Mineral & Financial Investments (MAFL) has been a slow burn recovery situation for much of the recent past. However, the shares have finally delivered the acceleration they threatened technically.
I have to admit that Mineral & Financial Investments did rather evade my normally “sharp” antennae as far as getting on the bandwagon of the more excited small cap and micro cap plays. Perhaps it was the rather generic name for the company, or the way that looking at the daily chart in the second half of last year there was a 6 months sideways shuffle consolidation by the stock after the bullish break of the 200 day moving average in August. Such an extended consolidation would of course be enough to test the patience of even the most enthusiastic equities speculator.
As for the fundamental backdrop here, the latest upside relates to the way the first positive drilling news has come in from the company’s 85% owned Lagos Salgada zinc-copper project in Portugal. Clearly, if progress is maintained in this particular campaign one would look to further momentum as far as the share price rebound is concerned.
The ideal scenario over the next 1-2 months would be for the stock to deliver a weekly close above the 20p zone, with the assumed target then as high as 30p at the top of a rising January trend channel.