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MAFL Mineral & Financial Investments Limited

12.00
1.00 (9.09%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Mineral & Financial Investments Limited LSE:MAFL London Ordinary Share KYG6181G1055 ORD 1P (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  1.00 9.09% 12.00 10.50 11.00 11.00 10.50 11.00 135,157 16:35:04
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Metal Mining Services 2.39M 1.55M 0.0420 2.56 3.97M

Mineral & Financial Invest. Limited Quarterly Net Asset Value and Operational Update (7769L)

15/01/2021 7:00am

UK Regulatory


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RNS Number : 7769L

Mineral & Financial Invest. Limited

15 January 2021

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Quarterly Net Asset Value and Operational Update

HIGHLIGHTS:

-- Net Asset Value [1] as of 30 Sept. 2020 was GBP5,568,940, up 4.2% yr/yr from GBP5,346,041 last year.

   --    Net Asset Value Per Share (FD) on 30 September 2020 was 15.77p, up 4.1% vs. 15.15p a yr. ago. 
   --    Volatility in foreign exchange rates weighed down performance by 3.8% this quarter. 

-- Precious metal holdings reduced when gold was over US$2,000/oz, protecting the NAV performance from price correction.

   --    Cash position increased by 68% from previous quarter. 

George Town, Cayman Islands - 15 January 2021 - Mineral and Financial Investments Limited (LSE-AIM: MAFL) ("M&FI", "MAFL" or the "Company") is very pleased to provide an unaudited quarterly update of its Net Asset Value and an operational update for the quarterly period ending 30 September 2020. At the end of the first quarter the NAV was GBP5,568,940 up 4.2%, from GBP5,346,041 one year ago. The Net Asset Value Per Share, on 30 September 2020, was 15.77p, up 4.1% from one year ago. Earnings for the first quarter of fiscal year are GBP95,993, or 0.27p. The Company's working capital, as of 30 September 2020 was GBP5,628,940 [2] .

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

 
                                                                                                 2021/     2020 / 
                                                                                  30 Sept         2020      2016 
                      30 Sept        30 Sept        30 Sept        30 Sept 
                        2016           2017           2018           2019           2020        % Change    CAGR (%) 
 Net Asset Value    GBP1,558,156   GBP2,387,321   GBP2,358,580   GBP5,346,041   GBP5,568,940     4.2%        38.5% 
                   -------------  -------------  -------------  -------------  -------------  ----------  ---------- 
 NAVPS (FD)            6.50p          6.90p          6.75p          15.15p         15.77p        4.1%        24.8% 
                   -------------  -------------  -------------  -------------  -------------  ----------  ---------- 
 FTSE 350 Mining 
  Index                12,713         16,547         17,707         18,135         18,180        0.2%        9.4% 
                   -------------  -------------  -------------  -------------  -------------  ----------  ---------- 
 GS Commodity 
  Index                364.47         399.31         486.28         403.61         350.18       -13.2%       -1.0% 
                   -------------  -------------  -------------  -------------  -------------  ----------  ---------- 
 

Global sentiment and expectations continue to be in, our opinion, optimistic as measured by the FTSE All-World Equity Index which stands at 433.74 (12/01/2021) is up 12.62% over the past 3 months. We believe that the full economic impact and ramifications of the altered corporate and individual practices and consumption patterns resulting from the global COVID 19 restrictions will be long lasting and financially disruptive. The debt markets are reflecting a changed environment - since June 30, 2020 US 10-year treasury yields have increased by 83.1% to 1.16% (from 0.63%), and yet the US dollar, as measured by the trade-weighted DXY Index is down 7.4% in the same period. Additionally, the financial aid being provided by governments around the world will need to be funded. This creates a real risk of higher taxes and higher interest rates which would negatively impact real disposable income. We do not believe that these issues are fully priced into capital markets. Nevertheless, we are optimistic that commodity pricing will benefit from constrained commodity production in 2020, some very modest global growth in 2021 and a weaker US dollar.

NET ASSET VALUE [3] :

As of 30 September 2020, the unaudited Net Asset Value was GBP5,568,940, up 4.2% from GBP5,346,041 one year ago, equating to 15.77p per share on a fully diluted basis. Our cash position was up 343% year over year to GBP460,912, while our working capital was GBP5.63million. Our financial performance was hampered by a 5.2% appreciation of the GBP versus the USD, while the GBP was up by 6.05% versus the Canadian Dollar on a yr/yr basis. Had currency exchange rates remained unchanged from levels of our June 30, 2020 year-end our September 30, 2020 NAVPS would have been 16.33p (+7.9& yr/yr).

