TIDMMTR
Metal Tiger plc
("Metal Tiger" or the "Company")
Unaudited Preliminary Final Report
Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed
investor in natural resources opportunities, is pleased to announce
an Unaudited Preliminary Final Report for the year end 31 December
2021.
Key Performance Indicators
Unaudited Audited
for the year ended for the year ended
31 December 2021 31 December 2020 Change* Change* %
Total comprehensive
(loss)/profit
attributable to
owners of the
parent GBP 4,579,000 GBP 3,970,000 GBP 609,000 +15%
Net asset value GBP 38,822,000 GBP 31,186,000 GBP 7,636,000 +24%
Net asset/tangible
asset value per
share * 22.9p 20.3p 2.6p +13%
Closing share price 20.5p 23.5p -3.0p -13%
Share price
premium/(discount) to
net asset value* -10 % 16 %
Market
capitalisation GBP 34,732,000 GBP 36,028,000 -GBP1,296,000 -4%
Shares in issue at the
end of the year 169,423,576 153,311,625 16,111,951 +11%
* Based on shares in issue at the year end.
The full report is detailed below and has also been uploaded to
the Company's website https://www.metaltigerplc.com/.
Additional Information
Dividends paid or provided for No dividends declared for the year
ended 31 December 2021 (31 December
2020: -Nil)
Net tangible assets per share Details of net tangible asset backing
are set out in the key performance
indicators.
Control gained or lost over entities None.
having material effect
Details of associates and joint Kalahari Metals Limited is Metal
ventures Tigers sole joint venture interest.
The Company holds a 49% (31 December
2021: 62.1%) direct equity stake.
Other significant information At the date of this Appendix 4E there
are no matters of a significant
nature not addressed in this Appendix
4E.
Accounting standards for foreign The financial statements have been
entities prepared in accordance with
International Financial Reporting
Standards.
Commentary on the results for the Refer to commentary section.
financial year
Compliance statement This report is based on accounts
which are in the process of being
audited.
For further information on the Company, visit
www.metaltigerplc.com:
Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 3287 5349
Mark Potter (Chief Investment Officer)
James Dance Strand Hanson Limited (Nominated Tel +44 (0)20 7409 3494
Adviser)
James Harris
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.
Commentary
The Company had a very active year in 2021 in-spite of the
continued challenges caused by the COVID-19 pandemic and
in-particular the arrival of the new Omicron strain in the latter
part of the year. Arguably, 2021 was the beginning of another
commodity super cycle. This new super cycle appears to have been
driven by a global flood of fiscal stimulus and liquidity by
governments and central banks in response to the COVID-19 pandemic.
This in turn led to an increase in consumer demand which coupled
with supply chain disruptions, cost increases, labour shortages has
driven inflation globally. Furthermore, a global drive towards
decarbonisation with bold climate commitments from nation states
and corporates is driving current and anticipated future demand for
"battery metals". In 2021, Metal Tiger's largest commodity exposure
by investment value, via its project and equity investments were to
copper and gold. Copper saw a 19% year-on-year ("YOY") increase on
global supply disruptions (especially out of South America) and
increasing demand and supply chain issues. Physical supply was in
such shortage that in late October 2021, the London Metals Exchange
required emergency measures to ensure orderly trading and continued
liquidity in the copper market. Gold was largely range bound for
most of the year, however ended down slightly YOY. Aside from the
COVID-19 pandemic and the arrival of Omicron, fears of debt
contagion from the Evergrande crisis gripped the market in late
Q3/Q4 which significantly dampened investor appetite as well as
created increased volatility globally. Furthermore, and more
specifically in the mineral exploration and development sector,
2020 and 2021 saw a record number of fundraisings and deals. The
Directors noticed that deal flow seemed to diminish by the end of
2021 as a potential result of deal fatigue.
The Electric Vehicle ("EV") sector is one of the four key
drivers of future demand growth for copper according to Goldman
Sachs. 2021 saw several prominent auto manufacturers make
commitments to switch entirely to EV's in the next 10 -- 20 years.
Notably, according to the International Energy Agency, Global EV
sales more than doubled in 2021 versus 2020 and tripled versus 2019
with the key drivers of this growth coming from China and then
Europe. The Board believes that the global energy crisis in 2021
proves that the energy transition of the next 20 years will be
complex, costly, and indeed difficult to implement and is confident
that this energy transition will require an immense new supply of
metal to meet targets.
The Company entered 2021 with a strong and liquid balance sheet
on the back of a successful and yet challenging 2020. In 2021,
Metal Tiger identified, completed due diligence on, negotiated and
structured an investment in Armada Metals Limited ("Armada")
following RCF's Global Opportunities Fund's investment and
alongside Cobre Limited's ("Cobre") investment. Armada successfully
listed on the ASX in December 2021 raising A$10m at A$0.20 per
share. Metal Tiger participated for A$750,000 as a follow-on
investment into the initial public offering ("IPO"). It is
anticipated that drilling to test compelling shallow conductors in
the search for magmatic Ni-Cu mineralisation along the 25km
prospective strike of the Libonga-Matchiti Trend will commence in
early 2022. Metal Tiger holds approximately 14.42% of Armada.
During the course of 2021, Metal Tiger continued to be active in
seeking and making new investments, with passive investments
totalling GBP6,137,000 for the year. Amongst the best performers
were the legacy investment in Pan Asia Metals (ASX:PAM), which
Metal Tiger exited realising gross proceeds of GBP1,358,000,
thereby realising a gain of GBP725,000 during the year and Red Dirt
Metals Limited (ASX:RDT) where Metal Tiger invested A$500,000 at
A$0.15 per share and obtained 833,333 two year options at A$0.25
per new share. In June, 2021 Metal Tiger made an additional
investment into Pan Global Resources Inc. committing C$450,000 as
part of their circa C$15m fundraise.
In May 2021, Metal Tiger invested C$1m into Camino Minerals
Corporation ("Camino") for 5,882,353 units at a price of C$0.017
per unit with each unit carrying one common share in the capital of
Camino and a half non-transferable common share purchase warrant at
a price of C$0.25 per common share for a period of 24 months from
the date of issue. The investment has shown lack-lustre performance
to-date and whilst the Board is comfortable with the two projects
that saw exploration progress in 2021, Los Chapitos and Plata
Dorada, the investment thesis was primarily focussed around
exploration drilling at the untested Maria Cecilia bullseye
magnetic target. The hope is that the Cu-Au-Ag mineralisation at
Maria Cecilia is focused within the main porphyry body (and not the
Skarn unlike at Antamina) and is significantly higher than
neighbouring Emanuel and Toropunto deposits Camino is confident
that permits will be granted imminently, and that maiden drilling
can commence in the coming months.
