Tiger Royalties and investments : Annual Report and Financial Statements for the year ended 31st December 2020

TIGER ROYALTIES

and INVESTMENTS PLC

(FORMERLY TIGER RESOURCE PLC)

ANNUAL REPORT and FINANCIAL STATEMENTS

for the year ended 31 December 2020

FINANCIAL STATEMENTS BUSINESS OVERVIEW

Contents

BUSINESS OVERVIEW

	Officers and Professional Advisers	2
	Chairman's Statement	3
	Portfolio Review	4
	Strategic Report	8
FINANCIAL STATEMENTS
	Report of the Directors	11
	Corporate Governance Statement	15
	Statement of Directors' Responsibilities	17
	Independent Auditors' Report	18
	Consolidated and Parent Company Statements of Comprehensive Income	22
	Consolidated Statement of Changes in Equity	23
	Parent Company Statements of Changes in Equity	24
	Consolidated and Parent Company Statements of Financial Position	25
	Consolidated and Parent Company Cash Flow Statements	26
	Notes to the Financial Statements	27

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Officers And Professional Advisers

DIRECTORS

C Bird (Chairman)

M H Nolan

1. Samtani A Borrelli

SECRETARY

R Samtani

REGISTERED OFFICE

7-8 Kendrick Mews

London

SW7 3HG

NOMINATED ADVISER

Beaumont Cornish Limited

Building 3

566 Chiswick High Road

London

W4 5YA

BROKER

Novum Securities Ltd

8-10 Grosvenor Gardens

London

SW1W 0DH

REGISTERED NUMBER

02882601

AUDITORS

Shipleys LLP

10 Orange Street

Haymarket

London

WC2H 7DQ

BANKERS

Allied Irish Bank Plc

10 Berkeley Square

London

W1J 6AA

SOLICITORS

Fladgate LLP

16 Great Queen Street

London

WC2B 5DG

REGISTRARS

Computershare Investor Services (Ireland) Limited

3100 Lake Drive

Citywest Business Campus

Dublin 24

D24 AK82

Ireland

WEBSITE

www.tiger-rf.com

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TIGER ROYALTIES and INVESTMENTS plc  Annual Report 2020

Chairman's Statement

BUSINESS OVERVIEW

Dear Shareholder,

The year under review has seen Tiger's net asset value per share ("NAV") decrease by 26% to 0.23p from 0.31p as at 31 December 2019. Although natural resource markets recovered during the second half of 2020, the decrease in NAV has resulted in the main due to additional shares being issued in September 2020 to recapitalise the Company. We are pleased to report that the portfolio has performed better this year with most of the investments in the portfolio showing an appreciation in value over the period, year to date.

The year under review, 2020, has been clouded by the tragic Covid-19 pandemic and our routines of international travel and face to face meetings came to a standstill. Conversely, during this period of austerity and uncertainty, the fortunes of commodity markets improved dramatically and at the time of writing of this Report, the improved sentiment has continued.

There has been much talk of the shape of the recovery curve and the bulls and bears both captured investors' attention during the period under review with their widely differing outlooks. These forecasts have generally been extreme and often without foundation or firm analysis. It is surprising to note, that at the time of writing this Report, forecasts are being made for a global recovery with associated growth rates generally in excess of anything previously seen. It is indeed sobering to recognise what the real economy represents when one sees the decimation of the hotel, travel and hospitality sectors and its lack of overall impact on the real recovery. However, these sectors can only add stimulus to the recovery when activity in these areas of the economy resumes back to pre-pandemic levels.

Moving to issues specific to our own industry, most commodities have experienced significant price increases since the start of the pandemic. The star of the show has been copper, which at the start of the pandemic was priced at US$5,400 per tonne and at the time of writing this Report has reached a price of US$10,400 per tonne. The forecast demand for copper in 2030 is double that of 2020 whilst the supply side is looking less achievable. Chile supplies 37% of the world's copper and the country is suffering immense social unrest, directed taxation increases and technical threats in its ability to support the expected surge in demand for the metal. These threats include falling grades of copper, deep and expensive to operate open pits mines with similar issues being experienced with underground mining operations. Chile is no longer the location of choice for global investment when considering the deployment of exploration capital with the preferred countries now being Australia, USA, Canada and other emerging copper belts, with Botswana having outstanding prospectivity in the Kalahari Copper Belt.

