Lowell Resources Funds Management Ltd · ASX:LRT
Lowell Resources Funds Management — Lowell Resources Fund — Investor Presentation (June 2023)
38 slides from Lowell Resources Funds Management's investor presentation, Jun 13, 2023
Slide 1: Lowell Resources Fund June 2023
LOWELL RESOURCES For personal use only FUNDS MANAGEMENT LOWELL RESOURCES FUND JUNE 2023 ABN 36 006 769 982 AFSL 345674
Slide 2: Disclaimer
Disclaimer Important Notice • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, For personal use only invitation, solicitation or recommendation in relation to the purchase or sale of units or shares in any ju
Slide 3: Fund Summary
Fund Summary Characteristics of the Lowell Resources Fund For personal use only 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
Fund Summary April 2022 Overview Lowell Resources Fund NAV vs For personal use only ASX Junior Resources Index Fund size (NAV) A$41.8 m (rebased to 1 at January 2020, incl DRP) Units on issue 31.6m units 3.5 Net Asset Value 31/05/23 $1.3237/unit LRT XSRD Distribution 31/08/22 $0.1157/unit 3 ASX Unit
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 Over the past 3 years, the Lowell Resources Fund’s change in underlying For personal use only estimated net asset value per unit (inclusive of distributions and after fees and expenses) was 18.5%pa. The Fund has outperformed the benchmark S&P/ASX Small Resources Index (XSRD), the
Slide 7: Peer Comparison – year to March 2023
Peer Comparison – 3 year to March 2023 For personal use only 7
Slide 8: Our Strategy: Investing in Exploration
Our Strategy: Investing in Exploration … Capitalising on value accretion: optimal stage For personal use only Drill out / Resource Feasibility & Production Expansion Reserves LRT TARGET INVESTMENT STAGE Share Price Commissioning Financing Discovery Construction Exploration Time Leverage: milestone
Slide 9: LRF Portfolio by Resource Development Stage
LRF Portfolio by Resource Development Stage LRF Portfolio Value by Project Stage For personal use only 31 May 2023 40% 35% 30% 25% 20% 15% 10% 5% 0% Grass Roots Exploration & Feasibility Pre-development Development Production Cash Resource 9
Slide 10: We Invest in Explorers….because Explorers Make the Discoveries
We Invest in Explorers….because Explorers Make the Discoveries Australian Mineral Discoveries by Company Size For personal use only 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 11: Junior Explorers Generate >2x per $ spent
Junior Explorers Generate >2x per $ spent For personal use only 11
Slide 12: Investments by Commodity
Investments by Commodity LRF COMMODITY EXPOSURE 31 MAY 2023 Portfolio For personal use only Bauxite Uranium Helium 31 May 0% 1% 2% Mineral Sands Mining Services 2% Fertilisers 0% 2023 Cash 8% 1% Nickel Gold & PGM 2% 33% Battery 20% REE Silver 1% 2% O&G 9% Base Metals 19% 12
Slide 13: Portfolio Characteristics May 2023
Portfolio Characteristics 31 May 2023 PORTFOLIO BY GEOGRAPHY OF MAIN PROJECT 31 For personal use only MAY 2023 Asia/Pacific, INVESTMENTS BY LISTING 31 MAY 2023 Cash, 8% 4% North America, London Cash Unlisted Africa, 16% 11% 8% 1% 8% Europe, 2% North America 7% Latin America, 6% Australia, 53% ASX 76
Slide 14: Top Positions
Top 10 Positions Portfolio LRT Portfolio at 31 May 2023 For personal use only Code Company Commodity Portfolio Weight AZS Azure Minerals Li-Ni 6.4% MGV Musgrave Minerals Gold 5.8% PDI Predictive Discovery Gold 4.7% CVV Caravel Minerals Copper 4.5% COI Comet Ridge O&G 3.0% Unlisted CAA Mining Lithium
Slide 15: Market Capitalisations
Market Capitalisations ASX Resources Companies Market Cap of LRT's Investee Companies For personal use only 24 month share price change 60% A$ (mil) $300 40% $250 20% $200 0% $150 -20% $100 -40% $50 -60% $- -80% Jan-21 Jan-22 Jan-23 <$7.5M $7.5M-$21M $21M-$80M >$80M AUD$ Market Cap (Mil) Weighted Av
Slide 16: 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 17: General Commodity Landscape
General Commodity Landscape For personal use only Dow Global Commodities Index 17 ABN 36 006 769 982 AFSL 345674
Slide 18: Metals and Mining Capex
Metals and Mining Capex For personal use only 18 ABN 36 006 769 982 AFSL 345674 Source: S&P Global 2022 Forecast: Base metals spotlight
Slide 19: Australian Resources Investment
Australian Resources Investment For personal use only 19
Slide 20: 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 20 ABN 36 006 769 982 AFSL 345674
Slide 21: Lowell Resources Funds Management
For personal use only LOWELL RESOURCES FUNDS MANAGEMENT 21
Slide 22: 2022 - Gold Written Off
2022 - Gold Written Off For personal use only 22
Slide 23: US Gold vs CPI 1970's
US Gold vs CPI 1970’s The 1970's: US$ Gold vs US CPI For personal use only (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 23
Slide 24: US Inflation Today vs 1970's
US Inflation Today vs1970’s For personal use only 24
Slide 25: Central Bank Gold Buying
Central Bank Gold Buying For personal use only 25
Slide 26: Copper
For personal use only Copper 26
Slide 27: Copper Stockpiles
Copper Stockpiles For personal use only 27 ABN 36 006 769 982 AFSL 345674 1 – S&P Global Market Intelligence
Slide 28: 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 28 ABN 36 006 769 982 AFSL 34567
Slide 29: Copper Discoveries
For personal use only Copper Discoveries 29
Slide 30: Oil & Gas
For personal use only Oil & Gas 30
Slide 31: Energy Supply
Energy Supply Natural Gas For personal use only Source: BP Statistical Review of World Energy
Slide 32: 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 33: 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 34: Oil & Gas Demand
Oil & Gas Demand Oil demand forecast China gas demand – forecast to double by 2050 For personal use only Charts source www.statista.com 34
Slide 35: Case Study: De Grey Mining
Case Study: De Grey Mining Case Study For personal use only 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 36: Case Study: Liontown Resources
Case Study: Liontown Resources Case Study Liontown Resources LTR.ASX Share price For personal use only $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: Case Study: Melbana Energy
Case Study: Melbana Energy Case Study Melbana Energy (MAY.ASX) Share Price For personal use only $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 38: 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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