TIDMMAFL
RNS Number : 8755K
Mineral & Financial Invest. Limited
27 September 2016
27 September 2016
Mineral & Financial Investments Limited
("MAFL" or "the Company")
Unaudited Interim Results for the Six Months Ended 30 June
2016
Mineral & Financial Investments Limited today announces its
unaudited interim results for the six months ended 30 June
2016.
-- TH Crestgate completes on option for sale of Spanish zinc
-- Improved performance of commodity portfolio
-- Further acquisitions under consideration
-- Continued disposal of legacy assets
Chairman's Statement
The Company realized a net profit of GBP209,000 during the six
months to June 2016, as against a net loss of GBP137,000 booked
during the corresponding period in 2015. 2016. On a per share
basis, MAFL generated earnings of 1p per share, as against a loss
per share of 1.5p for the corresponding period a year ago.
MAFL's NAV at the end of the period was 7.47 pence, up 14.8%
sequentially from the first quarter of this year, when the NAV was
6.5 pence
Post the period end MAFL has also raised equity through the
issuance of GBP475,000 of equity.
We are now essentially debt free, following the repayment of
GBP159,000 of debt in the autumn of 2015. The board is committed to
maintaining a strong balance sheet.
We continue to monitor the few legacy investments your board
inherited, and now believe that the remaining legacy investments in
our portfolio are on steady footing and will be able to progress
forward.
UK capital markets were thrown into a maelstrom of uncertainty
due to the unexpected "Exit" Brexit vote. The most notable impact
on Metals & Mining markets and MAFL is that the weaker British
Pound has a buoyed upwards commodity prices in GBP.
Precious metals appear to have found their lows in the first few
weeks of 2016. Base metals are a little more mixed - bulk
commodities continue to be guided by currency movements, while long
neglected commodities such as zinc and lead continue to find new
believers in the strong fundamentals underpinning their
supply/demand relationship.
Our 49% investment in TH Crestgate GmbH ("TH Crestgate") is
beginning to bear fruit. TH Crestgate has successfully sold its
Spanish subsidiary, GoldQuest Iberica S.L. (GQI) to Ferrum Crescent
Limited ("Ferrum Crescent") for GBP342,500 in cash and 110 million
shares of Ferrum Crescent worth GBP341,000 for a total of
GBP683,500. The structure will allow MAFL to continue to benefit
from the value being created in these assets by Ferrum Crescent,
the strengthening of the supply demand outlook for zinc and lead
and the very highly prospective geological features of Toral, the
most advanced asset of GQI.
On behalf of the Board
Jacques Vaillancourt
Executive Chairman
Chief Investment Officer's Statement
Although it would be premature to trumpet a full recovery in the
mining equity markets, there was some evidence of improvement in
the sector during the first half of the year as the prices of many
commodities came off multi-year lows and companies found markets
increasingly open to fundraisings.
That in turn led to some improvement in valuations, although in
terms of equities there is still much ground to be made up.
Accordingly the Company maintained a prudent approach to
portfolio management during the period, and our investments
remained predominantly weighted towards the commodity ETFs and the
larger capitalized companies, in particular Glencore.
Our commodity ETFs performed well and we took profits on our
zinc position, judging that the company's investment in TH
Crestgate, which owns base metals assets in the Iberian peninsula,
would allow us continued upside to this metal.
Instead we took a new position in silver and, after this booked
useful gains, increased the size of this position.
At the same time we continued our work to solve the legacy
issues left by the previous investment manager, most of which have
now been resolved. The Company has now disposed of its residual
stake in Milamber Holdings, and with the exception of the remaining
stake in Sutherland Health is now exclusively focused on the
resources sector.
Our biggest holding remains our investment in Cap Energy. MAFL
has adopted a conservative approach to the valuation of this
holding, which has been set at a near 40% discount to the price at
which Cap raised money earlier in the year. MAFL's directors are
mindful that this is an unquoted company and the oil markets have
shown considerable volatility this year. However, the potential of
Cap's West African acreage remains significant and so there remains
considerable upside in this holding.
