African Pioneer plc
LSE : APPP

September 30, 2015 06:04 ET

Interim Financial Statements for the six months ended 30 June 2015

                                                            
                                                            
                                                            
30 September 2015
                                                            
                                                            
                                                   AFRICAN PIONEER PLC

                                          ("African Pioneer" or the "Company")

                           Interim Financial Statements for the six months ended 30 June 2015



CHAIRMAN'S REPORT

General stock market conditions for smaller resource companies remained very difficult during the six month period under
review.  Commodities prices across the spectrum have experienced major downward pressure and the larger mining companies
have suffered share price downgrades as earnings and dividend pay-out expectations have diminished.

During these prevailing conditions, the Board has elected to make modest investments in targets that should respond well
when the recovery in the sector finally gets underway.  There are signs of economic improvement around the world and  we
feel the "China effect" has been over overdone by the investment community.

Although we consider current resource sector conditions as being very "skewed", we believe that a stronger stock  market
should emerge later this year and we remain committed to enhancing shareholder value over the mid-term.

PORTFOLIO HOLDING AT 30 JUNE 2015


 INVESTMENT                  NUMBER OF SHARES                       COST                   VALUATION
 BHP Billiton Plc            1,800                                  22,709                 22,482
 ETFS Metal Securities       200                                    14,950                 13,218
 Freeport-McMoran Inc        2019                                   25,161                 23,962
 Gold Bullion Securities     194                                    14,451                 13,864
 Lonmin Plc                  14,300                                 25,056                 16,002
 Royal Dutch Shell Plc       1,180                                  25,411                 21,323
 South 32 Limited            1,800                                  2,002                  1,548
 Total                                                              129,740                112,399


The interim results have not been reviewed by the auditors of the Company.


Colin Bird
Chairman

The Company accepts responsibility for the contents of this announcement.

For further information please contact:

African Pioneer plc
Raju Samtani                                                    020 7581 4477

Peterhouse Corporate Finance Limited
Mark Anwyl and Guy Miller                                       020 7220 9796




Statement of Comprehensive Income
For the six months ended 30 June 2015

                                                                                                                           
                                                               Notes     Unaudited        Unaudited            Audited
                                                                      Period ended     Period ended      Year ended 31
                                                                           30 June          30 June           December 
                                                                              2015             2014              2014
                                                                                 £                £                 £
 Gain on sale of available for sale assets                                  10,983                -                  -
 Income:
    Interest receivable                                                         15               70                 70
    Investment income                                                        1,609                -                 -
 Total Income                                                               12,607               70                 70
 Administrative expenses                                                              
                                 
    Audit, accounting and legal fees                                       (7,880)           (11,700)          (21,300)
    Directors' fees                                                       (13,800)           (13,800)          (27,600)
    Management services                                                    (4,500)            (4,620)           (7,200)
    Other administration expenses                                            (253)              (216)             (858)
    Stock Exchange costs                                                  (10,934)            (8,467)          (21,779)
  Total administrative expenses                                           (24,760)           (38,733)          (78,667)
                                                                                                                          
  Impairment charge                                                        (9,508)                -                 -
                                                                                                                          
 LOSS BEFORE TAXATION                                                     (34,268)         (38,733)          (78,667)
                                                                                                                          
  Taxation                                                                      -                -                 -
                                                                                                                          
 NET LOSS FOR THE PERIOD                                                  (34,268)         (38,733)           (78,667)
                                                                                                                          
                                                                                                                          
 Other comprehensive Income

 Available-for-sale-financial assets unrealised loss                       (7,833)               -                 -

 Transfer to impairment                                                      9,508               -                 -

 TOTAL COMPREHENSIVE LOSS FOR THE PERIOD                                   (32,593)         (38,733)          (78,667)


 Basic losses per share                                         3          (0.030p)         (0.034p)          (0.070p)



All losses are derived from continuing operations.


