TIDMMAFL
RNS Number : 9309Q
Mineral & Financial Invest. Limited
18 September 2017
18 September 2017
Mineral & Financial Investments Limited
("MAFL" or "the Company")
Unaudited Interim Results for the Six Months Ended 30 June
2017
Mineral & Financial Investments Limited today announces its
unaudited interim results for the six months ended 30 June
2017.
-- NAV Up 12.8% In First Half Of Fiscal 2017
-- Weak GBP Is A Net Positive For Mineral & Financial Investments
-- Drill Program Completed at Lagoa Salgada Investment; Awaiting Results From The Last 3 Holes
-- Independent Geological Consulting Group Retained To Update Resource Estimate
-- Updated Resource Estimated Expected Before Year End
Chairman's Statement
The Company realised a net loss of GBP101,000 during the six
months to June 2017, as against a net profit of GBP209,000 recorded
during the corresponding period in 2016. On a per share basis,
there was a loss per share of 0.3p, as against earnings per share
of 1.0p for the corresponding period a year ago. MAFL's NAV at the
end of the period was 7.05 pence, up 12.8% from the end of the last
financial year, when the NAV was 6.25 pence
Since the Brexit vote of June 13, 2016 the GBP has declined 19%
(vs. Euro). A weaker GBP devalues the UK's domestic products
internationally and makes them more competitive in global markets.
The UK's GDP slowdown in growth comes despite currency's decline.
Conversely, a weaker GBP is potentially very positive for all
companies with large proportions of their revenues, earnings or
assets outside of the UK, as their foreign assets are worth more in
GBP. Virtually all of our investments, excluding our GBP917,554 of
cash and cash equivalents, operate outside the UK or are valued in
non- GBP currencies.
Commodity markets are predominantly valued in USD. The USD has,
after the furious optimism caused by the election of a new US
president, subsided. The USD has declined versus most global
currencies in the past year: on a trade weighted basis vs. a basket
of currencies it's now -9.7% over the past 12 months. This has
resulted in the USD pricing of most commodities being pushed
upwards during the time period.
Since our decision to seek zinc investments about 30 months ago,
we have invested in TH Crestgate and own 49% of this private Swiss
investment company, which itself acquired three zinc properties.
The Spanish properties were sold at a profit and the capital
re-invested in the Lagoa Salgada project in Portugal. TH Crestgate
has invested in 2 drill programs focussing on the LS-1 and Central
Sector of the Lagoa Salgada project. The drill programs have just
been completed and we await the final drill results. It should be
noted that our investment in TH Crestgate is recorded at cost and
is not marked to market, as are our other assets. We believe that
this is under-valuing the investment, but embrace the prudential
nature of this methodology.
TH Crestgate has retained AGP Mining Consultants to complete a
resource update, which will incorporate the positive drill results
from the two drilling programs in 2017. The AGP team was on site
during the week of September 11, 2017. The objective of the
exploration work has been to increase the resource from the current
4.5M tonnes to 8.0Mt to 10.0Mt. The resource update report will be
completed and available before year-end.
We continue to seek new investment opportunities. We continue to
favour commodities that will benefit from the evolution away from
the combustion of hydrocarbons, such as copper, zinc, and cobalt.
There has been a rally in base metal prices that will likely
consolidate over the next 6 months. We hope that this will create
the valuation opportunities that are seeking.
On behalf of the Board
Jacques Vaillancourt
Executive Chairman
Chief Operating Officer's Statement
The base metals complex performed relatively well during the
first half of the year, buoyed by optimism about planned
infrastructure spending from Donald Trump, strong demand from
China, and a better economic picture in general globally.
Even iron ore - long held back by the tendency of its major
producer to compensate for a low price with increased volumes - at
last enjoyed some pricing strength.
How much of this sector strength will endure once the 19(th)
Chinese Communist Party Congress is over in October remains an open
question, and we remain comfortable in holding our gold ETF as a
hedge against political risk.
During the period the performance of our quoted equity and ETF
portfolio was broadly flat, with slight downward adjustments to the
valuation of our holdings in Glencore and in our gold, silver and
platinum ETFs.
Post period-end though, those falls have been reversed as
commodities demand has remained strong over the summer, and the
gold price has surged on dollar weakness and the renewed political
risk of conflict with North Korea.
Among the largest of our non-quoted investment holdings, we note
that Cap Energy continues to make progress in Guinea-Bissau and
that improved terms have been granted by the government over Block
1 and Block 5B. We are also following with interest the ongoing
dispute with a former partner about the acquisition of seismic data
on the Djifere offshore block Senegal. The aggressive position Cap
has taken with its defaulting former partner will very likely
result in a response.