Alastair Ford
Chief Investment Officer
For further information please call:
Mineral & Financial Investments
Limited
Laurence Read +44 20 3289 9923
Katy Mitchell
W H Ireland +44 161 832 2174
Statement of comprehensive Income
for the 6 months ended 30 June 2016
UNAUDITED UNAUDITED AUDITED
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2016 2015 2015
Note GBP'000 GBP'000 GBP'000
------------------------------ ------ ---------- ---------- ---------------
Continuing operations:
Investment income - 1 2
Net gains/(losses) on
investments 209 (137) (317)
Total income 209 (136) (315)
Operating expenses (69) (75) (181)
-------------------------------------- ---------- ---------- -------------
Operating profit/(loss) 140 (211) (496)
Finance cost - - -
Profit/(loss)before taxation 140 (211) (496)
Taxation expense - - -
Profit/(loss)for the
period attributable to
owners of the Company 140 (211) (496)
Earnings/(loss) per share
attributable to owners pence pence pence
of the Company during
the period 3
Basic: 1.0 (1.5) (3.6)
Diluted: 1.0 (1.5) (3.6)
-------------------------------------- ---------- ---------- ---------------
Statement of Financial Position
as at 30 June 2016
UNAUDITED UNAUDITED AUDITED
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
----------------------------- ---------- ---------- ------------
CURRENT ASSETS
Financial assets 961 721 691
Trade and other receivables 9 8 6
Cash and cash equivalents 137 655 263
------------------------------ ---------- ---------- ------------
1,107 1,384 960
----------------------------- ---------- ---------- ------------
CURRENT LIABILITIES
Trade and other payables 48 46 41
------------------------------ ---------- ---------- ------------
48 46 41
----------------------------- ---------- ---------- ------------
NET CURRENT ASSETS 1,056 1,338 919
NON-CURRENT LIABILITIES
Convertible unsecured
loan notes 10 169 10
10 169 10
----------------------------- ---------- ---------- ------------
NET ASSETS 1,049 1,169 909
------------------------------ ---------- ---------- ------------
EQUITY
Share capital 2,885 2,882 2,885
Share premium 4,559 4,537 4,559
Loan note equity reserve 6 85 6
Share option reserve 12 12 12
Capital reserve 15,736 15,736 15,736
Retained earnings (22,149) (22,083) (22,289)
------------------------------ ---------- ---------- ------------
Shareholders' equity 1,049 1,169 909
------------------------------ ---------- ---------- ------------
Statement of Changes in equity
for the 6 months ended 30 June 2016
Loan Share
Share Share note option Capital Accumulated Total
capital premium reserve reserve reserve losses equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------- -------- -------- -------- -------- ----------- -------
At 31 December
2014 2,882 4,537 85 12 15,736 (21,872) 1,380
Loss for the
6 months to
30 June 2015 - - - - - (211) (211)
At 30 June 2014 2,882 4,537 85 12 15,736 (22,083) 1,169
Loss for the
6 months to
31 December
2015 - - - - - (285) (285)
Repayment of
loan notes - - (79) - - 79 -
Share issues 3 22 - - - - 25
---------------- -------- -------- -------- -------- -------- ----------- -------
At 31 December
2015 2,885 4,559 6 12 15,736 (22,289) 909
Profit for the
6 months to
30 June 2016 - - - - - 140 140
At 30 June 2016 2,882 4,537 85 12 15,736 (22,149) 1,049
---------------- -------- -------- -------- -------- -------- ----------- -------
Statement of Cash flow
for the 6 months ended 30 June 2016
UNAUDITED UNAUDITED AUDITED
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- -------------
OPERATING ACTIVITIES
Profit/(loss) before taxation (211) (211) (496)
Adjustments for:
Loss on disposal of financial
assets 58 131 131
Fair value adjustment
to financial assets (267) 6 186
Investment income - (1) (2)
Finance costs - - -
------------------------------- ---------- ---------- -------------
Operating cashflow before
working capital changes (69) (75) (181)
(Increase)/decrease in
trade and other receivables (3) (5) (3)
Increase/(decrease) in
trade and other payables 7 6 1
-------------------------------- ---------- ---------- -------------
Net cash outflow from
operating activities (65) (74) (183)
-------------------------------- ---------- ---------- -------------
INVESTING ACTIVITIES
Purchase of financial
assets (155) - (151)
Disposal of financial
assets 94 132 133
Investment income - 1 2
-------------------------------- ---------- ---------- -------------
Net cash (outflow)/inflow
from investing activities (61) 133 (16)
-------------------------------- ---------- ---------- -------------
FINANCING ACTIVITIES
Redemption of convertible
loan notes - - (134)
-------------------------------- ---------- ---------- -------------
Net cash outflow from
financing activities - - (134)
-------------------------------- ---------- ---------- -------------
Net increase/(decrease)
in cash and cash equivalents (126) 59 (333)
Cash and cash equivalents
at start of period 263 596 596
Cash and cash equivalents
at end of period 137 655 263
-------------------------------- ---------- ---------- -------------
Notes to the unaudited interim statement
for the 6 months ended 30 June 2016
1. General information
The Company is a limited company quoted on AIM, a market of the
London Stock Exchange, and is registered in the Cayman Islands.
The address of its registered office is 190 Elgin Avenue, George
Town, Grand Cayman, KY1-9005, Cayman Islands. The financial
statements are presented in Pounds Sterling which is the Company's
functional and presentational currency.
2. Basis of preparation
The interim financial statements of Mineral & Financial
Investments Limited have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU) and on the historical cost basis using the
accounting policies which are consistence with those set out in the
Company's Annual Report and Accounts for the year ended 31 December
2014.
This interim financial information for the six months to 30 June
2016 was approved by the board on 26 September 2016.
The unaudited interim financial information for the 6 months
ended 30 June 2016 does not constitute statutory accounts. The
comparative figures for the year ended 31 December 2015 are
extracted from the statutory financial statements which contain an
unqualified audit report.
3. Earnings per share
The basic and diluted earnings per share is
calculated by dividing the profit/(loss) attributable
to owners of the Company by the weighted average
number of ordinary shares in issue during the
year.
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
---------------------------- ----------- ------------ -------------
Weighted average number
of shares for calculating
basic earnings per share 14,034,562 13,722,062 13,874,459
Weighted average number
of shares for calculating
fully diluted earnings
per share 14,552,854 *13,722,062 *13,874,459
---------------------------- ----------- ------------ -------------
*The weighted average number of shares used for calculating the
fully diluted loss per share for the comparative periods, the 6
months ended 30 June 2015 and the 12 months ended 31 December 2015,
is the same as that used for calculating the basic loss per share
as the losses in those periods have an anti-dilutive effect.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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