Statement of Changes in Equity
For the six months ended 30 June 2015

                                                                Share      Retained         Revaluation         Total
                                                              capital      earnings            reserves        Equity
                                                                                                                          
                                                                   £             £                   £             £
                                                                                                                          
                                                             403,000      (79,538)                   -       323,462
 As at 31 December 2012
                                                                                                                          
Total comprehensive income for the period                                                                               
 Loss for the period                                               -      (35,845)                   -      (35,845)
 Total comprehensive loss for the period                           -      (35,845)                   -      (35,845)
                                                                                                                                                                                         
As at 30 June 2013                                           403,00     (115,383)                    -      287,617
Total comprehensive loss for the period                                                                                  
 Loss for the period                                              -      (45,422)                   -      (45,422)
 Total comprehensive loss for the period                          -      (45,422)                   -      (45,422)
                                                                                                                                                             
 As at 31 December 2013                                     403,000     (160,805)                   -       242,195
                                                                                                                   
 Total comprehensive loss for the period                                                                           
 Loss for the period                                              -      (38,733)                   -      (38,733)
 Total comprehensive loss for the period                          -      (38,733)                   -      (38,733)
                                                            403,000     (199,538)                   -       203,462
 As at 30 June 2014

 Total comprehensive loss for the period                                                                             
 Loss for the period                                              -      (39,934)                   -      (39,934)
 Total comprehensive loss for the period                          -      (39,934)                   -      (39,934)
                                                            403,000     (239,472)                   -       163,528
 As at 31 December 2014

 Total comprehensive loss for the period                                                                                  
 Loss for the period                                                     (34,268)                  -        (34,268)
 Revaluation of Available-for-sale investments                                 -               (7,833)      (7,833)

Issue of new ordinary shares                5                49,983            -                   -         49,983

                                                            452,983     (273,740)             (7,833)       171,410
 As at 30 June 2015






Statement of Financial Position
As at 30 June 2015

                                                   Notes       30 June 2015         30 June 2014      31 December 2014
                                                                          £                  £                       £
 
 NON CURRENT ASSETS                                                                                                      
 Available-for-sale investments                        4            112,399                    -                     -
                                                                                                                                                                                                                                                                                                                    112,399                    -                     -
 CURRENT ASSETS
 Trade and other receivables                                          5,850                6,590                  5,010
 Cash and cash equivalents                                          131,451              254,001                230,449
                                                                                                                           
                                                                    137,301              260,591                235,459
                                                                                                                           
 TOTAL ASSETS                                                       249,700              260,591                235,459
                                                                                                                         
 CURRENT LIABILITIES                                                                                                  
 Trade and other payables                                            78,290              57,129                  71,931
                                                                                                                         
 Total Current Liabilities                                           78,290              57,129                  71,931
                                                                                                                           
 NET ASSETS                                                         171,410             203,462                 163,528
                                                                                                                           
 
 EQUITY                                                                                                                    
 Share capital                                            5         452,983             403,000                403,000
 Retained earnings                                                 (239,472)           (160,805)              (160,805)
 Revaluation reserve                                                 (7,833)                  -                      -
 Profit and loss                                                    (34,268)           (38,733)                (78,667)
                                                                                                                           
 TOTAL EQUITY                                                        171,410            203,462                 163,528






Statement of Cash Flows
For the six months ended 30 June 2015

                                                                   Unaudited           Unaudited                Audited
                                                                   Period to           Period to                Year to
                                                                30 June 2015        30 June 2014       31 December 2014
                                                                           £                   £                      £
CASH FLOW FROM OPERATIONS                                                                                         
 (Loss) before taxation                                             (34,268)            (38,733)               (78,667)
 Adjustments for:                                                                                                          
 Income received                                                     (1,624)                 70                   (70)
 Operating (loss) before movements in working capital               (35,892)           (38,663)               (78,737)
 (Increase)/Decrease in receivables                                    (840)            (5,840)                (4,260)
 Increase/(Decrease) in payables                                      6,359              14,204                 29,006
                                                                                                                                 
  NET CASH OUTFLOW FROM OPERATING ACTIVITIES                        (30,373)            (30,299)               (53,991)
                                                                                                                                                                                    
TAXATION PAID                                                             -                   -                      -
                                                         
  CASH FLOW FROM INVESTING ACTIVITIES                                                                              
 Interest received                                                        15                  70                     70
 Dividends received                                                    1,609                   -                      -
 Purchase of available-for-sale-assets                              (175,400)                  -                      -
                                                                 
