REG - Mineral & Financial - Unaudited Quarterly Net Asset Value

Mineral & Financial InvestmentsAnnouncement

16/01/2025 07:00

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RNS Number : 5021T  Mineral & Financial Invest. Limited  16 January 2025

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.

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Unaudited First Quarter 2024 NAVPS was 29.25p, up 13.7% yr/yr.

HIGHLIGHTS

·    NAV on 30 September 2024 was £11.501 million, up 15.0% Yr/Yr from
£10.001 million

·    NAVPS(2) was 29.25p as of 30 September 2024, an increase of 13.7%
yr/yr.

·    Since 2019 NAVPS(2) has increased by an average of 14.1% per annum.

·    Unaudited EPS(2) FD was 0.14p for the Q1-2025 period vs. 1.03p in
Q1-2024.

·    Investment portfolio up to £11.886 million up 14.7% Yr/Yr from
£10.365 million.

·    M&F continues to outperform its comparable benchmarks.

Camana Bay, Cayman Islands - 5 January 2025 - 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 ("NAV") for the first quarter ending 30 September
2024. At the end of the first quarter, the NAV was £11.501 million, up 15.0%,
from £10.002 million one year ago (table 1). The Net Asset Value Per Share
("NAVPS") was 29.25p at the end of the Q1-2025 period, up 13.7% year on year.
Unaudited gross profit for the quarter was £189,790 and operating profits of
£47,827 resulting in net profits of £56,076 or 0.14p on a fully diluted
basis for the quarter ending 30 September 2024. M&F's working capital on
30/09/2024 was £11.657 million 1  (#_ftn1) .

The following is a summary of the NAV, updated to include this unaudited NAV
calculation:

NAV SUMMARY OF HISTORICAL PERFORMANCE

(Table 1)

 Net Asset Value (,000)              £5,346   £5,569.   £6,663   £7,793   £10,002   £11,501   15.0%   16.6%
 NAVPS 2  (#_ftn2) (FD)              15.15p   15.77p    18.59p   20.93p   25.72p    29.25p    13.7%   14.1%
 FTSE 350 Mining Index               18,135   18,180    19,257   9,883    8,818     11,415    29.4%   -8.8%
 GS Commodity Index                  403.6    350.2     557.7    607.8    609.6     535.8     -12.6%  5.7%
 Baker Steel Natural Resource Trust  69.8p    75.1p     97.0p    80.4p    66.3p     79.6p     20.1%   2.7%

 

The Company's year-on-year NAVPS growth of 13.7%. M&F's NAVPS annual
compound growth rate since September 30, 2018 (5 years) has been 14.1%. Our
investment portfolios and cash increased to £11.886 million (table 2) a year
over year increase of 14.7% from £10.365 million a year ago. The results were
very significantly negatively impacted by the temporary impact of a financing
announced by Luca Mining, which reduced our NAV £0.902 million or 2.23p per
share. The Luca equity financing was priced at C$0.45 per unit (1 share and ½
warrant) down from C$0.65 per Luca share. The shares of Luca were C$0.46 per
share as of September 30, 2024, and have since rebounded to C$0.70 as at the
writing of this report to shareholders.

 

Operationally, Luca has completed the capacity expansion at the Tahuehueto
mine to 1000 Tonnes per day ("tpd") and the Campo Morado are introducing new
mining equipment by the contractor. Mining. Daily mining rates had fallen
behind Campo Morado's milling capacity of 2,400 tpd due to equipment
reliability issues. Mine performance has improved since.

PORTFOLIO COMPOSITION

(Table 2)

 Cash                                £578      £127      -78.1%
 Precious Metals & Diamonds          £4,832    £6,839    41.5%
 Base Metals                         £3,852    £3,889    0.97%
 Food, Energy, Tech. & Services      £1,103    £1,031    -6.5%
                                     £10,365   £11,886   14.7%

 

Golden Sun Resources ("GSR") began operating its new 450 - 500 tpd mill at the
Bellavista mine in Costa Rica. The first few months were affected by a variety
of operating issues, which we believe isa normal part of starting up a new
mill. Prior to the calendar year end the GSR mill was producing as high as 350
tpd, noting that the mill is cash flow positive above 200 tpd. However, during
the start-up there were a succession of minor ramp up problems issues which
required some bridge funding. As previously announced, e provided bridge to
Luca financing by purchasing a series of deferred gold deliveries with a
6-month term. We now own 1,070 ounce of golds, all purchased at US$1,750/oz,
with a guaranteed minimum price of US$2,050/oz. The contract calls for either
physical delivery of the gold or the financial equivalent at the prevailing
spot price. Alternatively take delivery of Golden Sun shares at $1.75.

 

Lastly the quarter's results were negatively impacted by a strengthening US
dollar. On a year over year basis, the pound has declined 9.7% versus the US
dollar.

 

Equity markets for mining shares remain challenging as we enter 2025, but we
expect metal prices to remain stable.

 

 

 

FOR MORE INFORMATION:

Jacques Vaillancourt, Mineral & Financial Investments
Ltd.                        +44 780 226 8247

Katy Mitchell, Zeus
 
                                    +44 203
829 5000

Jon Belliss, Novum Securities
Limited
+44 207 382 8300

 

 

 1  (#_ftnref1) Current Assets of £11,897,306 less Current Liabilities of
£240,267 = Working Capital of £11,657,039

 2  (#_ftnref2) 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 40,405,871 (FD) in
issue.

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