TIDMMTR
Metal Tiger plc
("Metal Tiger" or the "Company")
Unaudited Interim Results for the six months ended 30 June
2022
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 2022. The interim
accounts are unaudited but have been subject to a review by the
Group's auditors.
Key Highlights:
Six months to 30 June 2022
-- Agreement to sell 49% of Kalahari Metals Limited Limited to Cobre Limited
("Cobre") for consideration of up to GBP1.5 million with an initial cash
payment of GBP750,000 for 24.5% subject to certain conditions including
approval by Cobre shareholders. The proposed transaction necessitated a
write down of GBP423,000 but allows for consolidation of the project
under one entity and prevents Metal Tiger from needing to fund joint
venture costs directly.
-- GBP2.2m invested in 7 new passive investments and also completed 7
follow-on passive investments. Fully exited from 17 passive investments
and partially exited 10 passive investments.
-- Notable passive investments in the period include C$561,000 into Max
Resources Limited (TSXV:MAX) as well as A$250,000 into Helix Resources
Limited (ASX:HLX).
-- Reduced leverage and risk by advance paying down A$2.91 million
(c.GBP1.6million) of the SC Lowy loan over the period.
-- Sandfire reported an updated Measured, Indicated and Inferred Mineral
Resource Estimate for the 4.7Mtpa MATSA Mining Operations bringing the
global resource to 147.2Mt at 1.4% Cu, 3.0% Zn, 1.0% Pb and 39.6g/t Ag
containing an estimated 2.1Mt of copper, 4.4Mt of Zinc, 1.5Mt of lead and
187.6Moz of silver. The Measured & Indicated Resource increased by 14%
after mining depletion to 109.0Mt at 1.5% Cu and 3.2% Zn for 1.6Mt of
contained copper and 3.5Mt of contained zinc with an estimated Net
Smelter Return ("NSR") of US$130.86/t (using an NSR cut-off).
-- For the financial year 2022, MATSA produced 30,628t of Copper, 38,907t of
Zinc, 4,102t of Lead and circa 1.2Moz of silver at a C1 unit cost of
US$45.
-- As noted in Sandfire's June 2022 quarterly report, development at Motheo
is proceeding on schedule with first production expected in the June 2023
Quarter. Sandfire has guided a 9.5% upwards revision in the project's
capital costs. In the quarter to September 2022, the Definitive
Feasibility Study on the 5.2Mtpa Expansion is due for completion and the
Environmental-Social Impact Assessment (ESIA) is scheduled to be
submitted to the DEA. Drilling of the A4 Deposit dewatering bores is
approximately 30% complete and fabrication of the only long-lead delivery
plant equipment required for plant expansion, a 4.5MW Ball Mill is well
advanced with delivery on schedule for the quarter to December 2022.
-- Drilling is ongoing at A1, a prospect located 19km north-east of the
Motheo Copper Mine with a single diamond drill rig and a total of eight
holes completed by the end of the quarter to June 2022. Six 1.4km long
Induced Polarisation (IP) surveys were completed at A1 which have
delineated two anomalous chargeable zones that extend across the survey
area, which are the focus of drilling. Metal Tiger's 2% NSR covers the A1
prospect.
-- Dividend received from Sandfire Resources Limited ("Sandfire") (ASX:SFR)
of GBP146,000 and GBP49,000 used to lower the amount payable by the
Company under the Equity Collar Derivative Facility.
Post period end
-- Cobre Limited has announced several significant copper intersections
establishing substantial potential over 4km of strike at the Ngami
Project in the Kalahari Copperbelt. As at 26 August, Cobre's share price
closed at A$0.565 meaning that post completion of the fundraising in
which Metal Tiger maintained its pro-rata position the value of Metal
Tiger's investment is A$25.2 million.
-- Sandfire is working towards an optimised 5-year plan for MATSA
underpinned by a safety improvement plan, a programme to improve mine
productivity and expand throughput beyond 4.7Mtpa, near mine mineral
resource extensions at existing mines as well as an expansive exploration
programme.
-- Sandfire's group cash on hand as at 30 June 2022 totalled US$463 million.
Sandfire is due to repay US$138 million under its project financing
facility and US$138 million under its ANZ corporate facility during
September 2022. This will reduce Sandfire's debt position to circa US$532
million substantially reducing the overall leverage of the Sandfire
group.
-- Sandfire is due to announce a targeted project facility financing, and it
is noted that selection of banks is complete with documentation well
advanced and final credit approval processes pending.
-- Armada Exploration commenced a ground-based Natural Source
Audio-Magnetotelluric ("NSAMT") survey at the Nyanga project. NSAMT
systems calculate ground resistivity by measuring the magnitude of
naturally occurring electric and magnetic fields. Resistivity values are
calculated from these measurements and used to create 2D and 3D images of
the subsurface. Magmatic sulphide accumulations are defined by extremely
low resistivity values. The results of this campaign will likely be used
to help guide the next drilling campaign.
-- The Company made passive investments totalling GBP392,000 into three
companies post period end.
For further information on the Company, visit:
www.metaltigerplc.com.
Metal Tiger plc
Michael McNeilly (Chief Executive Officer) Tel: +44(0)20 3287 5349
Mark Potter (Chief Investment Officer)
Strand Hanson (Nominated Adviser)
James Dance Tel: +44 (0)20 7409 3494
James Harris
Robert Collins
Arden Partners plc (Broker)
Simon Johnson Tel: +44 (0)20 7614 5900
Steve Douglas
Camarco (Financial PR)
Gordon Poole 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.
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.
Key Performance Indicators
Audited for
Unaudited for Unaudited for the year
the six months the six ended 31
ended 30 June months ended December Change*
2022 30 June 2021 2021 Change* %
Total comprehensive
(loss)/profit
attributable to
owners of the
parent (GBP9,842,000) (GBP471,000) GBP4,579,000 (GBP9,371,000) (1990)%
Net asset value GBP29,024,000 GBP31,285,000 GBP38,822,000 (GBP2,261,000) (7)%
Net asset value per
share * 17.1p 20.1p 22.9p (3.0p) (15)%
Closing share price 15.00p 25.5p 20.5p (10.5p) (41)%
Share price
premium/(discount)
to net asset
value* -14% 27% -10%
Market
capitalisation GBP25,414,000 GBP39,757,000 GBP34,732,000 (GBP14,343,000) (36)%
Shares in issue at
the end of the
year 169,423,576 155,910,062 169,423,576 13,513,514 9%
* Based on shares in issue at the end of the reporting period
and changes are calculated versus the six months ended 30 June
2021.
Commentary
The first half of 2022 was a challenging six months for Metal
Tiger given very difficult market conditions caused by a variety of
factors but, notably, run-away inflation pushing up costs
(especially energy), rising interest rates, negative market
sentiment, a significant market sell off, the war in Ukraine,
continued difficulties with COVID-19 restrictions in China, supply
chain disruptions and increasing geopolitical tensions between the
East and the West. Commodities across the board fell substantially
from the beginning of the year with copper falling to around
US$3.60/lb from an inter-period high of US$4.90/lb. Nevertheless,
the Board remains very confident of the medium to long term macro
picture for commodity prices, especially those critical for the
energy transition.
In the first half of 2022, the largest commodity exposure
through its project and equity investments was to Copper and Gold.
Gold spiked out of its range from circa US$1,800/oz to north of
US$2,000/oz before ending the period close to US$1,800/oz in light
of rising interest rates and a strong US$. The first half of the
year saw a surge in Lithium prices which more than doubled in the
period and were seven times higher than at the start of 2021. No
doubt, Russia's invasion of Ukraine has created further pressures
on minerals critical for the energy transition, since Russia
supplies 20% of global high-purity nickel. Whilst Metal Tiger did
not have significant exposure to Lithium stocks, the surge helped
support the price of Red Dirt Metals, which the Company fully
exited during the period bringing in cash proceeds of GBP561,000.
The Company was fortuitous in that it sold a large portion of its
equity holdings prior to the market crashing in order to finance
private company Andean Copper Inc. in which the Company invested
US$1.2 million over two rounds of financing. Unfortunately, Andean
Copper Inc. was unsuccessful in its attempts to acquire a
distressed copper asset in Peru and the funds were subsequently
returned in full to Metal Tiger in July 2022.
Having failed to deliver on planned drilling at Maria Cecilia
the Company partially exited Camino Minerals Corp during the period
and has subsequently completely exited the position. Metal Tiger
invested C$210,000 in Max Resources at C$0.6 per unit and
subsequently invested a further C$351,000 at C$0.26 per unit. In
spite of the recent change in the political landscape in Colombia,
the Company is very excited by the discovery potential of Max
Resources given the high-grade channel sampling and scale
potential.
