Lowell Resources Funds Management Ltd · ASX:LRT
Lowell Resources Funds Management — Lowell Resources Fund — SIAA Conference May 2025
47 slides from Lowell Resources Funds Management's conference presentation, May 19, 2025
Slide 1: Lowell Resources Fund Presentation SIAA Conference May 2025
LOWELL RESOURCES For personal use only FUNDS MANAGEMENT LOWELL RESOURCES FUND PRESENTATION SIAA CONFERENCE MAY 2025 400 350 300 250 200 150 100 50 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: Lowell Resources Fund
Lowell Resources Fund For personal use only 1. LRT 3
Slide 4: Fund Summary
Fund Summary Overview LRT 5 Year Total Return For personal use only incl distributions Rebased to 100 Fund size (NAV) 31/03/25 A$66.8 m 300 Units on issue 41.4m units Net Asset Value 31/03/25 $1.561unit Distribution FY24 paid 31/07/24 $0.152/unit 250 Aggregate Distributions past 5 years $0.51/unit A
Slide 5: Fund Summary: Characteristics of the Lowell Resources Fund
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 offering major growth Companies potential Investment • Predominantly listed equities globally T
Slide 6: Our Strategy: Investing in Exploration Stage
Our Strategy: Investing in Exploration Stage 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: miles
Slide 7: LICs & LITs NTA Compound Annual Growth Rate
LICs & LITs NTA Compound Annual Growth Rate over 5 years For personal use only • Outperformance • Uncorrelated • As of 31 March 2025 7
Slide 8: LRT ASX discount to NAV vs LIV Peers
LRT ASX discount to NAV vs LIV Peers 10.00% <$200m LRT For personal use only 5.00% 0.00% -5.00% -10.00% -15.00% -20.00% -25.00% -30.00% -35.00% Source Bell Potter 8
Slide 9: LRT Commodity Exposure
LRT COMMODITY EXPOSURE LRF COMMODITY EXPOSURE 30 APRIL 2025 Mineral Sands For personal use only Nickel 0% 2% Helium Uranium O&G Battery 1% 0% 5% 1% Base Metals 25% Gold & PGM 60% Silver REE 4% 1% 9
Slide 10: Investment Committee
Investment Committee Members For personal use only John Forwood, Richard Morrow, Stephen Mitchell, Chief Investment Officer Investment Committee Investment Committee Mr Forwood is a trained Member Chair geologist and lawyer, with Mr Mitchell began his Mr Morrow is a Melbourne- experience as an explo
Slide 11: Fund Performance
Fund Performance For personal use only S&P/ASX Small ASX Resources Total Portfolio LRT Change in ASX 200 Index Resources 300 Index Performance to 30 April NAV per unit incl Accumulation Index (Total Return) 2025 distributions (Total Return) (XSRAI) 12 months 12.5% 5.1% -9.9% 9.8% 2 years p.a. 17.3%
Slide 12: LRT Portfolio by Resource Development Stage
LRT Portfolio by Resource Development Stage 40% For personal use only 30% 30 April 2025 20% 10% 0% 12
Slide 13: Portfolio Characteristics
Portfolio Characteristics 30 APRIL 2025 For personal use only Asia/Pacific, 5% Investment Listing North America, 14% London Cash, 9% 2% Europe, 2% Cash Africa, 14% Unlisted 9% 8% Latin America, North America 17% 17% Australia, 41% ASX 64% Portfolio by Geography of Main Project 13
Slide 14: Metals Focus: Gold, Silver and Copper
Metals Focus For personal use only 2. Gold, Silver and Copper 14
Slide 15: Gold in Real USD
For personal use only Gold in Real USD 15
Slide 16: Gold Bull Cycles over the past Years
Gold Bull Cycles over the past 50 Years For personal use only Source Bloomberg and Canaccord 16
Slide 17: Silver vs Gold (USD)
Silver vs Gold (USD) – 5 years For personal use only Trump Elected New US administration has Russia invades Ukraine been positive for gold, but powerful move started in 2022. 17
Slide 18: Composition of Global Reserves Q4/24
Composition of Global Reserves Q4/24 For personal use only Source IMF, World Gold Council and 18 Canaccord
Slide 19: Central Bank Gold Purchases
Central Bank Gold Purchases For personal use only 19
Slide 20: China: Gold vs US Treasuries
China: Gold vs US Treasuries CHINA WANTS GOLD: For personal use only • Increased gold import quotas for banks • China Gold ETF’s record Q1 inflows • Reports that 10 largest pension funds to invest 1% of assets in gold • Shanghai Gold Exchange to expand overseas • Chinese insurance companies entering
Slide 21: Gold ETF Holdings
Gold ETF Holdings For personal use only ETFs still less invested than 5 years ago at lower gold prices 21
Slide 22: Gold to Silver Ratio
Gold to Silver Ratio For personal use only Silver historically more volatile than gold – expect increased leverage in Ag 22
Slide 23: Gold Miners' Margins
