Lowell Resources Funds Management Ltd · ASX:LRT
Lowell Resources Funds Management — Lowell Resources Fund — Investor Presentation (July 2024)
38 slides from Lowell Resources Funds Management's investor presentation, Jul 29, 2024
Slide 1: Lowell Resources Fund Investor Presentation July 2024
LOWELL RESOURCES For personal use only FUNDS MANAGEMENT LOWELL RESOURCES FUND INVESTOR PRESENTATION JULY 2024 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: 1. Overview
Lowell Resources Fund For personal use only 1. Overview ASX.LRT 3
Slide 4: Fund Summary June 2024
Fund Summary 30 June 2024 LRT 5 Year Total Return Overview 450 Including distributions For personal use only Rebased to 100 Fund size (NAV) pre-distribution A$46.6 m 400 Units on issue 32.5m units Net Asset Value 30/06/24 (pre-distribution) $1.43/unit 350 Distribution ~31/07/24 $0.152/unit 300 ASX U
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: Investment Committee
Investment Committee Members For personal use only John Forwood, Richard Morrow, Stephen Mitchell, Stuart Baker, Investment Chief Investment Officer Committee Member Investment Committee Investment Committee Mr Forwood is a trained Member Chair geologist and lawyer, with Mr Baker has a strong local
Slide 8: LICs & LITs
LICs & LITs NTA Compound Annual Growth Rate over 5 years • Outperformance For personal use only • Uncorrelated 8
Slide 9: Fund Outperformance
Fund Outperformance For personal use only S&P/ASX Small ASX Resources Total Portfolio LRT Change in ASX 200 Index Resources 300 Index Performance to 30 NAV per unit incl Accumulation Index (Total Return) June 2024 distributions (Total Return) (XSRAI) 12 months 2.3% 0.7% -3.5% 12.1% 5 years p.a. 24.6
Slide 10: LRF Portfolio by Resource Development Stage
LRF Portfolio by Resource Development Stage 40% For personal use only 30% 20% 10% 0% 10
Slide 11: LRT Commodity Exposure
LRT COMMODITY EXPOSURE Bauxite For personal use only 1% Mineral Sands Uranium Helium 2% 4% 1% Cash 12% Nickel Gold & PGM 2% 39% Battery 2% O&G 13% REE Silver 0% 3% Base Metals 21% 11
Slide 12: Portfolio Characteristics June 2024
Portfolio Characteristics 30 June 2024 Portfolio by Geography of Main Project For personal use only Asia/Pacific, 5% Cash, 12% North America, Investment Listing 14% Europe, 4% London Africa, 12% 1% Unlisted Cash Latin America, 12% 14% 12% North Australia, 39% America 13% ASX 62% 12
Slide 13: 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 14: 2. Key Market Factors
Market Thematics For personal use only 2. Key Market Factors 14
Slide 15: Commodities Undervalued vs Equities
Commodities Undervalued vs Equities For personal use only 15
Slide 16: Small Caps vs Large Caps
Small Caps vs Large Caps For personal use only Small Equities decouple from Large Caps 16
Slide 17: Gold Mining Stocks decouple from Gold Price
For personal use only Gold Mining Stocks decouple from Gold Price
Slide 18: Copper vs ASX Junior Resources
Copper vs ASX Junior Resources Copper price vs S&P Small Resources Ordinaries Index For personal use only 8,000.00 5 7,000.00 4 6,000.00 5,000.00 3 Junior Cu price Equities $US/lb 4,000.00 XSRAI decouple from 2 3,000.00 Copper Price 2,000.00 1 1,000.00 0 0.00 1994 1999 2005 2010 2016 2021 2027 18
Slide 19: O&G Drilling - WA
O&G Drilling - WA For personal use only Sustained underinvestment globally in oil Source: Strike Oil 19
Slide 20: 3. Recent Outperforming Stocks