Following completion of the Cobre/Kalahari Metals Limited
("KML") transaction a total of 6,731m of drilling was completed
across Kitlanya East and 436m of diamond drilling was completed at
Kitlanya West as well as some shallow percussion drilling. To
ensure Cobre's ability to finance exploration drilling activities
for KML, Metal Tiger cornerstoned an additional A$1.413m investment
as part of Cobre's A$6.7m fundraise announced in April 2021. The
actual cash investment didn't occur until approval was received
from Cobre shareholders at their AGM in November. The Board is
pleased with the total meterage drilled across the Kalahari Metals
projects in 2021 and is encouraged by additional work undertaken at
Perrinvale, during 2021 the results of which were announced post
year end.
Unfortunately, drilling across several of Southern Gold's
projects in 2021 did not deliver encouraging results. A core part
of the appeal of the investment as identified by Terry Grammar
prior to his passing, was the ability for the in-country team led
by experienced ex-Ivanhoe geologists that had worked under the
mentorship of renowned geologist Doug Kirwin to generate new
project areas/targets, which continued to be severely hampered
during 2021 by the COVID-19 pandemic. Restrictions due to COVID-19
prevented the addition of much needed experienced in-country field
geologists to manage the less experienced in-country team. This
resulted in a lack of personnel on site to prosecute the
exploration pipeline. This was partially remedied in late 2021 with
the addition of South Korean based Exploration Manager Robert
Smillie, a geoscientist with more than 30 years' experience.
Encouragingly, we note Southern Gold's announcement of 9 February
2022, that additional senior geological staff and contractor
resources have been engaged for ongoing exploration campaigns.
Southern Gold ended the year well-funded and with a strong
balance sheet having completed the sale of the Gubong and Kochang
joint venture, for which it received 200m new ordinary shares in
London listed Blue Bird Merchant Ventures Ltd (LSE:BMV). We note
the departure of the Managing Director, Mr Simon Mitchell in late
October 2021 and that the company is currently in search of a full
time Chief Executive Officer. Southern Gold is also undertaking an
exercise to identify copper and gold projects in Australia that may
be suitable as an addition to its South Korean ambitions.
Metal Tiger completed a compliance listing on the ASX in the
first half of the year and successfully raised A$5m (before costs)
via the issue of new ASX quoted Chess Depositary Interests and
welcomed several new shareholders to the register including a
prominent ultra-high-net-worth family office with deep expertise
and exposure in the mining sector.
There were several material developments to Metal Tiger's equity
and royalty interests relating to Sandfire Resources Limited
("Sandfire") during the financial year. Firstly, there was a
substantial increase in Sandfire's A4 copper/silver Mineral
Resource. The Mineral Resource increased by 34% in terms of Cu with
93% falling in the Indicated resource category. This was followed
later in 2021 with an Ore Reserve declaration of 9.7Mt at 1.2% and
18g/t Ag for 114kt of contained copper metal and 5.7Moz of
contained silver with 85% of the contained copper in the updated A4
Mineral Resource Estimate classified as Ore Reserves. In this same
announcement, Sandfire announced a pre-feasibility study ("PFS")
for an expanded 5.2Mtpa, Motheo production hub, mining operation
combining T3 and A4 which gave a post-tax NPV7% of US$682m. The
Definitive Feasibility Study ("DFS") for the combined T3 and A4
operations is currently expected to be finalised in Q2/Q3 of 2022.
The Board is of the opinion, having reviewed recent statements made
by Sandfire, that long lead items such as the 4.5MW Ball Mill,
along with the Environmental and Social Impact Assessment ("ESIA")
which is due to be submitted to the Botswana Department of
Environmental Affairs in Q2 2022 provide encouragement that subject
to the results of optimisation, timelines could progress to allow
for production at A4 to commence far sooner than anticipated in the
PFS. Accordingly, this has resulted along with the material
increase in Reserves in a substantial revaluation of the Company's
2% net smelter return ("NSR") over circa 8,000km(2) of Sandfire's
exploration tenements and in-particular the licence that holds the
A4 project from GBP3,838,000 at 31 December 2020 to GBP9,278,000 at
this financial year end. In September 2021, Sandfire announced a
drilling intercept of 45m @ 2.2% Cu (including 2.1m @ 8.25% Cu)
intersected from 439m down-hole 1.2km south-west of the A4 Mineral
Resource and this gives the Board great encouragement for the
exploration potential near the planned Motheo production hub.
Secondly, and perhaps most importantly, in September 2021
Sandfire announced the transformational US$1,865m acquisition of
the MATSA Mining Complex in Spain from Mubadala and Trafigura
alongside a A$1,248m equity fundraise. As part of the fundraise
they announced a rights issue in which the Company had a single day
to decide on whether to take up its rights. Metal Tiger took up its
rights and made a circa A$17.8m investment at A$5.4 per share and
thanks largely to the immense efforts of Adrian Bock, Metal Tiger's
CFO, was able to secure and execute in just 5 working days a
12-month A$9m margin lending facility agreement on acceptable
commercial terms with a nominee of SC Lowy Primary Investments Ltd,
secured against 4,714,286 Sandfire Shares held under a tripartite
sponsorship deed with an Australian broker. As at 25 February 2022
Sandfire's share price is trading at A$7.00 per share. The Board
believes the deal is transformational as it turns Sandfire into a
substantial copper producer and bridges the production gap between
the end of Degrussa and the commencement of T3/A4. In addition, the
deal put Sandfire back into the ASX200 index.
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
Limited.
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
following the transfer Metal Tiger held a 50.01% equity interest in
Kalahari Metals with Cobre holding the remaining interest.
In December 2021, following Ministerial consent, Cobre further
increased its holding in Kalahari Metals to a 51% equity position
and Metal Tiger to diluted to a 49% equity position, in exchange
for 445,386 Cobre shares.
Summary of work completed in 2021:
Kitlanya East:
Interpretation of airborne electromagnetic ("AEM") geophysics
data collected over the Perseverance Prospect was inverted and
interpreted in combination with magnetic data and soil sampling
results to prioritise target areas for stratigraphic drill
testing.
Combined reverse circulation ("RC") and diamond core ("DC")
drilling was commissioned to test selected target areas on the
Endurance Prospect and to provide stratigraphic information on the
Perseverance Prospect.
