Mineral & Financial Investments "always cautious" but sees plenty of opportunity in 2024
London, UK
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December 21, 2023 08:08 AM Eastern Standard Time
Mineral & Financial Investments Ltd (AIM:MAFL) chief executive Jacques Vaillancourt speaks to Thomas Warner from Proactive London after the release of audited results for year ended 30 June 2023. Vaillancourt starts by giving an overview of the results, highlighting a 26.5% increase in net asset value (NAV) to £9.4 million, with a NAV per share growth to 24.27p, showcasing a consistent 29.1% annual growth over the past five years.
The investment portfolio, valued at about £9.1 million, also saw an 18.7% increase. Vaillancourt highlights their success in outperforming benchmarks like the Goldman Sachs Commodity Index and the FTSE 350 Mining Index.
A notable challenge for the company was a £300,000 loss due to foreign exchange (FX) fluctuations. However, a key boost to the NAV came from a revaluation of their Redcorp investment, increasing its value from approximately $2.2 million to $3 million. This adjustment was based on a feasibility study and a newly negotiated put option, providing an exit strategy for their Lagoa Salgada stake, potentially valuing it at around $6.1-$6.2 million.
In strategic terms, Mineral & Financial Investments maintains a diverse portfolio, including precious metals, base metals, food, energy, tech, and a small position in diamonds. The company's strategic portfolio has grown by 35-36%, with a 65% increase in cash holdings, amounting to £800,000.
Vaillancourt also mentioned new investments in ESG auditing firm Digby and Golden Sun as part of their strategic growth. Despite global economic challenges, Mineral & Financial Investments Ltd has managed to maintain a strong performance, with Vaillancourt expressing a positive outlook for precious metals in 2024. He also pointed out the current undervaluation in public mining markets, suggesting potential opportunities.
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