Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

GRIT gleans some comfort from gold's resilience

GRIT gleans some comfort from gold's resilience

Another tough six months for mining juniors took its toll on Global Resources IT (LON:GRIT), though assets have stabilised since the start of 2015.

Net asset value at end February was 52.0p, down 22.6% over the six months though it was flat compared to the start of December.

Manager David Hutchins added that anticipation of more infrastructure development programs in China and speculation of consolidation in the sector has helped recently.

Gold, especially, had seen a build-up in rationalisation and M&A momentum.  

“Larger producers are finding it more effective to acquire ounces in the ground through the market, rather than through lengthy and costly exploration programmes. In this respect the company is well positioned with over 40% exposure to gold stocks. 

“We have had stellar performance from our two largest gold holdings, Inca One and Merrex.”

Worst affected have been the pre-production development companies, which are in the process of developing new projects, necessary to replace declining reserves that are steadily being  mined out by the majors. 

“We continue to work with a number of our investee companies assisting with corporate activity in advancing projects and adding value where possible. 

“There is likely to be further rationalisation of the portfolio with increasing focus on core holdings with sound growth prospects.”

Shares fell 12% to 14p.

View full GRIT profile View Profile


December 05 2014

Related Articles

A wad of bank notes
May 18 2018
The group's 2017 results will include a hefty restructuring charge, as a result of which it will declare a loss
Zimbabwe flag
May 16 2018
Following the 2017 change in government, Brainworks' chief executive believes Zimbabwe is primed to be a key investment and tourist destination
ICO image
July 09 2018
“Huge misconceptions surround token sales" says KR1's chief executive

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use