In large part thanks to the Company's strong and liquid balance
sheet, the Company was able to manage and survive the market crash,
in particular its leveraged Sandfire position, with some rapid
decision making by management. Unfortunately, this resulted in a
loss of GBP9.65 million for the six months ending June 2022. This
was largely driven by loss taking and substantial decreases in the
valuations of the Active investment portfolio, being Cobre Limited,
Armada Metals Limited and Southern Gold Limited ("Southern Gold")
as well as Metal Tiger's largest single equity position, Sandfire
Resources Limited ("Sandfire"). The Company was forced to take
urgent measures to reduce its risk exposure against the margin
lending facility several times but was able to successfully de-risk
the position whilst allowing the Company to maintain upside
potential in what the Company internal financial models show to be
fundamentally undervalued. At the end of the period, the principal
amounts owed by the Company in respect of the Margin Lending
Facility were reduced from A$9 million to circa A$6.160
million.
Overall, the Company is impressed by the progress that Sandfire
has made with respect to operational improvements at MATSA as well
as the progress of the development of the Motheo copper mine. It is
our firm belief that, given Sandfire's robust cash position,
production and margin profile, as well as hedging against commodity
prices in respect of circa one third of metal production at MATSA,
will allow them to meet their debt payment obligations and
substantially grow their equity value as they proceed to bring
Motheo into production during 2023. In particular, we note the
impressive update to the mineral resource at MATSA, which showed a
Global Measured, Indicated and Inferred Mineral Resource estimate
for MATSA of 147.2Mt at 1.4% Cu, 3.0% Zn, 1.0% Pb and 39.6g/t Ag
containing an estimated 2.1Mt of copper, 4.4Mt of zinc, 1.5Mt of
lead and 187.6Moz of silver. We further note from Sandfire's recent
June 2022 quarterly report, that Sandfire is undertaking an
extensive exploration programme which ramped up during Q2 2022
targeting both immediate extensions of existing deposits and new
discoveries in the surrounding region. On the other hand, mining at
DeGrussa is expected to end in September 2022, with processing
planned to wind up in October. We note however that Sandfire is
continuing to investigate the potential extension of operations
through processing of existing stockpiles and mineralised waste on
site using the existing plant. Most importantly, we note that
Sandfire have managed to maintain the project schedule for the
development at Motheo with first production expected in the quarter
to June 2023. Sandfire has guided to an upwards 9.5% revision in
the project's capital costs, due mainly to increased fuel and
mining costs, with further information to follow on this as part of
the DFS on the 5.2Mtpa Expansion, which is due for completion in
the quarter to September 2022. Sandfire is well placed to make
first repayment due under the MATSA facility of US$118 million at
the end of September 2022, together with repayment of their US$138
million ANZ corporate facility in Australia.
Furthermore, we notice increased activity at Sandfire's A1
prospect from our observations of satellite imagery and we
patiently await an update on drilling at A1 which has the potential
to be a significant step change with regard to the valuation of the
Company's 2% NSR. Furthermore, we anticipate that Sandfire will
commence an infill drilling and extensional drilling campaign at
the A4 deposit, which has the potential to increase contained
copper tonnage.
On 16 June 2022, the Company announced a deal to sell its 49%
interest in Kalahari Metals Limited ("KML") to Cobre Limited. This
deal removed any further funding obligations from Metal Tiger and
provided a pathway for Cobre to assume 100% ownership of Kalahari
Metals. Further details of this disposal and the impact on the
accounts are included in the project's investment section and
results for the period section. It is anticipated that GBP750,000
will be paid for the initial acquisition of 24.5% in September
2022. This will likely be netted off against Metal Tiger's recent
A$1.47 million investment in Cobre's A$7 million fundraise at 15c
announced in August 2022. Since Metal Tiger's disposal, Cobre has
made a discovery in Botswana and their share price at close of
business on 26 August 2022 was A$0.565 valuing Metal Tiger's
holding post the recent conditional investment at A$25.2 million.
The Board notes that, in their opinion, this deal provides MTR with
exposure to Kalahari Metals, via its 21% holding in Cobre, in a way
that is non-dilutive to MTR shareholders. Cobre has demonstrated an
ability to access substantial funding and given their strong
relationship with Canaccord (who brokered the recent equity
fundraising for Cobre) means that Cobre should be able to not only
fund an aggressive drill-out of the discovery at the Ngami Project
area but also look to make additional discoveries at the Kitlanya
West Project area and the Okavango Project area.
Armada Metals Limited ("Armada") completed its Phase 1 drilling
programme, comprising ten diamond holes for 3,240 metres. Whilst no
economic discovery was found from the first phase of drilling,
magmatic sulphide mineralisation was intersected in all ten diamond
drill holes at the Libonga North, Matchiti Central and Libonga
South targets along the Libonga-Matchiti Trend. Detailed core
logging has confirmed the trend is a dynamic, multi-phased magma
conduit system. Post period end, the company announced that it had
commenced a ground-based NSAMT survey which will help to identify
further drill targets.
Southern Gold during the period appointed Exploration Manager,
Robert Smillie as Managing Director and CEO. Based in South Korea
he has overseen an ambitious project generation campaign with field
work resulting in 29 new licence applications, increasing
exploration licences under application to 138 covering an area of
382km(2) . A sale of 50 million Bluebird Merchant Ventures
(LSE:BMV) shares brought in proceeds of GBP250,000. As at 30 June
2022, the company had A$4.6 million of cash and their
mark-to-market valuation of BMV shares was worth approximately
A$5.3 million. The Board believes that the extensive application
package and diligent project generation work will lead itself to
several interesting target areas being prioritised for drilling in
due course, setting up what could be a very appealing country
consolidation play, pending proof of concept through drilling.
Whilst the company will not be seeking to make any further active
investments, we are pleased to note Cobre's recent success and
believe that this goes a long way to helping validate the logic
behind the Active investment strategy. Indeed, whilst not directly
comparable as a result of commodity, country and deposit type, all
three investments share similarities in terms of their
district/country scale potential.
Finally, Metal Tiger undertook steps in the first half of the
year to explore options and identify solutions that will
potentially allow for the correct regulatory status to be applied
to Metal Tiger and one which would be suitable to its
classification as an investing company. Assuming favourable
clarification of our regulatory status, we will explore UK listing
options that would potentially be a better fit for the Company's
operational and investing capabilities as well as potentially
reduce annual administrative costs. The Company has engaged Simmons
& Simmons as legal counsel to assist in these matters and will
update the market in due course as appropriate.
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. Following completion of the disposal of
Kalahari Metals Limited, this will mark the end of the Project
Investment division. The Company will manage any legacy investments
within this division as appropriate but will not seek to make
further Project Investments where Metal Tiger as a corporate entity
must contribute either solely or as a joint venture partner to
exploration expenditure.
Botswana - Kalahari Metals Limited
On 16 June 2022, Metal Tiger announced that it had entered into
a Share Purchase Deed with Cobre to dispose of up to all of its 49%
interest in Kalahari Metals Limited ("KML").
-- Cobre (or its nominee) will acquire 24.5% of the shares in KML from Metal
Tiger (increasing its interest to 75.5%) for total cash consideration of
GBP750,000 (the "Initial Acquisition") expected to be payable in
September 2022, which MTR will use for general working capital purposes;
-- Metal Tiger will grant Cobre a call option for it or its nominee to
acquire the remaining 24.5% of Metal Tiger's shares in KML, exercisable
for either GBP750,000 cash or the equivalent in Cobre shares (based on a
90-trading day VWAP), (the "Call Option") at the sole election of Cobre,
providing Cobre a pathway to 100% ownership of KML;
-- The Call Option will lapse 12 months after completion of the Initial
Acquisition, and if not exercised by Cobre, Metal Tiger will remain a
24.5% shareholder in KML; and
-- Metal Tiger will retain certain rights in KML until such time as the Call
Option has been exercised.
The transaction, including the Initial Acquisition, is subject
to certain conditions:
-- Cobre shareholder approval to the Transaction for the purposes of ASX
Listing Rule 10.1 and item 7 of section 611 of the Corporations Act 2001
(Cth), to be sought at a general meeting of Cobre shareholders
anticipated to be held in September 2022;
-- an Independent Expert Report concluding that the Transaction is fair and
reasonable to Cobre's shareholders;
-- no legal or government agency restraints preventing the Transaction; and
-- the obtaining of any required approvals to the Transaction by government
agencies in Botswana.
