LONDON (Alliance News) - Mineral & Financial Investments Ltd Tuesday saw its shares hit a seven-month high, after it reported a third consecutive quarter of increased net asset value after a prolonged period of declines.
The investor in commodities sectors said its net assets stood at GBP1.08 billion, or 7.89 pence a share, at the end of March, up from GBP1.06 billion, or 7.75 pence a share, at the end of December.
It said it posted a double-digit percentage increase in profit by trading Canadian-listed uranium companies, after it had predicted higher uranium prices earlier in the year.
"Looking at the mining sector over the last quarter we believe we are beginning to see value growth as companies are once again able to progress their assets through equity financings. We think the mining sector is in an extremely interesting state at this time and MAFL has already created value from investments in gold and platinum vehicles. In addition to our trading portfolio the board continues to explore opportunities to secure strategic assets into MAFL," Chief Investment Officer Alastair Ford said in a statement.
The company currently holds GBP760,000 in cash, slightly down from the previous period, as it deployed more of its resources into the market.
"As the outlook for mining improves we would expect the cash position to reduce further and our equity and commodity exposure correspondingly to increase. We look forward to the coming quarters with cautious optimism," Ford said.
Mineral & Financial Investments shares were up nearly 18% at 5.75 pence a share Tuesday morning, one of the top gainers on AIM and the highest level since last September.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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Mineral & Fin (MAFL)