2,080m of stratigraphic DC drilling was undertaken on the
Perseverance Prospect where the central core of the anticlinal
feature was targeted. Although all three holes intersected
prospective lower D'Kar Formation stratigraphy along with
alteration and trace Cu mineralisation the relative depths to
target stratigraphy appear greater than 400m.
1,701m of RC and 397m of DC drilling were undertaken on the
Endurance Prospect immediately south of Sandfire's T3 deposit. This
phase of work, along with earlier stratigraphic drilling completed
in 2019, identified several prospective areas with favourable
target stratigraphy, alteration and trace base metal
mineralisation. Importantly the results verified the targeting
approach using AEM to identify folded targets in the lower D'Kar
Formation stratigraphy.
Based on the success of above-mentioned drill programme at
Endurance, an additional 2,950m of DC drilling was undertaken
focusing on breaks in folded conductors modelled from AEM data.
Results from this phase of work identified significant alteration,
vein stockwork development and accompanying Cu mineralisation.
Results demonstrate the effectiveness of the targeting methodology
and potential for the Endurance Prospect to host Cu-deposits at a
relatively shallow depth.
Kitlanya West:
A total of 10,000 line-kilometres of high resolution magnetic
and gravity geophysics data was flown over a large portion of the
Kitlanya West licences. Results were used to better define the
position of the extensive sub-cropping Ngwako-Pan -- D'Kar
Formation geological contact. In addition, airborne gravity results
have identified an extensive ENE trending gravity low which may
relate to original sub-basin architecture or structural thickening
of the Ngwako-Pan Formation. In either scenario the margins of the
gravity low are considered important sites for potential
mineralisation.
Given the limited infrastructure in the licence area,
reconnaissance visits were undertaken to secure water access from
several boreholes for drill purposes. During these trips
outcropping Kwgebe Group basement rocks were identified. The
presence of Kgwebe Group outcrop is considered significant given
the notable spatial relationship between the majority of Kalahari
Copper Belt deposits and underlying Kgwebe Group.
KML also undertook 436m of DC drilling, targeting prominent AEM
anomalies interpreted to relate to folded lower D'Kar Formation
targets. These targets were assumed to be similar to those
identified in Kitlanya East and on the Okavango Copper Project.
Drill testing confirmed the AEM conductor source to be related to
Kalahari Group mudstones and the programme was suspended.
In addition to diamond drilling, three shallow percussion holes
were drilled to test the thickness of the Kalahari sediment cover.
Results, along with identified outcrop, highlight the relatively
shallow cover thickness across the project areas which is
considered encouraging.
Following the negative drill results, a thorough review and
target generation exercise was undertaken across the properties.
Results from this review have identified a number of prospective
targets for stratigraphic limb and structurally hosted Cu-Ag
mineralisation in the Kitlanya West Project.
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.
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 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 minimise downside risk.
Metal Tiger invests in listed mining equities via either
pre-IPO, IPO, equity placings, or direct on-market purchases. Metal
Tiger may receive warrants when undertaking investments in pre-IPO,
IPOs, or equity placings. The Company may consider other investment
structures. The main aim is to make capital gains in the short to
medium term. 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 a liquidity event.
As at 31 December 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. Metal Tiger held some exposure to producers.
Through its investments, Metal Tiger is primarily exposed to
copper and gold.
During 2021 the gold price fell approximately 4%, driven by
global economic recovery reducing the demand for the safe haven
metal. An expectation of rising interest rates and a stronger US
dollar reduced investor demand for gold. However, much higher than
expected inflation played a role in supporting the gold price
during H2 2021. Since 31 December 2021, there has been renewed
demand for gold as a result of geopolitical tensions and
persistently high inflation.
During 2021, the copper price increased approximately 23%,
driven by many factors including demand recovery in the US and
Europe, logistics issues, COVID-19 disruptions, and power cuts in
China. LME copper inventories fell to all-time lows in H2 2021.
Copper continues to have a favourable outlook given the growth in
demand for EVs and limited new supply from the growth of existing
and new mines. Copper closed out the year around US$4.33/lb and
currently continues to trade north of US$4.45/lb
Metal Tiger continues to deliver on identifying high conviction
natural resource opportunities in line with its investment
approach. Whilst the Company continued to largely focus on
undervalued investment situations with the potential for
substantial exploration upside, the Company 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 investments in the year.
Only one new Active Investment was made in 2021.
Summary of listed investments held at 31 December 2021
Value at
Listing year end
Investment Exchange Description No. of securities held GBP
Copper, gold 2,842,667 ordinary
Sandfire and silver shares (held as
Resources mining and security in structured
Limited ASX exploration finance loan) 10,044,450
4,714,286 ordinary shares
(held as collateral for collateral loan) 16,657,741
320,104 ordinary shares (uncharged) 1,131,075
Cobre Base metal 34,764,096 ordinary
Limited ASX exploration shares 1,754,822
Southern Gold mining
Gold and 40,794,000 ordinary
Limited ASX exploration shares 1,292,476
7,284,500 unlisted warrants
(A$0.18 expiry 19/10/2022) 626
Camino 2,941,176 unlisted
Minerals Copper warrants (C$0.25 expiry
Corp. TSXV exploration 18/5/2023) 32,855
Armada Nickel and
Exploration copper 15,000,000 ordinary
Limited ASX exploration shares 1,087,425
3,333,333 unlisted warrants
(A$0.334 expiry 22/11/2026) 115,455
Base and
Pan Global precious
Resources metal
Inc TSXV exploration 250,000 ordinary shares 110,428
694,444 unlisted warrants
(A$0.28 expiry 20/07/2022) 194,435
Copper, gold
and cobalt
