Tribeca Global Natural Resources Ltd. · ASX:TGF
Tribeca Global Natural Resources — Investor Presentation (August 2021)
40 slides from Tribeca Global Natural Resources's investor presentation, Aug 31, 2021
Slide 1: ASX announcement: Investor Update Presentation August 2021
31 August 2021 For personal use only ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT Investor Update Presentation August 2021 Please find attached Investor Update Presentation. For any enquiries please contact TGF at TGFinvestors@tribecaip.com.au or by c
Slide 2: Tribeca Global Natural Resources Ltd Investment Update
For personal use only Tribeca Global Natural Resources Ltd (ASX:TGF) Investment Update Ben Cleary, Portfolio Manager Todd Warren, Head of Research August 2021
Slide 3: Disclaimer
Disclaimer This presentation has been prepared for Tribeca Global Natural Resources Limited (ABN 16 627 596 418) (“TGF”) by its investment manager, Tribeca Global Resources Pty Ltd (ABN 11 606 707 662) (“Tribeca”) under AFS License 239070 (Tribeca Investment Partners Pty Ltd). The information contai
Slide 4: Agenda
For personal use only Agenda 1. Corporate Update 4 2. Introducing Carbon Credits 9 3. High Conviction Positions 21 4. Appendices 29
Slide 5: Summary
Summary For personal use only Our focus remains on generating strong performance and closing the discount to NTA which stood at -9.47% on a post-tax basis as at end July. TGF buyback program remains in place. TGF has bought back 2.4% of its issued capital on-market (refer latest 3E filing) at an ave
Slide 6: Tribeca Global Natural Resources Ltd key details and performance
Tribeca Global Natural Resources Ltd (ASX:TGF) FY Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun YTD Key Details For personal use only 2018-19 -0.07% -0.36% -0.71% 0.16% -0.44% -0.16% 0.25% -3.24% 0.78% -3.78% ASX Code TGF 2019-20 -0.52% -1.93% -0.54% 0.60% 0.79% 3.67% -7.68% -7.52% -9.48% 5.74% 0.
Slide 7: YTD Performance Review
YTD Performance Review Return Contribution by Thematic For personal use only CYTD post tax return of 17% driven by long positions in Green Policy Green Policy Driven Driven Demand beneficiaries such as copper, nickel, lithium, rare earths Demand and uranium producers. Infrastructure & Fiscal Stimulu
Slide 8: Recent Portfolio Changes
Recent Portfolio Changes Sector Action For personal use only Opportunistically took profits in May and bought back positions Current Portfolio Exposures by Theme (% NAV) Base metals on recent weakness. Deficits remain large for copper, nickel and aluminium in particular. Initiated a long position of
Slide 9: TGF Heavily Exposed to Decarbonisation Beneficiaries
TGF Heavily Exposed to Decarbonisation Beneficiaries For personal use only Portfolio Breakdown RIO Tinto Portfolio Breakdown BHP Portfolio Breakdown (% of Gross Exposures as at 27 August 2021) (as % of EBITDA FY21) (as % of EBITDA FY21) Base Metals (26.4%) Battery Metals (11.4%) Bulk Commodities (3.
Slide 10: Introducing Carbon Credits
For personal use only Introducing Carbon Credits Rimba Raya Biodiversity Reserve, Indonesia held by TGF, was the first carbon project to receive REDD+ validation under the Verified Carbon Standard. It is the single largest REDD+ project in the world in terms of avoided emissions delivered to date.
Slide 11: Carbonomics: the Path to Net Zero
Carbonomics: the Path to Net Zero As referenced in prior presentations, For personal use only commodities such as copper, lithium, uranium, rare earths and nickel will be key beneficiaries of decarbonisation. In addition, we see carbon credits as a compelling, emerging asset class which will grow ex
Slide 12: Carbon Credits: An Emerging Opportunity for TGF
Carbon Credits: An Emerging Opportunity for TGF The natural resources sector is at the forefront of several carbon reduction initiatives, for For personal use only example hydrogen powered trucks on mine sites, however the sector (like many others) will not reach carbon emission targets with organic
Slide 13: Corporations & Asset Managers Commit to Net-Zero
Corporations & Asset Managers Commit to Net-Zero Over 1,500 companies have announced plans to be “net-zero” by For personal use only 2050 or sooner. The Cost Curve of Carbon is Particularly Steep for Many Industries Carbon credits are anticipated to be integral to meet these goals, Power generation
Slide 14: What is a Carbon Credit?
