LONDON (Alliance News) - Natural resource investment firm Paternoster Resources PLC Friday said its net asset value rose by over 14% during the first quarter of 2016 and said the increase was primarily driven by its holding in fellow London-listed investment firm Metal Tiger PLC.
Paternoster had a net asset value of GBP3.4 million at the end of March compared to GBP2.9 million at the end of 2015, with its net asset value per share rising to 0.363 pence from 0.320p.
The company currently has an investment portfolio worth GBP2.7 million comprised of investments in listed companies worth GBP1.8 million and investments in unlisted entities of GBP892,221, and Paternoster also reported a cash balance of GBP550,140 at the end of March.
"Since the company's last quarterly update, the company's net asset value has increased by over 14%, principally as a result of a significant increase in the Metal Tiger PLC share price," sad Paternoster.
"Subsequent to the end of the period covered by this quarterly update, Metal Tiger has continued to perform well, and the company has realised some substantial profits by selling part of its interest in Metal Tiger which has contributed significantly to the company's cash resources," the company added.
Metal Tiger, which invests at both a corporate and project level within the natural resources sector, began to see its share price rise in March after earning into the Logrosan project in Spain followed by positive results from its Kalahari project in Botswana. Metal Tiger has made a string of new investments since March.
Metal Tiger exited 2015 with a share price of just 0.875 pence, which went on to hit a high of 6.40p on April 6. On Friday, the stock was trading down 3.7% to 3.25p.
Notably, Paternoster sold part of its stake in Metal Tiger on March 16, offloading 6.0 million shares for 2.775p each to book proceeds of GBP166,500. Paternoster retained a 4.7% stake in Metal Tiger following that sale.
"In addition, the company has realised additional profits from the sale of some more shares in Plutus PowerGen PLC, and this company's share price has also started to recover," said Paternoster.
Paternoster sold 25.0 million shares in Plutus at the start of December 2015 for 1.10p each to raise GBP275,000. Paternoster retained 69.3 million shares in the power generator, equal to a 12.1% stake.
Prior to those shares being sold by Paternoster, Plutus shares closed at 1.25p each on November 30. On Friday, Plutus shares were trading up 3.1% to 1.34p each.
Lastly, Paternoster said the loan stock it acquired in Alecto Minerals PLC back in November has now been converted. Paternoster acquired USD495,365 worth of convertible loan stock in Alecto, an Africa-focused gold miner, in exchange for the issue of 100.0 million Paternoster shares.
"The convertible loan notes held in Alecto Minerals PLC have also now been converted. The impact of these subsequent events will be included in the company's next quarterly update," said Paternoster.
Alecto shares were trading up 2.9% to 0.0849p on Friday morning and are up 31% since the start of the year.
The company also has two other London-listed investments, one of which is in MX Oil PLC. MX Oil shares were trading up 0.7% to 0.856p on Friday morning but that is still 57% lower than its share price at the start of the year.
The other is New World Oil & Gas PLC, which is in the process of moving out of natural resources and into the market research sector. New World shares are currently suspended and last traded at 0.0581p - 31% lower than the share price at the start of 2016.
"The value of Paternoster's portfolio has continued to increase during the first quarter of 2016. Furthermore, the company has clearly demonstrated that not only can it make attractive returns on its investments but that these returns can be effectively realised," said Paternoster Chairman Nicholas Lee.
Paternoster shares closed March at 0.190p, 2.7% higher than the closing share price at the end of 2015. Paternoster shares were trading down 1.3% to 0.173p per share on Friday morning, which also is 6.1% lower than at the start of 2016.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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