through its project and
equity investments saw new cyclical highs during the first half of
2021. The increasing focus on the "Green Revolution" and many
Countries initiating policy statements adopting electric vehicles
has meant that copper has seen increasing demand.
The company entered 2021 with a strong and liquid balance sheet
on the back of a successful and yet challenging 2020. In the first
half of 2021 Metal Tiger was very active in seeking and making new
investments, with passive investments totalling GBP1.8m being made
in the period. Furthermore, following due diligence and
negotiations an investment in Armada was concluded alongside RCF
and Cobre adding another Active investment to the portfolio and
providing exposure to a frontier district scale nickel-copper
exploration company. I am informed that Armada's ASX IPO is
progressing well and that Canaccord and PAC Partners have been
appointed as joint lead managers to the IPO. On top of this we
completed the Cobre / KML transaction and Kalahari Metals (where
Metal Tiger holds a 50.01% investment alongside Cobre's 49.99%
interest) commenced drilling at Kitlanya East and more recently at
Kitlanya West.
Post period end there have been material developments in
relation to a substantial increase in Sandfire's A4 copper/silver
resource. The resource increased 34% in terms of contained copper
for approximately 134kt of Cu with 93% in the indicated category.
Furthermore, we take great encouragement around Sandfire's stated
timelines for production for the permitted Motheo Mine in early
2023 especially the intention to rapidly progress to an expanded
5.2Mtpa case incorporating A4 as soon as possible. I note that
according to Sandfire's guidance an A4 Mineral Reserve Estimate is
expected by the end of 2021, which is to be followed by a
Feasibility Study in early 2022. These two milestones along with
any eventual permits for A4 will mark critical future milestones
for Metal Tiger's 2% uncapped NSR royalty. Given Sandfire's
aggressive exploration to date and substantial exploration budget
commitments the Board is confident that Sandfire will continue to
deliver additional discoveries and add increased copper tonnage in
areas covered by the uncapped royalty.
I am also pleased to note the recent successful placing on the
ASX listing to new institutional, sophisticated investors as well
as existing shareholders which raised A$5m via the issue of new ASX
quoted Chess Depositary Interests. We look forward to welcoming new
investors and promoting the success of the ASX quotation as we
increasingly try to build our presence in Australia complementing
the company's AIM quotation.
Project Investments
The Project Investments segment includes investments into
mineral exploration and development projects either through
subsidiaries, associates or joint venture companies, operated by
in-country partners who have the requisite knowledge and expertise
to advance projects.
Botswana - Kalahari Metals Limited
The Company holds an interest in a mining project located in the
Republic of Botswana. The project investment comprises an equity
investment and a joint venture arrangement with Kalahari Metals. As
announced on 12 April 2021, the Company has a 50.01% (H1 2020:
62.2%; 2020 full year: 62.2%) interest in Kalahari Metals, a
private copper exploration company with direct and indirect
exposure to twelve exploration licences in the Kalahari Copper Belt
("KCB") covering 8,714km(2) . Cobre holds the remainder of the
shareholding.
On 15 December 2020, Kalahari Metals signed a Share Purchase
Agreement and Shareholders Agreement with Cobre, pursuant to which,
Cobre agreed to purchase 49.99% of Kalahari Metal's shares, in
exchange for newly issued shares in Cobre. Upon completion of the
Transaction, and subject to obtaining change in control approval
from the Minister of Minerals, Energy and Water Resources of the
Republic of Botswana, Cobre will increase its shareholding in
Kalahari Metals to 51% and Metal Tiger will reduce its shareholding
to 49%.
On 6 April 2021, the Company announced that Cobre shareholders
voted in favour of the conditional acquisition by Cobre of 51% of
the issued share capital in Kalahari Metals, and as such, all
conditions of the Transaction were satisfied, save for final
receipt of the change in control approval from the Minister of
Minerals, Energy and Water Resources of Botswana.
On 12 April 2021, the Company announced that the Kalahari Metals
Transaction completed with Cobre purchasing 49.99% of the Kalahari
Metal's shares in exchange for 20,999,214 newly issued ordinary
shares in Cobre. Metal Tiger received 5,106,963 new Cobre Shares,
increasing its holding to 26,006,963 Cobre Shares, representing
approximately 16.62% of Cobre's enlarged share capital. Following
the transfer, Metal Tiger holds 50.01% interest in Kalahari Metals
with Cobre holding the remaining interest.
On 19 April 2021, Metal Tiger announced that the joint venture
board of Kalahari Metals approved a major new drilling programme
focussed on the discovery of copper/silver deposits on the Kalahari
Copper Belt.
On 11 May 2021, drilling commenced on the Kitlanya East Project
are in Botswana.
Thailand
Metal Tiger retains twelve exploration licence applications in
Thailand which have been fully progressed at the relevant
permitting body, the Department of Primary Industries and Mines,
and to the Company's knowledge as at the date of publication of
these accounts, remain in good standing. Should these exploration
licence applications be granted, and confirmation of such is
awaited, the Board will consider whether or not to pursue
appropriate exploration programmes at the time of granting.
Equity Investments
The Equity Investments segment continues to invest in high
potential mining exploration and development companies with a
preference for base and precious metals. The Company's focus is to
invest in mining companies that are significantly undervalued by
the market and where there is substantial upside potential through
exploration success and/or development of a mining project towards
commercial production. To differentiate between the Board's view of
the Company's strategy we categorise certain investments as either
Active or Passive.
Active investments are typically larger investments, where Metal
Tiger seeks to positively influence the management of investee
companies by providing oversight and guidance at Board level to
enhance shareholder value and minimize downside risk.
Metal Tiger's Passive investments are typically direct purchases
of listed mining equities and warrants but may include other
investment structures. The Company's aim is to make capital gains
in the short to medium term from its Passive investments.
Investments are considered individually based on a variety of
criteria. Investments are typically stock exchange traded on the
TSX, ASX, AIM or LSE but can be private with a view to obtaining an
eventual liquidity event.
As at 30 June 2021, as set out in the table below, Metal Tiger
had equity investments in companies pursuing high potential
exploration and development projects in precious, base and battery
metals. Projects are located in a variety of jurisdictions,
including North America, South America, Africa, South East Asia and
Australia.
Through its investments, Metal Tiger is primarily exposed to
copper and gold. The copper price in H1 2021 was exceptionally
strong hitting a high of US$4.90/lb in May 2021, with a majority of
financial institutions (notably Goldman Sachs) and several top
industry executives supporting and promoting their estimation that
copper prices would go higher and would need to remain high to
encourage supply to meet the new and critical demand that will be
necessitated by a global switch to a sustainable future. There were
also several geopolitical and COVID-19 related reasons for the
price strength.
