REG - Mineral & Financial - Interim Results
18/03/2026 07:00
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RNS Number : 0386X Mineral & Financial Invest. Limited 18 March 2026
Mineral & Financial Investments Limited
Unaudited Results for the six months ended 31 December 2025
HIGHLIGHTS:
· H1-2026 NAV(1) was £16,423,000 up from £12,692,000 a 29.5% year on
year increase
· Net Asset Value(1) p/s ("NAVPS") on 31 Dec. 2025 was 39.3p, up 22.1%,
from 32.2p (yr/yr)
· Investable Capital was £16,903,000 (Dec 31, 2025) vs £13,114,000
(Dec 31. 2024) up 28.9% yr/yr
· Net Earnings 1 (#_ftn1) for H1-2026 were £2,597,000 vs. H1-2025 Net
Earnings £1,247,000, up 108.2%
· EPS(1) for the 6 months ending Dec 31, 2025, were 6.1p vs 3.1p, an
increase of 96.8% (Yr/Yr)
· The 10-year Compound Annual Growth Rate for NAV(1) was +33.6% and for
NAVPS +19.8%
George Town, Grand Cayman Islands, 18 March 2026 - Mineral and Financial
Investments Limited (LSE-AIM: MAFL) ("M&F" or the "Company") is very
pleased to announce its unaudited interim results for the six months ended 31
December 2025 ("H1-2026"). The Company generated a H1-2026 Gross Profit of
£2,980,000, an operating profit of £2,641,000 resulting in an after-tax
profit of £2,597,000 (unaudited). This compares with H1-2025 Gross Profits of
£1,551,000 an operating profit of £1,262,000 resulting in an after-tax
profit of £1,247,000. Fully diluted earnings per share ("EPS-FD") were 6.1p
per share, this compares with H1-2025 EPS-FD of 3.1p, an increase of 96.8%
The NAVPS as at 31 December 2025 was 39.3p an increase of 22.1% from the
previous year's NAVPS for the same period of 32.2p. Working capital as of 31
December 2024 was £16,648,000 2 (#_ftn2) . The Net Asset Value (basic) has
grown at an average of rate of 33.6% per year on a compounded basis since 31
December 2015 (10 years).
M&F NAVPS vs. Comparable Benchmarks
Indexed Performance (Dec 31, 2016 = 1.00)
(Fig. 1)
CHIEF EXECUTIVE'S STATEMENT:
Our NAV growth Year on Year was 29.4% for the H1-2026 period. In the past we
would state our performance was "in spite" of a volatile economic backdrop.
Our performance is currently, in part, due to the current global political and
economic instability. We ended the period with Investable Capital ("IC") of
£16,903,000, an increase of 28.9% for the IC of as of December 31, 2025. The
Company ended the first half of the year with a cash position of £1,007,000
as profits were taken by the Tactical Portfolio in precious metal investments.
The NAV per share results did not keep pace with the NAV growth due to the
increase in the number of fully diluted shares due to the granting of
long-term equity incentives to members of the board and management.
As of 31 December 2025, US 10 Yr. Treasury yields 3 (#_ftn3) had declined
slightly to 4.17% (-8.7% Yr./Yr.), during the same period, 10 yr. government
yields in Canada, most of Europe, Australia, South Korea and India rose. In
the face of generally rising yields, most major equity markets performed
positively. The S&P 500(3) rose 16.4%, the CSI 300 Equity Index(3)
(Shanghai) was up 17.7%, the Euro-Stoxx(3) index was up 18.3%, and the FTSE
100(3) was up an impressive 21.4% in the period. The leading equity index
performer in the period was the Nikkei 225 rising 26.2%, a spectacular anomaly
as its 10-year government bond yields were up 91.6%, to 2.05%. The Japanese
rate rise has constricted the Yen-US Treasury carry-trade (i.e. borrow in
Japan and buy US treasuries). The probable result has been more Japanese
capital available for equity investments despite a rising interest rate
environment.
M&F - Financial Performance Summary vs Comparable Yardsticks
(Fig.2)
H1 H1 H1 H1 H1 H1 H1'26/ 5 Yr.
31/12/20 31/12/21 31/12/22 31/12/23 31/12/24 31/12/25 H1'25 CAGR
% Ch.
