Mineral & Financial Investment (MAFL) delivered a first quarter update that showed that the company’s investment strategy continues to deliver.
After a 13.7% increase in net asset value (NAV) per share, it continues a long track record of beating benchmarks which include the FTSE 350 Mining Index and the GS Commodity Index – its 5-year CAGR EPS growth now stands at 14.1%.
Nevertheless, president and CEO Jacques Vaillancourt wasn’t entirely happy with the figures, pointing out that the impact of an equity financing by portfolio company, Luca Mining, supressed the reported NAV by a meaningful 2.23p per share – a situation that has since reversed as the introduction of new mining equipment has quickly improved the mine’s performance.
Elsewhere, it’s investment in Golden Sun Resources continues to hold much promise after the commissioning of a new mill, while new bridge financing provided by MAFL to the company in the form of gold derivatives is a further positive given the buoyant gold price – MAFL now holds more than 11,000 ounces of gold in aggregate, in anticipation of ongoing concerns around geopolitical stability.
In this interview, investors will hear:
- What drove the strong quarterly NAV improvement, despite the drag from a strong dollar and a timing issue around the fundraising by portfolio holding Luca Mining.
- Details of the gold-derivative based refinancing for portfolio holding Golden Sun Resources, after ramp-up issues at its new 450-500 tonnes per day mill at its Bellavista mine.
- The outlook for the US dollar and inflation, the rationale behind the large position in precious metals, and plans for redeployment of capital as monetisation events are achieved.
Reasons to add MAFL to your watchlist:
- Experienced management team with a deep understanding of the mining sector and the trends behind it
- MAFL offers discounted exposure to high-quality assets across the mining value chain, including mining-focused technology and consultancy companies that help the industry operate more efficiently and in an ESG-friendly manner
- There are several ‘monetisation’ events in its stated strategy for 2025, giving investors multiple opportunities to receive and redeploy capital int he year ahead
- MAFL shares currently trade at an 40% discount to its MAFL’s high-performing portfolio, which gives investors both a large margin of safety and significant level of upside
Jacques Vaillancourt, president and CEO of Minerals & Financial Investments (MAFL), was interviewed by John Hughman for focusIR.
