Mineral and Financial Investments Limited (LON:MAFL) saw a sharp uplift in its net asset value (NAV) in the year to 30 September 2019.
The fully diluted NAV per share at the end of September stood at 15.15p, up 124.4% from 6.75p a year earlier.
NAV rose 126.7% to £5.35mln from £2.36mln 12 months earlier.
During the third quarter of 2019, the company's net assets increased by 4.5% to £5,346,000 from £5,114,000 at 30 June 2019.
The company's said its “tactical portfolio” continues to face uncertainty around trade policy and commodity demand globally while benefiting from its precious metals exposure.
Over the past couple of years Mineral and Financial Investments (M&FI) has been building exposure to an anticipated move in precious metals through investments in gold, silver and platinum exchange-traded funds (ETFs), major gold producers and, as the cycle evolves, adding earlier stage development and exploration companies.
The prices of precious metals continued to outperform base metals during the quarter with a rise in gold and silver of 4.5% and 11% respectively as investors moved into haven assets, M&FI said.
The debt-free company's cash position at the end of September was £104,000 while working capital stood at £5.39mln,
“The world's economic performance has been positive in 2019, but growth rates were lower than in 2018 (IMF, 2019). We believe this subdued rate of growth is a consequence of rising trade barriers; elevated uncertainty surrounding trade and geopolitics; idiosyncratic factors causing macro-economic strain in several emerging market economies; and structural factors, such as low productivity growth and ageing demographics in advanced economies,” the company said in the “economic overview” section of its operational update.
“Growth in advanced economies, notably the USA, slowed in large part due to, we believe, to its imposition of various tariffs on trade, chiefly with China,” it added.
The company is hopeful that, with 2020 being a US presidential election year, there could be a decline in trade hostilities will diminish.
M&FI noted that although the International Monetary Fund's forecasts point to a “muted economic outlook generally”, it should nevertheless be a sound environment for metal consumption.