Transaction summary:
The parties have agreed to temporarily amend the terms of the
existing Shareholders Deed and Loan Agreements between KML, Metal
Tiger, Cobre and Cobre Kalahari Pty Ltd ("Cobre Kalahari"). For the
period until the earlier of termination of the Transaction, or 12
months following completion of the Initial Acquisition:
-- Cobre Kalahari will have sole control regarding the adoption, approval
and variation of KML's Business Plan and Budget, and KML's activities
will be conducted in accordance with that Business Plan and Budget;
-- MTR waives its rights and is released from its obligations in relation to
the Business Plan and Budget;
-- Cobre Kalahari will be solely responsible for contributing any capital
and funding requirements of the Company pursuant to the Business Plan and
Budget, and any such funding during the initial 12-month period will be
provided in a manner that is non-dilutive to Metal Tiger's interest and
will not otherwise impact the Shareholders Deed;
-- Metal Tiger's two nominee Directors will resign from the Board of KML
effective immediately, and Metal Tiger will waive the right to appoint
Directors;
-- Certain KML board matters will continue to require approval by Metal
Tiger (or its representatives) on the basis that Metal Tiger will have
voting power equivalent to two directors (with Cobre representatives
constituting the remaining two directors) in considering such matters;
-- In the event that the Call Option is not exercised before its expiry, the
parties will promptly amend the Shareholders Deed to restore MTR's rights
(including board representation rights), protections and obligations to
the equivalent of those which it held as a 49% shareholder in KML prior
to completion of the Initial Acquisition;
-- Cobre undertakes not to change, or seek to change in any way whatsoever,
the Group's accounting policy or practice during the 2022 and 2023
Financial Years; and
-- In the event that MTR receives shares by way of consideration, these will
be managed alongside its existing investment in the company.
Shareholder Loans:
Metal Tiger currently has circa US$1.3 million in outstanding
Shareholder Loans to Kalahari Metals Limited. The Loan Agreement
has been amended such that, on completion of the Initial
Acquisition, Cobre will guarantee KML's obligation to repay the
outstanding Shareholder Loans, plus any interest accruing at a rate
of 7% per annum. The Shareholder Loan is for a 5-year period with
an automatic extension for an additional 5 years in the event that
no JORC(1) compliant Mineral Resource declaration over any of KML's
tenements (or indeed by a third-party in the event of a Farm-in)
has been made within the initial 5-year period. The Loan can be
repaid in cash or shares at any time by Cobre, at Cobre's sole
election, and is only required to be repaid early if certain exit
events occur (being a JORC Mineral Resource declaration, the
occurrence of mining production, an initial public offering ("IPO")
of KML, Cobre's disposal of 75% or more of it shares in KML, an
asset sale, or a change of control of Cobre). The Shareholder Loan
may, at Cobre's election, be cash or in Cobre shares, based on a
90-trading day VWAP.
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 this
announcement, 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 in Thailand.
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, placings, or direct on-market purchases. Metal Tiger
may receive warrants when undertaking investments in pre-IPO, IPOs,
or 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(2) but can be private with a view to obtaining
a liquidity event.
As at 30 June 2022, 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, Southeast Asia and
Australia. Metal Tiger held some exposure to producers.
Through its investments, Metal Tiger is primarily exposed to
copper and gold.
In early 2022, the copper price was supported by strong demand,
continued supportive financial conditions, low levels of refined
stocks and limited mine supply growth. The copper price reached a
record high of US$10,845/t in March 2022. However, the onset of the
war in Ukraine, the start of fiscal tightening measures in the US
and COVID-19 outbreaks in China, followed by concerns over
decelerating consumption growth in North America and Europe,
increased economic uncertainty over the outlook for China, and
continued strong US dollar appreciation, caused investor
speculative positioning in copper to move from net-long to
net-short. Copper prices deteriorated rapidly through the latter
part of H1 2022, ending the period at US$8,258/t, having averaged
US$9,759/t over the half, with further declines being experienced
post the period end.
During the period, the gold price remained relatively robust,
beginning the period at US$1,805/oz (1 January 2022) and ending the
period at US$1,817/oz (30 June 2022). Gold prices spiked at the
onset of war in the Ukraine, reaching over US$2,000/oz. The gold
price has declined post period end as a result of more restrictive
monetary policy in the US and Europe and the resultant increases in
interest rates, however, the gold price remains well supported
above US$1,700/oz as a result of continued global inflationary
pressures and geopolitical uncertainty. 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,
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. No new
Active Investment was made in period.
Summary of listed investments held at 30 June 2022
Value at
Listing period end
Investment Exchange Description No. of securities held GBP
Copper, gold
Sandfire and silver 4,164,286 ordinary shares
Resources mining and (held as collateral for
Limited ASX exploration collateral loan) 10,508,971
2,842,667 ordinary shares (held as security in structured
finance loan) 7,173,740
80,104 ordinary shares (uncharged) 202,150
Gold mining
Southern Gold and 40,794,000 ordinary
Limited ASX exploration shares 694,028
7,284,500 unlisted warrants
(A$0.18 expiry 19/10/2022) 1
Base metal 34,764,096 ordinary
Cobre Limited ASX exploration shares 512,583
Armada Nickel and
Exploration copper 15,000,000 ordinary
Limited ASX exploration shares 510,390
3,333,333 unlisted warrants
(A$0.334 expiry 22/11/2026) 37,334
Max Resource Copper
Corporation* TSXV exploration 1,700,000 ordinary shares 467,621
675,000 unlisted warrants
(C$0.36, 25/03/2024) 109,072
350,000 unlisted warrants
(C$0.85, 17/05/2023) 26,180
Sable Gold and
Resources silver
Limited* TSXV exploration 2,041,666 ordinary shares 306,923
Graphite
Northern producer
Graphite and
Corporation* TSXV exploration 660,000 ordinary shares 261,765
330,000 unlisted warrants
(C$1.10 expiry 08/2/2024) 40,002
Heavy Mineral
Minerals Sands
Limited ASX exploration 1,886,401 ordinary shares 200,048
Helix
Resources Copper 20,833,333 ordinary
Limited* ASX exploration shares 82,702
Anacortes Copper and
Mining gold
Corp. TSVX exploration 104,933 ordinary shares 59,742
104,167 unlisted warrants
(C$3.3 expiry 22/7/2023) 1,700
Canyon
Resources Bauxite
Limited* TSVX development 2,383,817 ordinary shares 59,482
Camino
Minerals Copper
Corp. TSXV exploration 1,432,000 ordinary shares 45,803
2,941,176 unlisted warrants
(C$0.25 expiry 18/5/2023) 7,770
Rare Earth
Rainbow Rare exploration
Earths and
Limited AIM development 300,000 ordinary shares 37,125
Red Dirt Lithium,
Metals Gold
Limited* ASX exploration 77,484 ordinary shares 17,576
Greentech
Metals Nickel
Limited ASX exploration 100,000 ordinary shares 14,745
Mt. Malcolm Gold
Mines NL ASX exploration 396,970 ordinary shares 12,832
Cannon
Resources Nickel 83,333 unlisted warrants
Limited* ASX exploration (A$0.2 expiry 30/6/2024) 10,755
Pearl Gull
Iron Iron Ore
Limited ASX exploration 308,026 ordinary shares 6,987
550,000 unlisted warrants
(A$0.3 expiry 6/9/2024) 3,921
Copper, gold
and cobalt
Artemis exploration
Resources and
Limited ASX development 200,000 ordinary shares 3,062
Marimaca
Copper Copper 70,978 unlisted warrants
Corp. TSXV exploration (C$4.1 expiry 31/12/2022 3,047
Molyhil 5,769,231 unlisted
Thor Mining Tungsten warrants (1.3p expiry
plc AIM/ASX Project 17/08/2023) 2,197
1,100,000 unlisted warrants
(A$0.015 expiry 17/12/2022) 936
12,500,000 unlisted warrants
(1p expiry 23/10/2022) 56
Inflection Copper and
Resources gold 234,375 unlisted warrants
Limited CSE exploration (C$0.5 expiry 14/5/2023) 757
Copper and
Avidian Gold gold 500,000 unlisted warrants
Corp TSXV exploration (C$0.2 expiry 8/6/2024) 617
Nickel and 170,000 unlisted warrants
Palladium One copper (C$0.45 expiry
Mining Inc. TSXV exploration 22/2/2023) 136
Apollo Gold Gold and 110,000 unlisted warrants
and Silver silver (C$1.25 expiry
Corporation TSXV exploration 05/7/2023) 89
Aurelius
Minerals Gold 100,000 unlisted warrants
Inc. TSXV exploration (C$0.7 expiry 15/7/2022) 1
*Denotes new additions to the portfolio during the period.
