Replacement: Interim Results

RNS Number : 1673U
Mineral & Financial Invest. Limited
27 March 2019
 

The following amendments have been made to the 'Interim Results for the Six Months Ended 31 Dec 18' announcement released on 12 March 2019 at 7:00 am under RNS No 5189S.

 

Mineral and Financial Investments Limited announces that the historical 2017 data was not correctly stated. Therefore, the comparative NAV, NAV per share and respective growth in NAV were not correctly stated.

The changes are as follows:

-     NAV as at 31 December 2017 was £2,602,816

-     NAV per share as at 31 December 2017 was 7.43p

-     The NAV per share increased 67.3% from 31st December 2017

All other details remain unchanged. The full amended text is shown below.

 

Mineral & Financial Investments Limited

("M&FI" or "the Company")

 

Unaudited Interim Results for the Six Months Ended 31 December 2018

 

HIGHLIGHTS:

·      Unaudited net earnings for the first 6 months of 2019 period were £722,000 or 2p per share

·      NAV per share at Dec 31, 2018 up 67.3% to an all-time high of 12.5p vs. same period last year

·      The Company remains debt free and with a cash balance of £750,000

·      Completed accretive acquisition of TH Crestgate GmbH, which is now a wholly owned subsidiary

·      Doubling of the resource at Redcorp's Lagoa Salgada Zinc project to 20.7Mt1 with gross Zinc Equivalent metal content +89.5% during the period2

·      Board strengthened with the Appointment of Jamie Lesser as Chief Operating Officer

 

GEORGE TOWN CAYMAN ISLANDS, March 12, 2019 - Mineral and Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the "Company") is very pleased to announce its unaudited interim results for the six months ended 31 December 2018.

 

Chairman's Statement

The Board of Mineral & Financial Investments Ltd. is very pleased to report its unaudited interim results for the first half period ending 31st December 2018.  The company generated a profit before tax of £722,000 and a fully diluted EPS gain of 2p per share vs 0.4p per share in the same period last year.  The NAV per share increased 67% from 31st December 2017 to 12.54p or £4,392,940 a new all-time high for M&FI.  The company retains a cash position of £750,000.  The board of directors believes in keeping costs to a minimum and maintaining aligned interests with shareholders.

Continued NAV growth was in spite of market headwinds particularly from the weak zinc price and their impact on our total 2,052,546 shares in Ascendant Resources, removing 1.96p from our NAV per share.  We expected this trend to reverse, with LME Zinc inventories now approaching their lowest point in well over 21years and halving in the last month alone.  Since the period end, the zinc price has risen only 10% whilst Ascendant shares are up 30% YTD.

H1 2019 is the first reporting period following the acquisition of TH Crestgate (THC), in which we have consolidated THC numbers into the M&FL, and which has been accretive to NAV.  Over the past four years the total NAV of M&FI has grown from £908k to £4.4m and we look forward to the de-risking of future value both from further potential exploration success at Lagoa Salgada and agreed milestone payments from Ascendant Resources, who are ahead of schedule on the required project spend.

The agreed Ascendant option earn-in cash payment schedule to M&FI is set out below, but this is at Ascendant's discretion and therefore there can be no guarantee that the payments will be made

Due on or Before

Amount

Due on or Before

Amount

June 2019

US$250,000

June 2021

US$1,000,000

Dec. 2019

US$500,000

June 2022

US$1,000,000

June 2020

US$500,000

Dec 2022

US$2,500,000 & Feasibility Study

The following is a summary of the NAV, updated to include the unaudited NAV calculation released on February 21, 2019:

 

 

Dec. 31 2015

Dec. 31 2016

Dec. 31 2017

Dec. 31 2018

CAGR (%)

2018 / 2015

NET ASSET VALUE (NAV)

£908,476

£1,494,360

£2,602,816

£4,392,940

68.2%

NET ASSET VALUE PER SHARE (NAVPS)

6.47p

6.25p

7.43p

12.54p

24.4%

 

Tactical Portfolio:

