Published by Juliet Etefe
The Minerals Income Investment Fund (MIIF or “the Fund”) delivered a resilient operating performance in 2025, navigating a materially changed statutory, macroeconomic, and investment environment to close the year with an audited profit of GH¢1.1 billion.
The year’s results were fundamentally shaped by amendments to the Minerals Income Investment Fund Act, 2018 (Act 978), as effected by the Minerals Income Investment Fund (Amendment) Act, 2025 (Act 1137).
Act 1137 drastically reduced the Fund’s allocation of minerals royalties and dividends income (10% free carried interest in mining companies) from 77.6 percent and 100% respectively in 2024 to 2% percent in 2025, a reduction of more than 98 percentage points in a single year. The Fund also ended the year with Royalty performance of GH¢5.4 billion as against GH¢4.9 billion in 2024.
This resilience was equally reflected in the Fund’s financial position, with the 2025 financial year marked by a stronger and more robust balance sheet driven by prudent capital management and enhanced financial discipline.
Retained earnings grew by nearly 35%, increasing the equity-to-assets ratio from 27% to 43%, while the fair value reserve rose by more than 680%, driven by positive revaluations of investment securities.
The Fund also strengthened its liability profile during the year. Current liabilities declined by approximately 37%, reducing the liabilities-to-assets ratio from 73% to 56%. Trade and other payables fell by more than 91%, resulting in a healthier liability profile. These improvements strengthened the Funds’ net asset position and financial flexibility, positioning the Fund to continue creating long-term value for stakeholders.
Record royalty receipts in first half 2026
The Fund has recorded GH₵5.39 billion in mineral royalties for the first half of 2026, achieving 186.1% of target and more than doubling collections recorded in the same period last year of GH¢2.6 billion, a performance that underscores exceptionally strong sector-wide revenue mobilisation.
The figure is particularly striking when set against annual benchmarks: Q2 2026 collections alone represent 98% of the entire GH₵5.43 billion collected across all of 2025, suggesting full-year 2026 receipts are on course to significantly surpass the previous year’s total.
Large-scale gold drives the surge
Large-scale gold mining remained the dominant contributor to the quarter’s performance, generating GH¢5.31 billion in royalties, 197.2% of target, and accounting for more than 98% of total receipts.
This feat is on the back of elevated gold prices on international markets, the sliding-scale royalty regime that captures greater value during price upswings, tighter compliance monitoring and numerous mines visits championed by the Chief Executive Officer of the Fund, Mrs Justina Nelson.
Medium-scale gold posts strong gains
Medium-scale gold operations also turned in a robust showing, hitting 176.4% of target and recording strong year-on-year growth.
The sub-sector’s performance was buoyed by the same favourable gold price environment, alongside enhanced enforcement activities and the regularisation of previously outstanding royalty obligations, signalling improved compliance discipline across the medium-scale segment.
Mixed performance in non-gold sectors
Performance across non-gold minerals was mixed, though sand royalties stood out, exceeding both prior-year performance and budget projections.
Sand receipts rose to GH¢516,721.13, a 136 percent increase over the GH¢380,619.26 recorded in the same period of 2025, and 129 percent of the half-year target of GH¢399,650.22, a surplus of about GH¢0.12 million.
This achievement is also attributed to enhanced compliance measures, particularly the requirement for operators to obtain MIIF clearance letters before the Minerals Commission issues relevant permits, as key to the improved payment discipline.
Outlook for second half 2026
Speaking on the results, Chief Executive Officer of MIIF, Mrs. Justina Nelson, expressed optimism about the remainder of the year, citing resilient gold production, the continued application of the sliding-scale royalty mechanism, and sustained compliance and monitoring efforts as reasons for confidence.
She cautioned, however, that downside risks remain, including a potential moderation in gold prices, operational disruptions within the mining sector, continued weakness in the manganese market, and persistent regulatory and illegal mining challenges affecting the quarry, salt, and sand sectors.
“Addressing these risks through enhanced stakeholder engagement, strengthened enforcement, and continued compliance interventions will be critical to sustaining royalty growth during the second half of 2026,” Mrs. Nelson said.
Source: /thebftonline.com