Summary of unlisted investments held at 30 June 2022
No. of
Listing securities Value at
Investment Exchange Description held period end GBP
66,666,667
Andean Copper ordinary
Inc* Private Copper producer shares 1,648,600
500,000
Moxico ordinary
Resources PLC Private Copper producer shares 250,000
3,840,909
ordinary
Tally Limited Private Gold currency shares 57,614
250,000
ACDC Metals Rare earths ordinary
Limited Private exploration shares 14,178
854,545
Eridge Capital ordinary
Limited Private shares 512
*Denotes new additions to the portfolio during the period.
Summary of investments made between 30 June 2022 and the date of
release of the Interim Report
No. of
Listing securities Amount invested
Investment Exchange Description held period end GBP
Gold, silver
exploration 93,000 ordinary
O3 Mining Inc* TSXV development shares 96,795
Gold, copper
exploration 7,000,000
Antilles Gold and ordinary
Limited* ASX development shares 200,760
2,333,333 unlisted warrants
(C$1.10 expiry 08/2/2024)
*Denotes new additions to the portfolio during the period.
During the period the Company also converted 694,444 warrants in
Pan Global Resources Inc into 694,444 shares which were all
disposed of during the reporting period realising a profit of
approximately GBP97,000. The company also purchased 6,000,000
ordinary shares in Alien Metals Limited during the period which has
been fully exited for a loss of GBP9,000.
During the period the segment acquired investments at a total
cost of GBP3,308,000 and disposed of investments for GBP6,348,000
and a realised loss of GBP318,000. After considering the
revaluation of the investments the net assets of the segment
decreased by GBP11,616,000 during the period to GBP24,028,000 (full
year 2021: GBP35,644,000).
After accounting for the loss on disposals, dividends received
and the revaluation of investments at the year end, the equity
investments segment recorded a net loss of GBP9,782,000 for the
year versus profits of (H1 GBP1,751,000; full year 2021
GBP3,454,000).
Overview of material investments as at 30 June 2022:
Sandfire Resources Limited
Sandfire is a mid-tier Australian mining and exploration company
listed on the Australian Securities Exchange ("ASX") (ASX:SFR) and
operates the high-margin DeGrussa Copper-Gold Mine, located 900km
north of Perth in Western Australia, which produces high-quality
copper-in-concentrate with significant gold credits. In addition,
in 2021 (completing in 2022), Sandfire agreed to acquire 100% of
the Minas de Aguas Tenidas ("MATSA"), comprising of three
underground mining operations feeding a 4.7Mtpa central processing
facility with state-of-the-art infrastructure in Spain, for a total
consideration of US$1.865 million. Sandfire also has development
and exploration projects in North America and Botswana.
The Company holds 7,087,057 ordinary shares in Sandfire
Resources as at 30 June 2022, representing 1.7% of Sandfire's
issued share capital. 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 by Metal Tiger
are secured over 2,842,667 Sandfire shares held by Metal Tiger,
representing approximately 0.7% of Sandfire's issued share
capital.
Sandfire concluded H1 with a very strong cash position of
US$463.1 million and net debt of US$324.7 million. Group FY2022
production in excess of guidance at 98,367t Cu, 38,907t Zn, 4,102
Pb, 32,285oz Au and 1.5Moz Ag. With C1 unit costs at US$1.27/lb Cu
payable reflecting global inflationary cost pressures.
Sandfire received a strong 5-month contribution from the MATSA
Copper Operations in Spain with FY2022 production exceeding
guidance: 30,628t Cu, 38,907t Zn, 4,102t Pb and 1.2Moz Ag. Elevated
energy costs in Spain remain a challenge and were reflected in C1
unit costs for MATSA of US$1.81/lb for the June 2022 Quarter and
US$1.45/lb for FY2022. Sandfire is progressing several responses to
this situation, including the planned construction of new solar
farms, engaging with electricity suppliers for new contracts and
investigation of other pricing structures.
DeGrussa is scheduled to complete in September 2022 with
processing to wind up in October 2022. A detailed care and
maintenance and mine closure plan have been developed. Sandfire
continues to investigate the potential extension of operations
through processing of existing stockpiles and mineralised waste on
site using the existing plant.
Sandfire generated FY2022 sales revenue of US$922.7 million
(unaudited) and Group EBITDA of US$448 million (unaudited).
The Motheo Expansion Definitive Feasibility Study ("DFS") is
nearing completion, outlining a growth pathway to 5.2Mtpa and due
for release in the September 2022 Quarter.
Updated Measured, Indicated and Inferred Mineral Resource
Estimate completed for the MATSA Copper Operations: 147.2Mt at 1.4%
Cu, 3.0% Zn, 1.0% Pb and 39.6g/t Ag, containing an estimated 2.1Mt
of copper, 4.4Mt of zinc, 1.5Mt of lead and 187.6Moz of silver.
Extensive exploration is occurring at MATSA targeting both
immediate extensions of existing deposits and new discoveries in
the surrounding region.
Sandfire is well advanced and on schedule for Motheo to commence
first production in the quarter to June 2023. Construction
activities are continuing with over 1,700 personnel currently on
site, over 7,000m(3) of concrete poured and 550 tonnes of
structural steel erected to date. Some of the key recent
developments include:
-- Completion of all 752 rooms in the Motheo Mine Village
-- Award of the Electrical and Instrumentation installation contract (final
process plant contract)
-- Erection and back-fill of the primary crusher lower retaining wall
-- Completion of Reclaim tunnel and SAG Mill concrete foundations
-- Completion of Mine Administration Office and Clinic buildings
-- Tailings Storage Facility Bulk fill for walls 50% complete and basin
lining commenced
-- Majority of the process plant equipment including the SAG Mill components
all delivered to site during the quarter to June 2022
-- Structural, Mechanical and Piping Contractor mobilised and approximately
10% complete during the quarter to June 2022
The DFS for the Expansion Project including A4 is scheduled for
completion in the quarter to September 2022 with work programmes
nearing completion.
Cobre Limited
Cobre is an ASX listed (ASX:CBE) resource exploration company
which is progressing the copper-gold-silver-zinc VHMS(3)
exploration stage Perrinvale Project in Western Australia. Cobre
holds a 51% interest in Kalahari Metals, as well as an 18.5%
interest in Armada. The Company holds 34,764,096 ordinary shares as
of 30 June 2022, representing 17.2% of Cobre's issued ordinary
share capital. Metal Tiger has agreed to invest an additional A$1.5
million for 9,808,076 additional shares in Cobre, subject to
shareholder approval.
Cobre entered into an agreement with Metal Tiger to purchase its
49% stake in Kalahari Metals Limited. Further details can be found
in the projects section. On 4 August 2022, the company announced a
A$7 million placement in which Metal Tiger invested A$1.5 million,
subject to shareholders approval, to maintain its pro-rata
shareholding.
Kalahari Metals Limited
Post period end the Company announced the commencement of
exploration drilling in Botswana. On the 27 July 2022, significant
visual copper mineralisation was intersected in the first diamond
drill hole NCP07 at the Ngami Copper Project ("NCP") in the
Kalahari copperbelt with chrysocolla along with fine grained
disseminated copper sulphides which occur over a broad 59m interval
downhole with an increase in abundance in the lower 10m. This hole
was designed 1km away along strike to test the extent of anomalous
chalcocite mineralisation intersected in a historical hole proving
that mineralisation increases and thickens out significantly along
strike. This was followed by the second diamond drill hole
intersecting copper mineralisation over a 25m interval downhole
with a significant increase in chalcocite mineralisation over a 12m
interval. This drill hole, NCP08 was drilled 1km southwest of NCP07
along strike. It was noted that the width and concentration of
sulphide mineralisation intersected is comparable to discovery
holes elsewhere in the Kalahari Copperbelt. On 3 August 2022,
further copper mineralisation was intersected in ongoing drill hole
NCP09, at the Ngami Copper project. Mineralisation consisted of
chrysocolla, malachite and fine-grained chalcocite which occurred
over a 15m interval downhole. At the time of the announcement the
hole was still in progress and had intersected additional
chrysocolla on fractures as well as some intense folding. NCP09
extended the strike length of mineralisation intersected in holes
NCP08, NCP07 and historical hole TRDH14-16a to 3km with both
south-western and north-eastern extensions remaining open-ended.