Net Asset Value ("NAV") (,000) £5,681 £6,580 £8,214 £10,020 £12,692 £16,423 29.5% 23.7%
Net Asset Value Per Share (FD) 16.11p 18.62p 22.03p 25.8p 32.2p 39.3p 22.1% 19.6%
FTSE 350 Mining Index 21,699 16,679 11,154 9,904 10,161 34,525 239.8% 9.7%
Goldman Sachs Commodity Index 409.46 561.18 610.07 535.64 549.64 548.5 -0.2% 6.0%
The US Dollar as measured by the DXY Index(3) (Trade weighted measure of the
USD) was down 9.4% during the 12-month period ending December 31, 2025. A
rising USD will, all things being equal, result in lower US dollar denominated
commodity prices, and conversely a declining USD will generally result in
higher USD commodity prices. During the 12-month period, Uranium(3) was up
7.0%; Gold(3) was up 42.6%; Silver(3) was up 147.5%; Copper(3) was up +2.2%;
Platinum(3) was up 147.5%; Palladium(3) was up 7.2%; Rhodium(3) was up96.7%;
Nickel(3) was up 9.85.4%; Aluminium(3) was up17.9%; Zinc(3) was up 3.9%; and
Lead(3) was up 2.1%. Oil prices were down Yr./Yr., WTI(3) declined 19.9% while
Henry Hub natural gas(3) prices were flat, declining 0.8% to $3.60/mcf. The
USA is, exceptionally, experiencing declining rates despite sticky inflation,
unclear economic growth, and the imposition of trade tariffs that are
frequently subsequently changed by the US President. Equity markets are being
aided by the benign interest environment. It should be noted that, adjusting
for the decline in in the USD, US Equity markets' performance was amongst the
lowest (+7.0%) amongst major global equity markets.
The following is a summary of the Company's Commodity Allocation H1-2026 vs.
H1-2025:
Portfolio Allocation by Commodity Grouping
(Fig. 3)
(£'000) H1-2026 H1-2025 Yr/Yr H1-'26 As
Ch. (%) % of Total
Cash £1,007.1 £500.6 101.2% 6.0%
Precious Minerals £8,870.4 £7,554.0 17.4% 52.5%
Base Metals £5,319.0 £3,908.6 36.1% 31.5%
Tech., Energy & Services £905.9 £1,150.6 -21.3% 5.4%
Royalties £800.5 - - 4.7%
Total Investable Capital £16,902.9 £13,113.8 28.9% 100.0%
M&F's investable funds of £16,903,000 as at the end of H1-2026, showed an
increase of 28.9% Yr./Yr. Our cash levels are at 6.0% of "Investable
Capital 4 (#_ftn4) ". This cash holding is approaching our target level of
10% of investable capital. We believe that liquidity provides us with a more
flexibility when considering investment opportunities. Therefore, as a
necessary offset to this level of liquidity, M&F must generate above
average returns from our Tactical Portfolio. It should be noted that our cash
position is somewhat understated, as we hold 1,210 oz of gold, via Deferred
Gold Delivery Contracts ("DGDC"). If we include DGDC as part of our cash
position, we are well within our targeted liquidity levels. These contracts
represent 18.1% of our Investable Capital. If the DGDC's are included as part
of our cash position, our cash holdings, marked to market values, would be
£4.1M, or 24.1% of our Investable Capital.
Our increased exposure to physical metals (Silver, Rhodium, and after the
period end Copper) reflects our belief that continued inflationary pressures,
permitting and construction delays, increased cost of capital (i.e. interest
rates), declining mined grades for most metal commodities, diminished
frequency of large-scale discoveries and an uncertain economic framework could
result in equity valuation pressure in 2026, especially those with projects
exposed to development risks. We believe that physical commodities should
provide better risk adjusted returns than the underlying equities. We
understand that the production cost break-even levels have risen for virtually
all mineral commodities. We consider that the decline of the USD during the
period in part due to the decline in US rates. The second half of calendar
2025 was defined by economic and trade policy uncertainty. Since the 2025
calendar year end, there has been some rise to the DXY (US dollar index) due
to "safe harbour" investors seeking safety in US dollar denominated
investments.