The purpose of the Tactical Portfolio is to allow M&FI flexibility to take advantage of short-term opportunities across asset classes in high quality names, whilst remaining liquid enough to deploy working capital elsewhere when needed.  We took a view on gold in early 2018 which we continue to reflect in the more recent portfolio additions of Barrick Gold (added post period end) and Alamos Gold, (and Cerrado Gold in the Strategic Portfolio).  In addition to the core 3% of Ascendant Resources the Portfolio at 31st December 2018 includes positions in:

Company

Development Stage

Type of Security

Primary Commodity

Geographic Area of Activities

Ascendant Resources

Production

Common Equity

Zinc & Lead

Honduras & Portugal

Alamos Gold

Production

Common Equity

Gold

Canada, USA, Mexico & Turkey

Trevali Mining

Production

Common Equity

Zinc & Lead

Peru, Cda, Namibia, Burkina Faso

Imperial Metals

Production

Common Equity

Copper

Canada

Cabral Gold

Exploration

Common Equity

Gold

Brazil

Artemis Resources

Explo/ Near Term Prod.

Common Equity

Gold, Copper, Cobalt

Australia

Gold

N/A

ETF

Gold

Global

Silver

N/A

ETF

Silver

Global

Platinum

N/A

ETF

Platinum

Global

Copper

N/A

ETF

Copper

Global

 

Strategic Portfolio:

The Strategic Portfolio allows M&FI to assess the three key fundamentals to a successful investment in the sector, management, finance and geology.  We can change the first two of these and so we exercise in depth due diligence on geology.  As such we are constantly reviewing potential investments filtering through the many underfunded projects left struggling by 10yrs of underperformance.  The Board continues to like zinc and gold which is well expressed in both portfolios and is reviewing investments in other commodities with the potential to outperform.

 

The Strategic Portfolio includes:

Company

Development Stage

Type of Security

Primary Commodity

Geographic Area of Activities

Redcorp Empreedimentos Mineiros Lda.

Exploration

Common Equity

Zinc & Lead

Portugal

Cap Energy

Exploration

Common Equity

Oil & Gas

Senegal & G. Bisau

Cerrado Gold

Exploration

Common Equity

Gold

Brazil

Toro Gold

Production

Common Equity

Gold

Senegal

 

On behalf of the Board

Jacques Vaillancourt, Executive Chairman

 

FOR MORE INFORMATION:

Katy Mitchell and Jessica Cave, WH Ireland Limited                  +44 161 832 2174

Jon Belliss, Novum Securities Limited                                         +44 207 399 9400

James Lesser, Mineral & Financial Investments Ltd.                   +44 777 957 7216

 

Statement of comprehensive Income

for the 6 months ended 31 December 2018

 

 

UNAUDITED

UNAUDITED

AUDITED

 

 

6 months to

31 December

2018

6 months to

31 December

2017

18 months to

30 June

 2018

 

Note

£'000

£'000

£'000

Continuing operations:

 

 

 

 

Investment income

 

-

1

2

Net gains on investments

 

838

219

313

 

 

 

 

 

Total income

 

838

220

315

 

 

 

 

 

Operating expenses

 

(116)

(85)

(260)

 

Operating profit

 

722

135

55

 

 

 

 

 

 

Profit before taxation

 

722

135

55

 

 

 

 

 

Profit for the period attributable to owners of the Company

 

722

135

55

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to owners of the Company during the period

3

 

pence

 

pence

 

pence

Basic:

 

2.1

0.4

0.2

Diluted:

 

2.0

0.4

0.2

 

 

 

Statement of Financial Position

as at 31 December 2018

 

 

 

UNAUDITED

UNAUDITED

AUDITED

 

 

31 December

2018

31 December

2017

30 June

2018

 

 

£'000

£'000

£'000

 

 

 

 

CURRENT ASSETS

 

 

 

 

Financial assets

 

3,679

2,200

2,269

Trade and other receivables

 

19

7

10

Cash and cash equivalents

 

750

456

422

 

 

4,448

2,663

2,701

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

 

45

50

68

Convertible unsecured loan notes

 

10

10

10

 

 

55

60

78

NET CURRENT ASSETS

4,393

2,603

2,623

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

4,393

2,603

2,623

 

 

 

 

EQUITY

 

 

 

 

Share capital

 

3,095

3,095

3,095

Share premium

 

