Jacques Vaillancourt, CEO at Mineral & Financial Investments, explains what’s behind another strong quarterly performance from the resource-focused investor.
Resource focused investor Mineral and Financial Investments Limited (LSE:MAFL) enjoyed a strong tailwind from surging precious metals prices in its latest quarterly results, which saw Net Asset Value (NAV) up 30.7% year-on-year to £13.22 million, NAV Per Share up 28.9% to 33.5p and net profit up 162% to £1.78 million.
This performance reflected MAFL’s high exposure to precious metals, which currently account for 64.2% of its portfolio via investments including Luca Mining and Golden Sun Resources, whose Bella Vista mine is now cash-flow positive and ramping up production.
While some commodities like lithium and oil have declined sharply over the last 12 months, precious metals saw robust gains, with gold and silver up 39.5% and 35.9% respectively.
Near-cash holdings, including deferred gold and silver contracts, total £3.94 million, or 29% of investable capital, while working capital remains robust at £13.38 million, with no long-term debt.
These results demonstrate M&F’s continued outperformance against sector benchmarks in a challenging macroeconomic environment.
In this interview, investors will hear:
- What the key drivers for the strong quarterly performance were, including the crystallisation of some profits in Luca Mining and deferred gold delivery contracts with Golden Sun Resources
- How the operational progress at 20%-owned Golden Sun Resources, and why MAFL’s involvement positions it well for further expansion of Costa Rica’s mining industry
- How the macroeconomic factors, including high levels of government debt, provides the company with in the confidence in the outlook for precious metals
- How the group plans to deploy its investible capital, and why it’s increasing its exposure to silver, whose price has lagged gold’s ascent
Reasons to add Mineral & Financial Investments to your watchlist:
- Offers discounted exposure to high-quality assets across the mining value chain, including mining-focused technology and consultancy companies that help the industry operate more efficiently and in an ESG-friendly manner.
- Operates a diverse investment strategy, with a portfolio of precious metals, base metals, lithium, and energy-related assets positioning the company for continued success.
- Experienced management with a deep understanding of the sector and the trends behind it, helping it steer a less volatile course through the sector’s regular ups and downs, and bringing the ability to create value by exploiting tactical opportunities.
- Debt free, with strategic investment structures that deliver built-in upside potential, and several ‘monetisation’ events in its strategic approaching, giving it the opportunity to redeploy capital in the year ahead.
- Its shares trade at a significant discount to MAFL’s conservatively valued and high-performing public and private portfolio, which gives investors both a large margin of safety and significant upside
Jacques Vaillancourt, CEO at Mineral & Financial Investments, was interviewed by John Hughman for FocusIR.