Alastair Ford
Chief Operating Officer
For further information please call:
Mineral & Financial Investments
Limited
Jacques Vaillancourt +44 20 3289 9923
Katy Mitchell
W H Ireland +44 161 832 2174
Jon Belliss
Beaufort Securities +44 20 7382 8300
Statement of comprehensive Income
for the 6 months ended 30 June 2017
UNAUDITED UNAUDITED AUDITED
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2017 2016 2016
Note GBP'000 GBP'000 GBP'000
------------------------------ ------ ---------- ---------- ---------------
Continuing operations:
Investment income - - -
Net gains/(losses) on
investments 4 209 286
Total income 4 209 286
Operating expenses (103) (69) (175)
-------------------------------------- ---------- ---------- -------------
Operating profit/(loss) (99) 140 111
Finance cost - - -
Profit/(loss)before taxation (99) 140 111
Taxation expense - - -
Profit/(loss)for the
period attributable to
owners of the Company (99) 140 111
Earnings/(loss) per share
attributable to owners pence pence pence
of the Company during
the period 3
Basic: (0.3) 1.0 0.6
Diluted: (0.3) 1.0 0.6
-------------------------------------- ---------- ---------- ---------------
Statement of Financial Position
as at 30 June 2017
UNAUDITED UNAUDITED AUDITED
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
----------------------------- ---------- ---------- ------------
CURRENT ASSETS
Financial assets 1,602 961 1,274
Trade and other receivables 10 9 7
Cash and cash equivalents 918 137 274
------------------------------ ---------- ---------- ------------
2,530 1,107 1,555
----------------------------- ---------- ---------- ------------
CURRENT LIABILITIES
Trade and other payables 76 48 50
Convertible unsecured
loan notes 10 10 10
------------------------------ ---------- ---------- ------------
86 48 60
----------------------------- ---------- ---------- ------------
NET CURRENT ASSETS 2,444 1,056 1,495
NET ASSETS 2,444 1,049 1,495
------------------------------ ---------- ---------- ------------
EQUITY
Share capital 3,092 2,885 2,985
Share premium 5,866 4,559 4,934
Loan note equity reserve 6 6 6
Share option reserve 23 12 12
Capital reserve 15,736 15,736 15,736
Retained earnings (22,279) (22,149) (22,178)
------------------------------ ---------- ---------- ------------
Shareholders' equity 2,444 1,049 1,495
------------------------------ ---------- ---------- ------------
Statement of Changes in equity
for the 6 months ended 30 June 2017
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
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 2,885 4,559 6 12 15,736 (22,149) 1,049
Loss for the
6 months to
31 December
2016 - - - - - (29) (29)
Share issues 100 375 - - - - 475
At 31 December
2016 2,985 4,934 6 12 15,736 (22,178) 1,495
Loss for the
6 months to
30 June 2017 - - - - - (101) (101)
Share issues 107 932 - - - - 1,039
Share based
payments - - - 11 - - 11
At 30 June 2017 3,092 5,866 6 23 15,736 (22,279) 2,444
---------------- -------- -------- -------- -------- -------- ----------- -------
Statement of Cash flow
for the 6 months ended 30 June 2017
UNAUDITED UNAUDITED AUDITED
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- -------------
OPERATING ACTIVITIES
Profit/(loss) before taxation (101) 140 111
Adjustments for:
Loss on disposal of financial
assets - 58 169
Fair value adjustment
to financial assets (4) (267) (455)
Investment income - - -
Share based payment charge 11 - -
------------------------------- ---------- ---------- -------------
Operating cashflow before
working capital changes (94) (69) (175)
(Increase)/decrease in
trade and other receivables (3) (3) (1)
Increase/(decrease) in
trade and other payables 26 7 9
-------------------------------- ---------- ---------- -------------
Net cash outflow from
operating activities (71) (65) (167)
-------------------------------- ---------- ---------- -------------
INVESTING ACTIVITIES
Purchase of financial
assets (324) (155) (392)
Disposal of financial
assets - 94 95
Net cash (outflow)/inflow
from investing activities (324) (61) (297)
-------------------------------- ---------- ---------- -------------
FINANCING ACTIVITIES
Net proceeds of share
issues 1,039 - 475
-------------------------------- ---------- ---------- -------------
Net cash outflow from
financing activities 1,039 - 475
-------------------------------- ---------- ---------- -------------
Net increase/(decrease)
in cash and cash equivalents 644 (126) 11
Cash and cash equivalents
at start of period 274 263 263
Cash and cash equivalents
at end of period 918 137 274
-------------------------------- ---------- ---------- -------------
Notes to the unaudited interim statement
for the 6 months ended 30 June 2017
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
2016.
This interim financial information for the six months to 30 June
2017 was approved by the board on 15 September 2017.
The unaudited interim financial information for the 6 months
ended 30 June 2017 does not constitute statutory accounts. The
comparative figures for the year ended 31 December 2016 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
2017 2016 2016
GBP'000 GBP'000 GBP'000
---------------------------- ------------ ----------- -------------
Weighted average number
of shares for calculating
basic earnings per share 31,169,461 14,034,562 17,941,666
Weighted average number
of shares for calculating
fully diluted earnings
per share *31,169,461 14,552,854 18,441,666
---------------------------- ------------ ----------- -------------
*The weighted average number of shares used for calculating the
fully diluted loss per share for the 6 months ended 30 June 2017 is
the same as that used for calculating the basic loss per share as
the loss for the period has an anti-dilutive effect.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BSGDCRGBBGRU
(END) Dow Jones Newswires
September 18, 2017 02:00 ET (06:00 GMT)
Mineral & Financial Inve... (LSE:MAFL)
Historical Stock Chart
From Apr 2024 to May 2024
Mineral & Financial Inve... (LSE:MAFL)
Historical Stock Chart
From May 2023 to May 2024