We provided the Deferred Gold Delivery Contracts as a bridge financing vehicle
for Golden Sun Resources ("GSR"). The DGDC were made on attractive business
terms for M&F shareholders. The purpose was to fund some capital
shortfalls in the ramp-up of the 450/500tpd processing facility at the
Bellavista Mine. The operations have been generating positive cash flow. The
purchase price for the gold via these deferred gold contracts is US$1,750
/oz., with a minimum floor price of US$2,050/ oz price (e.g. if the gold price
declined to $1,700/oz, we would receive US$2,050/oz). The contracts have
6-month terms. These bridge loans can be satisfied by either physical delivery
of the gold at the mine gate, or the financial equivalent. After 6 months they
lock in at the prevailing spot price and thereafter accrue at 20%, calculated
quarterly, per annum. The first deferred gold loans are secured by 66% of the
shares of Compańia Agro Parque S.A. ("Agro Parque"). Agro Parque's principal
asset is 220 Hectares (544 Acres) of land in Costa Rica, overlooking the
Pacific Ocean, with various possible commercial applications. Additionally, in
later rounds we received 1,449,441 warrants with a 5-year term to acquire
Golden Sun Shares at US $0.75.
Portfolio Allocation by Portfolio Category
(Fig. 4)
(£'000) H1-2026 H1-2025 % Change H1-2025 as % of Total IC 5 (#_ftn5)
Cash £1,007.1 £500.6 101.2% 6.0%
Tactical Portfolio £6,700.8 £4,224.9 58.6% 39.6%
Strategic Portfolio £9,195.0 £8,388.3 9.6% 54.4%
Total Investable Capital £16,902.9 £13,113.8 28.9% 100.0%
Tactical Portfolio:
The purpose of the Tactical Portfolio ("TP") is to protect our performance by
generating "excess returns" to offset our cash holdings and by positioning
itself to hedge, if deemed appropriate, against market circumstance that would
negatively affect our Strategic Portfolio. Additionally, the TP must allow
M&F the financial flexibility to take advantage of short-term
opportunities across asset classes, when attractive and appropriate. During
the H1-2026 period the TP increased by 58.6% to £6.7M and now represents
nearly 40% of the total Investable Capital The weighting of the TP should be
considered in conjunction with our cash holdings. The collective holding of
cash and the TP is 45.6% of Investable Capital.
The TP increased by 58.6% Yr./Yr. compared to H1-2025. This TP performance
fulfils its purpose of generating "excess returns" to compensate for our
increased cash holdings. We are also beginning to increase our exposure to the
non-precious metal investments, notably copper producers: AIC Mines Ltd, a
small, but high grade producer in Queensland Australia, Capstone Copper, a
copper producer with assets in the USA, Mexico and Chile, producing 184,460
tonnes of copper in 2024; ERO Copper Corp, a Brazil focused copper and gold
producer; Azimut Exploration a gold, antimony and lithium exploration
development company located in Canada; Farraday Copper Corp, a Canadian
developing multiple copper deposits in the USA; HudBay Minerals, a copper
producer with assets located in Peru and Canada; McEwen Mining a north
American gold producer with a large and highly prospective copper development
project in Argentina (Los Azules); NGEx Minerals also with a large copper
deposit (Vicuña) Argentina which it is developing with its partner BHP and
two other world-class projects (Lunahuasi in Argentina and Los Helados in
Chile) which are also of world class standard.
As at 31 December 2025 the Company held tactical holdings in 17 investments:
AIC Mines; Azimut Exploration; Agnico Eagle Mines; Capstone Copper; ERO
Copper; Farraday Copper; Hudbay Minerals; McEwen Mining; Newmont Corporation;
NexMetals Mining; NGEx Minerals; Orla Mining; Rio Tinto, db Physical Rhodium;
SantaCruz Silver; Sprott Physical Silver Trust, and Vior Gold.
Strategic Portfolio:
The Strategic Portfolio holds investments which are longer term in nature and
which we believe had unique investment characteristics at the time we
invested. These longer-term investments require M&F to assess the four
keystone foundations to a successful investment in the natural resource
sectors: 1. Geological Assets, 2. Jurisdiction, 3. Governance and Management;
and 4. Financial capability. Geology and jurisdiction are fixed or at least
very slow to change, however, we can assist in the improvement of items 3 and
4 on our list of investment keystones. As such, we are constantly reviewing
potential investments filtering through the many underfunded projects left
struggling, we believe, by 10 years of sector neglect, underfunding. There are
also systemic funding flaws (ETF's and large specialized mutual funds that
grow and shrink with performance history) which magnify and elongate cycles.
We believe that we are exiting a period of prolonged underperformance.
Historically, our Strategic Portfolio has been our best performing portfolio.
