Strata Investment Holdings Posts £16.48m H1 Profit on Copper Royalties and Investment Gains

Robust Half-Year Profit Driven by Copper and Investment Revaluation

Strata Investment Holdings plc (ASX:SRT) swung to a £16.48 million total comprehensive profit for the six months ended 30 June 2026, a striking 762% increase compared to a £2.49 million loss in the prior corresponding period. This turnaround was fuelled by a £14.23 million uplift in the fair value of its investment portfolio alongside a £2.45 million revaluation gain in its royalty portfolio, underpinned by rising consensus copper prices.

The company’s net asset value per share nearly doubled to 26.88p, yet the share price remained at 8.31p as of the trading suspension date, reflecting a significant discount to net asset backing. Market capitalisation modestly rose 10% to £15.54 million, supported by a 10% increase in shares on issue following a 17.6 million share placement at A$0.20 in June 2026.

Cobre Limited’s Operational Turnaround Powers Equity Gains

The lion’s share of investment portfolio gains came from the active equity segment, with Cobre Limited, the copper explorer turned producer, accounting for £16.32 million of gains. Cobre’s successful acquisition and operational turnaround of the Sierra Atacama Copper Project in Chile marked a pivotal milestone during the period. Following a A$60 million capital raise in March 2026, Cobre took control of the producing asset and swiftly improved operational performance, achieving 879 tonnes of copper cathode production in the June quarter and positive operating cash flow of approximately US$1.6 million.

Alongside production gains, Cobre embarked on an extensive 40,000-metre drilling program to validate and expand resources, while securing additional exploration concessions to broaden its district-scale footprint. The company also advanced partner-funded exploration in Botswana through joint ventures with BHP and Sinomine, maintaining exposure to promising copper targets without capital outlay. Strata’s 11.1% shareholding in Cobre remains a cornerstone of its active investment strategy.

Maiden Royalty Income from Sandfire’s A4 Deposit

Strata received its first royalty payment from Sandfire Resources’ A4 deposit in Botswana in April 2026, covering the first quarter’s production. The 2% uncapped net smelter royalty over approximately 7,000km² of Sandfire’s ground, excluding the T3 deposit, is expected to provide a growing income stream as A4 production ramps up. The royalty portfolio was revalued upward by £2.45 million, reflecting higher copper price forecasts and the potential of the nearby A1 deposit, which is expected to have a maiden Ore Reserve declared in FY27.

This royalty income represents a key long-term value lever for Strata, supported by ongoing exploration successes and partner-funded drilling programs across its royalty lands. The company also noted that its NSR royalty over Cobre’s Kitlanya East and West projects remains carried at nil value but continues to benefit from exploration advancements.

Diversified Equity Portfolio Maintains Momentum

Beyond Cobre, Strata’s equity portfolio delivered a trading profit of £15.04 million, the best period performance to date. While the active portfolio was the main driver, passive investments also contributed modest gains, with notable performances from Helius Minerals, Axo Copper, and Virdis. The company acquired investments totaling £4.63 million and disposed of assets worth £4.52 million, realising a profit of £811,000 during the period.

Other key equity holdings include Iondrive Limited, advancing rare earth element recovery technology, and Rapid Critical Metals, focused on silver and critical metals exploration in Australia and Canada. Both companies progressed exploration and commercialisation milestones, supporting Strata’s strategic exposure to critical minerals and battery metals.

Corporate Developments and Capital Strategy

In June 2026, Strata issued 17.6 million shares at A$0.20, raising approximately £1.87 million to bolster its cash position, which stood at £1.9 million at period end. The company has binding agreements to issue a further 22.5 million shares in August, expected to raise an additional A$4.5 million.

Post-period, Strata announced its commitment to participate in Cobre’s A$90 million institutional capital raise, subscribing for A$8 million to support accelerated production and exploration growth. This move underscores Strata’s confidence in Cobre’s prospects and its active investment approach.

Meanwhile, the company terminated the previously announced acquisition agreement for SCP with 1000433639 Ontario Inc, ending any further obligations or claims related to the deal. This marks a strategic pivot away from the acquisition path pursued since August 2024.

Navigating a Complex Global Environment

Strata’s board highlighted the challenging macroeconomic backdrop marked by geopolitical tensions, inflationary pressures, and trade fragmentation. Despite this, structural demand for copper, gold, and critical minerals remains robust, driven by electrification, renewable energy, and digital infrastructure growth. The company’s diversified portfolio and royalty interests position it to benefit from these long-term trends.

The company also welcomed Robert Breuning as a Non-Executive Director in June 2026, bringing investment and entrepreneurial expertise to support strategic growth.

With copper prices and production ramp-ups underpinning near-term cash flows, and a strong pipeline of exploration and development assets, Strata’s outlook reflects cautious optimism amid ongoing global uncertainties.