NCP10 which is the fourth 1km step out hole was designed to test
the north-eastern strike extension of copper mineralisation in the
first three diamond holes of the programme as well as historical
hole TRD14-16a. NCP10 has intersected a broad zone of visible
copper mineralisation which extends over 69m (down hole) with 13m
of abundant visual chalcocite mineralisation noted and confirmed
with pXRF. As a result of this the target now has a strike length
of over 4km.
On 9 August 2022, Cobre announced a 2,400m diamond drilling
programme to infill the existing 1km spaced intersections at a
500-metre spacing along with selected step-out holes to establish
the vertical continuity of mineralisation. On completion of the
first phase of infill, and subject to results, 250m-spaced infill
diamond drilling will continue with selected step-out holes for an
estimated further 4,800m due to be completed by year end. It was
noted that a fourth 1km diamond step out hole is currently in
progress. Drill core samples from previous holes have been sent to
labs. Historical low detection mobile metal-ion geochemistry
(Terraleach(TM) TL1) proved highly effective in delineating soil
anomalies associated with the drill confirmed mineralisation at
NCP, providing an ideal targeting tool for the remaining untested
circa 100km of prospective contact within the NCP licences. A
selection of 5,300 historical soil samples will be sent for TL1
analysis.
A large 7,000 sample soil programme, covering targets in the
2,000km(2) Kitlanya West ("KITW") licences, has been commissioned
and is scheduled to commence in late August 2022. This presents a
cost-effective layer for further prioritising the 34 KITW targets
for follow-up drill testing.
On 18 August 2022, Cobre Limited noted the renewal of five
exploration licences held by Triprop subject to a binding earn-in
agreement with Kalahari Metals Limited.
Perrinvale
Cobre was due to complete a Moving Loop Electromagnetic ("MLEM")
survey at the Costa del Islas Prospect but was unable to due to
high demand for contractors. The Company also advanced preparations
for drilling a number of high priority drill targets identified
from work completed through 2021 and prioritised during a technical
workshop in 2022.
Cobre holds a total of 15,000,000 shares in Armada Metals
comprising 14.42% of shares on issue as well as holds an option to
acquire an additional 3,333,333 shares in Armada at an exercise
price of A$0.334 per share.
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 2022 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 confirmed
as a Director of Southern Gold.
For the H1 2022 period, the main developments at Southern Gold
were:
-- the appointment of Southern Gold Exploration Manager Robert Smillie as
Managing Director and CEO, based in South Korea..
-- Project generation fieldwork in Q1 2022 resulted in 44 new licence
application increasing the exploration licences under application to 109,
covering an area of 305.4km2.
-- Sold 50 million BMV shares for A$0.9 million and received A$0.44 million
in Q2 making up the first half of the payment. The second half is due by
13 September 2022.
-- BMV where SAU retains 150 million shares accessed a funding facility to
progress activities towards commencement of mining in South Korea.
-- Project Generation fieldwork resulted in 29 new licence applications,
increasing exploration licences under application to 138 covering an area
of 382km2.
Armada Exploration Limited
Armada is an ASX listed (ASX:AMM) resource exploration company
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 3,000km(2) . The licence holding is considered to
present a frontier district-scale exploration opportunity.
The Company holds 15,000,000 ordinary shares as of 30 June 2022,
representing 14.42% of Armada's issued ordinary share capital.
Metal Tiger also holds an indirect interest in Armada, via its
17.2% holding in Cobre, which holds an 14.4% interest in
Armada.
Metal Tiger also currently holds 3,333,333 five-year options,
validity commencing from admission date on the ASX, issued at
A$0.334.
Michael McNeilly was appointed as a Director to Armada Metals
Limited in May 2021.
For the H1 2022 period, the main developments at Armada
were:
-- Renewal of exploration permit G5-555 which was renewed for a further
three years.
-- Completed the Phase 1 diamond drilling programme along the
Libonga-Matchiti Trend ("LMT") with magmatic sulphides intercepted in all
ten diamond drill holes. 10 holes were drilled for a total of 3,240m at
three high priority targets within the LMT.
-- Core logging observations confirm the LMT to be a complex, dynamic
multi-phased magma conduit system, with crustal contamination having
caused extensive sulphur saturation.
-- The core has been sent for assays for the normal magmatic suite of
elements, including nickel, copper, cobalt, chromium and sulphur, and the
platinum group elements (PGEs).
-- Surface grab samples, collected along the Ngongo-Yoyo Trend within permit
G5-555 have confirmed the presence of outcropping high MgO ultramafic
intrusions with magmatic sulphide mineralisation. These results extend
the company's prospective trend, incorporating the LMT and NYT to more
than 60km.
Post period end Armada announced that it had commenced a series
of Natural Source Audio-Magnetotelluric ("NSAMT") surveys over the
LMT at the Nyanga Project in Gabon. NSAMT systems calculate ground
resistivity by measuring the magnitude of naturally occurring
electric and magnetic fields. Resistivity values are calculated
from these measurements and used to create 2D and 3D images of the
subsurface. Magmatic sulphide accumulations are defined by
extremely low resistivity values. The survey is designed with a
Depth of Investigation ("DOI") of up to 1,000m below the surface to
follow up on targets where magmatic sulphides were encountered
during the Phase 1 drilling programme.
The results will be compared with the Xcite(TM) program, to
provide a basis for ranking AMT anomalies to define targets for the
next phase of drilling. The surveys will start at the Libonga South
target and if successful, the survey will then be moved to other
high priority targets along the LMT and then to the high priority
regional Ngongo and Yoyo targets (along the Ngongo-Yoyo Trend).
Royalty valuation
The royalty was not revalued over the period as there was no new
material news flow pertaining to the potential value of the royalty
released during the reporting period. Management believes the
copper price estimate used in the valuation as of 31 December 2021
(US$9,078/t) is still appropriate, after being assessed versus the
consensus analyst forecasts in Bloomberg for the periods when the
production, and consequentially the royalty cash flows, are
expected to materialise.
Refer to 12. Post Period Events, where it is disclosed that
Sandfire released its 30 June 2022 Annual Financial Statement and
updated its Motheo Copper project expansion DFS, on the 30 August
2022. The Company will work through the implications hereof and if
material will update the market as soon as practically
possible.
Results for the period
Administration costs for the period were GBP1,436,000 (H1 2021:
GBP1,239,000). Whilst the Board's continuous drive for efficiencies
remain ongoing, the increased costs predominately related to
increased legal fees with regards to compliance and regulation, due
diligence fees on investments and a retrenchment of a staff member
in Thailand.
There was an overall loss in the period resulting from the
disposals and fair valuing of investments during the year of
GBP9,982,000 (H1 2021: gain of GBP1,686,000) reflecting market
conditions in the year and more specifically the movement in in our
active investments in Sandfire, Cobre and Southern Gold, which
combined contributed to a loss of GBP9,718,000 over the period).
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 results for the period also include a provision against the
carrying value of KML of GBP423,000 which brings the carrying value
of the equity investment therein to the expected recovery amount of
GBP1,500,000 from Cobre.
The Company received dividend income of GBP146,000 (H1 2021:
GBP288,000; 2021 full year GBP1,538,000) and net finance income of
GBP2,413,000 (H1 2021: (GBP1,293,000); 2021 full year
(GBP1,787,000) mainly relating to the change in value of the
derivatives securing the Group's structured finance loans with a
gain of GBP1,466,000 (H1 2021: 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.
Loss for the period on ordinary activities before tax was
GBP9,392,000 (H1 2021: loss GBP567,000).
Cashflow and financing
Disposals from equities during the period raised GBP6,348,000
and a further net GBP3,308,000 was invested into the purchase of
equities and other investments. Operational cash outflows before
working capital changes amounted to GBP1,378,000 (H1 2021:
GBP1,190,000) with the explanations pertaining to administrative
costs above accounting for the difference.
The net cash requirement for operations, was met out of cash
from the net cash generated from the portfolio.
Management used the opportunity to apply the net cash generated
from the portfolio after operational cash outflow to begin to
de-risk the balance sheet and pay down GBP1,605,000 of the SC Lowy
loan over the period.
Cash in hand at the end of the period was GBP192,000 (full year
2021: GBP648,000).
