The Minerals Income Investment Fund (MIIF) has in its performance update for 2022 said, it currently has Ghs 3.2 billion in Assets Under Management (AUM) and is focusing on GHs5 billion toward the end of 2023.
The fund grew assets by an incredible 87.4% from 2021 figures which remained at Ghs 1.7 billion.
People with knowledge on the fund's intimate working say with Lithium and Salt investment wrote for 2023, the US$500 million mark or if nothing else GHs 5 billion is much within view.
MIIF's performance update has been achieved on the rear of creative methodologies which led to growth in royalties' income, expansion of source of royalties and investment income.
Growth focused Investment
In March 2022, MIIF obtained a US$20 stake in Asante Gold Corporation a Canadian and German-listed company with assets in Bibiani, Chirano, and Kubi.
MIIF bought into 14,514,286 conventional offers, representing 4.62% of the entity at that time.
The future-focused investment fund said at the hour of the securing that it saw "significant upsides to the Asante asset and was sure the company which has every one of its assets domiciled in Ghana would do very well".
MIIF has also settled a GH¢25 million deal in a Ghana/Africa SME-focused Fund. MIIF as of late announced at the 2023 Mining Indaba in South Africa that it expected to put US$60 million in Lithium and Salt with the beneficiary companies being Atlantic Lithium and Electrochem limited, a completely claimed Ghanaian company that is meaning to turn into Africa's greatest Salt producer.
One more area of investment for 2023 is the small-scale mining incubation help program where MIIF told audience at the South African Mining Indaba in Cape Town that it was planning to invest one more US$ 60 million to formalize small-scope mining, help with discernibility systems for the gold created by small-scope miners under the program and eventually list recipient mining firms on the Ghana Stock Exchange (GSE).
MIIF is also fostering a gold-upheld Exchange Traded Fund (ETF) with the backing of the Ghana Stock Exchange (GSE) for trading on the Ghanaian Bourse and conceivably the Johannesburg and Toronto Stock Trades.
Performance of Investments of the Fund.
The Fund recorded an annualized end-year return of 6.13% in 2022. The return was also influence by foreign exchange volatility and great depository the executives of fund.
Edward Nana Yaw Koranteng, the CEO of the Fund told the Daily Graphic exclusively, "MIIF prepared GH¢1.3 billion out of 2021 and GH¢1.8 billion out of 2022, representing a 36% growth over the earlier year. This was a major factor in growing the Fund's AUM. We have had the option to do this as a result of a between agency system we set up last year which has seen us teaming up with additional agencies. These agencies incorporate the Ghana Standard Authority, the Economic and Organized Crime Office and the Minerals Commission which is the controller of the minerals sectors. We have also taken on imaginative advances, for example, geo-planning all mining site in Ghana and furthermore making a continuous dashboard for all royalties contribution from each mine in the country," Mr Koranteng said.
Mr Koranteng further said "the Fund put in measures to grow the royalties stream by adding sand-winning and salt to the rundown of royalties paying minerals which help with differentiating the royalties base away from gold."
MIIF outflanks Global Benchmarked Indexes
MIIF outflanked global benchmarks with an annualized end-year return of 6.13% in 2022. The year 2022 saw huge market misfortunes for values and Fixed Income investments around the world.
Values burned through a large portion of the year in a bear market, with the S&P 500, FTSE 100, and GSE-CI recording end-year returns of - 19.49%, +0.91%, - 12.38%, separately. This thinks about to the 6.13% return accomplished by MIIF.
The security market was likewise hit, particularly in creating economies, as the gamble of defaults expanded. The Russia-Ukraine struggle set off worldwide expansion and general market vulnerabilities.
MIIF as a switch for improvement
Mr. Koranteng communicated idealism that MIIF will, in a couple of years, become the switch that can help Ghana through unstable monetary periods and deal the necessary dependability in the economy.
"MIIF will try to expand its subsidizing and speculation portfolio sources, including capital market exchanges, a gold exchange work area which has previously been set up which will be a wellspring of forex for the nation and investigate risk cooperation in high-yielding undertakings with top-grade monetary foundations," Mr Koranteng.
Mr Koranteng stressed: "We are a youthful asset, notwithstanding, we are centered around taking care of business. We intend to raise a ruckus around town million AUM by January 2024 and US$1 billion by 2027. We have made interests in Asante Gold, we are focusing on a few gold exploratory organizations, lithium and salt as well as lithium results, for example, feldspar and silica to launch the earthenware production and fiberglass industry."
MIIF
The Minerals Pay Venture Asset (MIIF) is Ghana's minerals sovereign asset. MIIF was laid out according to the Minerals Pay Venture Asset Act, 2018 (Act 978) as corrected to get sovereignties installments from mineral creation exercises in Ghana and to deal with the public authority's value interest in mining organizations.