Pembridge Resources PLC presents new investment strategy
The valuation of the company’s investment in Minto Metals has increased significantly
The board of Pembridge Resources PLC (LSE:PERE) has reviewed the company’s strategic options and approved a new strategy.
This strategy defines a plan to expand the investment portfolio, focusing on investments in the decarbonisation of the energy market.
The company’s unaudited balance sheet as of December 31, 2021 shows equity of US$10.9 million, which represents a significant improvement from the negative equity position as of December 31, 2020.
Total comprehensive income for 2021 was US$20.6 million.
As of December 31, Pembridge held unaudited investments valued at US$16 million, an increase of US$6.8 million from the prior year.
The increase is due to a US$3 million investment in the capital raise undertaken by Minto Metals Corp (TSX-V: MNTO) when it listed on the Toronto Venture Exchange in the fourth quarter of 2021, and to the subsequent increase of US$3.8 million in the market value of this investment.
The company still owes Capstone $5 million for the initial purchase of Minto.
With regard to new assets, the strategy favors projects in production or close to the production stage and having technical reports confirming resources and/or reserves.
The main criteria for investment approved in the company’s strategy are that each investment does not exceed £15 million and that in all cases the stakes acquired are greater than 10% in projects with a rate of return internal greater than 12%.
Copper mining projects will be considered as long as they have a minimum annual production of 10 million pounds, a minimum life of seven years, and maximum costs of US$2.65 per pound. Gold projects will also be considered.
Pembridge expects to receive C$4 million from Minto in 2022, with the first payment of C$1 million due at the end of the first quarter.
“These are exciting times for Pembridge,” said Gati Al-Jebouri, chief executive of Pembridge.
“Having achieved what we set out to do with our investment in Minto Metals Corp, we are now in a position to look ahead to the growth of Pembridge itself. Our unique portfolio of assets is a very strong foundation for Pembridge’s growth by identifying and investing in new investments that will add value to our business. »