5,886

5,886

5,886

Loan note equity reserve

 

6

6

6

Share option reserve

 

23

23

23

Other reserves

 

16,813

15,765

15,765

Retained earnings

 

(21,401)

(22,143)

(22,123)

Shareholders' equity

 

4,393

2,603

2,623

 

 

 

Statement of Changes in equity

for the 6 months ended 31 December 2018

 

 

Share

capital

Share

premium

Loan note

reserve

Share option reserve

Other reserves

Accumulated

losses

Total

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

At 30 June 2017

3,092

5,866

6

23

15,736

(22,279)

2,444

Profit for the 6 months to

31 December 2017

-

-

-

-

-

136

136

Share issues

3

20

-

-

-

-

23

At 31 December 2017

3,095

5,886

6

23

15,736

(22,143)

2,603

Profit for the 6 months to

30 June 2018

-

-

-

-

-

20

20

At 30 June 2018

3,095

5,886

6

23

15,736

(22,123)

2,623

Profit for the 6 months to

31 December 2018

-

-

-

-

-

722

722

Acquisition of TH Crestgate

-

-

-

-

1,048

-

1,048

 

 

 

 

 

 

 

 

At 31 December 2018

3,095

5,886

6

23

16,784

(21,401)

4,393

                                                                               

 

Statement of Cash flow

for the 6 months ended 31 December 2018

 

 

 

UNAUDITED

UNAUDITED

AUDITED

 

 

6 months to

31 December

2018

6 months to

31 December

2017

18 months to

30 June

 2018

 

 

£'000

£'000

£'000

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

Profit/(loss) before taxation

 

722

135

55

Adjustments for:

 

 

 

 

(Gain)/loss on disposal of financial assets

 

(449)

6

12

Fair value adjustment to financial assets

 

(389)

(225)

(325)

Investment income

 

-

(1)

(2)

Share based payment charge

 

-

-

11

Operating cashflow before working capital changes

 

(116)

(85)

(249)

(Increase)/decrease in trade and other receivables

 

(9)

3

(3)

Increase/(decrease) in trade and other payables

 

(23)

(25)

18

Net cash outflow from operating activities

 

(148)

(107)

(234)

INVESTING ACTIVITIES

 

 

 

 

Purchase of financial assets

 

(188)

(428)

(1,806)

Disposal of financial assets

 

664

49

1,124

Investment income

 

-

1

2

Net cash (outflow)/inflow from investing activities

 

476

(378)

(680)

FINANCING ACTIVITIES

 

 

 

 

Net proceeds of share issues

 

-

23

1,062

Net cash outflow from financing activities

 

-

23

1,062

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

328

(462)

148

Cash and cash equivalents at start of period

 

422

918

274

 

 

 

 

 

Cash and cash equivalents at end of period

 

750

456

422

 

 

Notes to the unaudited interim statement

for the 6 months ended 31 December 2018

 

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 consistent with those set out in the Company's Annual Report and Accounts for the 18 months ended 30 June 2018.

This interim financial information for the 6 months to 31 December 2018 was approved by the board on 11 March 2019.

The unaudited interim financial information for the 6 months to 31 December 2018 does not constitute statutory accounts. The comparative figures for the 18 months ended 30 June 2018 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 to

31 December

2018

6 months to

31 December

2017

18 months to

30 June

 2018

 

£'000

£'000

£'000

Weighted average number of shares for calculating basic earnings per share

35,037,895

35,037,895

33,661,491

Weighted average number of shares for calculating fully diluted earnings per share

35,842,895

35,842,895

34,466,491

 

 

 

 

1 Gross to Redcorp, Current Redcorp Ownership: TH Crestgate 75%, Ascendant 25%

2 Zinc equivalent metal grade (ZnEq%) was calculated as follows: ZnEq% = ((Zn Grade * 25.35) + (Pb Grade * 23.15) + (Cu Grade * 67.24) + (Au Grade * 40.19) + (Ag Grade * 0.62)) / 25.35; Metal prices used: US$1.15/lb Zn, US$1.05/lb Pb, $3.05/lb Cu, US$19.40/oz Ag, and 1,250/oz Au; No recoveries were applied

 


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