 Sale of available-for-sale-assets                                    56,643                   -                      -
                                                                           
 Gain on disposal of available for-sale-assets                       (10,983)                   -                      -
                                                                    
 Transfer to impairment                                                9,508                    -                      -
 NET CASH INFLOW FROM INVESTING ACTIVITIES                          (118,608)                   -                      -
                                                                                                                                 
 CASH FLOW FROM FINANCING ACTIVITIES
 Share Capital Issued                                                  49,983                   -                      -
                                                                                                                                 
 NET CASH INFLOW FROM FINANCING ACTIVITIES                             49,983                   -                      -
                                                                                                                                 
 Net decrease in cash and cash equivalents in the period              (98,998)            (30,369)          (53,921)
Cash and cash equivalents at the beginning of the period              230,449             284,370           284,370     
                                                                                                                          
                                                                  
                  
Cash and cash equivalents at the end of the period                    131,451             254,001           230,449


NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015

1.      REPORTING ENTITY

African Pioneer Plc is an investment company incorporated under the Companies Act 2006 of the Isle of  Man
on  20  July  2012  as  a Public Company limited by shares. The board approved these  statements  on  29th
September 2015.

The Company's objective is to achieve long term capital appreciation through direct or indirect investment
in  equity,  equity-related  and fixed income securities of private companies  operating  in  the  natural
resources sector.

All  significant functions are performed by the Company's agents. Accordingly, the Company itself  has  no
employees except its directors.


2.        ACCOUNTING POLICIES

Basis of preparation

The  financial  statements  have  been  prepared under the  historical  cost  convention  except  for  the
measurement  of certain non-current asset investments at fair value. The measurement bases  and  principal
accounting  policies  of the Company are set out below. The financial statements  have  been  prepared  in
accordance  with International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board (IASB) and endorsed by the European Union.

Going concern

These  financial statements have been prepared on a going concern basis because, after making  appropriate
enquiries,  the  management of the Company is of the opinion that the Company  can  continue  as  a  going
concern  in  the  foreseeable  future, and in any case, for the year from  the  date  of  issue  of  these
statements.

Valuation of available-for-sale Investments

Available-for-sale  investments are initially measured at fair value plus  incidental  acquisition  costs.
Subsequently, they are measured at fair value in accordance with IFRS 13. This is either the bid price  or
the last traded price, depending on the convention of the exchange on which the investment is quoted.

Gains and losses on available-for-sale investments are recognised in other comprehensive income except for
impairment  losses  and  foreign  exchange gains and losses on monetary items  denominated  in  a  foreign
currency,  until  the  assets are derecognised, at which time the cumulative gains and  losses  previously
recognised in other comprehensive income are recognised in profit or loss.

 At  period  end,  the Company assesses whether there is any objective evidence that a financial asset or group  of  financial
 assets  classified  as  available-for-sale  has  been impaired.  In assessing  impairments,  management  makes  a  number  of
 judgements, estimates and assumptions to compute the necessary impairment figures.  An impairment loss is recognised if there
 is  objective evidence that an event or events since initial recognition of the asset have adversely affected the  amount  or
 timing  of  future cash flows from the asset.  A significant or prolonged decline in the fair value of a security  below  its
 cost usually indicates that an investment needs to be impaired. A significant or prolonged decline is defined a reduction  in
 value of an available for sale investment equal or more than twenty percent compared to its cost.

 When  a  decline  in the fair value of a financial asset classified as available-for-sale has been previously  recognised  in
 other  comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss is reversed  from
 other comprehensive income and recognised in the profit and loss. The loss is measured as the difference between the cost  of
 the financial asset and its current fair value less any previous impairment.

When  available-for-sale  investments are sold, the difference between the  original  cost  and  the  sale
proceeds is recognised in the profit and loss.  Any revaluation amount on the assets that are disposed  is
reversed from the statement of other Comprehensive income.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015

Functional and presentational currency

The  presentation and functional currency of the Company is Sterling. There have been no foreign  currency
effects in the period.


