Lowell Resources Funds Management Ltd · ASX:LRT
Lowell Resources Funds Management — Lowell Resources Fund — Investor Presentation (October 2022)
38 slides from Lowell Resources Funds Management's investor presentation, Oct 26, 2022
Slide 1: Lowell Resources Fund October 2022
For personal use only LOWELL RESOURCES FUNDS MANAGEMENT LOWELL RESOURCES FUND OCTOBER 2022 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, no gearing fund Investee • Small Mining & energy companies, predominantly in the exploration phase Companies offering major growth potential Investment • Focus on global listed and unlisted re
Slide 4: Fund Summary September 2022
Fund Summary September 2022 For personal use only Overview Lowell Resources Fund NAV vs ASX Junior Resources Index (rebased to 1 at December 2019, incl DRP) Fund size (NAV) A$45.4 m Units on issue 31.4m units 3.5 Net Asset Value 30/09/22 $1.4439/unit Distribution 31/08/22 $0.1157/unit 3 Unit Price o
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 which began in 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 30
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 Project Stage
LRF Portfolio by Project Stage For personal use only LRF Portfolio Value by Project Stage 30 September 2022 50% 40% 30% 20% 10% 0% Grass Roots Exploration & Resource Feasibility Pre-development Development Production Cash 8
Slide 9: Because Explorers Make the Discoveries
….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 2010-2019 9
Slide 10: Investments by Commodity
Investments by Commodity For personal use only LRF COMMODITY EXPOSURE 30 SEPTEMBER 2022 Portfolio 30 Sep Bauxite 0% Uranium Helium 2022 1% 3% Mineral Sands Mining Services 2% Fertilisers 1% 1% Cash 8% Nickel 5% Battery Gold & PGM 4% 48% O&G 8% Base Metals 17% Silver REE 1% 1% 10
Slide 11: Portfolio Characteristics August 2022
Portfolio Characteristics 31 August 2022 For personal use only PORTFOLIO BY GEOGRAPHY OF MAIN PROJECT 30 SEPTEMBER 2022 Asia/Pacific, North America, INVESTMENT LISTING 30 SEPTEMBER 2% Cash, 8% 11% 2022 Africa, 17% Europe, 2% Unlisted London Cash North America 6% 0% 8% 6% Latin America, 5% Australia,
Slide 12: Largest Positions
10 Largest Positions For personal use only Portfolio LRT Portfolio at 30 September 2022 Code Company Commodity Portfolio Weight PDI Predictive Discovery Gold 7.9% MGV Musgrave Minerals Gold 5.9% GMD Genesis Minerals Gold 5.3% DEG De Grey Mining Gold 4.1% SPD Southern Palladium PGM 3.5% TL.TSX Talon
Slide 13: 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 14: General Commodity Landscape
General Commodity Landscape For personal use only 14 ABN 36 006 769 982 AFSL 345674
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: For personal use only
LOWELL RESOURCES FUNDS MANAGEMENT 17
Slide 18: Gold Written Off
For personal use only Gold Written Off 18
Slide 19: USD Commodity Prices – Compared to month high
USD Commodity Prices – Compared to 12 month high For personal use only 19
Slide 20: Gold Price AUD
1 year Gold Price AUD For personal use only +5.5% over 12 months 20
Slide 21: Australian Gold Equities: Cheap vs Metal
Australian Gold Equities: Cheap vs Metal For personal use only -26% over 12 months 21
Slide 22: USD Index
USD Index For personal use only USD Index at 20 year high: dampening US$ denominated commodity prices But, the US yield curve is inverted, which presages recession. China is cutting rates, unlike the US 22
Slide 23: Recession?
For personal use only Recession? 23
Slide 24: US Gold vs CPI
US Gold vs CPI 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 24
Slide 25: Copper
For personal use only Copper 25
Slide 26: Copper Stockpiles
Copper Stockpiles For personal use only 26 ABN 36 006 769 982 AFSL 345674 1 – S&P Global Market Intelligence
Slide 27: 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 27 ABN 36 006 769 982 AFSL 34567
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
Slide 31: Highlighted Companies
Highlighted Companies For personal use only 31
Slide 32: Case Study: De Grey Mining
Case Study: De Grey Mining For personal use only Case Study De Grey Mining (DEG.ASX) $1.80 De Grey Mining $1.60 LRF Sales (ASX:DEG) $1.40 $1.20 Pilbara Gold developer with 150km strike over the Mallina $1.00 LRF Investments Shear Zone, WA $0.80 Gold Resource of 9.0 Moz New Ore Reserve 5.1 Moz
Slide 33: High Potential Investment: Matador Mining
High Potential Investment: Matador Mining For personal use only Companies Matador Mining ASX share price A$/sh $0.50 Matador Mining Limited (ASX:MZZ) $0.40 • Newfoundland Gold Explorer • Market Cap A$27m with $10.5m $0.30 cash (30/6/22) • 120km strike of Cape Ray Shear $0.20 Zone, largely undercover
Slide 34: 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$213k inves
Slide 35: High Potential Investment: Rugby Resources
High Potential Investment: Rugby Resources For personal use only Companies Rugby Resources TSX.V share price C$/sh $0.30 Rugby Resources Ltd (TSX.V:RUG) $0.20 • South American focused copper- gold explorer • Market Cap C$27m with ~$2.5m cash (Oct 2022) • Cobrasco copper molybdenum $0.10 porphyry sys
Slide 36: 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 • Block 9 PSC onshore Cuba Alameda-1 exploration well • Drilled 3 structures with a total $0.10 independent resource estimate 4.8 billion barrels of OOI
Slide 37: High Potential Investment: Blue Star Helium
High Potential Investment: Blue Star Helium For personal use only Companies Blue Star Helium ASX share price A$/sh Blue Star Helium Ltd $0.07 (ASX:BNL) $0.06 • Colorado focused helium $0.05 developer • Market Cap A$47m with $10.8m $0.04 cash (30/06/2022) $0.03 • Excellent shallow Lyons formation res
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
Lowell Resources Fund — Investor Presentation (October 2022) on 6ix