Mineral and Financial Investments Ltd (LON:MAFL), an investor in junior mining companies, saw its net asset value rise 13% in the third quarter to end March 2021 as it increased its precious metals weighting.
The company, which had a net assets value of £6.0mln at the end of its third quarter compared with £5.3mln in the year-earlier quarter, said its overall performance continues to be held back by the strength of the pound versus the US dollar.
Its precious metals weighting increased to 41.7% of its invested assets due to the performance of its gold equity holdings, notably Cerrado Gold Corp (CVE:CERT).
“We have increased our weighting to precious metal investments and this represents significant overweighting to the sector,” it said in an operational update.
“In the 12-month period ending 31 March 2021, the price of gold bullion appreciated by only 6%, while silver by a disproportionate 73.2%. We believe that the economic setting will result in gold performing significantly better over the next 12 to 24 months.”
It also expects copper to perform well.
“We continue to seek a strategic investment in the copper sector which will provide our shareholders an attractive platform to participate in this key metal within a world whose commitment of green energy transition. This will require new sources of a variety of metals, most likely copper will be the net winner.”
Mineral and Financial said that there had been structural and behavioural changes as a result of the global COVID-19 lockdown and expects these to impact economic activity for years to come.
“We believe that the mining and metals sector will have an important a role to play in the changed economic setting ahead and are seeking the best opportunities for our shareholders.”
The company’s Tactical Portfolio grew 33% on a year-on-year basis to £1.1mln and now represents 17.1% of its investment portfolio. While its Strategic Portfolio gained 9% to £4.5mln and accounts for 78.4% of its total investments.
Mineral and Financial said it is currently reviewing several new investment opportunities.