The Board remains very optimistic on the structural need for
copper and as such is confident that there will be a significant
increase in demand for copper from several key sustainable
categories. On the supply side the Board notes that whilst there is
strong visibility on production there remain risks to the downside
with regard copper production that could help support increased
prices even if the demand side of the equation, which is largely
based on projections turned out to be less than several financial
institutions have projected. The first half of 2021 saw the gold
price drop 6.6%, driven largely by higher interest rates and driven
by a more hawkish tone by the United States Federal Reserve. The
Board remains confident of a stronger H2 2021 for gold given the
continued uncertainties globally with regard to COVID-19 and a
belief that the hawkishness of the US Federal Reserve will largely
get priced in at some point during H2 2021, either through
continued hawkish statements or through actual actions (more likely
a combination of both). Since 30 June 2021 copper prices have
softened from May 2021 highs whilst gold experienced a flash crash
but is now largely trading in line with period end.
Metal Tiger continues to deliver on identifying high conviction
natural resource opportunities in line with its investment approach
and whilst the Company continued to largely focus on undervalued
investment situations with the potential for substantial
exploration upside, we still managed to maintain a strong level of
diversification in the passive investment portfolio in terms of
commodity, jurisdiction and project development stage. In addition,
Metal Tiger has managed to increase its warrant portfolio through
investment in the period. Only one new Active Investment was made
in H1 2021.
Summary of listed investments held at 30 June 2021
Value at
Listing period end
Investment Exchange(2) Description No. of securities held GBP
Copper, gold 2,842,667 ordinary
Sandfire and silver shares (held as a
Resources mining and non-current asset as
Limited ASX exploration security for loan) 10,538,687
3,300,690 ordinary shares (uncharged) 12,236,728
Cobre Base metal 26,006,963 ordinary
Limited ASX exploration shares 2,258,653
Southern Gold mining
Gold and 40,794,000 ordinary
Limited ASX exploration shares 1,550,009
7,284,500 unlisted warrants (A$0.18 expiry 19/10/2022) 43,495
Camino
Minerals Copper 5,882,353 ordinary
Corp. TSXV exploration shares 582,600
2,941,176 unlisted warrants (C$0.25 expiry 18/5/2023) 151,647
Pan Asia Lithium and
Metals tungsten 6,830,713 ordinary
Limited ASX exploration shares 482,002
Base and
Pan Global precious
Resources metal 1,176,944 ordinary
Inc TSXV exploration shares 479,981
694,444 unlisted warrants (A$0.28 expiry 20/02/2022) 186,877
Copper, gold
and cobalt
Artemis exploration
Resources and 14,357,353 ordinary
Limited ASX development shares 405,244
Antipa Copper, gold
Minerals and silver 6,042,860 ordinary
Limited ASX exploration shares 134,483
Molyhil
Thor Mining Tungsten 11,750,000 ordinary
plc AIM/ASX Project shares 108,570
12,500,000 unlisted warrants (1p expiry 23/01/2022) 52,975
Copper and
Avidian Gold gold 1,000,000 ordinary
Corp TSXV exploration shares 99,042
500,000 unlisted warrants (C$0.2 expiry 8/6/2024) 29,276
Inflection Copper and
Resources gold
Limited CSE exploration 468,750 ordinary shares 98,313
234,375 unlisted warrants (C$0.5 expiry 14/5/202) 17,751
Geopacific
Resources Gold
Limited ASX development 580,000 ordinary shares 96,808
Barton Gold Gold
Limited ASX exploration 800,000 ordinary shares 86,848
Los Cerros Gold
Limited ASX exploration 870,000 ordinary shares 80,280
Mining
Trident royalties
Royalties and
Plc AIM streaming 189,043 ordinary shares 71,836
Silver, gold
Tier One and base
Silver metals
Inc. TSXV exploration 87,500 ordinary shares 70,859
Aurelius
Minerals Gold 2,500,000 ordinary
Inc. TSXV exploration shares 66,999
100,000 unlisted warrants (C$0.07 expiry 15/7/2022) 16,604
Catalyst
Metals Gold
Limited ASX exploration 55,000 ordinary shares 58.215
Tanga
Resources Gold 2,500,000 ordinary
Limited ASX exploration shares 55,637
Australian
Gold and Gold and
Copper copper
Limited ASX exploration 500,000 ordinary shares 37,996
Monarch
Mining Gold
Corp. TSXV exploration 70,000 ordinary shares 35,888
Sable Gold and 1,166,666 unlisted
Resources silver warrants, (A$0.2
Limited TSXV exploration expiry 10/9/2023) 115,957
Marimaca 70,978 unlisted
Copper Copper warrants (C$4.1 expiry
Corp. TSXV exploration 31/12/2022) 53,302
Palladium Nickel and 170,000 unlisted
One Mining copper warrants (C$0.45
Inc. TSXV exploration expiry 22/2/2023) 1,446
Summary of unlisted investments held at 30 June 2021
Value at
Listing No. of period end
Investment Exchange(2) Description securities held GBP
Armada Nickel and 5,000,000
Exploration copper ordinary
Limited Private exploration shares 541,800
3,333,333
unlisted
warrants
(C$0.225 expiry
01/04/2024) -
Moxicon 500,000 ordinary
Resources Private Copper producer shares 140,000
Millenial 150,000 ordinary
Silver Corp. Private Exploration shares 80,108
3,840,909
ordinary
Tally Limited Private Gold currency shares 58,000
Mt. Malcolm Gold 500,000 ordinary
Mines NL Private exploration shares 27,140
During the period the segment acquired investments at a total
cost of GBP4,561,000 and disposed of investments for GBP4,438,000
and a realised profit of GBP1,191,000. After considering the
revaluation of the investments the net assets of the segment
increased by GBP398,000 during the period to GBP29,741,000 (30 June
2020: GBP23,940,000; 31 December 2020: GBP29,343,000).
After accounting for the profit on disposals, dividends received
and the revaluation of investments at the period end, the equity
investments segment recorded a net profit of GBP1,751,000 for the
period versus a loss in H1: 2020 of GBP1,694,000.
Overview of material investments as of 30 June 2021:
Sandfire Resources Limited
Sandfire Resources is an ASX listed (ASX:SFR) mid-tier mining
and exploration company. Sandfire Resources operates the
high-margin Degrussa Copper-Gold Mine, located 900km north of
Perth, Western Australia.
