The board of directors at Pembridge Resources PLC (LSE:PERE) has reviewed the company’s strategic options and approved a new strategy.
This strategy sets out a plan to extend the investment portfolio, focussing on investments in the de-carbonisation of the energy market.
The company's unaudited balance sheet as at 31 December 2021 shows equity of US$10.9mln, which is a significant improvement on the negative equity situation as at 31 December 2020.
Total comprehensive Income for 2021 was US$20.6mln.
As at 31 December Pembridge held unaudited investments valued at US$16mln, an increase of US$6.8mln on the prior year.
The increase was due to a US$3mln investment in the capital raise undertaken by Minto Metals Corp (TSX-V:MNTO) as it listed on the Toronto Venture Exchange in the fourth quarter of 2021, and to the subsequent US$3.8mln uplift in the market valuation of that investment.
The company still owes US$5mln to Capstone for the original purchase of Minto.
As far as new assets are concerned, the strategy sets out a preference for projects that are in production or close to production stage and have technical reports confirming resources and/or reserves.
The key investment criteria approved in the company's strategy are for each investment not to exceed £15 million and in all cases equity stakes acquired to be above 10% in projects with an internal rate of return above 12%.
Projects in copper mining will be considered as long as they have minimum annual production of 10 million pounds, minimum life of mine seven years, and maximum costs of US$2.65 per pound. Gold projects will also be considered.
Pembridge expects to receive C$4mln from Minto during 2022, with the first payment of C$1mln due at the end of the first quarter.
"This is an exciting time for Pembridge,” said Gati Al-Jebouri, chief executive of Pembridge.
“Having achieved what, we set out to do with our investment in Minto Metals Corp we are now in a position to consider the future of growing Pembridge itself. Our single asset portfolio is a very strong basis for growing Pembridge by identifying and investing in new investments that will add value to our company.”