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2022
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 31 December
30 June 2022 30 June 2021 2021
Notes GBP'000 GBP'000 GBP'000
Profit on partial
sale of interests
in explorations in
Botswana - - 21
(Loss)/Profit on
disposal of
investments (318) 1,191 1,979
Movement in fair
value of fair
value accounted
equities (9,664) 495 (149)
Share of post-tax
losses of equity
accounted joint
ventures (110) (9) (493)
Provision against
cost of equity
accounted joint
ventures (423) - -
Investment income 146 288 1,538
Other income - - 5,214
Net (loss)/gain
before
administrative
expenses (10,369) 1,965 8,110
Administrative
expenses (1,436) (1,239) (2,108)
Operating
(LOSS)/profit (11,805) 726 6,002
Finance income 2,775 349 467
Finance costs (362) (1,642) (2,254)
(LOSS)/Profit
before taxation 3 (9,392) (567) 4,215
Tax on
(loss)/profit on
ordinary
activities 4 (258) - (49)
(loss)/Profit on
ordinary
activities after
taxation (9,650) (567) 4,166
Other comprehensive
income - Items
which
may be subsequently
reclassified to
profit or loss:
Exchange
differences on
translation of
foreign
operations (191) 93 410
Total comprehensive
(LOSS)/profit for
the period (9,841) (474) 4,576
(LOSS)/Profit for
the period
attributable to:
Owners of the
parent (9,650) (567) 4,166
Non-controlling
interest - - -
(LOSS)/Profit for
the period (9,650) (567) 4,166
Total comprehensive
(loss)/profit for
the period
attributable to:
Owners of the
parent (9,842) (471) 4,579
Non-controlling
interest 1 (3) (3)
Total comprehensive
(loss)/profit for
the period (9,841) (474) 4,576
Earnings per share
Basic earnings per
share 5 (5.70)p (0.4)p 2.59p
Fully diluted
earnings per
share 5 (5.70)p (0.4)p 2.59p
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
FOR THE SIX MONTHSED 30 JUNE 2022
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 31 December
30 June 2022 30 June 2021 2021
Notes GBP'000 GBP'000 GBP'000
NON--CURRENT ASSETS
Intangible assets 20 23 21
Property, plant and
equipment 170 17 19
Deferred tax asset 4 2,164 - 2,164
Investment in joint
ventures 9 2,568 2,582 2,873
Other non-current
asset investments 6 1,615 9,572 3,613
Royalties
receivable 7 12,257 5,056 10,593
18,794 17,250 19,283
CURRENT ASSETS
Equity investments
accounted for
under fair value 8 22,413 20,614 32,031
Trade and other
receivables 530 527 477
Cash and cash
equivalents 192 261 648
23,135 21,402 33,156
CURRENT LIABILITIES
Trade and other
payables 371 537 312
Loans and
borrowings 10 8,706 48 8,732
9,077 585 9,044
NET CURRENT ASSETS 14,058 20,817 24,112
NON-CURRENT
LIABILITIES
Loans and
borrowings 10 1,225 6,666 2,242
Deferred tax
liability 4 2,471 - 2,213
Contingent
consideration 132 116 118
3,828 6,782 4,573
NET ASSETS 29,024 31,285 38,822
CAPITAL AND
RESERVES
Share capital 170 156 170
Share premium
account 15,704 13,424 15,704
Capital redemption
reserve 4 4 4
Share based payment
reserve 2,244 2,300 2,343
Warrant reserve 83 5,173 3,048
Translation reserve 159 31 351
Retained profits 10,571 10,109 17,114
TOTAL SHAREHOLDERS'
FUNDS 28,935 31,197 38,734
Equity
non-controlling
interests 89 88 88
TOTAL EQUITY 29,024 31,285 38,822
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2022
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 31 December
30 June 2022 30 June 2021 2021
GBP'000 GBP'000 GBP'000
CASH FLOWS FROM OPERATING
ACTIVITIES
(Loss)/Profit before
taxation (9,392) (567) 4,215
Adjustments for:
Net loss/(gain) on disposal
of fair value accounted
equities 318 (1,191) (1,979)
Profit on partial sale of
interests in explorations
in Botswana - - (21)
Movement in fair value of
fair value accounted
equities 9,664 (495) 149
Share of post-tax losses of
equity accounted joint
ventures 110 9 493
Movement In provision in,
and write-offs of, equity
accounted joint ventures 423 - -
Share based payment charge
for the period 43 43 86
Depreciation and
amortisation 15 6 13
Other income - - (5,214)
Investment income (146) (288) (1,538)
Finance income (2,775) (349) (467)
Finance costs 362 1,642 2,254
Operating cash flow before
working capital changes (1,378) (1,190) (2,009)
(Decrease)/Increase in trade
and other receivables (53) 26 72
Increase/(Decrease) in trade
and other payables 59 214 (11)
Unrealised foreign exchange
gains and losses (15) (70) (387)
Net cash outflow from
operating activities (1,387) (1,020) (2,335)
CASH FLOW FROM INVESTING
ACTIVITIES
Proceeds from current asset
investment disposals 6,348 4,438 13,434
Purchase of fixed assets (160) (2) (9)
(Increase in)/ Sale of
investment, and loans to,
joint ventures (119) 300 (453)
Purchase of current asset
investments (3,308) (4,561) (18,676)
Investment income 146 288 1,538
Net cash inflow/(outflow)
from investing activities 2,907 463 (4,166)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of
shares - 532 3,191
Share issue costs - - (217)
Loans drawn down - - 4,829
Loans repaid (1,654) (115) (618)
Interest paid (327) (55) (491)
Net cash (outflow)/inflow
from financing activities (1,981) 362 6,694
NET (DECREASE)/ INCREASE IN
CASH AND CASH EQUIVALENTS (461) (195) 193
Cash and cash equivalents at
beginning of period 648 458 458
Effect of exchange rate
changes 5 (2) (3)
CASH AND CASH EQUIVALENTS AT OF PERIOD 192 261 648
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2022 (UNAUDITED)
Share
Capital based
Share Share Redemption payment Warrant Translation Retained Total equity Non-controlling Total
capital premium Reserve reserve reserve reserve profits shareholders' interests equity
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)
Shares issues 3 593 - - (63) - - 533 - 533
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 (303) - 240 576 - 576
BALANCE AT 30
JUNE 2021 156 13,424 4 2,300 5,173 31 10,109 31,197 88 31,285
Period to 31
December
2021:
Profit for the
period - - - - - - 4,733 4,733 - 4,733
Other
comprehensive
income - - - - - 320 - 320 - 320
TOTAL
COMPREHENSIVE
INCOME - - - - - 320 4,733 5,053 - 5,053
Share issues 14 2,581 - - 63 - - 2658 - 2658
Warrants
issued - - - - 84 - - 84 - 84
Cost of
share-based
payments - - - 43 - - - 43 - 43
Share issue
expenses - (301) - - - - - (301) - (301)
Transfer of
reserves
relating to
exercise and
expiry of
options and
warrants - - - - (2,272) - 2,272 - - -
TOTAL CHANGES
DIRECTLY TO
EQUITY 14 2,280 - 43 (2,125) - 2,272 2,484 - 2,484
BALANCE AT 31
DECEMBER
2021 170 15,704 4 2,343 3,048 351 17,114 38,734 88 38,822
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2022 (UNAUDITED)
Share
Capital based Total equity
Share Share Redemption payment Warrant Translation Retained shareholders' Non-controlling Total
capital premium Reserve reserve reserve reserve profits funds interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2022 170 15,704 4 2,343 3,048 351 17,114 38,734 88 38,822
Period to 30
June 2022:
Loss for the
period - - - - - - (9,650) (9,650) - (9,650)
Other
comprehensive
income - - - - - (192) - (192) 1 (191)
Total
comprehensive
income - - - - - (192) (9,650) (9,842) 1 (9,841)
Cost of
share-based
payments - - - 43 - - - 43 - 43
Transfer of
reserves
relating to
exercise and
expiry of
options and
warrants - - - (142) (2,965) - 3,107 - - -
Total changes
directly to
equity - - - (99) (2,965) - 3,107 43 - 43
Balance at 30
June 2022 170 15,704 4 2,244 83 159 10,571 28,935 89 29,024
NOTES TO THE UNAUDITED CONDENSED INTERIM REPORT
FOR THE YEARED 30 JUNE 2022
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 2022. These
are unchanged from those disclosed in the Group's Annual Report for
the year ended 31 December 2021. 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 2022:
-- IAS 16 "Property, Plant and Equipment" regarding proceeds before intended
use.
-- IAS 37 "Onerous contracts" regarding costs a company should include as
the cost fulfilling a contract when assessing whether a contract is
onerous.
-- A number of narrow-scope amendments to IFRS 3.
The amendment had no impact on the condensed consolidated
interim financial statements for the six months ended 30 June 2022
and no retrospective adjustments were required.
The interim accounts were approved by the Board of Metal Tiger
on 30 August 2022. Neither the interim financial information for
the six months ended 30 June 2022 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) "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council. The
comparatives for the year ended 31 December 2021 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 2021 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 2022.