Sandfire Resources also has development and exploration projects
in North America and Botswana. The Company holds 6,143,357 ordinary
shares in Sandfire Resources as of 30 June 2021 representing a 3.4%
shareholding. Metal Tiger has an Equity Option and Loan Facility
Master Agreement (Financing Arrangement) with Macquarie bank that
allows it to enter into certain covered derivative contracts over
its equity holdings.
In aggregate, the financing arrangements entered into by Metal
Tiger are secured over 2,842,667 Sandfire shares held by Metal
Tiger, representing approximately 1.59% of Sandfire's issued share
capital.
Sandfire concluded H1 with a very strong cash position of A$574m
and no debt having produced 35,055 tonnes of copper and 18,116
ounces of gold from its DeGrussa operations. C1 cash costs
increased slightly during the period. Sandfire noted that Sandfire
Resources America was progressing a Feasibility Study enhancement
for the Black Butte copper project as well as conducting an
exploration program to identify additional Mineral Resources in
close proximity to planned infrastructure.
Sandfire noted that resource definition drilling continued at
the Old Highway Gold Prospect as well as studies for the Company's
gold transition strategy. Sandfire noted guidance for FY2022 of
64-68kt Cu and 30-33koz Au; with C1 costs of circa US$1.00 --
1.10/lb.
Sandfire progressed several critical steps for the Motheo Mine
to progress including awarding the Mining Contract for the T3 Open
Pit to African Mining Services (AMS), a surface mining business of
diversified global mining services group Perenti Global
Limited.
Cobre Limited
Cobre is an ASX listed (ASX:CBE) resource exploration company
which is progressing the copper-gold-silver-zinc VHMS exploration
stage Perrinvale Project in Western Australia. Cobre holds a 49.99%
interest in Kalahari Metals, as well as an 18.5% interest in
Armada. The Company holds 26,006,963 ordinary shares as of 30 June
2021 representing 16.62% of Cobre's issued ordinary share capital
of Cobre.
Metal Tiger is interested in an additional 8,311,765 new
ordinary shares at a price of A$0.17 per share, subject to Cobre
shareholder approval of Metal Tiger's participation in the
fundraise. Following shareholder approval and completion of the
fundraise, Metal Tiger will hold 34,318,728 shares, representing
20.72% interest in Cobre.
In addition, Metal Tiger expects to be issued a further 445,368
shares, subject to obtaining change in control approval from the
Minister of Mineral Energy and Water Resources of the Republic of
Botswana in respect of the Kalahari Metals. Assuming all further
issuances occur, Metal Tiger would be interested in approximately
21% of Cobre.
On 6 April 2021, Cobre announced at an extraordinary general
meeting, that its shareholders had approved its investment in
Kalahari Metals. The key terms being the acquisition of a 51%
interest in Kalahari Metals Limited.
Cobre commenced field exploration at Perrinvale towards the end
of April 2021 with a 6 month time-frame with the goal of
delineating potential future areas of interest for drill testing or
further exploration. Please reference Cobre's announcement of 29
April 2021 for further details.
In March 2021 Cobre invested US$750k alongside Metal Tiger and
RCF into Armada Exploration Limited for an 18.5% stake.
Michael McNeilly, Executive Director and Chief Executive Officer
of Metal Tiger, was appointed to the board of Cobre as a nominee
Non-Executive Director representing Metal Tiger.
Southern Gold Limited
Southern Gold is an ASX listed resource exploration and
development company with gold epithermal exploration properties in
South Korea. Metal Tiger currently holds 40,794,000 shares as of 30
June 2021 representing 19.1% of the issued share capital of
Southern Gold as well as 7,284,500 A$0.18 warrants expiring on 19
October 2022.
Michael McNeilly was appointed on 5 June 2020 as a Non-Executive
Director of Southern Gold. At Southern Gold's annual general
meeting held on 26 November 2020, Michael McNeilly, Executive
Director and Chief Executive Officer of Metal Tiger was appointed
as a Director of Southern Gold.
On 29 June 2021, Southern Gold announced that it had agreed
commercial terms for the completion of the sale of Southern Gold's
Gubong and Kochang Joint Venture interests. Up to 200 million
shares will be issued in Bluebird Merchant Ventures Ltd (LSE:BMV),
of which, 50 million have been issued and 150 million shares will
be subject to BMV issuing an approved prospectus. BMV has the
flexibility to pay cash in lieu of all or some of the 150 million
shares on a US$0.05/share basis. The market value of the deal at
the deemed issue price of US$0.05/share was a nominal value of
US$10 million. Operationally, the primary focus was on field
reconnaissance sampling, soil sampling and the commencement of the
diamond drill program targeting the northern section of the Golden
Surprise trend at the Deokon Project. A total of two HQ3 diamond
drill holes for 251.2m was completed in Q2, utilizing one drill
rig. The period saw scout drilling at the Geum Mar Project and
drilling at the Aphae Project.
Armada Exploration Limited
Armada is a Mauritian holding company which owns 100% of Armada
Exploration (Gabon) SARL. Armada was established to define new
belt-scale discovery opportunities for key commodities (principally
nickel and copper) in under-explored regions of Africa. It
currently holds two exploration licences, prospective for magmatic
Ni-Cu sulphide, in Gabon, covering a total area of nearly 3,000km2.
The licence holding is considered to present a frontier
district-scale exploration opportunity.
In March 2021 Metal Tiger subscribed for 5,000,000 shares for
total consideration of US$750,000 via a promissory note with
US$350,000 to be invested up front and the remaining consideration
to be paid in monthly instalments over a period of 5 months, of
which one instalment was paid prior to 30 June 2021. Metal Tiger
holds an 18.5% direct interest in the share capital of Armada.
Metal Tiger also holds an indirect interest in Armada, via its
16.62% holding in Cobre, which holds an 18.5% interest in
Armada.
Metal Tiger has received 3,333,333 36-month options issued at
US$0.225, which will potentially be repriced as part of the planned
ASX IPO. Metal Tiger also has the right to appoint a director to
the Board of Armada (or equivalent holding company, in the event of
a restructuring as part of a listing).
Michael McNeilly has been appointed as a Director to Armada
Metals Limited, the planned Australian entity list-company but no
restructuring has taken place as at the time of this report.