Artemis exploration
Resources and 7,209,630 ordinary
Limited ASX development shares 321,340
Copper-Gold
Adventus exploration
Mining and
Group* TSVX development 125,000 ordinary shares 69,017
Molyhil
Thor Mining Tungsten 34,288,462 ordinary
plc AIM/ASX Project shares 18,959
12,500,000 unlisted warrants
(1p expiry 23/01/2022) 7,450
5,769,231 unlisted warrants
(1.3p expiry 17/08/2023 9,417
8,000,000 unlisted warrants
(A$0.015 expiry 17/12/2022 16,668
8,000,000 unlisted warrants
(A$0.02 expiry 17/12/2023 30,974
Copper and
Avidian Gold gold
Corp TSXV exploration 995,000 ordinary shares 49,155
500,000 unlisted warrants
(C$0.2 expiry 8/6/2024) 9,148
Inflection Copper and
Resources gold
Limited CSE exploration 333,250 ordinary shares 29,053
234,375 unlisted warrants
(C$0.5 expiry 14/5/2022) 2,231
Anacortes
Mining Gold
Corp.* TSVX exploration 208,333 ordinary shares 205,842
104,167 unlisted warrants
(C$3.3 expiry 22/7/2023) 34,636
Barton Gold Gold
Limited ASX exploration 550,000 ordinary shares 64,977
Gold,
Benz Mining Lithium
Corp.* ASX exploration 257,482 ordinary shares 89,875
Cannon 83,333 unlisted warrants
Resources Nickel (A$0.2 expiry
Limited* ASX exploration 30/6/2024) 17,479
Camino Copper and
Minerals silver 5,882,353 ordinary
Corp.* TSVX exploration shares 324,788
Diablo
Resources Gold
Limited* ASX exploration 750,000 ordinary shares 52,358
Aurelius
Minerals Gold
Inc. TSXV exploration 200,000 ordinary shares 27,898
100,000 unlisted warrants
(C$0.7 expiry 15/7/2022) 527
Gold
exploration
Greatland and
Gold PLC* AIM development 689,655 ordinary shares 110.345
Greentech
Metals Nickel
Limited* ASX exploration 700,000 ordinary shares 64,430
Heavy Mineral
Minerals Sands 1,912,000 ordinary
Limited* ASX exploration shares 174,547
Millennial
Precious
Metals Gold
Corp. TSXV exploration 133,000 ordinary shares 54,110
Rare Earth
Rainbow Rare exploration
Earths and 2,400,000 ordinary
Limited* AIM development shares 417,000
Sable Gold and 1,166,666 unlisted
Resources silver warrants (A$0.2 expiry
Limited TSXV exploration 10/9/2023) 67,773
Gold
Mineros SA* TSXV producer 527,000 ordinary shares 346,110
Mt. Malcolm Gold 1,196,970 ordinary
Mines NL ASX exploration shares 83,560
Nickel,
Copper,
Todd River PGE, Gold,
Resources Zinc
Limited* ASX exploration 650,000 ordinary shares 28,273
Pearl Gull
Iron Iron Ore
Limited* ASX exploration 800,000 ordinary shares 33,509
550,000 unlisted warrants
(A$0.3 expiry 6/9/2024) 4,040
Red Dirt Lithium,
Metals Gold 1,152,467 ordinary
Limited* ASX exploration shares 411,552
833,333 unlisted warrants
(A$0.25 expiry 21/9/2024) 237,775
Marimaca 70,978 unlisted warrants
Copper Copper (C$4.1 expiry
Corp. TSXV exploration 31/12/2022) 24,488
Palladium Nickel and 170,000 unlisted
One Mining copper warrants (C$0.45 expiry
Inc. TSXV exploration 22/2/2023) 3,000
*Denotes new additions to the portfolio during the year.
Summary of unlisted investments held at 31 December 2021
No. of
Listing securities Value at
Investment Exchange Description held year end GBP
250,000
ACDC Metals Rare earths ordinary
Limited* Private exploration shares 13,425
1,666,667
Veta Resources ordinary
Inc. Private Holding company shares 146,840
500,000
Moxicon ordinary
Resources Private Copper producer shares 140,000
3,840,909
ordinary
Tally Limited Private Gold currency shares 57,614
Denotes new additions to the portfolio during the year.
Summary of investments made between 31 December 2021 and the
date of release of the preliminary final report
Listing No. of securities Investment
Investment Exchange Description acquired made GBP
Heavy
Minerals Mineral Sands 1,500,000 ordinary
Limited ASX exploration shares 154,820
Copper-Gold
Adventus exploration
Mining and
Group TSVX development 280,000 ordinary shares 164,690
Silver and
Alien Metals iron ore 6,000,000 ordinary
Limited* ASX exploration shares 57,525
Copper, gold
and cobalt
Artemis exploration
Resources and 9,333,333 ordinary
Limited ASX development shares 351,000
Northern Graphite
Graphite producer and
Corporation* TSVX exploration 660,000 ordinary shares 287,249
330,000 unlisted warrants
(C$1.1 expiry86/2/2024)
*Denotes new additions to the portfolio since the year end.
During the year the segment acquired investments at a total cost
of GBP18,676,000 and disposed of investments for GBP13,434,000 and
a realised profit of GBP1,979,000. After considering the
revaluation of the investments the net assets of the segment
increased by GBP6,181,000 during the year to GBP35,524,000 (2020:
GBP29,343,000).
After accounting for the profit on disposals, dividends received
and the revaluation of investments at the year end, the equity
investments segment recorded a net profit of GBP3,454,000 for the
year versus a profit in 2020 of GBP3,907,000.
Share placement and exercise of warrants
In the first half of the year the Company completed its
compliance listing on the ASX and subsequently the Company
successfully raised A$5M from new institutional and sophisticated
investors as well as received the support of existing
investors.
Further to the equity raise above, certain of the Company's
shareholders showed their continued support of the Company by
exercising a total of 2,598,437 warrants, at an average price of
20.5p, raising GBP532,000 in cash during the year.
Results for the year
Administration costs for the year were GBP2,108,000 (2020:
GBP2,934,000). With share-based payment costs stripped out from the
respective years, the adjusted costs total GBP2,019,000 (2020:
GBP2,460,406). The cost downward trend reflects the Board's
continuous drive for efficiencies which remain ongoing, and more
specifically the closing down of the London based head office.
As more fully detailed in the commentary in the projects
investment section the company disposed of a partial interest in
our joint venture Kalahari Metals to Cobre which resulted in the
Company's interest in Kalahari Metals reducing to 49% (2020:
62.2%). During the year company recognised a profit on this partial
sale of interest in the amount of GBP21,000 (2020: Nil). The
carrying value of the Company's interest in Kalahari Metals at year
end is GBP2,873,000 (2020: GBP3,198,000), after accounting for its
proportionate share of losses of GBP493,000 (2020: GBP25,000). This
was predominately driven by the decision by the Board of Kalahari
Metals to impair the Triprop tenements over the Ngani copper
project to deemed residual values, based on the expected carrying
value given reference inter alia to future proposed exploration
budgets assigned.
