Mineral & Financial Investments Ltd (LON:MAFL) shares gained more than 10% in Monday’s early deals after financial results for the year ended June 30, 2020, confirmed a rise in net asset value (NAV).
The company’s NAV was marked at £5.47mln at the financial year-end, up 7% over the twelve-month period. At the same time, the group’s investment portfolio was said to be worth £5.31mln, up 7.3%.
The company noted, meanwhile, that its NAV has now increased at a compound annual growth rate (CAGR) of 57.4% since the end of 2015.
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Mineral & Financial said that in the same five-year period its performance has consistently exceeded that of the FTSE 350 Mining index and the CRB Commodity Index.
Describing the economic backdrop the investment company noted the devasting impact of the coronavirus (COVID-19) pandemic, third-party estimates that the world has ‘lost’ two years’ of growth, and expectations of a gradual recovery – but, highlighted a silver lining that inflationary pressures will now be lower.
Focusing on its specific areas of expertise, mining and natural resources, Mineral & Financial said: “Commodities generally struggled during the period framed by our fiscal year. We believe commodity prices will be buoyed in 2021 by a growing shift from financial assets to hard assets and a weakening US dollar.”
The company added: “During the year our emphasis has been to continue diversification while increasing exposure to precious metals. The strategic portfolio has sought advanced stage exploration or early-stage development precious metal investment opportunities.”
The group also noted that it continues to seek suitable strategic investment opportunities to generate above-average returns, whilst retaining the company’s standards of prudence.
In London, Mineral & Financial shares traded up 0.9p or 10.59% to change hands at 9.4p each.