Investments

Public Equity Investments

The public equity investment segment includes active and passive investments in our trading portfolio.

The trading portfolio consists of investments in listed mining entities that the Board believes possess attractive
underlying assets. The focus is to invest in mining companies that are significantly undervalued by the market and
where there is substantial upside potential through exploration success and/or the development of mining
projects for commercial production. Ultimately, the aim is to make capital gains in the short to medium term.
Investments are considered individually based on various criteria and are typically traded on the TSX, ASX, AIM or
LSE.

During the period, our public equity investments generated an unrealised and realised loss of £1.53million (2022:
loss of £4.15 million). These unrealised losses are a reflection of the transfer of the receipt of Hastings Technology
Metals Ltd’s (“HAS”) equity at the market value (£ 5.15 million) and then the subsequent reduction in share price
in HAS by circa 66%. However, the treatment of the mineral license swap of the Yangibana Rare Earth Deposit
into the equity of HAS is due to Cadence reporting on an unconsolidated basis. Assuming the returns were
reported on a consolidated basis, we would have reported an unrelaised / realised profit of £2.17 million, with
roughly £0.93 million gain being attributed to improvements in the price and profits from sales of European
Metals Holdings share price (“EMH”), £0.93 million is attributed to the net improvement in the Evergreen Lithium
Share Price (“E.G.”) and £0.75 million being attributed to the gain in price associated with the Yagibana Rare Earth
License swap into HAS.

If we look at the cumulative share performance of this portfolio at the end of the period, the realised return on
historical costs is circa 143%, and the unrealised return is 149%. Our investment in EMH is the only active
investment in the public equity portfolio.

The movement in public portfolio values during the year is summarised below. We have reported for clarity the
unconsolidated and consolidated values and movements. Our disposals in our pubic equity were invested in the
Amapá Project.

£,000
(Consolidated)
£,000
(Unconsolidated)
Portfolio value at the beginning of period of 20235,2445,244
Addition of HAS shares at market value5,152NA
Transfer of HAS from private to public portfolioNA905
Transfer of E.G. from private to public portfolio1,8101,810
Disposal of public Investments during the year(935)(935)
Realised and Unrealised (loss) / profit on portfolio value for the period (1,532)2,715
Portfolio value at the end of the period9,7409,740

Portfolio

As of 30 June 2023, our public equity stakes consisted of the following:

Company30-Jun-23
£,000
31-Dec-22
£,000
30-Jun-22
£,000
31-Dec-21
£,000
30-Jun-21
£,000
European Metals Holding Ltd5,2074,8825,35711,28714,180
Evergreen Lithium Ltd2,738
Hastings Technology Metals Ltd1,570
Charger Metals NL187301196342109
Macarthur Minerals Ltd103181327
Eagle Mountain Mining Ltd203747122153
Mont-Royal Resources Ltd12193935
Celsius Resources Ltd103
Miscellaneous55576
Total 9,7405,2445,74711,97414,878

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