What is a Carbon Credit? For personal use only A carbon credit is a tradeable unit representing the How Does Offsetting Work? reduction or removal of one tonne of carbon dioxide equivalent (CO²) from the atmosphere. Carbon credits enable a business, government or individual to pay someone else to cu
Slide 15: Buying Carbon Offsets to Curb Climate Change
Buying Carbon Offsets to Curb Climate Change Companies, celebrities, cities, countries and organisations have all made For personal use only commitments to curb, if not eliminate, their contributions to climate change by buying carbon offsets. 14 August 2021
Slide 16: Higher Carbon Prices Are Needed
Higher Carbon Prices Are Needed For personal use only Higher carbon prices are needed to encourage Carbon Prices Needed by 2030 to Meet Temperature Targets of Paris Agreement 140 investment in emission reduction and offset projects Historic EU ETS allowance price (in USD) so that the goals of the Pa
Slide 17: Price Disparity Creates Opportunity
Price Disparity Creates Opportunity For personal use only Global Carbon Prices (US$) $80 $70 $60 Regulated Markets Voluntary Markets $50 $40 $30 TGF Focus $20 $10 The massive growth in regulated carbon prices and the underlying growth in demand for carbon $0 ACCU NZUs EUAs CCAs GET-CET Global Corsia
Slide 18: Investment Process for Carbon Markets
Investment Process for Carbon Markets For personal use only The TGF investment team utilise the same, consistent investment process in order to identify opportunities in carbon markets based on a rigorous understanding of project fundamentals, value and market structure. Evaluate and Model Identify
Slide 19: Portfolio Position: Rimba Raya Biodiversity Reserve Project
Portfolio Position: Rimba Raya Biodiversity Reserve Project For personal use only Source: Viridios Capital 18 August 2021
Slide 20: Portfolio Position: Southern Cardamom REDD+ Project
Portfolio Position: Southern Cardamom REDD+ Project For personal use only Source: Viridios Capital 19 August 2021
Slide 21: Growing Focus on Carbon Markets in Coming Months
Growing Focus on Carbon Markets in Coming Months For personal use only Climate Impact X’s founders bring resources, technology and expertise to help scale the voluntary carbon market. 20 August 2021
Slide 22: Portfolio Positioning and Conviction Positions
For personal use only Portfolio Positioning and Conviction Positions One Photovoltaic Cell (PV) Contains: • 20 grams (0.643 troy oz) of silver • 25% of global silver production expected to be consumed by the solar industry by 2025 • Rare earths - cadmium, gallium, germanium, indium, selenium, tellur
Slide 23: High Conviction Portfolio Positions
High Conviction Portfolio Positions For personal use only Recent Reporting Season and Company Theme % Thesis Current Portfolio Exposures by Theme (% NAV) Outlook Infrastructure Misunderstood ESG Strong earnings momentum with best Teck & Fiscal 9% Green Policy Driven Demand Infrastructure & Fiscal St
Slide 24: Teck Resources
Teck Resources Quebrada Blanca copper mine, northern Chile Sector Diversified For personal use only Position Type Fundamental Green Policy Driven Theme Demand & Fiscal Stimulus China Met Coal Imports from Canada (cumulative) 6,000,000 2021 AVG 2020 5,000,000 4,000,000 Provides exposure to industry l
Slide 25: Glencore (GLEN: LON)
Glencore (GLEN: LON) Diversified miner funding an increasing exposure to battery Sector Diversified metals via its thermal coal business. Substantive exposure to For personal use only Position Type Fundamental green metals copper, nickel and cobalt Theme Green Policy Driven Demand ESG best practice:
Slide 26: Chalco (Aluminium Corporation of China) (2500:HK)
Chalco (Aluminium Corporation of China) (2500:HK) One of the largest vertically integrated aluminium producers globally Sector Base Metals For personal use only Rapidly deleveraging as margins have widened Position Type Fundamental Recent share price performance has not kept up with rapidly Theme Gr
Slide 27: NEO Performance Materials (NEO:CA)
NEO Performance Materials (NEO:CA) For personal use only Sector Battery Metals Position Type Fundamental NEO is a unique downstream rare earth processing and Theme Green policy driven magnetic materials manufacturing business with Tier 1 customers in North America, Europe and Asia. NEO’s industrial
Slide 28: Energy Fuels (UUUU:US)