TACTICAL PORTFOLIO:

Our tactical portfolio, which we consider to be part of our treasury, appreciated by 17.1% yr/yr in the period. The Tactical Portfolio does not include our cash holdings which, as mentioned above, were up 342.7% yr/yr. The Tactical Portfolio was negatively impacted by the decline in the market value of the Company's shareholding in Ascendant Resources (ASND) during the period. The value of the ASND position has increased by 123% (as at January 13, 2021) since the calculation of this September 30, 2020 NAV.

We used the run up in the price of gold to over $2,000/oz. as an opportunity to take some profits in our overweighted gold positions. We will be re-weighting this sector in the near future.

STRATEGIC PORTFOLIO:

Our Strategic Portfolio appreciated by 2.2% yr/yr, this gain was muted by the GBP480,000 provision we took against our CAP Energy holding. Had we maintained our previous valuation of CAP the Strategic Portfolio, the portfolio would have appreciated by 13.7% yr/yr. During the hyper-challenging COVID 19 shutdowns of 2020 the price of oil collapsed, as did the share prices of oil and gas companies. We felt that it was prudent and appropriate to take the provision. The price/bbl of Brent has, as of the writing of these comments, almost fully recovered to the price levels of September 2019. The price of a barrel of Brent in September 2019 was $58, in September 2020 Brent was around $42/barrel, today it is $56.25/barrel. When CAP has a financing event which provides us with an objective valuation metric, we will review our valuation of CAP accordingly.

Ascendant Resources, the operator of the Lagoa Salgada project, notified us that it was initiating an exploration on the project beginning in the autumn of 2020. The exploration program consists of 7 drill holes and downhole IP surveys which will be completed in several phases and the results of some of these drill holes were announced on 13 January 2021. The main objective of the program is to significantly increase and upgrade tonnage at the copper-rich South Zone. This is designed to build upon the existing 2.47Mt of Measured and Indicated resource and 6.09Mt of Inferred resource delineated in the South Zone as highlighted in the Company's technical report titled, "Technical Report and PEA for the Lagoa Salgada Project (Setúbal District), Portugal " dated February 27, 2020 with an effective date of December 19, 2019 (the "Preliminary Economic Assessment"). The South Zone remains open in all directions according to geological data collected during the Company's previous exploration activities. The most southern drill hole in the South Zone (LS_ST_11) was one of the best holes encountered, with assays reporting 67.6m true width at a 1.57% Copper Equivalent ("CuEq") grade. Indications are that the mineralization is open and expanding southward where the Company's first drill targets in this program are situated.

We have made two investments in Cerrado Gold, the first at US$0.42 and subsequently at US$0.50 per share. The last investment was prior to it successfully acquiring the producing Don Mario Mine in Argentina. Cerrado is now planning to list in the first quarter of 2021. We expect that this should generate a meaningful lift in our Cerrado investment valuation.

Golden Sun continues to progress. It has been in small scale production. It has received approval from the Costa Rican government to re-activate its full mining licenses. This is a very important milestone for Golden Sun. This will allow it to evolve from its pilot heap leaching activities to more traditional mining and Carbon In Leach (CIL) extraction methods. More importantly this should result in higher levels of gold production. The Golden Sun strategy has long been to go from purchase to full scale production with minimal outside financing. Our initial investment has appreciated by 26%, and we expect this to continue.

M&FI is currently reviewing several other investment opportunities. The directors look forward to providing shareholders with more information on all the investments, in due course, if they progress.

FOR MORE INFORMATION:

   Jacques Vaillancourt  -  Mineral & Financial Investments Ltd.             +44 780 226 8247 
   Katy Mitchell and Matthew Chan  -  WH Ireland Limited                    +44 207 220 1666 

Jon Belliss - Beaufort Securities Limited +44 207 382 8300

   Dominic Baretto - Yellow Jersey PR Limited                                        +44 203 004 9512 

ABOUT MINERAL AND FINANCIAL INVESTMENTS LIMITED:

Mineral and Financial Investments Limited is a Swiss and Cayman Island based investment company quoted on AIM, a market of the London Stock Exchange. M&FI has in excess of 17 investments in the natural resource sector with the majority in the metals and minerals. M&FI's Net Asset Value per share (NAVPS) is 15.77p, as of September 30, 2020. M&FI's NAVPS has risen at a Compound Annual Growth Rate (CAGR) of 28.2% since December 31, 2016.

   [1]   All financial results reported for the period are unaudited. 

[2] Current Assets of GBP5,769,346 less Current Liabilities of GBP154,321 = Working Capital of GBP5,628,940.

[3] The NAV calculation is subject to audit and is made on the basis that the Company has 35,135,395 shares O/S (basic) and 35,465,395 shares O/S (FD) in issue.

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END

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January 15, 2021 02:00 ET (07:00 GMT)

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