Tribeca Global Natural Resources Ltd. · ASX:TGF
Tribeca Global Natural Resources — Investor Presentation (September 2019)
29 slides from Tribeca Global Natural Resources's investor presentation, Sep 30, 2019
Slide 1: Tribeca Global Natural Resources Ltd Investment Update
For personal use only Tribeca Global Natural Resources Ltd (ASX:TGF) Investment Update September 2019
Slide 2: Legal Disclaimer
This presentation has been prepared for Tribeca Global Natural Resources Limited (ABN 16 627 596 418) (“TGF”) by its investment Legal Disclaimer manager, Tribeca Global Resources Pty Ltd (ABN 11 606 707 662) (“Tribeca”) under AFS License 239070 (Tribeca Investment Partners Pty Ltd). The information
Slide 3: Tribeca Investment Partners
Tribeca Investment Partners For personal use only Founded in 1998, Tribeca Investment Partners is an Australian headquartered asset manager investing A$2.4bn on behalf of a pension funds, endowments, foundations, financial institutions and high net worth investors. With a staff of 27 across offices
Slide 4: Tribeca Global Natural Resources Team
Tribeca Global Natural Resources Team For personal use only Investment Team Operations and Finance Ben Cleary Craig Evans Haydn Smith Guy Keller James Howes Kylie Osgood Ken Liu Portfolio Manager Portfolio Manager Head of Credit Head of Commodity Trading Chief Operating Officer Chief Financial Offic
Slide 5: TGF Share Price vs NTA
TGF Share Price vs NTA For personal use only TGF NTA vs Share Price Since Listing $2.70 Key Details (as at 25 September 2019) ASX Code TGF $2.50 Listing Share Price $2.50 Fund NTA Share Price $1.92 -6.1% $2.30 Shares on Issue 63 million Market Capitalisation $121.0 million Discount Listing Date 12 O
Slide 6: TGF Performance vs MSCI Commodity Producers Index
TGF Performance vs MSCI Commodity Producers Index For personal use only • Since listing, TGF has demonstrated TGF vs MSCI ACWI Commodity Producers Index the ability to protect capital during a TGF NTA (LHS) 10.0% 16.0% period characterized by heightened MSCI Commodity Producers Index (LHS) 14.0% 8.0
Slide 7: Tribeca Global Natural Resources Strategy Comparative Returns
Tribeca Global Natural Resources Strategy Comparative Returns For personal use only MSCI ACWI Tribeca Global Natural HFRX Global Hedge Year Commodity Resources Strategy Fund Index Producers Index 2015 4.31% -2.04% -10.91% The key to generating long term performance in natural resources investing is
Slide 8: Addressing the Discount to NTA
Addressing the Discount to NTA For personal use only • On 1 July 2019, the Manager of TGF, Tribeca Global Natural Resources Pty Ltd, announced its intention to acquire TGF shares on market*. • Specifically designed to address the material discount between the share price and NTA. Reflects the value
Slide 9: Shareholder Friendly Terms
Shareholder Friendly Terms For personal use only Focus on Corporate Governance • Majority independent board and independent Chairman Costs borne by the Manager, not shareholders • IPO costs fully reimbursed by the Manager • Manager pays for ongoing operating costs Long Term Alignment • Manager has c
Slide 10: Investment Process Overview
For personal use only Investment Process Overview
Slide 11: Investment Approach
Investment Investment Approach Approach For personal use only Actively Managed • Aim to deliver absolute returns of 15% p.a. through the cycle. Specialist • Actively managed, specialised long short strategy with a focus on the global natural resources sectors. High Conviction • Employ a high convict
Slide 12: Investment Process
Investment Process For personal use only Commodity Ranking Quantitative Screening Fundamental Research Long Short Ideas Investment Global commodity demand and Quantitative screening across Sector and stock specific Investments expressed based High conviction, detailed bottom supply modelling. the in
Slide 13: Investing Across the Value Chain
Investing Across the Value Chain For personal use only A flexible, long short, mandate and deep knowledge of value chains from project to end-user allows for the capture of different payoff profiles at different points in the cycle. Exploration & Engineering Transport Infrastructure Production Custo
Slide 14: Investment Universe
Investment Universe For personal use only Investment Universe by Sector and Asset Class Leveraging deep domain knowledge to exploit opportunity across the global natural resources Specialty Base complex. Metals Metals • The Company’s investment universe is broken down into eight Bulks Diversified in
Slide 15: Positioning & Investment Themes
For personal use only Positioning & Investment Themes
Slide 16: Exposures
