Mineral & Financial Investments Limited (M&FI) [LON:MAFL], is an AIM-listed, publicly traded investment company that focuses on investing in mining and natural resource projects. Based in London, M&FI operates through two subsidiaries: Mineral & Financial Investments (Barbados) Limited and Mining Equity Trust S.A.
In its latest report, M&FI reported Net Asset Value as at 30th September 2022 was GBP7.8m, up 17% from the year before. Net Asset Value Per Share was 20.93p at the end of the 1Q23 period, up 12.5% year-on-year.
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The investment company reported unaudited gross profit for the quarter of GBP442,847 with net profit at GBP309,769, or 0.81p on a fully diluted basis for the quarter. M&FI had working capital of GBP7.9m at the end of September 2022.
The company was founded in 2013 and listed on the AIM in April of that year. M&FI opened trading today (10th March) at 23.75p. The company has offered a 15.8% year-to-date return, a one-year return of 131.2% and its shares have ranged between 8.5p and 24p over a 52-week period.
Given its investment objective, to invest in the natural resources sector – specifically mining – where it invests, finances and advises miners through strategic investment, it is a good way for investors to expose themselves to a broad range of mining companies and resources in one package.
Strategic and Tactical
Mining companies – specifically metal miners – fall into M&FI’s ‘strategic’ portfolio. The investment company will seek to take a 5% to 20% stake in the miners equity, and will also provide term debt, project finance, royalty finance, off-take to investee companies.
M&FI also runs a ‘tactical’ portfolio to preserve its deployable capital. The firm will invest in equities, as well as ETFs, debt, options, futures as well as physical commodities. The fund also buddies-up with other investment vehicles and can create focussed Special Purpose Vehicles (SPVs) and private equity structures with other investors to progress specific projects.
The fund has both active and passive elements. At the most active end of the spectrum M&FI has the mandate to acquire companies that it has an exposure to.
Originally called Hameldon Resources starting life as a cash shell, the investment company evolved into Athol Gold before extending its remit and changing name again to Mineral & Financial Investments Limited.
The firms initial performance was a bit bipolar, by its own admission. Investment in unquoted or illiquid shares meant that it had many misses along with a few hits. In 2012 it undertook a strategic review and developed its investment thesis to what it has become today, divesting from underperforming assets and honing its tactical/strategic approach.
M&FI’s investment portfolio today includes companies involved in the exploration, development, and production of precious and base metals, as well as energy and other natural resources. Its investment strategy is to take a long-term, value-oriented approach to investing, with the goal of generating attractive returns for its shareholders over time.
The company has investments in a number of exploration and development stage projects, primarily focused on precious metals such as gold and silver, as well as base metals such as copper, zinc, and lead. In addition to its investments in mineral projects, M&FI also has a portfolio of investments in other natural resource companies, including oil and gas, and forestry.
Lead manager is Jacques Vaillancourt, who also acts as the company’s CEO. Vaillancourt has more than 25-years of experience in the mining and natural resources industry.
According to its latest statement, M&FI was invested in the following sectors:
|Food & Energy||80,203||1.0%|
|Technology & Service||0.9m||11.1%|
Source: M&FI Ltd.