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With income reinvested, the fund returned 11.9 per cent for the period against 12.3 per cent for the index. Diluted net asset value per share with income and warrants reinvested increased 12.1 per cent. Over five years to 30 June, the index rose 412.9 per cent while the fund gained 591.2 per cent.

Managers Graham Birch and Evy Hambro said after a time of being "bullish and wrong" on aluminium, prices finally rose. But their two main aluminium plays, Alcoa and Alumina, underperformed, falling almost 3 per cent and 19 per cent, respectively.

Despite supply tightening, the pair also said their copper holdings produced mixed returns. Kazakhmys rose 16 per cent, and Freeport McMoran rose 14 per cent, but Antofagasta declined 8 per cent.

But the managers benefited from the outperformance of platinum, where they were overweight, against gold, where they were underweight. They also predicted positive conditions for the rest of the year.

"With the notable exception of the lead, zinc and nickel companies, the mining sector enjoyed a favourable array of commodity prices and, despite sharply rising costs, it would not be surprising if we saw fresh earnings and cash flow records for the six months to June and year to December. P/e multiples remain quite low in the mining sector - a factor that means the possibility of merger and acquisition activity is never far from investors' thoughts."