There was an overall profit in the year resulting from the
disposals and fair valuing of investments during the year of
GBP1,830,000 (2020: gain of GBP3,801,000). This reflects market
conditions in the year and more specifically where unrealised gains
in our Sandfire position were paired by unrealised losses in our
active investments in Cobre and Southern Gold. The Board's
conviction in the active investment strategy remains comfortable
but notes that they are unlikely to pursue additional active
investments in the near term. The investments are medium to longer
term in nature offering exposure to earlier stage exploration
projects where the Company has a significant interest and therefore
some ability to influence strategic outcomes.
The Company received dividend income of GBP1,538,000 (2020:
GBP648,000) and net finance cost of GBP1,787,000 (2020: GBP610,000)
mainly relating to the change in value of the derivatives securing
the Group's structured finance loans with a charge of GBP1,269,000
(2020: gain GBP46,000). The value of the derivative inherently
moves in contrast to the performance of the underlying share price
over which the derivative is priced.
A material contributor to the results of the company during the
year, was as a result of the substantial increase in Sandfire's A4
copper/silver Mineral Resource, which enabled the revaluation of
the Company's 2% net smelter return ("NSR") over circa 8,000km(2)
of Sandfire's exploration tenements and in-particular the licence
that holds the A4 project, resulting in the recognition of a gain
in the amount of GBP5,214,000 during the year (2020:
GBP3,638,000).
All told the profit for the year on ordinary activities before
tax was GBP4,215,000 (2020: GBP3,787,000).
Cashflow and financing
Disposals from equities during the year raised GBP13,434,000 and
a further net GBP18,676,000 was invested into the purchase of
equities and other investments. Operational cash outflows before
working capital changes amounted to GBP2,009,000 (2020:
GBP2,441,000), further reinforcing the progress in the cost cutting
measures.
The net cash requirement for operations, was met out of cash
generated by the exercise of warrants, dividends received, and the
utilisation cash reserves at the beginning of the year.
The net cash requirement to grow the investments and support the
joint venture drilling campaign was financed by a mixture of the
net proceeds of the equity placement GBP2,348,000 (2020: Nil) and
the net proceeds from a collateral loan GBP4,578,000 (2020:
Nil).
Cash in hand at the end of the year was GBP648,000 (2020:
GBP458,000).
No dividend has been declared or recommended during the year
under review (2020: Nil)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2021
Unaudited Audited
Year ended Year ended
31 December 31 December
2021 2020
Notes GBP'000 GBP'000
Profit on partial sale of interests in
explorations in Botswana 21 -
Profit on disposal of investments 1,979 745
Movement in fair value of fair value
accounted equities (149) 3,056
Share of post-tax losses of equity
accounted joint ventures (493) (25)
Provision against cost of equity accounted
joint ventures - (731)
Investment income 1,538 648
Other income 7 5,214 3,638
Net gain before administrative expenses 8,110 7,331
Administrative expenses (2,108) (2,934)
OPERATING PROFIT 6,002 4,397
Finance income 467 74
Finance costs (2,254) (684)
PROFIT BEFORE TAXATION 3 4,215 3,787
Tax on profit on ordinary activities 4 (49) -
PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION 4,166 3,787
OTHER COMPREHENSIVE INCOME - ITEMS WHICH
MAY BE
SUBSEQUENTLY RECLASSIFIED TO PROFIT OR
LOSS:
Exchange differences on translation of
foreign operations 410 182
TOTAL COMPREHENSIVE PROFIT FOR THE YEAR 4,576 3,969
PROFIT FOR THE YEAR ATTRIBUTABLE TO:
Owners of the parent 4,166 3,787
Non-controlling interest - -
PROFIT FOR THE YEAR 4,166 3,787
TOTAL COMPREHENSIVE PROFIT FOR THE YEAR
ATTRIBUTABLE TO:
Owners of the parent 4,579 3,970
Non-controlling interest (3) (1)
TOTAL COMPREHENSIVE PROFIT FOR THE YEAR 4,576 3,969
EARNINGS PER SHARE
Basic earnings per share 5 2.59p 2.48p
Fully diluted earnings per share 5 2.59p 2.46p
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AT 31 DECEMBER 2021
Unaudited
Year ended Audited
31 December Year ended
2021 31 December 2020
Notes GBP'000 GBP'000
NON--CURRENT ASSETS
Intangible assets 21 27
Property, plant and equipment 19 21
Deferred tax asset 4 2,164 -
Investment in joint ventures 2,873 3,198
Other non-current asset investments 6 3,613 9,126
Royalties receivable 7 10,593 4,866
19,283 17,238
CURRENT ASSETS
Equity investments accounted for
under fair value 8 32,031 20,768
Trade and other receivables 477 574
Amounts due from related parties 9 - -
Cash and cash equivalents 648 458
33,156 21,800
CURRENT LIABILITIES
Trade and other payables 312 326
Amounts due to related parties 9 - 306
Loans and borrowings 10 8,732 52
9,044 684
NET CURRENT ASSETS 24,112 21,116
NON-CURRENT LIABILITIES
Loans and borrowings 10 2,242 7,051
Deferred tax liability 4 2,213 -
Contingent consideration 118 117
4,573 7,168
NET ASSETS 38,822 31,186
CAPITAL AND RESERVES
Share capital 170 153
Capital redemption reserve 4 4
Share premium account 15,704 12,831
Share based payment reserve 2,343 2,257
Warrant reserve 3,048 5,476
Translation reserve 351 (62)
Retained profits 17,114 10,436
TOTAL SHAREHOLDERS' FUNDS 38,734 31,095
Equity non-controlling interests 88 91
TOTAL EQUITY 38,822 31,186
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2021
Unaudited
Year ended Audited
31 December Year ended
2021 31 December 2020
GBP'000 GBP'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 4,215 3,787
Adjustments for:
Profit on partial sale of interests in
explorations in Botswana (21) -
Profit on disposal of investments (1,979) (745)
Movement in fair value of fair value
accounted equities 149 (3,056)
Share of post-tax losses of equity accounted
joint ventures 493 25
Movement In provision in, and write-offs of,
equity accounted joint ventures - 731
Share based payment charge for the year 86 482
Depreciation and amortisation 13 11
Other income (5,214) (3,638)
Investment income (1,538) (648)
Finance income (467) (74)
Finance costs 2,254 684
Operating cash flow before working capital
changes (2,009) (2,441)
Decrease/(Increase) in trade and other
receivables 72 (84)
Decrease in trade and other payables (11) (1,272)