Camino Minerals Corporation
Camino is a discovery and development stage copper exploration
company that undertakes exploration in Peru. Its focus is on
acquiring a portfolio of advanced copper assets that have the
potential to deliver copper into the economy. It is comprised of
the Maria Cecilia Project, Los Chapitos Project and Plata Dorada
Project. It is listed on the Toronto Stock Exchange ("TSX").
Metal Tiger holds 5,882,353 ordinary shares in Camino,
representing circa 3.4% of the issued share capital of the company.
Metal Tiger also holds 2,941,176 warrants at an exercise price of
C$0.25 expiring on 18 May 2023.
Exercise of warrants
In the first half of 2021, the shareholders of the company
showed their continued support of the company by exercising a total
of 2,598,437 warrants in at an average price of 20.5p raising
GBP532,000 in cash.
Results for the period
Administration costs for the period were GBP1,239,000 (2020 H1:
GBP1,361,000; 2020 full year: GBP2,934,000). The downward trend
reflects the Boards continuous drive for efficiencies which remains
ongoing.
There was an overall profit in the period resulting from the
disposals and fair valuing of investments during the period of
GBP1,686,000 (H12020: loss of GBP1,640,000; 2020 full year: gain of
GBP3,801,000) reflecting market conditions in the period and the
quality of the underlying portfolio, the receipt of dividend income
of GBP288,000 and net finance cost of GBP1,293,000 mainly relating
to the change in value of the derivatives securing the Group's bank
loans, the loss for the period on ordinary activities before tax
was GBP567,000 (H1 2019: loss GBP3,372,000; 2020 full year: profit
GBP3,787,000).
Cashflow and financing
Disposals from equities during the year raised GBP4,438,000 and
a further net GBP4,561,000 was invested into the purchase of
equities and other investments. Operational cash outflows before
working capital changes amounted to GBP1,190,000 (H1 2019:
GBP1,326,000; 2020 full year: GBP2,441,000).
The net cash requirement for funding both investments and
operations, was met out of cash generated by the exercise of
warrants and cash reserves of GBP458,000 at the beginning of the
period. There was no need to draw down on the equity derivative
collar financing arrangement put into place in 2019 with a global
investment bank.
Cash in hand at the end of the period was GBP261,000 (H1 2020:
GBP1,126,000; 2020 full year: GBP458,000).
No dividend has been declared or recommended during the period
under review (H1 2020: none; 2020 full year: none).
Developments since 30 June 2021:
Capital raise
Successful completion of conditional raise of A$5,000,000
(approximately GBP2.677m) (before costs), at a placing price of
A$0.37 (approximately 20p) per CHESS Depositary Interest ("CDI") on
the ASX. The Placing is in two parts with Tranche 1, where
10,810,811 new CDIs, were issued and A$4,000,000 pre-costs has been
received. Tranche 2, in which Cobre conditionally subscribed to
2,702,703 new CDI's, conditional on shareholder approval from a
shareholders meeting which is to take place on the 15 September
2021, will result in a further A$1,000,00 pre-costs accruing to the
company in cash. The placing is expected to facilitate additional
liquidity to the Company's ASX quotation and assist Metal Tiger to
establish an increased presence in the Australian market. The net
proceeds are to be applied across Metal Tiger's global resource
related investments.
Project investment
Kalahari Metals Limited
A fixed-wing airborne magnetic and gravity geophysics survey
completed with initial interpretation helping to map out an
east-northeast ("ENE") trending gravity low, likely related to the
development of a deeper sub-basin in the lower Kalahari Copper Belt
("KCB") basin, the margins of which are considered prospective
sites for Cu-Ag mineralisation.
Diamond drilling commenced, testing the first of two prominent
AEM conductors along with a series of short vertical percussion
holes to confirm underlying geology and cover thickness and provide
geochemical samples from the base of the unconsolidated Kalahari
cover sediments in the survey area. Further updates with regard to
drilling will be provided in due course. For further details,
please refer the announcement of 14 July 2021.
Drilling continues at Kitlanya East, further updates will be
provided in due course.
Equity Investments
Summary of investments made between 30 June 2021 and the date of
release of the interim report
Investment Listing Description No. of securities
Exchange(2) acquired
Anacrotes Mining Private Nickel and copper 1,250,000 ordinary
Corp exploration shares 625,000 unlisted
warrants (C$0.55 expiry
22/07/2023)
Apollo Gold and TSXV Silver, gold and 220,000 ordinary shares
Silver Corp. base metals 110,000 unlisted
exploration warrants (C$1.25 expiry
5/7/2023)
Artemis Resources TSXV Gold exploration 2,104,518 ordinary
Limited shares
Cannon Resources Private Base metal 250,000 ordinary shares
Limited Exploration 83,333 unlisted
warrants (A$0.2 expiry
30/6/2024)
Los Cerros Limited ASX Gold exploration 2,110,000 ordinary
shares
Thor Mining plc AIM/ASX Molyhil tungsten 11,538,462 ordinary
project shares 5,769,231
unlisted warrants (1.3p
expiry 17/8/2023)
Tier One Silver TSXV Silver, gold and 10,000 ordinary shares
Inc. base metals
exploration
Heavy Minerals Private Mineral sands 1,750,000 ordinary
Limited exploration shares
Cobre Limited
A field programme at Perrinvale continues with the primary
activities being soil and rock chip sampling and geological mapping
aimed at validating the model and vectoring to the definition of
future drill targets.
Drilling continues in Botswana via Kalahari Metals Limited with
further updates anticipated to be made in due course.
Southern Gold Limited
Robert Smillie, a geoscientist with more than 30 years of
experience has been appointed as Exploration Manager and is
expected to be based in South Korea and is the start of an
initiative to get more in-country technical expertise on the ground
to increase project generation and expand the project drill
pipeline.
Simon Mitchell, Managing Director of Southern Gold will leave
the company on 29 October 2021. A global executive search firm has
been mandated with finding a new Managing Director with the
requisite skills to lead Southern Gold's strategy as a South
Korean-focused gold exploration company.
Armada Exploration Limited
The ASX-IPO is progressing well with brokers Canaccord and PAC
Partners having been appointed as Joint Lead Managers to the IPO.
Further updates will be provided in due course.
Camino Minerals Corporation
Since the Company's investment into Camino, leftist candidate
Pedro Castillo, a socialist, became Peru's first left-wing
president in more than a generation. Whilst his cabinets plan for
government has been more moderate than what was proposed during the
election campaign, it is still proposing a new tax on profits for
mining companies reviewing royalty arrangements and looking for an
end to tax breaks. Camino closed the acquisition of the Maria
Cecilia Porphyry complex as part of investment collaboration with
the private equity vendor Denham Capital in July 2021. Exploration
work continues at the Los Chapitos copper project with a geophysics
campaign consisting of 258 line km of Magnetic Vector Inversion
Modelling (the "Magnetic Survey") commencing in July at the
northern extension of the project with the aim of extending
mineralisation 4 to 5 km to the north of previously drilled
areas.
