H1 2026 results: big jump in earnings, strong NAV progress
Mineral & Financial Investments Limited (AIM: MAFL) has posted a sharp step-up in profitability for the six months to 31 December 2025. Net earnings rose 108.2% year on year to £2,597,000 as the portfolio benefited from precious metals strength and a bigger contribution from the Tactical Portfolio. Net Asset Value (NAV) reached £16,423,000, up 29.5% year on year, with NAV per share (fully diluted) at 39.3p, up 22.1%.
In plain English: earnings more than doubled and the balance sheet swelled. The share count on a fully diluted basis increased due to long-term incentives, which meant NAV per share grew a little slower than total NAV.
Key numbers investors should know
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Net earnings | £2,597,000 | £1,247,000 | +108.2% |
| Gross profit | £2,980,000 | £1,551,000 | +92.1% |
| Operating profit | £2,641,000 | £1,262,000 | +109.3% |
| NAV | £16,423,000 | £12,692,000 | +29.5% |
| NAV per share (FD) | 39.3p | 32.2p | +22.1% |
| EPS (fully diluted) | 6.1p | 3.1p | +96.8% |
| Investable Capital | £16,902,900 | £13,113,800 | +28.9% |
| Cash | £1,007,000 | £501,000 | +101.2% |
Long-run record remains impressive: 10-year compound annual growth is +33.6% for NAV and +19.8% for NAV per share.
What drove the outperformance in H1 2026
The engine this half was the Tactical Portfolio, designed to generate “excess returns” and provide flexibility. It rose 58.6% year on year to £6.7 million and, alongside cash, now accounts for 45.6% of Investable Capital. That tactical tilt helped offset the drag of holding liquidity while still delivering strong earnings.
Precious metals did a lot of the heavy lifting. Management realised profits in the precious sleeve and increased exposure to physical metals, reflecting the view that in a choppy 2026, bullion and metals may offer better risk-adjusted returns than some development-stage equities.
How the portfolio is positioned now
By commodity exposure
| Group | H1 2026 | H1 2025 | H1 2026 as % of Total |
|---|---|---|---|
| Cash | £1,007,100 | £500,600 | 6.0% |
| Precious minerals | £8,870,400 | £7,554,000 | 52.5% |
| Base metals | £5,319,000 | £3,908,600 | 31.5% |
| Tech, energy & services | £905,900 | £1,150,600 | 5.4% |
| Royalties | £800,500 | – | 4.7% |
Cash currently sits at 6.0% of Investable Capital versus a 10% target. However, M&F also holds 1,210 oz of gold through Deferred Gold Delivery Contracts (DGDC). If you treat those as cash equivalents at marked-to-market, total “cash-like” liquidity would be about £4.1 million, or 24.1% of Investable Capital.
By portfolio type
| Category | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Cash | £1,007,100 | £500,600 | +101.2% |
| Tactical Portfolio | £6,700,800 | £4,224,900 | +58.6% |
| Strategic Portfolio | £9,195,000 | £8,388,300 | +9.6% |
The Strategic Portfolio – typically the long-term value driver – was broadly stable, up 9.6% year on year. Management notes many unlisted or thinly traded positions are valued at last financing price, which caps reported gains despite sector peers moving higher. That reflects a conservative valuation policy rather than operational disappointment.
The DGDC: why this financing matters
The DGDC with Golden Sun Resources (GSR) is a tidy piece of structuring. M&F funded the ramp-up of GSR’s 450/500 tpd Bellavista plant via deferred gold delivery contracts at a purchase price of US$1,750/oz, with a minimum floor of US$2,050/oz if spot fell below that level. Contracts run for six months; after six months, they lock at spot and then accrue at 20% per annum, calculated quarterly. Security includes 66% of the shares of Compañia Agro Parque S.A., which owns 220 hectares of Costa Rican land with commercial potential. M&F also received 1,449,441 five-year warrants to buy GSR shares at US$0.75.
My take: this gives shareholders a cash-yielding, asset-backed, commodity-linked instrument with equity upside, and it helps explain how M&F can run lower headline cash while retaining real liquidity.
Names in the Tactical Portfolio
As at period end, M&F held 17 tactical positions including AIC Mines, Azimut Exploration, Agnico Eagle Mines, Capstone Copper, ERO Copper, Faraday Copper, Hudbay Minerals, McEwen Mining, Newmont Corporation, NexMetals Mining, NGEx Minerals, Orla Mining, Rio Tinto, db Physical Rhodium, Santacruz Silver, Sprott Physical Silver Trust and Vior Gold. The clear theme is leverage to precious and base metals – with an increasing bias to copper producers and developers.
Macro backdrop and why it helped
The US dollar fell 9.4% over the 12 months to 31 December 2025, a tailwind for dollar-priced commodities. Notably, gold was up 42.6% and silver up 147.5% in that period. Equity markets were broadly supportive too, despite mixed moves in global bond yields. For M&F, that cocktail translated into healthy gains across the precious sleeve and rising momentum in copper-exposed names.
Things to watch in H2 2026
- Dilution effects: fully diluted NAV per share lagged total NAV growth due to new long-term equity incentives. Basic EPS was 6.9p; fully diluted EPS was 6.1p. Keep an eye on share count and award cadence.
- Liquidity versus returns: cash is below the 10% target, but DGDC lifts effective liquidity. The model relies on continued “excess returns” from the Tactical Portfolio to justify that structure.
- Strategic Portfolio marks: with many holdings pinned to last financing prices, a resumption of financings could unlock reported NAV gains, but the reverse is also true if market risk appetite fades.
- Project-specific updates: management cites ongoing progress at investees, including GSR’s ramp-up and a strategic review, plus developments at Redcorp/Cerrado in Portugal, Ideon Technologies, and Gemdale Gold (now TSX-V listed). Specific financial impacts are not disclosed.
Balance sheet and cash flow comfort
Net assets stood at £16,423,000 at 31 December 2025. Cash increased to £1,007,000 after a £798,000 inflow during the half, driven by net disposals of financial assets. Working capital as at 31 December 2024 was £16,648,000. Operating expenses remain well controlled at £280,000, with a £100,000 share-based payment expense reflecting the incentive awards.
My view: a strong half with clear positioning
This is a robust interim performance. Earnings and NAV moved decisively higher, the Tactical Portfolio did exactly what it says on the tin, and management is leaning into physical metals and copper – sensible given permitting delays, higher capital costs and grade decline across the mining industry. The DGDC structure adds an attractive, secured yield with embedded commodity and equity options.
The flip side: fully diluted per-share growth is being clipped by option issuance, and some of the Strategic Portfolio’s value is waiting on fresh financing rounds to show up in the marks. If risk appetite cools, that could delay recognition. Overall though, on the numbers presented, H1 2026 was a clear positive for MAFL shareholders.