3.      EARNINGS PER SHARE

                                                            30 June 2015        30 June 2014        31 December 2014
 Loss after tax for the purposes of earnings per                                                                    
 share attributable to equity shareholders                     £(34,268)           £(38,733)               £(78,667)
 Weighted average number of shares                           113,096,427         112,300,002             112,300,002
 Basic losses per ordinary share                                  0.030p              0.034p                 (0.07)p


The  use of the weighted average number of shares in issue in the period recognises the variations in  the
number  of  shares  throughout the period and is in accordance with IAS 33. The Company  issued  4,998,258
Ordinary  Shares  of  nil  par value at a price of 1p per share on 2 June 2015.  These  shares  have  been
included in the computation of the weighted average number of shares at 30 June 2015.

In  addition  to  the  above the Company has issued warrants which could result in an  additional  350,000
shares being issued. A diluted Earnings per Share calculation has not been presented because the inclusion
of these potential shares would slightly decrease the loss per share, and as such they are not dilutive.


4.      PORTFOLIO HOLDING AT 30 JUNE 2015


  INVESTMENT                  NUMBER OF SHARES                       COST                    VALUATION
  BHP Billiton Plc            1,800                                  22,709                  22,482
  ETFS Metal Securities       200                                    14,950                  13,218
  Freeport-McMoran Inc        2019                                   25,161                  23,962
  Gold Bullion Securities     194                                    14,451                  13,864
  Lonmin Plc                  14,300                                 25,056                  16,002
  Royal Dutch Shell Plc       1,180                                  25,411                  21,323
  South 32 Limited            1,800                                  2,002                   1,548
  Total                                                              129,740                 112,399
                                                                                                                                                                                              














NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2015

5.      CALLED UP SHARE CAPITAL

The  share  capital of African Pioneer Plc consists only of fully paid ordinary shares with no par  value.
All  shares are equally eligible to receive dividends and the repayment of capital and represent one  vote
at shareholders' meetings of the Company.


                                                                    2015                     Share
                                                                  Number                                Capital
  Authorised:                                                                                                  
  500,000,000 ordinary shares of no par value                500,000,000                       n/a
                                                                                                               
  
  Allotted, called-up and fully paid:
  Ordinary shares of no par value
  Shares in issue at 30 June 2014                            112,300,002                   403,000
  Shares in issue at 31 December 2014                        112,300,002                   403,000
Issued during the period                                                                4,998,258
Shares in issue at 30 June 2015                                 117,298,260              452,983

In  addition to the shares listed above the Company has issued warrants for the possible issue of  another
350,000 shares at £0.01 per share. These warrants are exercisable up to and including 5 November 2017.


5.      TAXATION

The  Company  is subject to Isle of Man income tax at 0%, has suffered no taxation in other jurisdictions,
and  has  no  capital  allowances or deferred tax implications. Accordingly the  directors  have  made  no
provision  for  taxation charges or liabilities and have not presented the formal reconciliation  required
under IAS 12.


6.      RELATED PARTY TRANSACTIONS

Cavendish  Trust Company Limited ("CTC") provides company administration and secretarial services  to  the
Company  on normal commercial terms as part of their normal business activity. As such it is not  normally
treated  as  a  related  party. Fees accrued to CTC include £1,800 relating to  director's  fees  for  the
services of J. Cunningham - Davis, a director of CTC. Additionally, CTC holds warrants for 150,000  shares
in the company.

Lion Mining Finance Limited, a company in which Colin Bird is director and shareholder, has provided
administrative and technical services to the Company amounting to £5,100 inclusive of VAT in the six months
ended 30 June 2015.

7.      CONTROLLING PARTY

As  disclosed in the Directors' Report, Tiger Resource Financing plc (a United Kingdom AIM listed company)
holds 50.76% of the shares in issue, and as such is the ultimate controlling party and immediate parent of
the company. Consolidated financial statements for the parent are available at www.tiger-rf.com.


8.      POST BALANCE SHEET EVENTS

The  directors  continue to search for suitable projects for the Company to invest  in  but  had  made  no
commitments by the date of the audit, nor were there any other events that required disclosure.

Contact Information

  • African Pioneer plc