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 Interim Report has been prepared on the going
concern basis as, in the opinion of the Directors, at the time of
approving the condensed Interim Report, there is a reasonable
expectation that the Company will continue in operational existence
for the foreseeable future. The condensed Interim 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
period.
Investments made are capitalised as an asset where the
underlying projects have mineral resources which are compliant with
internationally recognised Mineral Resource reporting standards
(JORC and Canadian 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 considering 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 is 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
OPERATING SEGMENTS
Six months Equity Project Central
ended 30 June Investments Investments costs Inter-company Total
2022 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net (loss)/gain
on investments (9,835) (534) - - (10,369)
Administrative
expenses (26) (230) (1,180) - (1,436)
Net finance
income/(cost) 79 577 1,757 - 2,413
(Loss)/profit on
ordinary
activities
before
taxation (9,782) (187) 577 - (9,392)
Taxation - - (258) - (258)
(Loss)/profit
for the period
after taxation (9,782) (187) 319 - (9,650)
FINANCIAL
POSITION:
Intangible
assets - 20 - - 20
Property, plant
and equipment - 170 - - 170
Deferred tax
asset - - 2,164 - 2,164
Investment in
joint ventures - 2,568 - - 2,568
Other fixed
asset
investments 1,508 - 107 - 1,615
Royalties
receivable - 12,257 - - 12,257
Total
non-current
assets 1,508 15,015 2,271 - 18,794
Current assets 22,413 3,971 366 (3,615) 23,135
Current
liabilities - (3,770) (8,922) 3,615 (9,077)
Non-current
liabilities - (132) (3,696) - (3,828)
Net assets 23,921 15,084 (9,981) - 29,024
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 royalty receivables 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.
3. SEGMENTAL REPORTING (CONTINUED)
OPERATING SEGMENTS
Six months Equity Project Central
ended 30 June Investments Investments costs Inter-company Total
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 - 2,582 - - 2,582
Other fixed
asset
investments 9,465 - 107 - 9,572
Royalties
receivable - 5,056 - - 5,056
Total
non-current
assets 9,465 7,678 107 - 17,250
Current assets 20,614 3,568 533 (3,313) 21,402
Current
liabilities (338) (3,395) (165) 3,313 (585)
Non-current
liabilities - (116) (6,666) - (6,782)
Net assets 29,741 7,735 (6,191) - 31,285
3. SEGMENTAL REPORTING (CONTINUED)
GEOGRAPHICAL SEGMENTS
Six months ended UK EMEA Asia-Pacific Australasia Americas Inter-company Total
30 June 2022 GBP'000 GBP'000 GBP'000 '000 GBP'000 GBP'000 GBP'000
COMPREHENSIVE
INCOME:
Net (loss)/gain on
investments (9) (534) - (10,275) 449 - (10,369)
Administrative
expenses (1,097) - (235) (63) (41) - (1,436)
Net finance
income/(expense) (238) 1,608 180 863 - - 2,413
(Loss)/profit on
ordinary
activities before
taxation (1,344) 1,074 (55) (9,475) 408 - (9,392)
Taxation (258) - - - - - (258)
(Loss)/profit for
the period after
taxation (1,602) 1,074 (55) (9,475) 408 - (9,650)
FINANCIAL
POSITION:
Intangible assets - - 20 - - - 20
Property, plant
and equipment - - 170 - - - 170
Deferred tax asset 2,164 - - - - - 2,164
Investment in
joint ventures - 2,568 - - - - 2,568
Other fixed asset
investments 107 - - 1,508 - - 1,615
Royalties
receivable - 12,257 - - - - 12,257
Total non-current
assets 2,271 14,825 190 1,508 - - 18,794
Current assets 463 - 4,000 19,270 3,017 (3,615) 23,135
Current
liabilities (120) - (3,770) (8,802) - 3,615 (9,077)
Non-current
liabilities (2,470) - (132) (1,226) - - (3,828)
Net assets 144 14,825 288 10,750 3,017 - 29,024
3. SEGMENTAL REPORTING (CONTINUED)
GEOGRAPHICAL SEGMENTS
Six months ended UK EMEA Asia-Pacific Australasia Americas Inter-company Total
30 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 - 2,582 - - - - 2,582
Other fixed asset
investments 107 - - 9,465 - - 9,572
Royalties
receivable - 5,056 - - - - 5,056
Total non-current
assets 107 7,638 40 9,465 - - 17,250
Current assets 1,561 - 3,514 17,723 1,917 (3,313) 21,402
Current
liabilities (164) (267) (3,370) (97) - 3,313 (585)
Non-current
liabilities (116) - - (6,666) - - (6,782)
Net assets 1,388 7,371 184 20,425 1,917 - 31,285
4. TAXATION
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 31 December
30 June 2022 30 June 2021 2021
GBP'000 GBP'000 GBP'000
Current tax on income for
the year - - -
Deferred tax (258) - (49)
Total tax charge for the
year (258) - (49)
4. TAXATION (CONTINUED)
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 Unaudited Audited
Six months Six months Year ended
ended ended 31 December
Factors affecting the tax 30 June 2022 30 June 2021 2021
charge GBP'000 GBP'000* GBP'000
(Loss)/Profit before tax (9,392) (567) 4,215
Loss/(profit) before tax
multiplied by rate of
corporation tax in the UK
of 19% (2021: 19%) 1,784 108 (801)
Overseas profits/losses
taxed at different rates (27) - (48)
Changes in rate at which
deferred tax is provided - - 103
Chargeable gains arising (32) - (514)
Income not chargeable to
tax - - 639
Expenses not allowable for
tax (1,921) - (40)
Other permanent timing
differences - - -
Deferred tax gains and
losses not recognised - (108) 612
Remeasurement of deferred
tax for changes in rates (62) - -
Total tax (258) - (49)
*No corporation tax charge arose in the June 2021 period given
the cumulative tax loss position. No deferred tax asset was
recognised either in that period in respect of the remaining losses
as the Directors could not be certain that future profits would be
sufficient for the asset to be recognised at that time.
Movements in deferred tax assets and liabilities during the year
and the amounts outstanding at the period/year end are as
follows:
Assets Liabilities Net
Deferred tax asset/(liability) GBP'000 GBP'000 GBP'000
At 1 January 2021 - - -
Charge for the period - - -
At 30 June 2021 - - -
Adjustment prior years 909 (909) -
Charge for the period 1,255 (1,304) (49)
At 31 December 2021 2,164 (2,213) (49)
Charge for the period - (258) (258)
At 30 June 2022 2,164 (2,471) (307)
5. EARNINGS/LOSS PER SHARE
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 31 December
30 June 2022 30 June 2021 2021
GBP'000 GBP'000 GBP'000
(Loss)/Profit attributable to
equity holders of the Company (9,650) (567) 4,166
Shares used for calculation of
basic EPS* 169,423,576 155,910,062 160,776,895
Shares used for calculation of
fully diluted EPS* 169,423,576 155,910,062 160,776,895
EARNINGS PER SHARE
Basic earnings per share (5.70)p (0.4)p 2.59p
Fully diluted earnings per share (5.70)p (0.4)p 2.59p
No share options and warrants outstanding at 30 June 2022 were
dilutive as the exercise price of any share options or warrants
outstanding at 30 June 2022 was higher than the average market
price of ordinary shares during the period and the Company also
incurred a loss over 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 as at
30 June 2022. No share options and warrants outstanding at either
30 June 2021 or 31 December 2021 were dilutive as the exercise
price of any share options or warrants outstanding was higher than
the average market price of ordinary shares during the period, in
addition for the period ended 30 June 2021 the Company incurred a
loss. Accordingly, all such potential ordinary shares have been
included in the weighted average number of ordinary shares in
calculating diluted earnings per share for the comparative
periods.
6. OTHER NON-CURRENT ASSETS
Unaudited Audited
Unaudited Six months Year ended
Six months ended 31 December
ended 30 June 2021 2021
30 June 2022 GBP'000 GBP'000 GBP'000
Equity investments 1,388 10,539 4,125
Derivatives* 120 (1,074) (619)
Other fixed asset
investments 107 107 107
1,615 9,572 3,613
*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 1,388 10,539 4,125
Level 3 -- unquoted
fixed asset
investments and
derivatives 227 (967) (512)
1,615 9,572 3,613
7. ROYALTIES RECEIVABLE
T3 A4 Total
GBP'000 GBP'000 GBP'000
At 1 January 2021 1,228 3,638 4,866
Net accretion of discount on acquisition* 59 190 249
Translation effects (15) (44) (59)
At 30 June 2021 1,272 3,784 5,056
Net accretion of discount on acquisition* 15 203 218
Periodic revaluation- Other income - 5,214 5,214
Translation effects 28 77 105
At 31 December 2021 1,315 9,278 10,593
Net accretion of discount on acquisition* 47 353 400
Periodic revaluation- Other income - - -
Translation effects 144 1,120 1,264
At 30 June 2022 1,506 10,751 12,257
*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$2
million and is expected to result in a receipt thereof in the final
quarter of 2023.