Conclusions
The Board is very confident about the Company's future as it
continues to implement its investment strategy. I am very pleased
with the efforts undertaken to bring about the compliance listing
on the ASX and it is highly encouraging that the Company
successfully raised A$5m from new institutional and sophisticated
investors as well as received the support of existing
investors.
The Company continues to have a very strong financial position
and will continue to implement its investment strategy with the aim
of growing and strengthening the financial position of the company.
The period saw the conclusion of the Cobre / Kalahari Metals
transaction and the commencement of drilling across two project
areas. The Board is also pleased with the addition of Armada to the
Active portfolio and is confident that a successful ASX IPO will be
delivered this calendar year. It is encouraging to see the
conclusion of the BMV deal with Southern Gold. The positive steps
that have been taken post period end boosts our conviction that the
Active strategy is working and our convictions with regard to the
prospective nature of South Korea for economic epithermal gold
potential remain unchanged.
The Board believes that Sandfire as at the time of publication
remains undervalued on fundamentals. No collar facilities were
utilised during the period, but the liquidity profile and ability
to access the equity derivative collar financing facilities
presents the company with a lot of flexibility as it identifies
investment opportunities and expands and supports its existing
portfolio.
The Board takes great encouragement from the positive updates
regarding the progress of the development of the Motheo Mine, the
expanded A4 resource and the exploration intentions of Sandfire on
areas covered by Metal Tiger's uncapped 2% NSR. The Board believes
that the royalty has the potential to become a tier 1 royalty in
due course.
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. Thank you to our shareholders,
many of whom have held shares in the Company for the past six
years, who share our resolve to create high investment returns. We
are working hard and will continue to strive to deliver significant
value from all our investments.
Charles Hall
Chairman
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2021
Unaudited Six Unaudited Six Audited Year
months ended months ended ended 31
30 June 2021 30 June 2020 December 2020
Notes GBP'000 GBP'000 GBP'000
Net profit on
disposal of
investments 1,191 17 745
Movement in fair
value of fair
value accounted
equities 495 (1,657) 3,056
Share of post-tax
(losses)/profits
of equity
accounted joint
ventures (9) 14 (25)
Provision against
cost of equity
accounted joint
ventures - (731) (731)
Investment income 288 161 648
Other income - - 3,638
Net profit/(loss)
before
administrative
expenses 1,965 (2,196) 7,331
Administrative
expenses (1,239) (1,361) (2,934)
Operating
profit/(loss) 726 (3,557) 4,397
Finance income 349 342 74
Finance costs (1,642) (157) (684)
(Loss)/Profit
before taxation 3 (567) (3,372) 3,787
Tax on
(loss)/profit on
ordinary
activities 4 - - --
(Loss)/Profit on
ordinary
activities after
taxation (567) (3,372) 3,787
Other
comprehensive
income - Items
which may be
subsequently
reclassified to
profit or loss:
Exchange
differences on
translation of
foreign
operations 93 (110) 183
Total
comprehensive
(loss)/profit for
the period (474) (3,482) 3,970
(Loss)/Profit for
the period
attributable to:
Owners of the
parent (567) (3,372) 3,787
Non-controlling
interest - - --
(567) (3,372) 3,787
Total
comprehensive
(loss)/profit for
the period
attributable to:
Owners of the
parent (471) (3,483) 3,970
Non-controlling
interest (3) 1 (1)
(474) (3,482) 3,969
Earnings per
share
Basic
(loss)/earnings
per share 5 (0.4)p (2.2)p 2.5p
Fully diluted
(loss)/earnings
per share 5 (0.4)p (2.2)p 2.5p
Condensed Consolidated Statement of Financial Position
At 30 June 2021
Unaudited 30 Unaudited Audited 31
June 2021 30 June 2020 December 2020
Notes GBP'000 GBP'000 GBP'000
Non--current
assets
Intangible assets 23 28 27
Property, plant
and equipment 17 8 21
Investment in
joint ventures 2,550 3,236 3,198
Other non-current
asset
investments 6 10,646 7,252 9,126
Royalties
receivable 5,056 1,295 4,866
Total non-current
assets 18,292 11,819 17,238
Current assets
Equity
investments
accounted for
under fair
value 7 20,614 16,651 20,768
Trade and other
receivables 527 398 574
Amounts due from
related parties 8 32 - -
Cash and cash
equivalents 261 1,126 458
Total current
assets 21,434 18,175 21,800
Current
liabilities
Trade and other
payables (537) (222) (326)
Amounts due to
related parties 8 - (941) (306)
Loans and
borrowings (48) (56) (52)
Total current
liabilities (585) (1,219) (684)
Net current
assets 20,849 16,956 21,116
Non-current
liabilities
Loans and
borrowings 9 (6,666) (5,583) (7,051)
Other non-current
liabilities 6 (1,074) - -
Contingent
consideration (116) (129) (117)
Total non-current
liabilities (7,856) (5,712) (7,168)
Net assets 31,285 23,063 31,186
Capital and
reserves
Called up share
capital 156 152 153
Share premium
account 13,424 12,579 12,831
Capital
redemption
reserve 4 4 4
Share based
payment reserve 2,300 1,806 2,257
Warrant reserve 5,173 5,509 5,476
Translation
reserve 31 (357) (62)
Profit and loss
account 10,109 3,277 10,436
Total
shareholders'
funds 31,197 22,970 31,095
Equity
non-controlling
interests 88 93 91
Total equity 31,285 23,063 31,186
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2021
Unaudited Six Audited Year
months ended 30 Unaudited ended 31
June 2021 30 June 2020 December 2020
GBP'000 GBP'000 GBP'000
Cash flows from
operating
activities
(Loss)/profit before
taxation (567) (3,372) 3,787
Adjustments for:
Net gain on disposal
of fair value
accounted equities (1,191) (17) (745)
Movement in fair
value of
investments (495) 1,657 (3,056)
Share of post-tax
losses/(profits) of
equity accounted
joint ventures 9 (14) 25
Movement In provision
in, and write-offs
of, equity accounted
joint ventures - 731 731
Share based payment
charge for the
period 43 31 482
Depreciation and
amortisation 6 4 11
Other income - - (3,638)
Investment income (288) (161) (648)
