REG - Mineral & Financial - Unaudited Quarterly Results

Mineral & Financial InvestmentsAnnouncement

02/06/2025 07:00

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RNS Number : 8846K  Mineral & Financial Invest. Limited  02 June 2025

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Unaudited Quarterly Net Asset Value Was £13,219,000 On 31 March 2025, an
Increase Of 30.7% Year on Year.

 

HIGHLIGHTS

·    NAV (31/3/2025) was up to £13,219,000 or up 30.7% yr/yr from
£10,114,000

·    NAVPS(3) (FD) was 33.5p on 31 March 2025, from 26.0p an increase of
28.9% yr/yr

·    Unaudited EPS(3) (FD) was 4.4p for the 9 months to 31 March 2025, up
from 1.9p

·    M&F's total investable capital 1  (#_ftn1) rose 29.7% to
£13,584,000

·    Working capital(2) is strong at £13,380,000, with no long-term debt

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

George Town, Cayman Islands - 30 May 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 for the quarter ending 31 March 2025. At the end of the third
quarter, the NAV was £13,219,000, an increase of 30.7% from £10,114,000
achieved in the same period one year ago (see table 1). The Net Asset Value
Per Share (FD) was 33.5p at the end of the Q3-2025 period, up 28.9% year on
year. Unaudited gross profit for the 9 months ended 31 March 2025 was
£2,219,000 (+93.3% yr/yr) and the unaudited net profit was £1,778,000 (+162%
yr/yr). Earnings per share of 4.4p fully diluted and 4.8p basic. The Company's
working capital at the period end was £13,380,000 2  (#_ftn2) .  The
following is a summary of the NAV, updated to include this unaudited NAV
calculation:

SUMMARY OF HISTORICAL PERFORMANCE

(Table 1)

 Net Asset Value (NAV)               £5,333,000   £6,012,000   £6,940,000   £8,394,000   £10,114,000   £13,219,000   30.7%   21.8%
 NAVPS 3  (#_ftn3) (FD)              15.1p        17.1p        19.6p        22.5p        26.0p         33.5p         28.8%   17.3%
 FTSE 350 Mining Index               13,373       21,911       10,926       10,161       9,415         13,482        43.2%   0.2%
 GS Commodity Index                  261.5        467.4        724.2        574.0        582.5         568.1         (2.5%)  16.8%
 Baker Steel Natural Resource Trust  67.3p        97.4p        97.5p        76.8p        76.6p         89.4p         17.2%   5.9%

 

M&F's year-on-year NAVPS (FD) growth of 28.8%, Our earnings have increased
nearly sevenfold since 31 March 2020. The net result being an average 5-year
Compound Annual Growth Rate ("CAGR") of 21.8% in this period. The quarter
significantly benefitted from continued strength in the price of precious
metals, particularly gold. During the 12-month period ending 31 March 2025 -
gold bullion appreciated 39.5%, while silver appreciated 35.9%. Year over year
commodity prices are mixed, Nickel was down 5%, Lithium was down 45% and
Nickel was down 27%. Oil was down 15.8% Yr//Yr, and US natural gas was up
121%. The global economic outlook is uncertain, largely due to US economic and
import policies changing unexpectedly. Although the impact of this uncertainty
is yet to be felt fully by the US and many other economies, it is, in our
opinion, unlikely that the American populations will tolerate the impact of
some of the more extreme proposals for very long and policies will revert to
the mean. Additionally, USA economy remains the largest in the world, however,
its dominance has diminished. The US represents 4% of the world's population.
If significantly higher US tariffs prevail, we believe, that it will impact
the US economy more than it will impact the remainder of the world economies.
Non-USA economies will recover from impact. This is the first 12-month period
where we can report that yr/yr 10-year US Treasury yields declined very
slightly (4.20% vs. 4.37%). During this same period, the S&P 500 and the
FTSE 100 both rose 7.8%, while most other equity markets were up, notably
Japan's Nikkei 225 was down 8.8%

M&FI Net Asset Value vs. Comparables - Indexed Performance

(Chart 1)

 

PORTFOLIO COMPOSITION

(Table 2)

 Cash                        326,000     2.4%
 Precious Metals & Gems      8,719,000   64.2%
 Base Metals                 3,504,000   25.8%
 Food, Energy & Tech         1,035,000   7.6%
 Total Investable Capital    13,584,000  100.0%

 

Our cash holdings increased to £326,000, however if you include both our
Silver and Deferred Gold delivery contracts (1,210 oz) our cash and near cash
holding amount to £3,941,000, or 29% of our total investable capital. The
Company's increased weighting in precious metals is due largely to the
outperformance of certain of our investments in the sector. We have used the
strong performance of Luca Mining, which is a Canadian based Mexican copper,
gold, zinc and silver producer, to exercise our warrants and take some
profits. The Company's management achieved the improvements we had expected.
 Luca's fully diluted market capitalization, at its recent peaks exceeded
C$450M, fulfilling our expectations. Additionally, our Deferred Gold Delivery
contracts with Golden Sun Resources were timely and generated good returns for
M&F. Golden Sun's Bella Vista mine and mill are now in production. We
understand that Golden Sun continue to ramp up production but are currently
cash flow positive. We are also advised that the cash flows are being
reinvested to ensure that the mill has sufficient replacement parts to provide
reliable and resilient production. Secondly, work is progressing to move from
processing 3.0 g/t material obtained from surface to 5 g/t to 6 g/t material
underground by year end.

FOR MORE INFORMATION:

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

Katy Mitchell, Zeus Capital
 
            +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) Investment Portfolio and Cash and equivalents (Q3-2025
£13,258,000 + £326,000 = £13,584,000)

 2  (#_ftnref2) Current Assets of £13,639,000 less Current Liabilities of
£259,000 = Working Capital of £13,380,000

 3  (#_ftnref3) The NAV calculation is subject to audit and is made on the
basis of 37,105,871 shares O/S (basic) and 40,405,871 (FD) in issue.

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