However, lately its performance has moderated to +9.6% yr/yr., mostly due to
FX moves. We noted in our latest Annual Report, 54% of our Investable Capital,
or 60% if you include our cash holdings are included, have been nearly static.
This modest performance is due to the technical reality that these investee
companies are often valued based on the most recent financing price and given
the absence of financings the valuations have remained relatively stable.
Therefore, the Strategic Portfolio has not materially contributed to our
performance, despite relatively strong share price performance from similar
listed companies. This is consistent with our conservative valuation policy.
Redcorp and Cerrado had been impacted by a period of political uncertainty in
Portugal. The project has been granted the status of Project of National
Interest ("PIN"), which gives us confidence that this will ultimately be
resolved. M&F values our investment on the lower value of the Put on the
5% carried interest in the project, not the 20% carried interest we currently
hold, subject to EDM's decision to exercise its option on 15% working interest
of the Project.
Ideon Technologies is continuing to expand its business and revenue base. Its
acceptance as a useful exploration and development technology for the mining
industry has been very good. Ideon has been expanding its client list,
expanding its order book backlog and generating. Additionally, Ideon has also
benefited from some government sponsored research grants. To date it has
broadly been self-sufficient. Gemdale Gold has listed on the TSX-V, after
accessing recent tranche of funding at our entry point of C$1.00 per share.
Gemdale announced that Eldorado Gold Gold (Mkt Cap: C$10.2B) acquired 9.9%
stake in Gemdale. Gemdale recently reached a high of C$2.24/shar, and is
currently trading at C$1.90/sh.
Golden Sun Resources (GSR) is currently generating positive monthly cash flow
of US$2.0M to US$3.0M and has about US$4.0M in cash. This has been achieved
from the 450tpd milling facilities. Thickeners have been ordered and should be
available by mid 2026. This will reduce the moisture in the leached pulp and
result in improved performance from the filter presses (which remove the
moisture). Additionally, the filter press capacity will be increased with
additional filter plates being added. The ball mill had an unusual bearing
failure in December 2025 that took it out of service for nearly 4 weeks. The
Mine has taken out business interruption insurance. The mill has been
operating above budget since it has come back on-line. Tunnelling work has
begun to reach the underground San Lorenzo ore body. It should be reached by
mid-2026. Already some underground ore is being blended into the ore fed to
the mill. The current plan expects production to exit the year at a rate of c.
25,000 oz per year, although this cannot be guaranteed. GSR Strategic Review
is ongoing, it has received several investment proposals that are being
considered. The objective is to maximize the value for GSR investors over the
next 12 to 18 months.
The directors look forward to providing shareholders with an update on
investments in due course.
On behalf of the Board
Mark T. Brown, CA
CPA
Jacques Vaillancourt, CFA
Chairman
President, CEO
FOR MORE INFORMATION:
Jacques Vaillancourt, Mineral & Financial Investments
Ltd. +44 780 724 6247
Katy Mitchell, Zeus Capital
+44 203 829
5000
Jon Belliss, Novum Securities
Limited
+44 207 399 9400
Statement of Comprehensive Income
for the 6 months ended 31 December 2025
UNAUDITED UNAUDITED AUDITED
6 months to 6 months to 12 months to
31 December 31 December 30 June
2025 2024 2025
Note £'000 £'000 £'000
Continuing operations:
Investment income 10 4 54
Net gains on investments 2,970 1,551 2,845
Total income 2,980 1,555 2,899
Operating expenses (280) (256) (578)
Share based payment expense (100) - -
Other gains and losses 41 (37) (110)
Profit before taxation 2,641 1,262 2,211
Taxation expense (44) (15) (38)
Profit for the period attributable to owners of the Company 2,597 1,247 2,173
Earnings per share attributable to owners of the Company during the period 3
pence pence pence
Basic: 6.9 3.4 5.8
Diluted: 6.1 3.1 5.4
Statement of Financial Position
as at 31 December 2025
UNAUDITED UNAUDITED AUDITED
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
FIXED ASSETS
Financial assets 4,358 3,551 3,887
CURRENT ASSETS
Financial assets 11,537 9,062 9,995
Trade and other receivables 39 11 57
Cash and cash equivalents 1,007 501 209
12,583 9,574 10,261
CURRENT LIABILITIES
Trade and other payables 283 255 272
