REG - Mineral & Financial - Unaudited Quarterly Net Asset Value

Mineral & Financial InvestmentsAnnouncement

07/07/2023 09:45

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RNS Number : 3484F  Mineral & Financial Invest. Limited  07 July 2023

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Unaudited Quarterly Net Asset Value per Share was 22.5p (as @ 31 March 2023,
Q3-2023), up 14.9% year on year

 

Highlights

·    NAVPS (FD) was 22.5p as at 31 March 2023, an increase of 14.9% yr/yr

·    NAV at 31 March 2023, was up to £8,394,069 or up 20.9% yr/yr from
£6,940,482

·    Unaudited EPS (FD) was 2.20p for the 9 months to 31 March 2023

·    M&FI's total investable capital rose 21.8% to £8.71M; Working
Capital is strong at £8.53M, with over £2.0m of cash and no long term debt

·    M&F continues to outperform comparable yardsticks in a
challenging environment

Camana Bay, Cayman Islands - 7 July 2023 - 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 2023. At the end of the third
quarter, the NAV was £8,394,069 an increase of 20.9% from £6,940,482
achieved in the same period one year ago.The Net Asset Value Per Share (FD)
was 22.5p at the end of the Q3-2023 period, up 14.9% year on year. Unaudited
gross profit for the 9 months was £808,002 and the net profit was £838,065
with earnings per share of 2.20p fully diluted and 2.38p basic. The Company's
working capital at the period end was £8,535,569 1  (#_ftn1) .  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        2023 /    2023/ 2018

                                     2018         2019         2020         2021         2022         2023          2022        CAGR

                                                                                                                   % Ch.
 Net Asset Value (NAV)               £2,536,875   £4,832,434   £5,333,187   £6,011,884   £6,940,482   £8,394,069   20.9%        27.0%
 NAVPS 2  (#_ftn2) (FD)              7.2p         13.6p        15.1p        17.1p        19.6p        22.5p        14.9%        25.4%
 FTSE 350 Mining Index               17,259       20,000       13,373       21,911       10,926       10,161       -7.0%        -10.1%
 GS Commodity Index                  452.9        434.1        261.5        467.4        724.2        574.0        -20.7%       4.9%
 Baker Steel Natural Resource Trust  56.95        57.90        67.30        97.40        97.50        76.80        -21.2%       6.2%

 

M&F's year-on-year NAVPS (FD) growth of 14.8%, was lower than our average
5 year NAVPS growth of 25.4% (CAGR) since March 2018. The lower growth rate
on a per share FD basis is due to the issuance of management incentive options
and RSU's. The period was made more challenging by broadly rising interest
rates. During the 12 month period ending 31 March, 2023, US 10 year Treasury
yields were up to 3.47%, a 48.3% increase year on year. During this same
period many equity markets were weak, notably the the S&P 500 was down
9.3% on year on year. basis, this coupled with soft metal commodity pricing
made the period challenging for all in the sector.

 

PORTFOLIO COMPOSITION

(Table 2)

 INVESTMENT COMMODITY CLASSES  Q3-2023      Q3-2023  Q3-2022      Q3-2022

                               (£)          (%)      (£)          (%)
 Cash                          £2,060,653   23.7%    £90,204      1.3%
 Precious Metal                £3,899,904   44.8%    £3,564,886   49.8%
 Base Metals                   £1,768,681   20.3%    £3,004,643   42.0%
 Food, Energy & Tech           £922,756     10.6%    £404,790     5.7%
 Diamonds                      £59,208      0.7%     £88,811      1.2%
 Total Investable Capital      £8,711,203   100%     £7,153,334   100%

During this 12 month period ending 31 March 2023 precious metals held their
own, while base metals were generally weaker. The following is a selected
summary of metals performance during the  12 month period ended March 31,
2023:  Gold was up 1.55%; Silver was down 3.5%; Copper was down 14.4%; Nickel
was down 29.4%;  Zinc was down 29.9%.   s can be seen in Table 2 M&F is
cash rich and overweighted in precious metals. Our cash holdings increased due
to the receipt of a payment of US$2.5M in December 2022 from our partner
Ascendant Resources ("Ascendant") as part of the earn-in agreement on Redcorp
Empreedimentos Lda. ("Redcorp"), this increased Ascendant's ownership of
Redcorp to 50%.

 

The Company's reduced weighting in base metals is in part a conscious
positioning and amplified by the  reduced ownership of Redcorp. There has
been an anticipation of an upcoming economic slowdown. Most central banks are
increasing interest rates, in conjunction with the US Federal Reserve Board.
Increasing borrowing rates are an attempt to confront and curtail inflation.
Historically, increasing interest rates will have a slowing effect on economic
activity and overall valuations.

 

Our most recent significant strategic investment of 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 is not part of the
current NAV performance, as the investment was made after the end of the
current period under review. Luca shares, as at 5 July  2023 were trading at
C$0.51 per share. The Company also received shares from the spin-out of
Terrasun shares from Golden Sun Resources. Terrasun which holds 17 exploration
projects, several of which have historical resources, also owns owns a mill
and 6 drill rigs. The Company owns a little over 5% of Terrasun and internally
values this investment at £197,000.

 

 

 

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  (#_ftnref1) Current Assets of £8,741,442 less Current Liabilities of
£205,852 = Working Capital of £8,535,569

 2  (#_ftnref2) The NAV calculation is subject to audit and is made on the
basis that the Company has 35,465,395 shares. O/S (basic and 38,365,395 FD) in
issue.

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