MIIF reports GH¢409m net profit

The Minerals Income Investment Fund (MIIF) has reported a net profit of GH¢409 million in 2023, almost doubling the GH¢205 million it made 2022 despite the global economic downturn. 

The fund also recorded an increase in revenue from GH¢323 million in 2022 to GH¢456 million in 2023.

According to the Chief Executive Officer (CEO) of the fund, Edward Nana Yaw Koranteng, the MIIF was currently evaluating its assets, including Government of Ghana’s equity interest in mining companies which should place the fund’s total Assets Under Management (AUM) to around $1.5 billion by end of 2024.

This marked a steady growth from a stated AUM of $195 million in 2021, and made MIIF one of the fastest growing specialty sovereign wealth funds in the world.

“MIIF’s assets under management may increase to $1.5 billion by end 2024 as it begins a revaluation of assets including Government of Ghana’s free carried interests,” the MD said in a statement.

Growth factors

The main sources of income for the fund are royalties and dividend payments. Ghana has seven royalty paying minerals, with the potential for 15 paying minerals.

Gold, prior to MIIF expanding the royalties net, was contributing about 99 per cent of royalties.

The fund, since 2022, has expanded the royalties net by working to include hitherto non-paying minerals such as medium scale gold, sand winning and salt.

Royalties from quarries, limestone and silver have increased significantly, with the expansion premised on two major initiatives by the Fund, namely the establishment of an inter-agency framework and task force in 2022 made up of the Ghana Revenue Authority (GRA), Mineral Development, the Ghana Standards Authority, Minerals Commission and the Economic and Organised Crime Office (EOCO).

This framework is part of the strategic thrust of MIIF to enhance the collection of royalties, expand the royalties net and streamline communication on royalty payments from non-gold mining companies. 

Royalty base

The Head of Business Development of MIIF, Dr Kennedy Abrokwa, speaking to journalists, emphasised that with more gold mines such as Cardinal, Bibiani, Chirano coming on stream, and the uncovering of more medium scale gold mines, investment in salt, discoveries of lithium and graphite, among others, the royalty base would more than triple in the next five years.

“It is my conviction that MIIF will be a $6 billion fund within the next 10 years in view of the growth trajectory and the nature of our investments,” Mr Yaw Koranteng said.

Other investments

MIIF has invested over $40 million in the Chirano and Bibiani gold mines under the Canadian and Franfurt listed Asante Gold Corporation.

This investment has increased Ghanaian interest to circa 45 per cent, making it the only large-scale gold mine with significant Ghanaian interest currently.

The fund, through its investment in the UK and Australian listed Atlantic Lithium, is now the third largest shareholder in Atlantic Lithium globally and working on finalising a six per cent stake in the company’s Ghana tenements, including the Ewoyaa project mine which increases Ghana’s stake in Ewoyaa to 19 per cent on the back of a negotiated 13 per cent free carry for government at $27.9 million.

MIIF has also invested GH¢300 million in the development of the Ada Songhor Salt project under Electrochem Ghana.

“Industrial salt is one such mineral if well-developed across its value chain could generate at least US$1 billion in direct revenue every year. The Ada acreage of 41,000 acres is the largest in sub-saharan Africa and the investment will push it to become the biggest producing facility in Africa,” the Chief Investment Officer, Bubune Sorkpor, said.