Lowell Resources Funds Management Ltd · ASX:LRT
Lowell Resources Funds Management — Lowell Resources Fund — Investor Presentation (October 2021)
27 slides from Lowell Resources Funds Management's investor presentation, Oct 5, 2021
Slide 1: Lowell Resources Fund: Presentation to Ord Minnett
For personal use only LOWELL RESOURCES FUND Presentation to Ord Minnett 5th October 2021 1
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 Performance
Fund Performance For personal use only LRF was the top ranked performer for the whole of the Australian LIC/LIT sector in June 20211 80% 74.3% 70% 60% Return p.a. to 30 Sep 2021 50% 42.6% 40% 34.4% LRT has outperformed: 30.5% 30% • S&P/ASX Small Resources 20.0% 20% 18.9% Index 16.2% 15.3% 13.9% • AS
Slide 4: Fund Summary
Fund Summary For personal use only Characteristics of the Lowell Resources Fund Nature of Fund • Long only, no gearing fund Investee • Junior resource companies, including gold, Companies base and specialty metals, and energy. Investment • Focus on global listed and unlisted resources Type equities
Slide 5: Investing in resource equities
Investing in resource equities 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 investing
Slide 6: Why invest in the Juniors?
Why invest in the Juniors? 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 6
Slide 7: LRF Portfolio by Project Stage
LRF Portfolio by Project Stage For personal use only 30 September 2021 70% 60% 50% 40% 30% 20% 10% 0% 7
Slide 8: Historic Allocation by Commodity
Historic Allocation by Commodity For personal use only Fertiliser Minerals Battery Minerals Nickel Oil & Gas Base Metals Gold & Silver Cash May-17 May-18 May-19 May-20 May-21 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Uranium Mineral Sands Bauxite Coal Tungsten Helium Vanadium REE Mining Services 8
Slide 9: 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 10: Fund Summary August 2021
Fund Summary August 2021 For personal use only Overview Lowell Resources Fund NAV vs Fund size (NAV) A$54.6 m ASX Junior Resources Index (rebased to 1 at December 2019) 3.25 Units on issue 29.38m units Net Asset Value 29/9/21 $1.86/unit 3.00 Unit Price on 1/10/21 $1.46 2.75 Number of unit holders ~7
Slide 11: Investments by Commodity
Investments by Commodity For personal use only Portfolio Bauxite Helium 30 Sep 0% Uranium 2% 3% Mining Services 2021 Mineral Sands 1% Fertilisers 1% 1% Cash 9% Nickel 8% Gold & PGM 47% Battery 3% O&G 7% Base Metals 15% Silver REE 1% 2% 11
Slide 12: Portfolio
For personal use only Portfolio 12
Slide 13: Case Study: Predictive Discovery
Case Study: Predictive Discovery For personal use only Companies $2.50 Predictive Discovery (ASX:PDI) $2.00 Grass roots technical gold explorer with 100% interest in $1.50 LRF Investments Siguiri Basin tenements in Guinea, West Africa New gold discovery at Bankan in 2020. Sep 2021 Initial gold $
Slide 14: Significant Performers
SIGNIFICANT PERFORMERS For personal use only • $0.25m invested at average entry price of A$0.30/sh in July 2021 IPO Australian • Share price Sep 30, 2021 A$1.01/sh. • Kopamurra REE deposit, South Australia: Rare Earths • “Rare” ionic clay deposit - 40 Mt at 725ppm TREO • $0.3m invested in June and S
Slide 15: Commodities vs Dow Jones
Commodities vs Dow Jones For personal use only Dow Jones Commodities 15
Slide 16: Gold loves low US Real Interest Rates
Gold loves low US Real Interest Rates For personal use only 16
Slide 17: 2021 ASX Resource IPO's
2021 ASX Resource IPO’s For personal use only 2021 ASX Resource IPO's Cumulative A$ mil Raised Cumuluative Number of listings $1,400 80 70 ASX Resource $1,200 IPOs: 60 $1,000 • 75 IPO’s 50 2021CY to $800 date 40 $600 • 2013-2016 30 only 20 $400 20 resource IPOs in total $200 10 $- 0 Jan-21 Feb-21 Ma
Slide 18: 2021 ASX Resource IPO's
2021 ASX Resource IPO’s For personal use only ASX Resources IPO's CY 2021 (to 30 Sep 2021) 250% 35 30 200% 193% 25 150% 119% 20 107% 100% 15 50% 33% 10 20% 7% 0% 0% -2% Zn He O&G-6% Fe Li Ni Minor Cu Au 5 Metals 1 1 2 5 5 7 8 12 33 -50% 0 No of Listings Average Return 18
Slide 19: Projects aplenty, but Talent is Scarce
Projects aplenty, but Talent is Scarce For personal use only GMD.ASX 30 Aug ‘21: 5.8% of LRT portfolio at 7.5cps (cost 2.5cps) 1.6 Moz Ulysses Au Project, WA Genesis Minerals 300 $0.20 22 Sep ’21 Raleigh Finlayson (ex Saracen 250 $0.15 MD) and Nev Power (ex Fortescue MD) join board and invest Volume
Slide 20: Cost Pressures Emerging
Cost Pressures Emerging For personal use only Bardoc Bardoc Gold Project WA 3.1 Moz at 1.8g/t Au Gold.ASX Project FID deferred due to $55m capex increase rising materials & input costs tightening WA labour market & COVID 19 supply challenges Impact of closed WA borders Share price fell -21.5% 20
Slide 21: Australian Gold Miners
Australian Gold Miners For personal use only Source Euroz Hartleys 21
Slide 22: Gold M&A
Gold M&A For personal use only Abundant 2021 funding Agnico Eagle and Kirkland Lake Merger US$24bn and Westgold alternative bid for Gascoyne Resources A$94m vs Gascoyne merger with Firefly $45m limited Navarre acquisition of Mt Carlton from Evolution A$90m organic growth Metalicity takeover of Nex M
Slide 23: Profits and M&A – base metals
Profits and M&A – base metals For personal use only Company 2020/21 Profit Dividend BHP US$17bn US$15.2bn RIO US$12.2bn US$9.1bn FMG US$10.3bn US$8.2bn 23
Slide 24: O&G Drilling Activity
O&G Drilling Activity For personal use only Source – Baker Hughes 24
Slide 25: Energy Underinvestment
Energy Underinvestment For personal use only Oil Lithium Uranium Coal 25
Slide 26: Gas Prices "Going Beserk"
Gas Prices “Going Beserk” For personal use only Netherlands Japan- Korea Source - Energyquest 26
Slide 27: 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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