Finance income (349) (342) (74)
Finance costs 1,642 157 684
Operating cash flow
before working
capital changes (1,190) (1,326) (2,441)
Decrease/(Increase)
in trade and other
receivables 26 (116) (84)
Increase/(Decrease)
in trade and other
payables 214 (106) (1,272)
Unrealised foreign
exchange gains and
losses (70) (33) (38)
Net cash outflow from
operating
activities (1,020) (1,581) (3,835)
Cash flow from
Investing
activities
Proceeds from current
asset investment
disposals 4,438 1,508 5,013
Purchase of
intangible asset - - (5)
Purchase of fixed
assets (2) (4) (22)
Sale of investment
in, and loans to,
joint ventures 300 (419) (982)
Purchase of other
fixed asset
investments - (125) (228)
Purchase of current
asset investments (4,561) (4,210) (7,219)
Investment income 288 182 648
Net cash
inflow/(outflow)
from investing
activities 463 (3,068) (2,795)
Cash flows from
financing
activities
Proceeds from issue
of shares 532 - 221
Shares re-purchased - (423) (423)
Loans drawn down - 1,266 2,620
Loans repaid (115) (42) (245)
Interest paid (55) (34) (91)
Net cash inflow from
financing
activities 362 767 2,082
Net
(decrease)/increase
in cash in the
period (195) (3,882) (4,548)
Cash and cash
equivalents at
beginning of period 458 5,007 5,007
Effect of exchange
rate changes (2) 1 (1)
Cash and cash
equivalents at end
of period 261 1,126 458
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2021 (unaudited)
Share
Called Share Capital Shares based Non-
up Share premium Redemption held for payment Warrant Translation Retained Total equity controlling Total
capital account Reserve treasury reserve reserve reserve profits shareholders' interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 funds GBP'000 GBP'000 GBP'000
Balance at 1
January 2020 156 13,079 - (77) 2,004 5,509 (246) 6,420 26,845 92 26,937
Period to 30
June 2020:
Loss for the
period - - - - - - - (3,372) (3,372) - (3,372)
Other
comprehensive
income - - - - - - (111) - (111) 1 (110)
Total
comprehensive
income - - - - - - (111) (3,372) (3,483) 1 (3,382)
Shares
purchased and
cancelled (4) (500) 4 77 - - - - (423) - (423)
Cost of share
based
payments - - - - 31 - - - 31 - 31
Transfer of
reserves
relating to
exercise and
expiry of
options and
warrants - - - - (229) - - 229 - - -
Total changes
directly to
equity (4) (500) 4 77 (198) - - 229 (392) - (392)
Balance at 30
June 2020 152 12,579 4 - 1,806 5,509 (357) 3,277 22,970 93 23,063
Period to 31
December
2020:
Profit for the
period - - - - - - - 7,159 7,159 - 7,159
Other
comprehensive
income - - - - - - 294 - 294 (2) 292
Total
comprehensive
income - - - - - - 294 7,159 7,453 (2) 7,451
Share issues as
a result of
warrants being
exercised 1 252 - - - (33) - - 221 - 221
Cost of share
based
payments - - - - 451 - - - 451 - 451
Transfer of
reserves
relating to
exercise and
expiry of
options and
warrants - - - - - - - - - - -
Total changes
directly to
equity 1 252 - - 451 (33) - - 672 - 672
Balance at 31
December 2020 153 12,831 4 - 2,257 5,476 (62) 10,436 31,095 91 31,186
Share
Called Share Capital Shares based Non-
up share Premium Redemption held for payment Warrant Translation Retained Total equity controlling Total
capital account Reserve treasury reserve reserve reserve profits shareholders' interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 funds GBP'000 GBP'000 GBP'000
Balance at 1
January 2021 153 12,831 4 - 2,257 5,476 (62) 10,436 31,095 91 31,186
Period to 30
June 2021:
Profit for the
period - - - - - - - (567) (567) - (567)
Other
comprehensive
income - - - - - - 93 - 93 (3) 90
Total
comprehensive
income - - - - - - 93 (567) (474) (3) (477)
Share issues as
a result of
warrants being
exercised 3 593 - - - (64) - - 532 - (532)
Cost of share
based
payments - - - - 43 - - - 43 - 43
Transfer of
reserves
relating to
exercise and
expiry of
options and
warrants - - - - - (240) - 240 - - -
Total changes
directly to
equity 3 593 - - 43 (304) - 240 575 - 575
Balance at 30
June 2021 156 13,424 4 - 2,300 5,173 31 10,109 31,197 88 31,285
Notes to the unaudited interim accounts
For the six months ended 30 June 2020
1. Basis of preparation
The condensed financial statements included in the interim
accounts have been prepared under the historical cost convention
and in accordance with IAS 34, as adopted by the UK.
The condensed 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 2021. These
are unchanged from those disclosed in the Group's Annual Report for
the year ended 31 December 2020. The accounting policies adopted
are consistent with those of the previous financial year. The
following amendment to IFRSs became effective for the financial
year beginning on 1 January 2021:
-- IAS 1 'Presentation of financial statements' on classification of
liabilities
-- IFRS 16 'Leases' -- Covid-19 related rent concessions
-- A number of narrow-scope amendments to IFRS 3, IAS 16, IAS 17 and some
annual improvements on IFRS1, IFRS 9, IAS 41 and IFRS 16
-- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate
Benchmark Reform- Phase 2
-- Amendments to IFRS 17 and IFRS 4,' Insurance contracts' deferral of IFRS
9
The amendment had no impact on the condensed consolidated
interim financial statements for the six months ended 30 June 2021
and no retrospective adjustments were required.
The interim accounts were approved by the Board of Metal Tiger
on 30 August 2021. Neither the interim financial information for
the six months ended 30 June 2021 nor the interim financial
information for the six months ended 30 June 2021 constitute
statutory accounts within the meaning of section 434 of the
Companies Act 2006. The interim accounts are unaudited but have
been subject to a review by the Group's auditors in accordance with
International Standard on Review Engagements 2410 (UK and Ireland)
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. The comparatives for the year ended 31 December 2020 are not
the Group's full statutory accounts for that period but have been
extracted therefrom. A copy of the Group's full 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. The Group's full statutory accounts for the year ended 31
December 2020 are available on the Company's website
(www.metaltigerplc.com).