Exposures For personal use only Current Portfolio Net Sector Exposure Long and Short Exposures 80% Long % Base Metals 60% Short % 40% Soft Commodities 20% Services 0% -20% Oil & Gas Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Dual Listed Companies Net and Gross Expos
Slide 17: An Attractive Point in the Cycle for Resources
An Attractive Point in the Cycle for Resources For personal use only S&P Goldman Sachs Commodity Index vs S&P 500 Index 10.0 9.0 Gulf Crisis Global Financial 1990 Crisis 2008 8.0 Oil Crisis 1973/74 Resources Represent a Significant Opportunity 7.0 6.0 • When viewed in a historical context, natural r
Slide 18: Relative Valuations for Resources are at Extremes
18 For personal use only Cyclically Adjusted PE (CAPE) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Jan-80 Sep-80 May-81 Jan-82 Source: Bernstein Research 1980s recession Sep-82 May-83 Jan-84 Sep-84 May-85 Jan-86 Market (S&P) Sep-86 May-87 Jan-88 Sep-88 May-89 Mining Jan-90 Sep-90 May-91 Rel
Slide 19: Only Sectors Cheap in Australia vs Long Term Valuations
Only Sectors Cheap in Australia vs Long Term Valuations For personal use only ASX Sector Valuations Relative to the Last 10 Years 100% 80% 77% 60% 48% 40% 37% 29% 30% 26% 24% 20% 20% 16% 13% 0% -20% -22% -12% -40% Real Estate Comms Materials Staples ASX 200 Energy Info Tech Utilities Discretionary F
Slide 20: Core Positions – Freeport McMoRan
Core Positions – Freeport McMoRan For personal use only EBITDA ($mil) Doubling 8,000 7,000 • The largest listed copper producer in the world trading at depressed levels in terms of EV per pound of reserves 6,000 • EBITDA will double over the next 2 years (2021 vs 2019) as 5,000 production grows • Ma
Slide 21: Core Positions – Iluka Resources
Core Positions – Iluka Resources For personal use only Structural decline in zircon supply and undervalued cashflow from BHP iron ore royalty • Largest mineral sands producer globally in a market that is structurally short zircon due to lack of new supply • Junior miner efforts to get new mine suppl
Slide 22: Core Positions – Encana Corporation
Core Positions – Encana Corporation For personal use only Deeply discounted North American large cap E&P generating sector leading free cashflow and return on capital employed • Heavily penalised for acquisition in the Anadarko basin late in 2018, the company is 1/3 of the market cap it was prior to
Slide 23: Core Positions – Shipping Basket
Core Positions – Shipping Basket For personal use only 1-year time charter market highlight the improvement in the underlying fundamentals of the tanker market 38,000 VLCC 1 Year Time Charter (USD/Day) Macro and Geopolitical factors driving shipping thesis 36,000 • Middle East tensions are having a
Slide 24: Core Positions – Yellow Cake PLC
Core Positions – Yellow Cake PLC For personal use only U3O8 (lbs) required per annum for reactors under construction 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 • The World Nuclear Association 2019 Nuclear Fuel Report: Upper and 6,000,000 4,000,000 Reference Scenarios
Slide 25: Investment Themes - Private Credit
Investment Themes - Private Credit For personal use only Providing access to a unique and difficult to replicate source of return Credit Exposures by Sector Credit Exposures by Geography Gas • Private Credit is currently 33% of TGF gross Soft Commodities exposure Asia Diversified Pacific • Has deliv
Slide 26: Significant Bank Pullback from Natural Resources Financing
Significant Bank Pullback from Natural Resources Financing For personal use only Opportunity • Following the introduction of various regulatory restrictions such as Dodd-Frank, Volker, Basel III coupled with a pronounced natural resources bear market during 2012-2016, traditional lenders to the natu
Slide 27: Core Positions – Paringa Resources Limited
Core Positions – Paringa Resources Limited For personal use only Tribeca was mandated to arrange and underwrite a US$56.0m senior secured debt facility for listed thermal coal company, Paringa Resources Limited. Paringa is focused on its Buck Creek Mining Complex in the Illinois Basin, Western Kentu
Slide 28: TGF Board of Directors
Who / What we are TGF Board of Directors For personal use only Bruce has extensive experience in the financial services industry both in Australia Ben has had an extensive career in the natural resources sector having worked in a and overseas. He has been CEO of several funds management businesses i
Slide 29: Contact Information
Contact Information For personal use only Investor Relations TGFinvestors@tribecaip.com.au www.tribecaip.com/lic Sydney Tribeca Investment Partners Pty Ltd Level 23, 1 O’Connell Street Sydney NSW 2000 Tel: +61 2 9640 2600 Singapore Tribeca Investment Partners Pte Ltd #16-01 Singapore Land Tower 50 R
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