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RNS Number : 2277S Mineral & Financial Invest. Limited 13 June 2024
MINERAL AND FINANCIAL INVESTMENTS LIMITED
Unaudited Quarterly Net Asset Value was £10,113,872 as at 31 March 2024, an
Increase of 20.5% year on year.
HIGHLIGHTS
· NAV (31/3/2024) was up to £10,113,872 or up 20.5% yr/yr from
£8,394,069
· NAVPS(3) (FD) was 26.0p as at 31 March 2024, an increase of 15.6%
yr/yr
· Unaudited EPS(3) (FD) was 1.85p for the 9 months to 31 March 2024
· M&FI's total investable capital 1 rose 20.3% to £10.5M
· Working capital(2) is strong at £10.2M, with no long term debt
· M&F continues to outperform comparable yardsticks in a
challenging environment
Camana Bay, Cayman Islands - 13 June 2024 - Mineral and Financial Investments
Limited (LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") is pleased to
provide an unaudited quarterly update of its financial performance and its Net
Asset Value for the quarter ending 31 March 2024. At the end of the third
quarter, the NAV was £10,113,872, an increase of 20.5% from £8,394,069
achieved in the same period one year ago (see table 1). The Net Asset Value
Per Share (FD) was 26.0p at the end of the Q3-2024 period, up 15.6% year on
year. Unaudited gross profit for the 9 months ended 31 March 2024 was
£1,147,937 and the unaudited net profit was £678,545 with earnings per share
of 1.72p fully diluted and 1.85p basic. The Company's working capital at the
period end was £10,238,872 2 .
The following is a summary of the NAV, updated to include this unaudited NAV
calculation:
SUMMARY OF HISTORICAL PERFORMANCE
(Table 1)
31 March 31 March 31 March 31 March 31 March 31 March 2024/ '24/ '19 5 Yr
2019 2020 2021 2022 2023 2024 2023 CAGR
% Ch.
Net Asset Value (NAV) £4,832,434 £5,333,187 £6,011,884 £6,940,482 £8,394,069 £10,113,872 20.5% 15.9%
NAVPS 3 (FD) 13.6p 15.1p 17.1p 19.6p 22.5p 26.0p 15.6% 13.8%
FTSE 350 Mining Index 20,000 13,373 21,911 10,926 10,161 9,415 (7.3%) (14.0%)
GS Commodity Index 434.1 261.5 467.4 724.2 574.0 582.5 1.5% 6.1%
Baker Steel Natural Resource Trust 57.9p 67.3p 97.4p 97.5p 76.8p 76.6p (0.3%) 5.8%
M&F's year-on-year NAVPS (FD) growth of 15.6%, was lower than NAV growth
due to the issuance of some equity when our shares were trading near our Net
Asset Value last year increasing the number of shares outstanding. Our
earnings have nearly doubled since 31 March 2019, resulting in an average 5
year Compound Annual Growth Rate ("CAGR") of 13.8% in this period. The
quarter was challenging which we believe is due to cost inflation and interest
rises keeping the profitability of the mining sector under pressure and
valuation levels in check. Commodity prices have risen in part because of
continued global positive economic growth, but also in our opinion, because
inflation has increased break-even costs for most resource businesses.
PORTFOLIO COMPOSITION
(Table 2)
INVESTMENT COMMODITY CLASSES Q3-2024 Q3-2024 Q3-2023 Q3-2023
(£) (%) (£) (%)
Cash 122,636 1.2% 2,060,653 23.7%
Precious Metals & Gems 4,342,631 41.5% 3,959,112 45.4%
Base Metals 4,898,956 46.8% 1,768,681 20.3%
Food, Energy & Tech 1,111,924 10.6% 922,756 10.6%
Total Investable Capital 10,476,147 100% 8,711,203 100%
In our view, the sector requires higher commodity prices to break even.
During the 12 month period ending 31 March 2024, US 10 year Treasury yields
were 4.35% up from 3.47%, a 25.4% increase year on year. During this same
period, the S&P 500 rose 26.7%, while many other equity markets were weak,
notably the Chinese CSI 300 and the Hong King Hang Seng indices.
During this 9 month period ending 31 March 2024, precious metals have held
their own, gold rising 13.7% and silver increasing by 4.1%. Base metals
however, tell a different tale. Nickel, was the worse performer, down 28.8%
Yr/Yr, while copper was down only 2.5%. Uranium was the star of the sector,
rising 71.4%. Lithium peaked at CNY600,000/t in November 2022, and now sits
around CNY100,000/t. We have not participated in Lithium, other than a small
investment in Azimut Exploration. We are re-evaluating our investment position
on Lithium,
Our cash holdings decreased as we chose to invest in gold bullion rather than
hold cash. As at the end of Q3 2024, we held 400 oz of gold, and have since
increased our holding to 500 oz. as an alternative to holding cash.
The Company's increased weighting in base metals is in part a conscious
positioning and amplified by the increased valuation of our Redcorp holding
and our investment in Luca Mining which is a Copper, gold Zinc and Silver
producer. Our most recent strategic investment in 5.7 million shares of Luca
Mining was made in the first week of April 2023 at C$0.35 for a unit composed
of 1 share and ½ warrant exerciseable at C$0.50. Luca, not part of our NAV a
year ago, is now part of this quarter NAV performance. Luca recently announced
an operating and net profit for their Q1-2024 period. Our investment was made
on the basis of a re-capitalization of the business, that Campo Morado would
improve its operating efficiency and that Tahuehueto would increase its
throughput from 350 Tonnes per Day ("TPD") to 1,000 TPD. Luca has been
re-capitalized, Campo Morado is experiencing the first evidence of improved
efficiency and we believe Tahuehueto should reach 1,000 TPD beginning in July
2024. If that is achieved, we expect it to have a meaningful impact on
Luca's financial performance.
FOR MORE INFORMATION:
Jacques Vaillancourt, Mineral & Financial Investments Ltd.
+44 780 226 8247
Katy Mitchell and Sarah Mather, WH Ireland Limited
+44 207 220 1666
Jon Belliss, Novum Securities Limited
+44 207 382 8300
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service (RIS), this inside information
is now considered to be in the public domain.
1 Investment Portfolio and Cash and equivalents (Q3-2024 £10,353,511 +
£122.636 = £10,476,147)
2 Current Assets of £10,491,207 less Current Liabilities of £252,335 =
Working Capital of £10,238,872
3 The NAV calculation is subject to audit and is made on the basis that the
Company has 37,105,871 shares. O/S (basic and 39,805,871 FD) in issue.
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