Investment Examples For personal use only 3. Recent Outperforming Stocks 20
Slide 21: Azure Minerals
Azure Minerals For personal use only Azure Minerals LRT Investment $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- Jul-21 Jul-22 Jul-23 Jan-21 Jan-22 Jan-23 $(0.50) $(1.00) LRT Trade (A$ mil) AZS Price 21
Slide 22: Southern Cross Gold SXG.ASX
Southern Cross Gold SXG.ASX $3.50 LRT For personal use only $3.00 Investments $2.50 $2.00 $1.50 $1.00 $0.50 Seed $- 05/17/2022 09/26/2022 2/07/2023 06/19/2023 10/27/2023 3/08/2024 22
Slide 23: Case Study: De Grey Mining
Case Study: De Grey Mining De Grey Mining (DEG.ASX) For personal use only $1.80 $1.60 LRF Sales $1.40 $1.20 $1.00 LRF Investments $0.80 $0.60 $0.40 $0.20 $0.00 23
Slide 24: 4. Preferred Positions
Current and Upcoming For personal use only 4. Preferred Positions 24
Slide 25: Top Positions
Top 10 Positions LRT Portfolio at 30 June 2024 For personal use only Code Company Commodity Portfolio Weight Comment RMS Ramelius Resources Gold 6.1% Held from scrip takeover of Musgrave Minerals PDI Predictive Discovery Gold 3.9% Tier 1 African gold discovery with 2024 catalysts KAR Karoon Energy O
Slide 26: Some Outstanding Opportunities
Some Outstanding Opportunities Region Commodity Existing Holding? Comment For personal use only Eastern Australia Tin No Low capex scoping study with high grade exploration Western Australia Gold Yes High grade +1Moz resource with potential infrastructure solution Western Australia Gold Yes Medium g
Slide 27: Lowell – a Unique Investment Opportunity
Lowell – a Unique Investment Opportunity For personal use only 01 Fund Focus • One of the few investment funds that offers exposure to the junior 01 02 resources sector across Australia and global stock exchanges in unlisted and listed companies 02 Successful track record for 20 years • Superior per
Slide 28: Contact
Contact For personal use only Investment Responsible Entity Manager LOWELL RESOURCES CREMORNE CAPITAL LIMITED FUNDS MANAGEMENT ACN 006 769 982 ACN 006 844 588 AFSL 345674 AFSL 241175 Address Level 6, 412 Collins Street, Address Melbourne VIC 3000 8 Chapel Street, Tel: (03) 9642 0655 Richmond VIC 312
Slide 29: Appendices: Resources Market Information
Appendices For personal use only Resources Market Information 29
Slide 30: Rotation / Trickle Down - AUSTEX
Rotation / Trickle Down - AUSTEX For personal use only THE ASX RESOURCES MARKET QUARTILE RANGES MARKET Data to 12th LAST 24 LAST 12 LAST 6 LAST 3 LAST ONE CAP July MTHS MTHS MTHS MTHS MTH (A$mil) FIRST >$61m 110% 22.00% 16.60% 1.60% 5.30% QUARTILE >$17m - SECOND -14.80% -7.80% 4% 2.10% 5.70% $61m >$
Slide 31: Lead Time for New Mines
Lead Time for New Mines For personal use only 31
Slide 32: Lead Time for New Mines
Lead Time for New Mines For personal use only 32
Slide 33: IEA Metals Recycling
For personal use only IEA Metals Recycling -
Slide 34: Central Banks & Gold
Central Banks & Gold For personal use only Ukraine War China Gold Reserves can grow 34
Slide 35: Inflation and Gold
For personal use only Inflation and Gold 35
Slide 36: Copper Consumption 1900-2023
Copper Consumption 1900-2023 For personal use only 36
Slide 37: Oil Market
Oil Market For personal use only Oil traders reported to return to metals in H1 2024 37
Slide 38: Oil Demand
Oil Demand For personal use only Global Oil Demand increasing Source: Strike Oil 38
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