RiverFort Global Opportunities (RGO) said investment activity has continued into 3Q20 with several new investments, including the group’s substantial investment in Tanzanian Gold Corporation.
The investment firm generated a total income of £669,425 during Q3, making a total of £1.439m for the first nine months of 2020, while group net asset value increased by 11.9%.
Its net asset value per share came to 1.3p, a 49% premium to the period end share price. During 3Q20, RiverFort continued to generate substantial cash through its generation of investment returns thereby providing it a cash balance of c.£3m for further investment.
RiverFort said that the ‘excellent progress’ achieved during H1 2020 has now continued into Q3, specifically with its investment in Tanzanian Gold Corporation, a gold production firm listed on the New York Stock Exchange and TSX with a market capitalisation of over $130m.
Following “a very busy first six months of 2020”, the company said this continued robust trading has supported the Company's ability to start paying dividends and the Company has just paid its first interim dividend on the basis of a targeted full year gross yield of 7.5%.
As part of the Company's overall strategy when making investments, warrants or their equivalent are sought which can significantly increase the level of investment return.
RiverFort said its equity, warrant and other investments have risen during 3Q due to the increasing value of its warrant book and the value of its equity investment in Pires Investments, the investment group listed on AIM that invests in next generation technology.
‘The result for Q3 2020 further confirms the delivery of the strategy that it embarked on in early 2018, namely the de-risking of the portfolio, the generation of cash returns and the creation of value for investors with the payment of a dividend,’ the company told investors.
Shares in RiverFort Global Opportunities have increased by over 12% since the beginning of November 2020 to open 2.86% higher this morning at 0.9p following the announcement.
Reasons to Follow RGO
RiverFort Global Opportunities is an AIM-listed investment company focused on seeking to generate returns for shareholders through capital growth and income by way of dividends and provides equity-linked debt funding to public and private small cap growth companies.
In the six-month period to 30 June 2020, the company hailed “excellent” half-year results after substantially increasing investment activity despite the uncertainty as a result of COVID-19.
The group described the six-month period to 30 June 2020 as “very busy” as it focused on recovering cash from investments to reduce the level of risk within its investment portfolio.
RiverFort said this was managed successfully with investment activity since increasing substantially with the Company making a number of new investments during the period.
During the period, RiverFort generated investment income of £0.77m from its investment portfolio, with this level of profit underpinned by strong cash generation from operations.
Net asset value rose 7.2% over the period to £8.45m since the beginning of the year while the group’s net profit margin grew 73.9% with an operating cash flow margin of 72.1%.
The company told investors last month that it was targeting a 7.5% gross yield for the financial year ending 31 December 2020, based on the Company's current market capitalisation, commencing with the payment of a gross interim dividend of 0.02 pence per share.
Phillip Haydn-Slater, Non-executive Chairman commented, "This is a very significant step in the continued progression of the Company. We hope that shareholders will be happy with the progress that the Company has made to date and we look forward to welcoming new investors seeking income as well as capital appreciation from their investments."
Last week, the company announced that it has entered into a conditional term sheet with Kodal Minerals to potentially acquire a 20% interest in Kodal's portfolio of gold assets in West Africa which range from early exploration to assets with mineral resources.
The Fatou Project is an advanced project with previous exploration defining preliminary mineral resource estimates. Kodal said the project has ‘excellent exploration prospects that are drill ready and have potential to expand the defined zones of gold mineralisation.’
RGO believes the investment will offer investors more direct exposure to a broader range of alternative assets at valuations that are often lower than levels available in the public markets.
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