2. Accounting policies
The principal accounting policies are:
Basis of consolidation
The Condensed Consolidated Statement of Comprehensive Income and
Condensed Consolidated Statement of Financial Position include the
financial statements of the Company and its subsidiary undertakings
made up to 30 June 2021.
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; and
-- 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.
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.
Fair value of investments
The Group's investments accounted for within the Equity
Investment operating segment require measurement at fair value.
Investments in shares in quoted entities traded in an active market
and unquoted shares are valued as set out in "Current Assets
Investments" below. The unquoted share warrants (Level 3) are shown
at Directors' valuation based on a value derived from either
Black-Scholes or Monte Carlo pricing models depending on the
suitability of the method to the specific warrant taking into
account the terms of the warrant and discounting for the
non-tradability of the warrants where appropriate. Both pricing
models use inputs relating to expected volatility that require
estimations. No value is ascribed to warrants which include terms
which cause the exercise price to be dependent on events outside
the control of the Group and outcomes which are unable to be
predicted with any certainty.
Investments in associates and joint ventures
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% because joint venture
partners have equal control over management decisions. The
Company's joint venture interests are held through one or more
Jointly Controlled Entities (a "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 cost of investment or loans advanced.
Royalties receivable
Royalties receivable are stated at the expected amounts to be
received based on existing committed contracts and discounted at an
appropriate discount rate which reflects the estimated
risk-weighted cost of capital relevant to that asset. The
amortisation of the discount over the period to the receipt of the
royalty payments is credited to the Statement of Comprehensive
Income as finance income.
Where royalty contracts have been entered into but the timing of
receipts are unknown or cannot be reliably forecast, no value is
attributed to the royalties.
The expected amounts to be received, the period over which they
will be received and the appropriate discount rate are assessed on
the date of acquisition of the royalty interests and re-assessed at
each reporting date.
Contracts are assessed on a contract-by-contract basis.
Equity Investments Segmental Assets
Investment transactions are accounted for on a trade date basis.
Incidental acquisition costs are expensed. Assets are derecognised
at the trade date of the disposal. Where investments are traded in
a liquid market, the fair value of the financial instruments in the
condensed statement of financial position is based on the quoted
bid price at the period end date, with no deduction for any
estimated future selling cost. Non-traded investments are valued by
the Directors using primary valuation techniques such as, where
possible, comparable valuations, recent transactions, last price
and net asset value or, in the case of warrants, options and other
derivatives on the basis of third party quotation or specific
investment valuation models appropriate to the investment
concerned.
Changes in the fair value of investments held at fair value
through profit or loss and gains and losses on disposal are
recognised in the Statement of Comprehensive Income.
3. Segmental reporting
Divisional segments
Equity Project Central Inter
Six months ended 30 Investments Investments costs segment Total
June 2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE INCOME:
Net (loss)/gain on
investments 1,974 (9) - - 1,965
Administrative
expenses (246) (186) (807) - (1,239)
Net finance
income/(cost) 23 (10) (1,306) - (1,293)
(Loss)/profit on
ordinary activities
before taxation 1,751 (205) (2,113) - (567)
Taxation - - - - -
(Loss)/profit for the
period after
taxation 1,751 (205) (2,113) - (567)
FINANCIAL POSITION:
Intangible assets - 23 - - 23
Property, plant and
equipment - 17 - - 17
Investment in joint
ventures - 2,550 - - 2,550
Other fixed asset
investments 10,539 - 107 - 10,646
Royalties receivable - 5,056 - - 5,056
Total non-current
assets 10,539 7,646 107 - 18,292
Current assets 20,614 3,600 533 (3,313) 21,434
Current liabilities (338) (3,395) (165) 3,313 (585)
Net current
assets/(liabilities) 20,276 205 368 - 20,849
Non-current
liabilities (1,074) (116) (6,666) - (7,856)
Net assets 29,741 7,735 (6,191) - 31,285
Equity Project Central Inter
Six months ended 30 Investments Investments costs segment Total
June 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE INCOME:
Net (loss)/gain on
investments (1,480) (717) 1 - (2,196)
Intercompany sales - 44 - (44) -
Administrative
expenses (273) (250) (882) 44 (1,361)
Net finance
income/(cost) 59 120 6 - 185
(Loss)/profit on
ordinary activities
before taxation (1,694) (803) (875) - (3,372)
Taxation - - - - -
Loss for the period
after taxation (1,694) (803) (875) - (3,372)
FINANCIAL POSITION:
Intangible assets - 28 - - 28
Property, plant and
equipment - 8 - - 8
Investment in joint
ventures - 3,236 - - 3,236
Other fixed asset
investments 6,583 - 669 - 7,252
Royalties receivable - 1,295 - - 1,295
Total non-current
assets 6,583 4,567 669 - 11,819
Current assets 17,357 3,685 543 (3,410) 18,175
Current liabilities - (4,405) (224) 3,410 (1,219)
Net current
assets/(liabilities) 17,357 (720) 319 - 16,956
Non-current
liabilities - (129) (5,583) - (5,712)
Net assets 23,940 3,718 (4,595) - 23,063
Geographical segments
Asia- Austra- Inter
Six months ended 30 UK EMEA Pacific lasia Americas segment Total
June 2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE INCOME:
Net (loss)/gain on
investments 28 (5) - 1,273 669 - 1,965
Administrative
expenses (962) (25) (167) (85) - - (1,239)
Net finance
income/(expense) 341 159 (235) (1,561) 3 - (1,293)
(Loss)/profit on
ordinary activities
before taxation (593) 129 (402) (373) 672 - (567)
Taxation - - - - - - -
(Loss)/profit for the
period after
taxation (593) 129 (402) (373) 672 - (567)
FINANCIAL POSITION:
Intangible assets - - 23 - - - 23
Property, plant and
equipment - - 17 - - - 17
Investment in joint
ventures - 2,550 - - - - 2,550
Other fixed asset
investments 107 - - 10,539 - - 10,646
Royalties receivable - 5,056 - - - - 5,056
Total non-current
assets 107 7,606 40 10,539 - - 18,292
Current assets 1,561 - 3,546 17,723 1,917 (3,313) 21,434
Current liabilities (164) (267) (3,370) (97) - 3,313 (585)
Net current
assets/(liabilities) 1,397 (267) 176 17,626 1,917 - 20,849
Non-current
liabilities (116) - - (7,740) - - (7,856)