Convertible unsecured loan notes 10 10 10
293 265 282
NET CURRENT ASSETS 12,290 12,870 9,979
NON-CURRENT LIABILITIES
Deferred tax provision (225) (168) (187)
NET ASSETS 16,423 12,692 13,679
EQUITY
Share capital 3,124 3,116 3,121
Share premium 6,303 6,203 6,259
Loan note equity reserve 6 6 6
Reserve for employee share option schemes 301 222 201
Other reserves 15,736 15,736 15,736
Retained earnings (9,047) (12,591) (11,644)
SHAREHOLDERS' EQUITY 16,423 12,692 13,679
Statement of Changes in equity
for the 6 months ended 31 December 2025
Share Share Loan note Reserve for Other reserves Accumulated Total
capital premium reserve Employee losses equity
Share schemes
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30 June 2024 3,116 6,203 6 222 15,736 (13,838) 11,445
Profit for the 6 months to - - - - - 1,247 1,247
31 December 2024
At 31 December 2024 3,116 6,203 6 222 15,736 (12,591) 12,692
Profit for the 6 months to - - - - - 926 926
30 June 2025
Exercise of share options 5 56 - (21) - 21 61
At 30 June 2025 3,121 6,259 6 201 15,736 (11,644) 13,679
Profit for the 6 months to - - - - - 2,597 2,597
31 December 2025
Share based payment expense - - - 100 - - 100
Exercise of share options 3 44 - - - - 47
At 31 December 2025 3,124 6,303 6 301 15,736 (9,047) 16,423
Statement of Cash flows
for the 6 months ended 31 December 2025
UNAUDITED UNAUDITED AUDITED
6 months to 6 months to 12 months to
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
OPERATING ACTIVITIES
Profit before taxation 2,641 1,262 2,211
Adjustments for:
Net gains on investments (2,970) (1,551) (2,845)
Investment income (10) (4) (54)
Share based payment expense 100 - -
Tax paid (6) - (4)
Operating cashflow before working capital changes (245) (293) (692)
Decrease in trade and other receivables 18 8 (38)
Increase in trade and other payables 421 61 77
Net cash inflow/(outflow) from operating activities 194 (224) (653)
INVESTING ACTIVITIES
Purchase of financial assets (1,628) (1,738) (4,622)
Disposal of financial assets 2,175 2,318 5,228
Investment income 10 4 54
Net cash inflow from investing activities 557 584 660
FINANCING ACTIVITIES
Proceeds of share issues 47 - 61
Net cash inflow from financing activities 47 - 61
Net increase in cash and cash equivalents 798 360 68
Cash and cash equivalents at start of period 209 141 141
Cash and cash equivalents at end of period 1,007 501 209
Notes to the unaudited interim statement
for the 6 months ended 31 December 2025
1. General information
The Company is a limited company quoted on AIM, a market of the London Stock
Exchange, and is registered in the Cayman Islands.
The address of its registered office is 190 Elgin Avenue, Georgetown, Grand
Cayman, KY1-9001, Cayman Islands. The financial statements are presented
in Pounds Sterling which is the Company's functional and presentational
currency.
2. Basis of preparation
The interim financial statements of Mineral & Financial Investments
Limited have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union (EU) and on the
historical cost basis using the accounting policies which are consistent with
those set out in the Company's Annual Report and Accounts for the year ended
30 June 2025.
This interim financial information for the 6 months to 31 December 2025 was
approved by the board on 17 March 2026.
The unaudited interim financial information for the 6 months to 31 December
2025 does not constitute statutory accounts. The comparative figures for the
year ended 30 June 2025 are extracted from the statutory financial statements
which contain an unqualified audit report.
3. Earnings per share
The basic and diluted earnings per share is calculated by dividing the
profit/(loss) attributable to owners of the Company by the weighted average
number of ordinary shares in issue during the year.
6 months to 6 months to 12 months to
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
Weighted average number of shares for calculating basic earnings per share 37,806,958 37,105,871 37,183,679
Weighted average number of shares for calculating fully diluted earnings per 42,355,871 40,405,871 40,405,871
share
4. The interim report is available to view and download from the Company's
website: www.mineralandfinancial.com (http://www.mineralandfinancial.com/)
1 (#_ftnref1) Fully Diluted, Unaudited
2 (#_ftnref2) Current Assets of £16,942,717 less Current Liabilities of
£294,721 = Working Capital of £16,647,996
3 (#_ftnref3) Bloomberg LLC
4 (#_ftnref4) "Investable Capital" = (Investments + Cash)
5 (#_ftnref5) Investable Capital
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