The A4 royalty is an uncapped 2% net smelter royalty over any
future production from the A4 deposit situated in Botswana and
owned by Sandfire. In initially assigning a value to the royalty in
2020, the Company relied inter alia on the announcement released by
Sandfire to the market on 1 December 2020.
The Company has again predominately relied on the announcement
released by Sandfire to the market on 2 September 2021, together
with other consensus information readily available in the market,
to determine the revised carrying value as of 30 June 2022 and 31
December 2021. The Company expects Sandfire to deliver the 5.2 Mtpa
expansion case defined feasibility statement in the September 2022
Quarter.
Refer to 12. Post Period Events, where it is disclosed that
Sandfire released its 30 June 2022 Annual Financial Statement and
updated its Motheo Copper project expansion DFS, on the 30 August
2022. The Company will work through the implications hereof and if
material will update the market as soon as practically
possible.
The following table illustrates the key considerations and
assumptions the Company considered in determining the value of the
value by using the net present value of the cash flows expected
from the royalty as discounted.
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 31 December
30 June 2022 30 June 2021 2021
Resource size MT 9,700,000 6,500,000 9,700,000
Resource grade Copper 1.17% 1.54% 1.17%
Medium term
copper price US$/MT U$9,078 U$6,967 U$9,078
Mining recovery Copper 92.3% 92.1% 92.3%
Concentrate
recovery Copper 92.2% 92.2% 92.2%
Cash flow
commencement 4(th) Quarter 1(st) Quarter 4(th) Quarter
date 2023 2023 2023
Discount rate 7% 10% 7%
8. EQUITY INVESTMENTS ACCOUNTED FOR UNDER FAIR VALUE
Unaudited Audited
Six months Year ended
Unaudited Six ended 31 December
months ended 30 30 June 2021 2021
June 2022 GBP'000 GBP'000 GBP'000
Categorised under
the IFRS 13 fair
value hierarchy as:
Level 1 - quoted
investments 19,792 18,859 31,262
Level 3 -- unquoted
investments --
equity investments 1,970 1,086 212
Level 3 -- unquoted
investments --
warrants and
derivatives 651 669 557
22,413 20,614 32,031
9. AMOUNTS DUE FROM RELATED PARTIES
Unaudited Audited
Six months Year ended
Unaudited Six months ended 31 December
ended 30 June 2022 30 June 2021 2021
GBP'000 GBP'000 GBP'000
Kalahari Metals
Limited: 1,067 32 840
Kalahari Metals Limited is Metal Tiger's sole joint venture
interest. The Company has a 49% (H1 2021 50.1%; full year 2021:49%)
direct ownership stake. The Company has an amount owing to it from
Kalahari Metals Limited of GBP1,067,000 as at 30 June 2022. The
Company treats this loan in terms of the substance of the agreement
and is included as Investment in joint ventures.
The Company has, subject to, inter alia, Cobre shareholder
approval, sold 24.5% of the shares in KML for a cash consideration
of GBP750,000 (initial acquisition). In addition, the Company has
granted Cobre a call option to acquire the remaining 24.5%, which
is exercisable for either GBP750,000 cash or the equivalent in
Cobre shares (based on a 90-trading day vwap). This call option
must be exercised within 12 months after completion of the initial
acquisition.
The initial acquisition is expected to close during September
2022.
10. LOANS AND BORROWINGS
Unaudited Audited
Six months Year ended
Unaudited Six ended 31 December
months ended 30 30 June 2021 2021
June 2022 GBP'000 GBP'000 GBP'000
At 1 January 10,974 7,103 7,103
Net cash flows from
financing
activities (1,654) (115) 4,211
Drawn down in period - - 4,829
Repaid in period (1,654) (115) (618)
Translation
differences * 611 (274) (340)
At 30 June/31
December 9,931 6,714 10,974
*non cash flow
Included in the above are loans amounting in aggregate to
A$11,266,195 (H1 2021:A$12,281,030; full year 2021: A$11,351,476)
which are secured by 2,842,667 shares in the capital of Sandfire
for both periods. The loans are repayable in full on the following
dates:
GBP'000
16 December 2022 4,040
8 May 2023 555
9 June 2023 568
10 July 2023 571
7 July 2023 85
8 December 2023 570
6,389
Also included in the amount owing is a loan amounting to
A$6,160,427 (H1 2021: Nil; full year 2021: A$9,000,000) which are
secured by a collateral agreement over 4,164,286 (H1 2021: Nil;
full year 2021: 4,714,286) shares in the capital of Sandfire
Resources Limited 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 Audited
Six months Year ended
Unaudited Six ended 31 December
months ended 30 30 June 2021 2021
June 2022 GBP'000 GBP'000 GBP'000
Non-current
liabilities -- Loans
and borrowings 1,225 6,666 2,242
Current Liabilities
-- Loans and
borrowings 8,706 48 8,732
9,931 6,714 10,974
11. 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 for the year (H1
2021: GBP43,000; full year 2021: GBP86,000).
12. POST PERIOD EVENTS
The Company announced on 4 August 2022 it has invested, subject
to Cobre shareholders approval, A$1,471,211 for 9,808,076 ordinary
shares in Cobre, thereby maintaining its pro-rata holding in Cobre
at approximately 21%.
The payment of the said investment is expected to be in early
September 2022, at approximately the same time as the receipt of
GBP750,000 from Cobre for the initial acquisition in KML.
Sandfire released its 30 June 2022 Annual Financial Statement
and updated its Motheo Copper project expansion DFS, on the 30
August 2022. The Company will work through the implications hereof
and if material will update the market as soon as practically
possible.
The carrying value of the active investments has increased
significantly since period end. The market value of the Sandfire
shares based on closing share prices as at 26 August 2022 is
GBP20.4 million and of Cobre GBP11.5 million, representing a
cumulative mark to market gain of GBP13.5 million for the two
holdings, since 30 June 2022.
13. DISTRIBUTION OF INTERIM REPORT AND REGISTERED OFFICE
A copy of Interim 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").
INDEPENDENT AUDITOR'S REVIEW REPORT TO METAL TIGER
On the interim financial information for the six months ended 30
June 2022
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half yearly report for the six
months ended 30 June 2022 which comprise the condensed consolidated
statement of financial position of Metal Tiger Plc as of 30 June
2022 and the related condensed statements of comprehensive income,
changes in equity and cash flows for the six months then ended and
the related notes 1 to 13.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half yearly financial report for the six months ended 30
June 2022 is not prepared in all material aspects, in accordance
with UK adopted International Accounting Standard 34 and the AIM
Rules for Companies.
Basis for Conclusion
We conducted our review in accordance with International
Standard on Review Engagement 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity". A review of interim financial information consists of
making inquiries, primarily or persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with UK adopted international
accounting standards. The condensed set of financial statements
included in this half yearly report has been prepared in accordance
with UK adopted International Accounting Standard 34 "Interim
Financial Reporting"
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
Conclusion section of this report, nothing has come to our
attention to suggest that management have inappropriately adopted
the going concern basis of accounting or that management have
identified material uncertainties relating to going concern that
are not appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance ISRE 2410 (UK), however future events or conditions may
cause the Group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly
financial report in accordance with UK adopted International
Accounting Standard 34 and the AiM Rules for Companies.
In preparing the half-yearly financial report, the directors are
responsible for assessing the Groups ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the company a conclusion on the condensed set of
financial statements in the half-yearly financial report. Our
conclusion, including our conclusion relating to going concern, are
based on procedures that are less extensive than audit procedures,
as described in the Basis for conclusion paragraph of this
report.
Use of our report
This report is made solely to the Company in accordance with
International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council. Our work
has been undertaken so that we might state to the Company those
matters we are required to state to it in an independent review
report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the
conclusions we have formed.
Crowe U.K. LLP
Statutory Auditor
London, United Kingdom
30 August 2022
View source version on businesswire.com:
https://www.businesswire.com/news/home/20220830006001/en/
CONTACT:
Metal Tiger plc
SOURCE: Metal Tiger plc
Copyright Business Wire 2022
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