Duke Royalty shareholders approved the strategy changes proposed at the recent AGM and the fund’s new investments will now be focused on royalty streams. The NAV of the legacy resources assets fell by 69% over the year to the end of March 2015, finishing the period at 7p. the Board initiated a number of cost cutting measures.
As at the date of signing of their financial statements, the estimated asset value of the legacy resource investments stood at £3.6m and it is the Board’s intention that these assets be disposed of in an orderly manner to ensure a maximum realisation value.
Following the year end the Company repaid in full 1,500,000 unlisted, zero dividend preference shares issued at £1 per share to Damille Investments II Limited (“Damille”), issued on 30 October 2013. Including accrued interest and redemption fees, the Company repaid Damille £1,841,199. As a result of this and some recent realisations made to the legacy portfolio, the Company currently has no debt, as at the date of signing of these financial statements, had cash resources of £1.63m.
As at the date of the financial statements the Company has not undertaken any royalty transaction and continues to actively seek an exit for the residual assets.
Duke Royalty focused on new strategy