Energy Fuels (UUUU:US) A unique US-listed exposure to ‘critical minerals’ required for a green Sector Battery Metals For personal use only decarbonised future, with very difficult-to-replicate licensed and Position Type Fundamental installed infrastructure in the US Theme Green policy driven Largest
Slide 29: DDH1 (DDH:AU) Appealing Commodity Suite
DDH1 (DDH:AU) Appealing Commodity Suite Well established mining services business with the Sector Services For personal use only largest drilling fleet in Australia Position Type Fundamental Aligned management with significant share Theme Monetary Policy & Inflation ownership Track record of generat
Slide 30: Appendix: Strategy Overview
For personal use only Appendix: Strategy Overview One Photovoltaic Cell (PV) Contains: • 20 grams (0.643 troy oz) of silver • 25% of global silver production expected to be consumed by the solar industry by 2025 • Rare earths - cadmium, gallium, germanium, indium, selenium, tellurium Source: Tribeca
Slide 31: Tribeca Global Natural Resources Team
Tribeca Global Natural Resources Team Investment Team Operations and Finance For personal use only Ben Cleary Todd Warren Haydn Smith Guy Keller James Howes Kevin Nam Ken Liu Portfolio Manager Head of Research Head of Credit Head of Commodity Trading Chief Operating Officer Operations Manager Compli
Slide 32: Strategy Features
Strategy Features For personal use only Actively Managed Constrained Leverage Actively managed, specialized long <200% Low gross positioning to short strategy. Variable Net achieve superior risk adjusted Gross Exposure returns with low correlation to Exposure major asset classes. High Conviction Glo
Slide 33: Investment Universe
Investment Universe A flexible approach allows focus on the best risk-reward opportunities as well as the ability to invest across the value chain For personal use only Energy Metals & Mining Soft Commodities Oil & Gas Base Metals Crops Uranium Bulks Agriculture Hydrogen Specialty Metals Aquaculture
Slide 34: Investing Across the Value Chain
Investing Across the Value Chain A flexible, long short, mandate and deep knowledge of value chains from project to end-user allows for the capture of different For personal use only payoff profiles at different points in the cycle. Metals and Mining Value Chain Example Exploration & Engineering Tra
Slide 35: Sources of Alpha
Sources of Alpha Flexibility within the mandate to take advantage of different types of trades across the natural resources complex, For personal use only depending on best risk-reward and market environment. Weighting of different types of trades will vary depending on prevailing market structure a
Slide 36: Investment Process
Investment Process For personal use only Commodity Ranking Macro Overlay Fundamental Research Investment Idea Generation Implementation Global commodity demand Analysis of investor Sector and stock specific Investments expressed High conviction, detailed and supply modelling. positioning across key
Slide 37: Stock Selection Philosophy
Stock Selection Philosophy For personal use only Investing in the best assets Commodities with the highest Fixed economic rent potential and assets that are resilient through the cycle Only Assets Cannot be Changed Best management ✓ Ownership can change Culture and capabilities that enable ✖ Attribu
Slide 38: Portfolio Construction Framework
Portfolio Construction Framework For personal use only Trade type, market cap and position sizing Trade Type, Market Cap and Position Sizing Typology are all fundamentally linked Long Short Relative Value Special Situations Weighting to different trade type will vary depending on market environment
Slide 39: ESG Approach
ESG Approach In addition to rigorous financial analysis of companies, investments are also assessed through the lens of Environmental, Social and Governance (ESG) factors. Companies that do not score highly from an ESG perspective are excluded from investment. A hands-on For personal use only approa
Slide 40: Investor Relations
For personal use only Investor Relations Email: TGFinvestors@tribecaip.com Web: www.tribecaip.com/lic Singapore Tribeca Investment Partners Pte Ltd #16-01 Singapore Land Tower 50 Raffles Place, Singapore 048623 Tel: +65 6320 7711 Sydney Tribeca Investment Partners Pty Ltd Level 23, 1 O’Connell Stree
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