Unrealised foreign exchange gains and losses (387) (38)
Net cash outflow from operating activities (2,335) (3,835)
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from current asset investment
disposals 13,434 5,013
Purchase of intangible asset - (5)
Purchase of fixed assets (9) (22)
Sale of investment in, and loans to, joint
ventures (453) (982)
Purchase of other fixed asset investments - (228)
Purchase of current asset investments (18,676) (7,219)
Investment income 1,538 648
Net cash inflow/(outflow) from investing
activities (4,166) (2,795)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares 3,191 221
Share issue costs (217) -
Share re-purchased - (423)
Loans drawn down 4,829 2,620
Loans repaid (618) (245)
Interest paid (491) (91)
Net cash inflow from financing activities 6,694 2,082
NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS 193 (4,548)
Cash and cash equivalents at beginning of
year 458 5,007
Effect of exchange rate changes (3) (1)
CASH AND CASH EQUIVALENTS AT OF YEAR 648 458
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2021 (UNAUDITED)
Share
Capital Shares held based
Share Share Redemption for payment Warrant Translation Retained Total equity Non-controlling Total
capital premium 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
Profit for the
year ended 31
December
2020 - - - - - - - 3,787 3,787 - 3,787
Other
comprehensive
income - - - - - - 183 - 183 (1 ) 182
Total
comprehensive
income - - - - - - 183 3,787 3,970 (1 ) 3,969
Share issues 1 252 - - - (33 ) - - 221 - 221
Cost of
share-based
payments - - - - 482 - - - 482 - 482
Transfer of
reserves
relating to
exercise and
expiry of
options and
warrants - - - - (229 ) - - 229 - - -
Shares
purchased for
cancellation (4 ) (500 ) 4 77 - - - - (423 ) - (423 )
Total changes
directly to
equity (3 ) (248 ) 4 77 253 (33 ) - 229 280 - 280
Balance at 31
December
2020 153 12,831 4 - 2,257 5,476 (62 ) 10,436 31,095 91 31,186
Profit for the
year ended 31
December
2021 - - - - - - - 4,166 4,166 - 4,166
Other
comprehensive
income - - - - - - 413 - 413 (3 ) 410
Total
comprehensive
income - - - - - - 413 4,166 4,579 (3 ) 4,576
Share issues 17 3,174 - - - - - - 3,191 - 3,191
Warrants
issued - - - - - 84 - - 84 - 84
Cost of
share-based
payments - - - - 86 - - - 86 - 86
Share issue
expenses - (301 ) - - - - - - (301 ) - (301 )
Transfer of
reserves
relating to
exercise and
expiry of
options and
warrants - - - - - (2,512) - 2,512 - - -
Total changes
directly to
equity 17 2,873 - - 86 (2,428) - 2,512 3,060 - 3,060
Balance at 31
December
2021 170 15,704 4 - 2,343 3,048 351 17,114 38,734 88 38,822
NOTES TO THE UNAUDITED CONDENSED PRELIMINARY FINAL REPORT
FOR THE YEARED 31 DECEMBER 2021
1. BASIS OF PREPARATION
The Condensed preliminary final report has been prepared in
accordance with International Financial Reporting Standards
("IFRS") and IFRIC interpretations as adopted by the European Union
and the Companies Act 2006 applicable to companies reporting under
IFRS. The Condensed preliminary final has also been prepared under
the historical cost basis, except for share options, warrants and
investments in the Equities Investment segment which are recognised
at fair value.
The Condensed preliminary final report is presented in UK
pounds, which is also the Company's functional currency.
The principal accounting policies adopted in the preparation of
these financial statements are set out below. These policies have
been consistently applied throughout all years presented in the
condensed preliminary final report.
A number of amendments 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
preliminary final report for the year ended 31 December 2021 and no
retrospective adjustments were required.
The condensed preliminary final report was approved by the Board
of Metal Tiger on 28 February 2022. The condensed preliminary final
report are unaudited. The comparatives for the year ended 31
December 2020 are not the Group's full statutory accounts for that
year 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 31 December 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 condensed preliminary final report has been prepared on the
going concern basis as, in the opinion of the Directors, at the
time of approving the condensed preliminary final report, there is
a reasonable expectation that the Company will continue in
operational existence for the foreseeable future. The condensed
preliminary final report does 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
year.
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 year 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 year 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
OPERATING SEGMENTS
Equity Project Central Inter-
Year ended 31 Investments Investments costs company Total
December 2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net (loss)/gain
on
investments 3,368 (472 ) - - 2,896
Intercompany
sales - 46 - (46 ) -
Other income - 5,214 - - 5,214
Administrative
expenses (14 ) (332 ) (1,808 ) 46 (2,108 )
Net finance
income/(cost) 100 (48 ) (1,839 ) - (1,787 )
(Loss)/profit
on ordinary
activities
before
taxation 3,454 4,408 (3,647 ) - 4,215
Taxation - - (49 ) - (49 )
(Loss)/profit
for the year
after
taxation 3,454 4,408 (3,696 ) - 4,166
FINANCIAL
POSITION:
Intangible
assets - 21 - - 21
Property, plant
and equipment - 19 - - 19
Deferred tax
asset - - 2,164 - 2,164
Investment in
joint
ventures - 2,873 - - 2,873
Other fixed
asset
investments 3,506 - 107 - 3,613
Royalties
receivable - 10,593 - - 10,593
Total
non-current
assets 3,506 13,506 2,271 - 19,283
Current assets 32,030 3,404 833 (3,111 ) 33,156
Current
liabilities (13 ) (3,230 ) (8,912 ) 3,111 (9,044 )
Non-current
liabilities - (118 ) (4,455 ) - (4,573 )
Net assets 35,523 13,562 (10,263) - 38,822
Equity Investments include strategic investments in resource
exploration and development companies including equity and warrant
holdings. Project Investments are mainly by way of joint venture
arrangements and include interests in precious, strategic and
energy metals, with the current project located in Botswana.
Central costs comprise those corporate costs which cannot be
allocated directly to either operating segment and include office
rent, audit fees, AIM and ASX costs together with corporate
employees and Directors' remuneration relating to managing the
business as a whole.
