Mineral & Financial Investments Limited upped net asset value in its latest six months by 16% even with some of the froth coming off precious metal prices.
The investor, which runs a tactical short-term portfolio and a long-term strategic fund, reported net earnings of 0.4p in the six months to December 2021 with NAV per share rising to 18.62p (16.1p).
Slowing metal prices restricted NAV growth said the company, but this might not persist for much monger it suggested if inflation continues to rise.
Going forward, Metals &Financials said the inflationary pressures triggered by manufacturing and transportation delays caused by COVID 19 are not "transitional" and will require policy adjustments by central bankers if they are to be constrained.
“Therefore, we believe that the mid-term outlook for our commodity weightings remains quite positive.
“With growing levels of inflation, we believe that we must maintain liquidity but recognize that there is a growing cost to holding significant quantities of cash in an inflationary period.”
Invested capital increased by 24 % to £6.5mln over the half-year with the company debt-free at the period end.
As at Dec 31, 2021, period, M&FI was 96.6% invested, it added.