Net assets 1,388 7,339 216 20,425 1,917 - 31,285
Asia- Austra- Inter
Six months ended 30 UK EMEA Pacific lasia Americas segment Total
June 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE INCOME:
Net (loss)/gain on
investments 63 14 (732) (1,635) 94 - (2,196)
Intercompany sales (8) - 52 - - (44) -
Administrative
expenses (1,116) - (195) (94) - 44 (1,361)
Net finance
income/(expense) - (27) 148 67 (3) - 185
(Loss)/profit on
ordinary activities
before taxation (1,061) (13) (727) (1,662) 91 - (3,372)
Taxation - - - - - - -
(Loss)/profit for the
period after
taxation (1,061) (13) (727) (1,662) 91 - (3,372)
FINANCIAL POSITION:
Intangible assets - - 28 - - - 28
Property, plant and
equipment - - 8 - - - 8
Investment in joint
ventures - 3,236 - - - - 3,236
Other fixed asset
investments 107 - - 7,145 - - 7,252
Royalties receivable - 1,295 - - - - 1,295
Total non-current
assets 107 4,531 36 7,145 - - 11,819
Current assets 1,623 84 3,685 15,546 647 (3,410) 18,175
Current liabilities (158) (929) (3,485) (57) - 3,410 (1,219)
Net current
assets/(liabilities) 1,465 (845) 200 15,489 647 - 16,956
Non-current
liabilities (129) - - (5,583) - - (5,712)
Net assets 1,443 3,686 236 17,051 647 - 23,063
4. Taxation
No corporation tax charge arises in the period given the
cumulative tax loss position. 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 Six Unaudited Six Audited Year
months ended 30 months ended 30 ended 31
June 2021 June 2020 December 2020
GBP'000 GBP'000 GBP'000
(Loss)/Profit
attributable to
equity holders of
the Company (567) (3,372) 3,787
Shares used for
calculation of
basic EPS* 155,910,062 152,714,000 152,736,655
Shares used for
calculation of
fully diluted
EPS* 155,910,062 152,714,000 153,699,651
Earnings per
share
Basic
(loss)/earnings
per share (0.4)p (2.2)p 2.5p
Fully diluted
(loss)/earnings
per share (0.4)p (2.2)p 2.5p
No share options and warrants outstanding at 30 June 2021 were
dilutive in view of the loss for the period coupled with the fact
that the exercise price of any share options or warrants
outstanding at 30 June 2021 was higher than the average market
price of ordinary shares during the period. Of the warrants
outstanding at 31 December 2020, 962,996 were deemed to be dilutive
as the average market price of ordinary shares during the year
exceeded the exercise price of the said warrants. No share options
and warrants outstanding 30 June 2020 were dilutive in view of the
loss for the period. Accordingly, all such potential ordinary
shares have been excluded from the weighted average number of
ordinary shares in calculating diluted earnings per share at each
of the period end dates.
6. Other non-current assets/liabilities
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Other non-current
asset investments 10,646 7,252 9,126
Other non-current
liabilities (1,074) - -
9,572 7,252 9,126
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
Comprising: GBP'000 GBP'000 GBP'000
Equity investments 10,539 6,475 8,575
Derivatives * (1,074) 670 444
Other fixed asset
investments 107 107 107
9,572 7,252 9,126
*Movements in derivative values in the respective periods are included
as part of either finance income or cost as appropriate.
Categorised under
the IFRS 13 fair
value hierarchy
as:
Level 1 - quoted
investments 10,539 6,475 8,575
Level 3 -- unquoted
fixed asset
investments and
derivatives (967) 777 551
9,572 7,252 9,126
7. Equity investments accounted for under fair value
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Categorised under
the IFRS 13 fair
value hierarchy
as:
Level 1 - quoted
investments 18,859 15,824 19,817
Level 3 -- unquoted
investments --
equity investments 1,086 582 241
Level 3 -- unquoted
investments --
warrants and
derivatives 669 245 710
20,614 16,651 20,768
8. Amounts due from/(to) to related parties
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Kalahari Metals
Limited 32 (941) (306)
(Kalahari Metals Limited is Metal Tigers sole Joint Venture
interest. The company) has a 50.01% (H1 2020:62.2%; 2020 full year:
62.2%) direct ownership stake.
9. Loans and borrowings -- non-current
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
At 1 January 7,051 4,331 4,331
Net cash flows from
financing
activities (115) 1,224 2,375
Drawn down in period - 1,266 2,620
Repaid in period (115) (42) (245)
Translation
differences (270) 253 345
6,666 5,808 7,051
Interest prepaid - (225) --
At 30 June/31
December 6,666 5,583 7051
The loans amounting in aggregate to A$12,281,030 (30 June 2020:
A$ 10,427,000; 31 December 2020: A$12,508,443) are secured by
reference to the stock loans over shares shown as equity
investments and the associated put/call derivative (both shown in
note 6 above). The loans are repayable in full on the following
dates:
GBP'000
16 December 2022 4,192
8 May 2023 595
9 June 2023 599
10 July 2023 601
7 July 2023 88
8 December 2023 591
6,666
10. Share options and warrants charged against operating
profit
No new options were granted under the Company's share option
schemes during the period. The total charge to operating
profit/loss for the period amounted to GBP43,000 (six months ended
30 June 2020: GBP31,000; year to 31 December 2020: GBP482,000).
11. 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, Weston Farm House, Weston
Down Lane, Weston Colley, Hampshire, S021 3AG.
Qualified Person's Statement
The technical information contained in this announcement has
been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM,
MIMMM, FGS), who is a qualified geologist and acts as the Qualified
Person under the AIM Rules Note for Mining and Oil & Gas
Companies. Mr O'Reilly is a Principal consultant working for Mining
Analyst Consulting Ltd which has been retained by Metal Tiger plc
to provide technical support.
Reference Notes
1. JORC 2012: The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (the "JORC Code") is a professional
code of practice that sets minimum standards for Public Reporting of
minerals Exploration Results, Mineral Resources and Ore Reserves. The
current edition of the JORC Code was published in 2012 ("JORC 2012").
2. Listing Exchanges: AIM: London Stock Exchange Alternative Investment
Market. ASX: Australian Securities Exchange, CSE: Canadian Securities
Exchange. TSX: Toronto Stock Exchange , TSXV: TSX Venture Exchange.
3. VHMS: Volcanic-hosted massive sulphide ("VHMS") mineral deposits, are a
type of metal sulphide deposit, mainly copper-zinc, which are associated
with and created by volcanic-associated hydrothermal events in submarine
environments.
This announcement contains inside information for the purposes
of the market abuse regulation (EU No. 596/2014) ("MAR").
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210830005554/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2021
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