OPERATING SEGMENTS
Equity Project Central
Year ended 31 Investments Investments costs Inter-company Total
December 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net (loss)/gain
on
investments 4,449 (742 ) (14 ) - 3,693
Intercompany
sales - 73 - (73 ) -
Other income - 3,638 - - 3,638
Administrative
expenses (539 ) (539 ) (1,929 ) 73 (2,934 )
Net finance
income/(cost) (3 ) (202 ) (405 ) - (610 )
(Loss)/profit
on ordinary
activities
before
taxation 3,907 2,228 (2,348 ) - 3,787
Taxation - - - - -
(Loss)/profit
for the year
after
taxation 3,907 2,228 (2,348 ) - 3,787
FINANCIAL
POSITION:
Intangible
assets - 27 - - 27
Property, plant
and equipment - 21 - - 21
Investment in
joint
ventures - 3,198 - - 3,198
Other fixed
asset
investments 9,019 - 107 - 9,126
Royalties
receivable - 4,866 - - 4,866
Total
non-current
assets 9,019 8,112 107 - 17,238
Current assets 20,324 3,579 1,182 (3,285 ) 21,800
Current
liabilities - (3679 ) (290 ) 3,285 (684 )
Non-current
liabilities - - (7,168 ) - (7,168 )
Net assets 29,343 8,012 (6,169 ) - 31,186
GEOGRAPHICAL SEGMENTS
Year ended 31 UK EMEA Asia-Pacific Australasia Americas Inter-company Total
December 2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net (loss)/gain
on investments 49 (472 ) - 3,545 (226 ) - 2,896
Intercompany
sales - - 46 - - (46 ) -
Other income - 5,214 - - - - 5,214
Administrative
expenses (1,644) (30 ) (298 ) (164 ) (18 ) 46 (2,108)
Net finance
income/(expense) 314 502 (528 ) (2,077 ) 2 - (1,787)
(Loss)/profit on
ordinary
activities
before taxation (1,281) 5,214 (780 ) 1,304 (242 ) - 4,215
Taxation (49 ) - - - - - (49 )
(Loss)/profit for
the year after
taxation (1,330) 5,214 (780 ) 1,304 (242 ) - 4,166
FINANCIAL
POSITION:
Intangible assets - - 21 - - - 21
Property, plant
and equipment - - 19 - - - 19
Deferred tax
asset 2,164 - - - - - 2,164
Investment in
joint ventures - 2,873 - - - - 2,873
Other fixed asset
investments 107 - - 3506 - - 3,613
Royalties
receivable - 10,593 - - - - 10,593
Total non-current
assets 2,271 13,466 40 3,506 - - 19,283
Current assets 1,501 - 3,412 29,629 1,725 (3,111 ) 33,156
Current
liabilities (93 ) - (3,227 ) (8,835 ) - 3,111 (9,044)
Non-current
liabilities (2,213) - (117 ) (2,243 ) - - (4,573)
Net assets 1,466 13,466 108 22,057 1,725 - 38,822
Year ended 31 UK EMEA Asia-Pacific Australasia Americas Inter-company Total
December 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net (loss)/gain
on investments 1,485 (717 ) - 1,941 984 - 3,693
Intercompany
sales (30 ) - 103 - - (73 ) -
Other income - 3,638 - - - - 3,638
Administrative
expenses (2,471) (13 ) (306 ) (217 ) - 73 (2,934)
Net finance
income/(expense) (430 ) 5 (146 ) (39 ) - - (610 )
(Loss)/profit on
ordinary
activities
before taxation (1,446) 2,913 (349 ) 1,685 984 - 3,787
Taxation - - - - - - -
(Loss)/profit for
the year after
taxation (1,446) 2,913 (349 ) 1,685 984 - 3,787
FINANCIAL
POSITION:
Intangible assets - - 27 - - - 27
Property, plant
and equipment - - 21 - - - 21
Investment in
joint ventures - 3,198 - - - - 3,198
Other fixed asset
investments 107 - - 9,019 - - 9,126
Royalties
receivable - 4,866 - - - - 4,866
Total non-current
assets 107 8,064 48 9,019 - - 17,238
Current assets 1,098 5 3,595 18,370 2,017 (3,285 ) 21,800
Current
liabilities (290 ) (306 ) (3,373 ) - - 3,285 (684 )
Non-current
liabilities - - (117 ) (7,051 ) - - (7,168)
Net assets 915 7,763 153 20,338 2,017 - 31,186
4. TAXATION
Unaudited Audited
Year ended Year ended
31 December 31 December
2021 2020
GBP'000 GBP'000
Current tax on income for the year - -
Deferred tax (49 ) -
Total tax charge for the year (49 ) -
The tax on the Groups on the Groups profit before tax differs
from the theoretical amount that would arise using the weighted
average rate applicable to the profits of the Group or Company as
follows:
Unaudited Audited
Year ended Year ended
31 December 31 December
2021 2020
Factors affecting the tax charge GBP'000 GBP'000
Profit/(loss) before tax 4,215 3,787
Profit before tax multiplied by rate of
corporation tax in the UK of 19% (2020: 19%) (801 ) (719 )
Overseas profits/losses taxed at different
rates (48 ) (3 )
Changes in rate at which deferred tax is
provided 103 106
Chargeable gains arising (514 ) (64 )
Income not chargeable to tax 639 595
Expenses not allowable for tax (40 ) (150 )
Other permanent timing differences - 6
Deferred tax gains and losses not recognized 612 229
Total tax (49 ) -
Movements in deferred tax assets and liabilities during the year
and the amounts outstanding at the year end are as follows:
Assets Liabilities Net
Deferred tax asset/(liability) GBP'000 GBP'000 GBP'000
At 1 January 2020 - - -
Charge for the year - - -
At 31 December 2020 - - -
Adjustment for prior years 909 (909 ) -
Charge for the year 1,255 (1,304 ) (49 )
At 31 December 2021 2,164 (2,213 ) (49 )
5. EARNINGS PER SHARE
Unaudited Audited
Year ended Year ended
31 December 31 December
2021 2020
GBP'000 GBP'000
Profit attributable to equity holders of the
Company 4,166 3,787
Shares used for calculation of basic EPS* 160,776,895 152,736,655
Shares used for calculation of fully diluted
EPS* 160,776,895 153,699,651
EARNINGS PER SHARE
Basic earnings per share 2.59p 2.48p
Fully diluted earnings per share 2.59p 2.46p
No share options and warrants outstanding at 31 December 2021
were dilutive as the exercise price of any share options or
warrants outstanding at 31 December 2021 was higher than the
average market price of ordinary shares during the year.
