Lowell Resources Funds Management Ltd · ASX:LRT
Lowell Resources Funds Management — Lowell Resources Fund — Investor Presentation (January 2023)
42 slides from Lowell Resources Funds Management's investor presentation, Jan 20, 2023
Slide 1: Lowell Resources Fund January 2023
For personal use only LOWELL RESOURCES FUNDS MANAGEMENT LOWELL RESOURCES FUND JANUARY 2023 ABN 36 006 769 982 AFSL 345674
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of units or shares in any ju
Slide 3: Fund Summary
Fund Summary For personal use only Characteristics of the Lowell Resources Fund Nature of Fund • Long only, ungeared fund Investee • Small mining & energy companies, predominantly in the exploration phase Companies offering major growth potential Investment • listed and unlisted equities globally Ty
Slide 4: Fund Summary December 2022
Fund Summary December 2022 For personal use only Overview 10 year Performance LRT vs ASX Junior Resources Index Fund size (NAV) A$44.6 m 5.0 Units on issue 31.5m units Net Asset Value 31/12/22 $1.4148/unit 4.0 Distribution 31/08/22 $0.1157/unit ASX Unit Price on 31/12/22 $1.17 3.0 Number of unit hol
Slide 5: Lowell – a Unique Investment Opportunity
Lowell – a Unique Investment Opportunity For personal use only 01 Fund Focus • One of the few investment funds that offers exposure to the junior 01 02 resources sector across Australia and global stock exchanges in unlisted and listed companies 02 Successful track record for 10+ years • Superior pe
Slide 6: Fund Outperformance
Fund Outperformance For personal use only The Lowell Resources Fund was caught up in major equity market falls from April 2022 as the US Federal Reserve began raising interest rates, but has significantly outperformed the benchmark S&P/ASX Small Resources Index (XSRD), the ASX Resources 300 Index an
Slide 7: Our Strategy: Investing in Exploration
Our Strategy: Investing in Exploration … For personal use only Capitalising on value accretion: optimal stage Drill out / Resource Feasibility & Production Expansion Reserves LRT TARGET INVESTMENT STAGE Share Price Commissioning Financing Discovery Construction Exploration Time Leverage: milestone
Slide 8: LRF Portfolio by Resource Development Stage
LRF Portfolio by Resource Development Stage For personal use only LRF Portfolio Value by Resource Project Stage 31 December 2022 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Grass Roots Exploration & Feasibility Pre-development Development Production Cash Resource 8
Slide 9: We Invest in Explorers because Explorers Make the Discoveries
We Invest in Explorers….because Explorers Make the Discoveries For personal use only Australian Mineral Discoveries by Company Size Source: Minex Consulting 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Unkown Other Small Major Moderate Junior Producer Company Producer Explorer 2000-2009 2010
Slide 10: Junior Explorers Generate >2x per $ spent
Junior Explorers Generate >2x per $ spent For personal use only 10
Slide 11: Investments by Commodity
Investments by Commodity For personal use only LRF COMMODITY EXPOSURE 31 DECEMBER 2022 Portfolio 31 Dec Bauxite 0% Uranium Helium 1% 3% Mining Services 2022 Mineral Sands 2% Fertilisers 2% Cash 1% 4% Nickel 6% Battery Gold & PGM 6% 44% O&G 9% Base Metals REE Silver 20% 1% 1% 11
Slide 12: Portfolio Characteristics December 2022
Portfolio Characteristics 31 December 2022 For personal use only PORTFOLIO BY GEOGRAPHY OF MAIN PROJECT Africa, 16% Cash, 4% Asia/Pacific, 3% North America, 13% INVESTMENT LISTING Europe, 2% Unlisted London Cash Latin America, 6% 6% 0% 4% North America 8% Australia, 57% ASX 82% 12
Slide 13: Largest Positions
10 Largest Positions For personal use only Portfolio LRT Portfolio at 31 December 2022 Code Company Commodity Portfolio Weight PDI Predictive Discovery Gold 6.7% GMD Genesis Minerals Gold 5.6% MGV Musgrave Minerals Gold 5.2% De Grey DEG Gold 4.1% Mining TL.TSX Talon Metals Nickel 3.5% CVV Caravel Mi
Slide 14: Investment Committee
Investment Committee Members For personal use only John Forwood, Richard Morrow, Stephen Mitchell, Stuart Baker, Investment Chief Investment Officer Investment Committee Investment Committee Committee Member Member Member Mr Forwood is a trained Mr Baker has a strong local geologist and lawyer, with
Slide 15: General Commodity Landscape
General Commodity Landscape For personal use only Dow Global Commodities Index 15 ABN 36 006 769 982 AFSL 345674
Slide 16: Metals and Mining Capex
Metals and Mining Capex For personal use only 16 ABN 36 006 769 982 AFSL 345674 Source: S&P Global 2022 Forecast: Base metals spotlight
Slide 17: Australian Resources Investment
Australian Resources Investment For personal use only 17
Slide 18: Metals Stockpiles
Metals Stockpiles For personal use only “There is a serious problem at the moment in terms of metal availability. There is a view that we can just flick a switch and produce more. You can’t. This requires long term planning.“ Trafigura CEO Jeremy Weir Jan 11th 2023 18 ABN 36 006 769 982 AFSL 345674
Slide 19: Lowell Resources Funds Management
LOWELL RESOURCES FUNDS MANAGEMENT 19
Slide 20: 2022 - Gold Written Off
2022 - Gold Written Off For personal use only 20
Slide 21: US Gold vs CPI 1970's