The forecast for the doubling in demand for copper was made around 2018 and did not fully take into account the astonishing impetus for electric vehicles (EVs). The economic emergence of developing countries has added to the global determination to slowdown climate change and this factor will also trigger a huge increase in the demand for copper. These issues have been compounded by President Joe Biden's plan to renew infrastructure in the USA, where such investment appears to have been on hold for some 20 years and now a pressing need to build new as well as refurbish existing infrastructure alongside embracing the challenges to respond to climate change. We believe that the next surge in commodity

demand will be in metals and minerals which are used in the storage of energy and as such we also feel very positive on future prices for nickel, vanadium, manganese, cobalt and lithium.

Commodity industry analysts are referring to a commodity super cycle and I personally challenge the use of the word "cycle" in this context. This is on the basis that a cycle suggests that underlying economics have changed and that these commodities are now back in favour. My prognosis is that we are experiencing a fundamental shift in the demand for many metals, specifically for those listed above and particularly in the case of copper. The underlying demand being driven by technological and humanistic fundamentals which have not been seen since the age of the Industrial Revolution - all of this at a time of great challenges posed by the pandemic.

Tiger's investment portfolio is made up of companies which have exposure to these commodities and the planned public listing of our subsidiary company, African Pioneer Plc, will further add our exposure to investment in copper. We are approaching the time, when major mining companies will need to acquire proven resources to improve their metal inventories and it is likely that some junior explorers will deliver excellent returns for their shareholders.

We are also of the opinion, that the extinction of the "small miner" and the reduction in the number of single project mining companies will be reversed, since the process of developing a large copper mine from commencement of exploration to first copper production can take up to 12 years and in any case is never less than 8 years given the time required for systematic exploration, permitting, financing and site construction. The sheer demand for copper and other

FINANCIAL STATEMENTS

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TIGER ROYALTIES and INVESTMENTS plc  Annual Report 2020

Chairman's Statement

selected base metals requires that all facets of production are in place from small high-grade operations to huge tonnage, low grade, ventures. We intend to add to our portfolio and gain more exposure to these targeted EV and energy storage metals and look forward to earning superior returns for our investors, an outcome that they have patiently waited for.

We remain committed to proactive investment and we believe that the day of the small miner and explorer has re- emerged and that Tiger's investors will

benefit from the changing dynamics in the industry. I would like to thank my fellow directors for their dedication and application towards our objectives and sincerely thank our shareholders for their support over the years. We look forward to success arising from the emergence of EVs and the climate change revolution which will no doubt result in a rapidly changing and very different commodity and investment environment.

Colin Bird - Executive Chairman 24 May 2021

Portfolio Review

The table below includes available-for-sale investments only. Other investments held by the Group are disclosed in note 7 to the financial statements.

		Number	Cost	Valuation	Valuation	Valuation
		31/12/20	31/12/20	31/12/20	31/12/19	31/03/21
INVESTMENTS:		£	£	£	£
Kendrick Resources Plc	2,500,000	50,217	-	-
	Bezant Resources Plc	55,555,556	250,435	138,889	111,111	176,128
	Barkby Group Plc
(previously - Sovereign Mines of Africa Plc)	-	-	-	5,909	-
	Block Energy Plc	625,000	25,100	20,312	28,125	15,625
	Caerus Mineral Resources Plc	1,000,000	-	-	-	126,000
	Corallian Energy Limited	20,000	30,000	30,000	30,000	30,000
	ETFS Copper	760	12,896	17,497	34,436	19,624
	Galileo Resources Plc	6,516,667	78,335	107,525	32,583	86,020
	Goldquest Mining Corporation	173,500	30,259	28,142	14,392	26,511
	Jubilee Metals Group Plc	1,169,600	100,219	149,124	45,614	174,037
	Pantheon Resources	31,500	30,340	13,702	5,197	11,246
	Australgold (formerly Revelo Resources Corp)	21,263	62,965	-	637	-
	Royal Dutch Shell Plc B Shares	2,700	73,234	34,004	60,466	36,045
	TOTAL FOR THE PARENT COMPANY		744,000	539,195	368,470	701,236

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TIGER ROYALTIES and INVESTMENTS plc  Annual Report 2020