Accordingly, all such potential ordinary shares have been excluded
from the weighted average number of ordinary shares in calculating
diluted earnings per share as at 31 December 2021. Of the warrants
outstanding on 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. Accordingly, all
such potential ordinary shares have been included in the weighted
average number of ordinary shares in calculating diluted earnings
per share as at 31 December 2020.
6. OTHER NON-CURRENT ASSETS/LIABILITIES
Unaudited Audited
Year ended Year ended
31 December 31 December
2021 2020
GBP'000 GBP'000
Other non-current asset investments 3,613 9,126
Other non-current liabilities (4,573 ) (7,168 )
(960 ) 1,958
Unaudited
30 December Unaudited
2021 31 December 2020
Comprising: GBP'000 GBP'000
Equity investments 4,126 8,575
Derivatives* (620 ) 444
Other fixed asset investments 107 107
3,613 9,126
*Movements in derivative values in
the respective years 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 4,126 8,575
Level 3 -- unquoted fixed asset
investments and derivatives (513 ) 551
3,613 9,126
7. ROYALTIES RECEIVABLE
T3 A4 Total
Group and Company GBP'000 GBP'000 GBP'000
At 1 January 2020 1,236 - 1,236
Acquisitions in the year -- Other income - 3,638 3,638
Net amortisation of discount on
acquisition* 27 - 27
Translation effects (35 ) - (35 )
At 31 December 2020 1,228 3,638 4,866
Net amortisation of discount on
acquisition* 74 393 467
Periodic revaluation- Other income - 5,214 5,214
Translation effects 13 33 46
At 31 December 2021 1,315 9,278 10,593
*will reflect assumptions pertaining to timings of cash flow
since last valuation at appropriate discount rates
The T3 royalty receivable relates to the T3 project in Botswana
previously owned in the Metal Capital Ltd joint venture sold to MOD
in 2018 and ultimately Sandfire. The royalty is capped at US$2m and
is expected to result in a receipt thereof in the final quarter of
2023.
The A4 royalty is an uncapped 2% net smelter royalty over the
any future production over the A4 deposit situated in Botswana and
owned by Sandfire. In initially assigning a value to the royalty in
2020, the Company relied inter alia on the announcement released by
Sandfire to the market on 1 December 2020.
The Company has again predominately relied on the announcement
released by Sandfire to the market on 2 September 2021, together
with other consensus information readily available in the market,
to determine the revised carrying value as of 31 December 2021.
The following table illustrates the key considerations and
assumptions the Company considered in determining the value of the
value by using the net present value of the cash flows expected
from the royalty as discounted.
2021 2020
Resource size MT 9,700,000 6,500,000
Resource grade Copper 1.17 % 1.54 %
Medium term copper price US$/MT U$9.078 U$6.967
Mining recovery Copper 92.3 % 92.1 %
Concentrate recovery Copper 92.2 % 92.2 %
Cash flow commencement
date 4(th) Quarter 2023 1(st) Quarter 2023
Discount rate 7 % 10 %
The following table illustrates the sensitivity of the net value
of the A4 royalty, to changes to the material valuation
components.
2021 2020
GBP'000 GBP'000
5% Increase in Resource size 462 182
5% Decrease in Resource size (462 ) (182 )
5% Increase in medium term copper price 462 182
5% Decrease in medium term copper price (462 ) (182 )
Cash flow commencement date 1 year earlier 606 364
Cash flow commencement date 1 later (606 ) (364 )
8. EQUITY INVESTMENTS ACCOUNTED FOR UNDER FAIR VALUE
Unaudited Audited
31 December 2021 31 December 2020
GBP'000 GBP'000
Categorised under the IFRS 13 fair
value hierarchy as:
Level 1 - quoted investments 31,262 19,817
Level 3 -- unquoted investments --
equity investments 212 241
Level 3 -- unquoted investments --
warrants and derivatives 557 710
32,031 20,768
9. AMOUNTS DUE FROM/(TO) TO RELATED PARTIES
Unaudited Audited
31 December 2021 31 December 2020
GBP'000 GBP'000
Kalahari Metals Limited - (306)
Kalahari Metals is Metal Tiger's sole joint venture interest.
The Company has a 49% ( 2020 : 62.2%) direct ownership stake. The
Company has an amount owing to it from Kalahari Metals of
GBP839,000 as at 31 December 2021. The Company treats this loan in
terms of the substance of the agreement as part of the investment
in joint ventures.
10. LOANS AND BORROWINGS
Unaudited Unaudited
31 December 2021 31 December 2020
GBP'000 GBP'000
At 1 January 7,103 4,385
Net cash flows from financing
activities 4,211 2,375
Drawn down in year 4,829 2,620
Repaid in year (618 ) (245 )
Translation differences * (340 ) 343
At 31 December 10,974 7,103
*non cash flow
Included in the above are loans amounting in aggregate to
A$11,351,476 (2020: A$12,508,443) which are secured by 2,842,667
shares in the capital of Sandfire for both years. The loans are
repayable in full on the following dates:
GBP'000
16 December 2022 3,853
8 May 2023 531
9 June 2023 542
10 July 2023 545
7 July 2023 81
8 December 2023 544
6,096
Also included in the amount owing is a loan amounting to
A$9,000,000 (2020: Nil) which is secured by a collateral agreement
over 4,714,286 (2020: Nil) shares in the capital of Sandfire and
attracts interest at 10% per annum.
The loan is repayable in full on 4 October 2022, with the
Company having the option to extend the repayment date to 4 October
2023 at a fee of 1.5% of the then outstanding commitment.
Loans and borrowings are classified in accordance with their
repayment profiles as:
Unaudited Unaudited
31 December 2021 31 December 2020
GBP'000 GBP'000
Non-current liabilities -- Loans and
borrowings 2,242 7,051
Current Liabilities -- Loans and
borrowings 8,732 52
10,974 7,103
11. SHARE OPTIONS AND WARRANTS CHARGED AGAINST OPERATING
PROFIT
No new options were granted under the Company's share option
schemes during the year. The total charge to operating profit/loss
for the year amounted to GBP86,000 for the year (2020:
GBP482,000).
12. DISTRIBUTION OF PRELIMINARY FINAL REPORT AND REGISTERED
OFFICE
A copy of Preliminary Final Report will be available shortly on
the Company's website, www.metaltigerplc.com, 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/20220227005205/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2022
(END) Dow Jones Newswires
February 28, 2022 02:39 ET (07:39 GMT)
Metal Tiger (LSE:MTR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Metal Tiger (LSE:MTR)
Historical Stock Chart
From Jul 2023 to Jul 2024
