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.