Lowell Resources Funds Management Ltd · ASX:LRT
Lowell Resources Funds Management — Lowell Resources Fund — Investor Presentation (September 2022)
33 slides from Lowell Resources Funds Management's investor presentation, Sep 14, 2022
Slide 1: Lowell Resources Fund September 2022
For personal use only LOWELL RESOURCES FUNDS MANAGEMENT LOWELL RESOURCES FUND SEPTEMBER 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 August 2022
Fund Summary August 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$47.8 m Units on issue 30.5m units 3.5 Net Asset Value 31/8/22 $1.5658/unit Distribution 31/8/22 $0.1157/unit 3 Unit Price on 31/
Slide 5: Lowell – a rare investment opportunity
Lowell – a rare 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 perf
Slide 6: Fund Outperformance
Fund Outperformance For personal use only The Lowell Resources Fund has significantly outperformed outperformed the benchmark S&P/ASX Small Resources Index (XSRD), the ASX Resources 300 Index and the ASX 200 Index over three, five and ten years. Total Portfolio LRT Change in S&P/ASX Small ASX Perfor
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: 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 8
Slide 9: Case Study: De Grey Mining
Case Study: De Grey Mining For personal use only Companies De Grey Mining (DEG.ASX) $1.80 De Grey Mining $1.60 LRF Sales (ASX:DEG) $1.40 $1.20 Gold explorer with a huge land position over the Mallina Shear $1.00 LRF Investments Zone in the Pilbara, WA $0.80 Gold Resource of 9.0 Moz New Hemi di
Slide 10: Case Study: Liontown Resources
Case Study: Liontown Resources For personal use only Companies 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 invest
Slide 11: Case Study: Melbana Energy
Case Study: Melbana Energy For personal use only Companies 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 returning a $0.10 total independent resource estimate 4.8 billion barrels of
Slide 12: LRF Portfolio by Project Stage
LRF Portfolio by Project Stage For personal use only 31 August 2022 60% 50% 40% 30% 20% 10% 0% Grass Roots Exploration & Feasibility Pre-development Development Production Cash Resource 12
Slide 13: Investments by Commodity
Investments by Commodity For personal use only Portfolio LRF COMMODITY EXPOSURE 31 AUGUST 2022 31 Aug Bauxite 0% Uranium Helium 2% 2022 Mineral Sands Fertilisers 1% Mining Services 2% 1% Cash 1% 6% Nickel 6% Battery 3% O&G 8% Gold & PGM 51% Base Metals 17% Silver REE 1% 1% 13
Slide 14: Portfolio Characteristics August 2022
Portfolio Characteristics 31 August 2022 For personal use only GEOGRAPHY OF MAIN PROJECT Asia/Pacific, 2% North America, Cash, 6% 11% Africa, 18% Europe, 2% Latin America, INVESTMENT LISTING Unlisted London Cash 5% North America 6% 0% 5% 7% Australia, 56% ASX 82% 14
Slide 15: Largest Positions
10 Largest Positions For personal use only Portfolio LRT Portfolio at 31 August 2022 Code Company Commodity Portfolio Weight PDI Predictive Discovery Gold 8.3% GMD Genesis Minerals Gold 6.0% MGV Musgrave Minerals Gold 5.9% DEG De Grey Mining Gold 4.7% CVV Caravel Minerals Copper 4.4% SPD Southern Pa
Slide 16: 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 17: Significant Performers
SIGNIFICANT PERFORMERS For personal use only • $0.54m invested in 2020 at average entry price of A$0.16/sh • Share price Sep 2022 A$0.50/sh. Talon Metals • Tamarack Nickel deposit, Minnesota USA • 11Mt at 1.3% Ni & 0.8% Cu • $0.3m invested in June and September 2021 average entry price of Red Dirt •
Slide 18: General Commodity Landscape
General Commodity Landscape For personal use only 18 ABN 36 006 769 982 AFSL 345674
Slide 19: General Commodity Landscape
General Commodity Landscape For personal use only Dow Global Commodities Index 19 ABN 36 006 769 982 AFSL 345674
Slide 20: Metals and Mining Capex
Metals and Mining Capex For personal use only 20 ABN 36 006 769 982 AFSL 345674 Source: S&P Global 2022 Forecast: Base metals spotlight
Slide 21: Lowell Resources Funds Management
LOWELL RESOURCES FUNDS MANAGEMENT 21
Slide 22: USD Index
USD Index For personal use only USD Index at 20 year high: dampening US$ denominated commodity prices But, the US yield curve is inverted, which presages recession. China is cutting rates, unlike the US 22
Slide 23: Stagflation?
For personal use only Stagflation? 23
Slide 24: Australian Gold Equities vs AUD Gold
Australian Gold Equities vs AUD Gold For personal use only Current ASX Gold Index s at 4,705 with the gold price at A$2,510 The current AUD gold price to ASX Gold Index ratio = 0.53x This compares to a 5- year average of 0.34x 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: Year On-Exchange Cu Inventory
15 Year On-Exchange Cu Inventory For personal use only Fig: 15-years Average Cu on-exchange inventories by month Fig: 5-years Cu on-exchange inventories Global Cu consumption has grown from Global Cu exchange stocks have fallen to 15.6Mtpa to 21 Mtpa in the past 15 years less than one week’s supply
Slide 28: 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 28 ABN 36 006 769 982 AFSL 34567
Slide 29: Base Metals: Rising Demand vs Falling Inventories
Base Metals: Rising Demand vs Falling Inventories For personal use only 29 ABN 36 006 769 982 AFSL 345674 Source: S&P Global 2022 Forecast: Base metals spotlight
Slide 30: Oil & Gas
For personal use only Oil & Gas 30
Slide 31: Energy Supply Natural Gas
Energy Supply Natural Gas For personal use only
Slide 32: Oil Investment Natural Gas
Oil Investment Natural Gas For personal use only
Slide 33: 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 (September 2022) on 6ix