Shares of Critical Minerals Financing Corp Plc, formerly Deap Capital Management and Trust Plc, surged 59.80 per cent last week, emerging as the biggest gainer on the Nigerian Exchange. The stock rose from N2.04 at the close of trading on Friday, September 18, to N3.26 on Friday, September 25, adding N1.22 in five trading sessions. This significant increase in share price has drawn attention to the company's recent performance.
The rally in CMFC's shares accelerated through the week, with the stock recording gains of 9.80 per cent on Monday, 9.82 per cent on Tuesday, 9.76 per cent on Wednesday, 10 per cent on Thursday, and another 9.76 per cent on Friday. This surge was against the backdrop of a broader positive week on the NGX, with the All-Share Index rising 0.92 per cent to 252,113.41 points and market capitalisation increasing by about ₦1.50 trillion to ₦163.66 trillion.
The intensity of the buying was reflected in trading activity, with about 63.8 million CMFC shares changing hands during the six trading sessions from September 18 to September 25. The biggest single-day volume of 29.32 million shares was recorded on Thursday, when the stock rose 10 per cent to N2.97. Another 6.10 million shares traded on Friday as the price climbed to N3.26.
CMFC's September performance has substantially altered its near-term price trajectory. The stock began September at N2.71 on September 1, meaning its N3.26 close on September 25 represented a gain of about 20.3 per cent within the month. However, the shares did not move in a straight line, initially declining to N2.56 on September 3, falling further to N2.38 on September 7, and touching N2.00 on September 11 and September 14 before the latest buying wave began.
Despite the dramatic market rally, CMFC's financial position remains in transition. The company's latest available financial statement, the unaudited nine-month results for the period ended June 30, 2026, showed that CMFC generated total income of N82.64 million, compared with N3.14 million in the corresponding period of 2025. However, the company reported a loss before tax of N148.12 million and a loss after tax of N141.69 million for the nine months ended June 2026.
The company's balance sheet has undergone significant changes, with cash and cash equivalents standing at approximately N6.08 billion at June 30, 2026, compared with just about N2.42 million at the end of September 2025. Total assets rose to N6.54 billion from N303.48 million over the same period. Shareholders' funds moved from a negative N2.33 billion at September 30, 2025, to a positive N4.30 billion at June 30, 2026.
The improvement in CMFC's financial position raises questions about the sustainability of its share price surge. At N3.26, the market is now attaching considerably greater value to a company whose latest nine-month results still show negative earnings. The share-price rally therefore raises the importance of subsequent financial disclosures, particularly the company's ability to convert its enlarged capital and cash position into income-generating assets and, ultimately, positive earnings.
Key points
- CMFC's shares surged 59.80 per cent last week.
- The company's financial position remains in transition despite the market rally.
- The sustainability of the share price surge depends on CMFC's ability to generate positive earnings.
