Strata Investment Holdings plc reported a striking £6.16 million comprehensive profit for 2025, propelled by robust investment portfolio returns and a significant revaluation uplift in its copper royalty assets. Despite operational delays from adverse weather, the company’s strategic focus on high-conviction resource investments and royalties positions it well amid evolving commodity markets.
- Total comprehensive profit jumps 1333% to £6.16 million
- Royalty portfolio revalued up £3.97 million, driven by copper price forecasts
- Investment portfolio delivers £6.09 million net gain, led by active holdings
- Production ramp-up at Botswana A4 deposit delayed, cash inflows expected mid-2026
- Ongoing legal dispute over SCP Resource Finance acquisition
A Year of Strong Financial Turnaround
Strata Investment Holdings plc has delivered a remarkable financial performance for the year ended 31 December 2025, reporting a total comprehensive profit attributable to owners of £6.16 million. This represents a staggering 1333% increase compared to the prior year’s £430,000, underscoring a successful turnaround driven by strategic portfolio management and favourable commodity market dynamics.
The company’s net asset value rose by 24.1% to nearly £32 million, although its share price remained static at 7.96p, continuing to trade at a significant discount to net asset value. This divergence highlights potential market undervaluation relative to the company’s underlying asset base.
Copper Royalties: The Crown Jewel
Central to Strata’s performance was a £3.97 million revaluation uplift in its royalty portfolio, primarily linked to copper price forecasts. Strata holds a 2% uncapped net smelter return royalty over approximately 7,000 square kilometres of Sandfire Resources’ tenure in Botswana, including the A4 and A1 deposits. While severe flooding delayed production ramp-up and thus royalty cash inflows, these are now expected to commence in the second quarter of 2026.
The revaluation reflects increased consensus copper prices and the introduction of longer-term price forecasts extending to 2030. This strategic exposure to copper, a metal critical to electrification and infrastructure, positions Strata well to benefit from structural supply deficits and robust demand fundamentals.
Investment Portfolio Gains and Strategic Focus
Strata’s investment portfolio contributed a net gain of £6.09 million, reversing a loss in the prior year. The gains were predominantly driven by active investments in companies such as Cobre Limited, Iondrive Limited, and Rapid Critical Metals, which have made significant progress in exploration, development, and commercialisation activities.
Cobre Limited advanced its Botswana copper projects and announced a $60 million capital raising to acquire a majority stake in the Sierra Atacama Copper Project in Chile, marking a strategic shift towards copper production. Iondrive progressed its innovative Deep Eutectic Solvent technology for battery recycling, supported by government funding and partnerships. Rapid Critical Metals consolidated a high-grade silver corridor in New South Wales and advanced exploration in Canada.
Strata continues to transition its portfolio towards a balanced mix of high-conviction active investments and diversified passive holdings, focusing on critical minerals aligned with electrification, security, and decarbonisation themes.
Operational and Legal Challenges
Operationally, the ramp-up of the A4 deposit was delayed by extreme weather events, pushing expected royalty cash inflows into mid-2026. Sandfire Resources has since dewatered the site and resumed mining activities, with production weighted towards the latter half of 2026.
On the corporate front, Strata is engaged in a legal dispute following the purported termination of its binding agreement to acquire SCP Resource Finance. The company disputes the grounds for termination and is actively exploring legal remedies, while continuing to focus on its core investments and accretive opportunities.
Market Context and Outlook
The broader commodity market environment in the second half of 2025 was marked by easing monetary policies, geopolitical tensions, and supply chain realignments. Copper, gold, and silver demonstrated resilience and upside potential, reinforcing Strata’s strategic positioning. The company’s exposure to rare earth elements and battery materials through its investments further aligns it with critical supply chain themes.
Administrative costs were reduced by nearly £800,000 year-on-year, reflecting disciplined cost management. No dividends were declared, consistent with a focus on reinvestment and portfolio growth.
Bottom Line?
Strata’s 2025 results underscore the value of its copper-linked royalties and active investment strategy, but operational delays and legal uncertainties warrant close investor attention in the year ahead.
Questions in the middle?
- How will the delayed cash inflows from the A4 royalty impact Strata’s near-term liquidity and valuation?
- What are the potential outcomes and timelines for the legal dispute over the SCP Resource Finance acquisition?
- How might evolving copper price forecasts and geopolitical risks influence the valuation of Strata’s royalty and investment portfolios?