LONDON (ShareCast) - (Sharecast News) - Resource investment firm Cadence Minerals announced on Friday that its annual profit for the year leading up to 31 March almost doubled after the company managed to cut finance costs.
The AIM-traded company's pretax profit rose 95% to £1.2m, something the firm attributed to the rising use of electric and hybrid cars resulting in increasing demand for batteries that use minerals including lithium, cobalt, nickel and rare earth elements.

Cadence said cobalt lithium, nickel and rare earth elements are becoming ever more important and are seen as key strategic minerals as the major automakers phase in hybrid and full electric vehicles.

In a statement, the company said: "We have witnessed continued consolidation in the Lithium space, along with institutional and strategic involvement in a number of assets and projects Cadence was early to identify. Lithium's importance has been highlighted at the political and legislative level globally."

Admin costs saw a reduction of 30% from the preceding year, to £1.8m, and the investor reported that its assets had a mark to market equity value of £24.8m, representing absolute return on equity of 119%.

"We will continue to support our investee companies and identify new areas for expansion that offer the potential for superior returns on capital. We continue to view the medium and long term prospects for the company with confidence," said the company statement.

At 31 March, Cadence Minerals had £2.16m of cash and equivalents.

The company's principal investments include Bacanora Minerals, European Metals Holdings, Macarthur Minerals, Yangibana North Project , Clancy , San Luis stakes in Argentina and Auroch Minerals.

As of 1419 BST, Cadence Minerals' shares were up 7.06% at 0.23p.

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