Half-year profit nearly six-folds as the critical minerals recycler rides tariff-driven scarcity and a new Wrexham plant nears full capacity.
Majestic Corporation (AIM: MCJ) more than doubled first-half revenue to $37m, from $18m a year earlier, as booming demand for recycled precious and non-ferrous metals drove pre-tax profit up to US$3.3m from US$0.6m, the company said in half-year results covering the six months to 30 June.
The urban mining specialist, which extracts metals from end-of-life materials including printed circuit boards, said gross margin widened to 12.9% from 8.6% on stronger metals pricing and growth in its UK operations, while earnings per share rose to 16.1 cents.
Chief executive Peter Lai said tariff-driven bottlenecks in global metal flows were restricting access to certain materials, reinforcing the case for higher recycling rates of critical minerals and giving Majestic's model structural tailwinds. The company said it had navigated volatile commodity prices and shifting trade patterns through the period.
Majestic pointed to its new 50,000 sq ft facility in Wrexham, which it said remains on track to reach full operational capacity by the end of the year, as a template for future expansion. The group is targeting processing capacity of 100,000 tonnes of material annually by 2030, up from around 30,000 tonnes in its last financial year.
Lai said the Wrexham site was 'permitted, compliant, and built to replicate', with in-house research and development work aimed at embedding proprietary recovery data into future processing infrastructure. On an annualised basis, the half-year results imply a valuation of around 10 times earnings, with management flagging further earnings-enhancing developments in the pipeline.
This report is based on Majestic Corporation’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Jen Theodore on Unsplash.
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