Gold Miners’ Margins For personal use only Miners highly profitable despite cost escalation, which is easing. Cash being applied to: • M&A • Mine expansions • Returns to shareholders • Hedge buybacks 23
Slide 24: "Junior" Gold Miners' Index
“Junior” Gold Miners’ Index For personal use only Gold miners’ share prices have not even kept pace with the gold price, despite margins booming Source Financial Times (markets.ft.com) 24
Slide 25: Senior Gold Producers Price / NAV
Senior Gold Producers Price / NAV For personal use only Source Factset and Canaccord 25
Slide 26: Gold M&A
Gold M&A For personal use only Ramelius Spartan Resources Gold Fields Gold Road Northern Star De Grey Mining Patronus Matsa Aurum Mako Alkane Mandalay 26
Slide 27: Copper Global Exchange Inventories
Copper Global Exchange Inventories For personal use only Gold USD GDXJ Index 27
Slide 28: China Copper Consumption
China Copper Consumption For personal use only China accounts for 57% of global refined copper consumption. According to the ICSG, the global copper market surplus is expected to increase this year to 289,000 tons from last year's 138,000 tons and to persist into next year. 28
Slide 29: Commodities Undervalued vs Equities
Commodities Undervalued vs Equities For personal use only 29
Slide 30: Main Holdings plus Up and Comers: LRT Portfolio
Main Holdings plus Up and Comers For personal use only 3. LRT Portfolio 30
Slide 31: Top Positions
Top 10 Positions LRT Portfolio at 30 April 2025 For personal use only Portfolio Code Company Commodity Market Cap Comment Weight 1.7Moz in WA Goldfields: M&A or standalone AAR Astral Resources Gold 5.5% $216m development SANU.CSE Sanu Gold Gold 5.2% C$126m West African explorer with quality register
Slide 32: April 2025 Acquisitions
April 2025 Acquisitions LRT Portfolio Additions in April 2025 For personal use only Code Company Market Cap Comment NXM Nexus Minerals $41m Toll treat WA gold opportunity plus exploration growth STN Saturn Metals $120m Large, low cost/low grade gold project in WA Goldfields DES De Soto Resources $28
Slide 33: Drilling Deeper Webinars
Drilling Deeper Webinars 1st Friday of each month at 12pm AEST Next Webinar – Friday 6 June Catch up For personal use only Register at www.lrfm.com.au Watch at www.lrfm.com.au 33
Slide 34: Appendix: Resources Market Information
Appendix 1 For personal use only Resources Market Information 34
Slide 35: Lead Time for New Mines
Lead Time for New Mines For personal use only 35
Slide 36: Lead Time for New Mines
Lead Time for New Mines For personal use only 36
Slide 37: Metals Recycling
For personal use only Metals Recycling (Source IEA)
Slide 38: Copper Consumption 1900-2023
Copper Consumption 1900-2023 For personal use only 38
Slide 39: Oil Market
Oil Market For personal use only Oil traders reported to have returned to metals trading 39
Slide 40: Appendix: Fund Structure and Process
Appendix 2 For personal use only Fund Structure and Process 40
Slide 41: 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 42: 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 20 years • Superior per
Slide 43: Fee Structure
Fee Structure Gross Asset Value Existing Management Fee For personal use only < $20m $300,000 p.a. plus 0.6% Next $20m - $50m 2.100% Next $50m - $150m 1.600% Next > $150m 1.600% PERFORMANCE FEES (calculated 6 monthly) Variables Existing Benchmark 10% pa outperformance Fee rate 17.5% Calculated & Pai
Slide 44: Stock Selection
Stock Selection Top down focus Criteria For personal use only Management • Macroeconomics Geographic location • Equity markets 1 Geological setting Resource/ Reserve magnitude • Market sectors Grade, metallurgy • Commodities 2 Stage Infrastructure and market Indicative economics • Re
Slide 45: Our Investment Process
Our Investment Process For personal use only Organisation Due Deal Monitoring Investment Disposal: Existing Diligence: Structuring: and Additional Committee On-market / Network In-house Placement/I Reporting: Investment Approval Trade Sale expertise PO/ on- Up to weekly market LRFM prefers to keep
Slide 46: Application in Portfolio
Application in Equities allocation Portfolio For personal use only Core Manager Core Manager 2 3 Lowell Resources Fund Core Manager (LRT.ASX) 1 Small Caps • There is a compelling case for Lowell Resources Fund to be in an equities portfolio (Australian or Global), as one of the small cap manager all
Slide 47: 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