Mineral & Financial annual profit drops as administrative costs jump

(Alliance News) - Mineral & Financial Investments Ltd on Friday said its profit declined in its recent financial year, as expenses increased.

The Cayman Island-based investment company recorded a 9.8% decline in its pretax profit to GBP899,000 in the financial year that ended June 30, from GBP997,000 a year before. This is due to higher administrative costs.

The company said its higher administrative costs include the issuance of equity incentives, and a GBP51,000 increase in legal fees due to "extraordinary" legal costs from an unsuccessful financing attempt by an investee company, although financing was secured later from a different source. This also includes an increase to the salary of Mineral & Financial's Chief Executive Jacques Vaillancourt.

Overall, operating expenses were GBP439,000 in financial 2022, up from GBP341,000 a year before. This includes a share-based payment expense of GBP92,000, and other gains and losses of GBP133,000.

Meanwhile, Mineral & Financial's net asset value per share was up 10% to 20.04 pence from 18.22p a year ago, and its NAV was up 16% to GBP7.5 million from GBP6.4 million.

"Our performance in 2022 was relatively strong, but below our expectations for the year," Mineral & Financial said.

Shares in Mineral & Financial closed down 5.0% at 18.04p on Friday in London.

By Jaskeet Briah, Alliance News reporter

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