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Mineral & Financial on the hunt for early stage assets

Snapshot

  • Mineral & Financial Investments invests in junior mining companies
  • Owns 75% share of Portugal's Lagoa Salgada project
  • Also runs a 'tactical portfolio' for short-term investments
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Quick facts: Mineral & Financial Investment Limited

Price: 10.75 GBX

AIM:MAFL
Market: AIM
Market Cap: £3.78 m
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How it's doing

Mineral & Financial's results for the year ended June 30, 2020, confirmed a rise in net asset value (NAV).

The company's NAV was marked at £5.47mln at the financial year-end, up 7% over the twelve-month period.

At the same time, the group's investment portfolio was said to be worth £5.31mln, up 7.3%.

The company noted, meanwhile, that its NAV has now increased at a compound annual growth rate (CAGR) of 57.4% since the end of 2015.

Over the same five-year period, its performance has consistently exceeded that of the FTSE 350 Mining index and the CRB Commodity Index, it added.

Describing the economic backdrop the investment company noted the devasting impact of the coronavirus (COVID-19) pandemic, third-party estimates that the world has ‘lost’ two years’ of growth, and expectations of a gradual recovery - but, highlighted a silver lining that inflationary pressures will now be lower.

Focusing on its specific areas of expertise, mining and natural resources, Mineral & Financial said: “Commodities generally struggled during the period framed by our fiscal year. We believe commodity prices will be buoyed in 2021 by a growing shift from financial assets to hard assets and a weakening US dollar."

The company added: “During the year our emphasis has been to continue diversification while increasing exposure to precious metals. The strategic portfolio has sought advanced stage exploration or early-stage development precious metal investment opportunities.

The M&FI portfolio is varied  (Barrick Gold is the largest holding)  and chairman Jacques Vaillancourt and his chief operating officer Jamie Lessor continue to seek out new opportunities.

The strategy is to go for advanced-stage exploration or early-stage development precious metal investment opportunities.

M&FI has an interest in Golden Sun Resources Ltd, a cash flow-generating group that’s advancing Costa Rica based Bellavista mine into production, with loan notes bought that mature in April 2024 and carry 20% interest per year.

Investee firm Cerrado Gold has picked up the Don Nicolas mine in the Santa Cruz province of Argentina. The move is described as the first step in Cerrado’s goal of becoming an ‘intermediate producer’.

During the first half, M&FI increased its investments in Cerrado Gold and Golden Sun Resources. Cerrado is due to list on the Toronto Stock Exchange.

What the boss says: Chairman Jacques Vaillancourt

"Commodities generally struggled during the period framed by our fiscal year. We believe commodity prices will be buoyed in 2021 by a growing shift from financial assets to hard assets and a weakening US dollar."

Inflexion points

  • Investee firm Cerrado makes first acquisition in Argentina
  • Further resource expansion at Lagoa Salgada
  • More gold mineralisation defined

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Mineral & Financial Investments' portfolio update

Mineral & Financial Investments Limited (LON:MAFL) Jacques Vaillancourt explains the firms' performance as well as latest developments with its strategic portfolio on Proactive London. Vaillancourt begins with the recently reported net asset value (NAV) as well as appointing Mark Brown as...

2 weeks, 2 days ago

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