US Gold vs CPI 1970’s For personal use only The 1970's: US$ Gold vs US CPI (from end of the Gold Standard) $800 16% $700 14% $600 12% $500 10% $400 8% $300 6% $200 4% $100 2% $0 0% 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 US$ Gold Nominal US CPI 21
Slide 22: US Inflation Today vs 1970's
US Inflation Today vs1970’s For personal use only 22
Slide 23: Central Bank Gold Buying
Central Bank Gold Buying For personal use only 23
Slide 24: Copper
For personal use only Copper 24
Slide 25: Copper Stockpiles 2022
Copper Stockpiles 2022 For personal use only 25 ABN 36 006 769 982 AFSL 345674 1 – S&P Global Market Intelligence
Slide 26: Copper – Falling Grades and Falling Production
Copper – Falling Grades and Falling Production For personal use only Chile – “the Opec of Copper” • Chile produces 25% of the world’s copper • Chile’s largest producer Codelco’s production is falling: • Past 10 years: Average 1.7Mtpa • Next 5 years: Best Case 1.5Mtpa 26 ABN 36 006 769 982 AFSL 34567
Slide 27: Copper Discoveries
For personal use only Copper Discoveries 27
Slide 28: Oil & Gas
For personal use only Oil & Gas 28
Slide 29: Energy Supply
Energy Supply Natural Gas For personal use only Source: BP Statistical Review of World Energy
Slide 30: Oil Investment
Oil Investment Natural Gas For personal use only • Global investment fell off a cliff after the last oil price collapse in 2015, and it has yet to return to historical levels. • Many super-major companies are re-directing investment into renewables, driven by activist shareholders, and reticent bank
Slide 31: Oil Investment
Oil Investment Natural Gas For personal use only • Key regions driving growth are in the non- OECD / developing nations for transportation, manufacturing and petrochemicals. • China is now the world’s largest consumer and importer of oil, accounting for 15% of global demand (and also the world’s lar
Slide 32: Oil & Gas Demand
Oil & Gas Demand For personal use only Oil demand forecast China gas demand – forecast to double by 2050 Charts source www.statista.com 32
Slide 33: Highlighted Companies
Highlighted Companies For personal use only 33
Slide 34: Case Study: De Grey Mining
Case Study: De Grey Mining For personal use only Case Study DEG Price History $1.80 De Grey Mining $1.60 (ASX:DEG) $1.40 LRF Sales Pilbara Gold developer with 150km strike over the Mallina $1.20 Shear Zone, WA Gold Resource of 9.0 Moz $1.00 New Ore Reserve 5.1 Moz at 1.5 g/t Au $0.80 LRF Inves
Slide 35: High Potential Investment: Matador Mining
High Potential Investment: Matador Mining For personal use only Companies MZZ Share Price Matador Mining Limited $0.40 (ASX:MZZ) $0.35 • Newfoundland Gold Explorer • Market Cap A$41m with $10m cash $0.30 Ex director (Nov 2022). selling finished $0.25 • Gold major B2 Gold new 10% shareholder $0.20 •
Slide 36: Case Study: Liontown Resources
Case Study: Liontown Resources For personal use only Case Study Liontown Resources LTR.ASX Share price $0.60 Liontown Resources Ltd (ASX:LTR) $0.50 LRF Sales • Kathleen Valley Lithium $0.40 Project:156Mt @ 1.4% Li2O spodumene and 130ppm Ta2O5 • Moora Au-PGM-Ni-Cu prospect $0.30 WA • LRT A$213k inves
Slide 37: Copper: Alvo Minerals Resources
Copper: Alvo Minerals Resources For personal use only Companies Selected Copper and Polymetallic Listed Enterprise Values (Nov 2022) 6.00% Alvo Minerals Ltd (ASX:ALV) 5.00% NWC • Brazil focused copper-zinc explorer 4.00% • Market Cap A$13m with ~$4m cash Cu eq Grade (Oct 2022) 3.00% • Palma copper z
Slide 38: Copper: Rugby Resources
Copper: Rugby Resources For personal use only RUG.TSX Share Price Companies $0.25 Rugby Resources Ltd (TSX.V:RUG) $0.20 • South American focused copper- gold explorer $0.15 • Market Cap C$27m with ~$2.5m cash (Oct 2022) • Cobrasco copper molybdenum porphyry system in Colombia. $0.10 Identified in 19
Slide 39: Case Study: Melbana Energy
Case Study: Melbana Energy For personal use only Case Study Melbana Energy (MAY.ASX) Share Price $0.20 Melbana Energy Ltd (ASX:MAY) LRF Sales $0.15 • Oil explorer with assets onshore Cuba. • Identified 3 structures in Block-9 PSC, with a total independent resource estimate 4.8 billion barrels of OOI
Slide 40: Gas: TMK Energy
Gas: TMK Energy For personal use only Companies TMK Energy Ltd (ASX:TMK) • Mongolia focused coal seam gas explorer • Market Cap A$79m with ~$2.5m cash (Nov 2022) • 67% owned Gurvantes XXXV PSC – world class coal seam gas geology: high rank, thick, permeable, shallow coal seams with high gas contents
Slide 41: High Potential Investment: Blue Star Helium
High Potential Investment: Blue Star Helium For personal use only Companies BNL Share Price $0.07 Blue Star Helium Ltd $0.06 (ASX:BNL) • Colorado focused Helium developer $0.05 • Market Cap A$60m with $9m cash (30/09/2022) $0.04 • Three shallow wells on the Voyager prospect found 8%He in high qualit
Slide 42: Contact
Contact For personal use only Investment Responsible Entity Manager LOWELL RESOURCES CREMORNE CAPITAL LIMITED FUNDS MANAGEMENT ACN 006 769 982 ACN 006 844 588 AFSL 345674 AFSL 241175 Address Level 6, 412 Collins Street, Address Melbourne VIC 3000 8 Chapel Street, Tel: (03) 9642 0655 Richmond VIC 312
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