Business
Final Results for the Year to 31 December 2015
Final Results for the Year to 31 December 2015.
About this update from Mineral And Financial Investments Ltd
[{"type":"text","content":"\n \nRNS Number : 2073C Mineral & Financial Invest. Limited 24 June 2016 \n\nMINERAL & FINANCIAL INVESTMENTS LIMITED\n(\"M&FI\"; \"Mineral & Financial\" or the \"Company\")\nFinal Results for the Year to 31 December 2015\n \n· First strategic investment made\n· Further strategic investments planned\n· Decline in NAV in tough market conditions\n· Recent improvement in sentiment should drive growth\n \n \nCHAIRMAN'S STATEMENT \n \n Dear Shareholders, \n \nI am pleased to present the results of your Company for the year ended 31 December 2015.\n \nIt was a disappointing year for Mineral & Financial's net asset value, which ended the calendar year at 6.5p per share. In accordance with the Company's Investing Policy the Company intends to be an investor and financier of natural resource companies, with a particular emphasis on mining companies. \n \nThe directors believe the decline in the NAV is due, in part, to weakness in the metals and mining sector, which I will touch on briefly later, but most significantly to our largest current investment, CAP Energy Limited. This investment is an energy exploration company with assets offshore West Africa. Cap Energy Limited re-listed on the JP Jenkins matched bargain system 5 October 2015. We believe that this is a less liquid and more opaque market. Following admission to the JP Jenkins Limited matched bargain system the share price fell from155p to 80p. This decline represents 2.3p of the 3.5p (i.e. 65%) of the decline in our NAV. We are keeping very close to the situation and, in our opinion, this investment's fundamentals have significantly improved due to enormous hydrocarbon discoveries on the neighboring blocks and the Company completing 3D seismic surveys and advancing various joint venture partnership discussions. Although weaker oil prices and the re-listing on a tertiary exchange have overshadowed these improvements, we nevertheless expect that there should be short to mid-term developments that will be exciting. \n \nIn our opinion, the metals and mining sector underperformed in 2015 due to continued concerns that demand from important economies, such as China, will be ...