Mineral & Financial Invest. Limited Net Asset Value Update (0544J)
06 Settembre 2016 - 9:59AM
UK Regulatory
TIDMMAFL
RNS Number : 0544J
Mineral & Financial Invest. Limited
06 September 2016
MINERAL & FINANCIAL INVESTMENTS LIMITED
("Mineral & Financial", "MAFL", or the "Company")
NET ASSET VALUE UPDATE
MAFL, the AIM quoted resources investment specialist, today
announces an NAV and operations update on its activities for the
period ended 30 June 2016.
-- Net Asset Value of 7.45p per share (unaudited)
-- Profitable disposal of Zinc ETF
-- New position in silver
-- Progress continues on TH Crestgate Iberian asset portfolio
-- Continuing to seek further strategic investments
CHAIRMAN'S STATEMENT
The UK capital markets were initially thrown into a maelstrom of
uncertainty due to the unexpected "Exit" Brexit vote. The most
notable impact on Metals & Mining markets and M&FI is that
the weaker British Pound has buoyed upwards commodity prices in
GBP.
We believe that precious metals appear to have found their lows
in the first few weeks of 2016 but that base metals are a little
more mixed. We believe that bulk commodities continue to be guided
by currency movements, while long neglected commodities such as
zinc and lead continue to find new believers in the strong
fundamentals underpinning their supply/demand relationship.
There is a lot of industry interest in battery technology,
specifically lithium. We agree that portable electric power is to
be a dominant theme in the metals market for the next few years. We
are, however, seeking to find alternative paths to benefit from
these very real and dominant trends.
Our weighting between tactical holdings and strategic holdings
is likely to change over time. We have invested our liquid capital
prudently in the metals and mining equities to ensure that
investors continue to benefit from exposure to the sector.
Now that we have begun our programme of strategic investments
our tactical weighting is likely to diminish. Accordingly the
strategic element of our portfolio is likely to make up more of our
net asset value on a percentage basis in the future.
We believe that there will be opportunities to invest in the
precious metals cycle taking shape over the next few months. We are
currently evaluating a few opportunities for your benefit and hope
to report some progress on this front.
Jacques Vaillancourt
CHIEF INVESTMENT OFFICER'S STATEMENT
During the period the mining equity markets continued with their
modest recovery and it was pleasing to see zinc in the forefront of
this. The Company has significant exposure to zinc through its
minority holding in TH Crestgate, the Swiss company which owns
polymetallic projects in the Iberian pyrite belt.
With this exposure in mind, and in the context of continuing
strength in the zinc price, the directors decided to take profits
on the Zinc ETF which the company had held for a couple of years
now.
The rise in Net Asset Value to 7.45p came largely as a result of
a revaluation of our investment in Cap Energy, undertaken as part
of an annual review of our unquoted holdings.
The directors have opted to apply a highly conservative discount
to the price at which Cap last raised money in valuing our own
holding, but were nonetheless pleased to see the uplift that the
revaluation generated.
Some of the proceeds from this sale were then used to purchase a
new silver ETF ahead of the timely run on silver that took place in
the later part of June. This position is already showing a
significant profit.
The values of our gold and platinum positions also improved
during the period.
The Company also disposed of its residual stake in ISDX-quoted
Milamber holdings for cash.
While remaining cautious, it is encouraging to see markets
continuing to open up, particularly the high levels of activity in
Canada, which have not abated over the summer.
Finally, we note that TH Crestgate has agreed to an extension of
the option agreement it signed with Ferrum Crescent on its Spanish
portfolio suite.
We continue to assess opportunities at all levels, both in terms
of the strategic and the tactical portfolio.
Alastair Ford
For more information:
Katy Mitchell, WH Ireland +44 161 832 2174
Laurence Read, Director +44 20 3289 9923
Notes: The net asset value calculation is subject to audit and
is made on the basis that the Company has 24,034,562 shares in
issue. All listed investments, including investments on ISDX, are
valued at the closing bid price as at 30 June March 2016. The
Company has an investment in one unquoted gold company that is
currently valued at the price at which the gold company in question
last raised money, although this is subject to review. The Company
also has an investment in one unquoted zinc and base metals
company, the valuation of which is subject to quarterly review and
is currently recognized at cost.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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