Four favourite mining shares

TL;DR

The fund has reduced exposure to energy and increased investment in mining, specifically focusing on smaller and mid-cap companies with strong growth prospects.

Transcript

the main changed the funds exposure over the last 12 months would be a reduction in our energy overweight and they reduction in our mining underweight as we've transitioned out to more defensive energy names like ExxonMobil into some of the more fundamentally attractive mining stories WC coupled with that there's also been a shift from our larger c... Read More

Key Insights

• 📛 Fund has shifted towards more defensive energy names like ExxonMobil and attractive mining stories.
• 👲 Portfolio has moved from larger cap to smaller and mid-cap companies, focusing on higher growth prospects.
• 🥹 Mag Silver and Petra are standout holdings in the Acorn and sapling spaces, respectively.
• 👲 Recent investments in Burdine and Metro Mining highlight the fund's interest in small-cap companies with promising projects.
• ❓ Dividend payouts from miners may not be reliable due to the cyclical nature of commodity prices.
• 👀 The fund's investment approach includes being contrarian and looking for unloved stocks with catalysts for change.
• 👨‍🔬 Ideas for investments come from various sources, including internal discussions, sell-side research, and conferences.

Questions & Answers

Q: What changes have been made to the fund's exposure over the last 12 months?

The fund has reduced its energy overweight and mining underweight, transitioning to defensive energy companies and attractive mining stories. It has also shifted from larger cap to smaller and mid-cap companies.

Q: What are the fund's favorite holdings in the Acorn space?

The fund is excited about Mag Silver, which is developing one of the best undeveloped silver resources. They have increased the size of the resource through the discovery of a deeper Zone called Val de Canas deep. The mine is expected to be bigger and more profitable than previously thought.

Q: What is the fund excited about in the sapling space?

The fund is excited about Petra, which owns the Cullinan diamond mine. The mine has been rejuvenated with a big investment and is expected to double production and half their costs, generating great cash flow.

Q: Can you highlight some interesting small-cap companies the fund recently invested in?

The fund recently invested in two interesting small-cap companies. One is Burdine, which has a project in Mongolia with high-grade continuous wide zones and district scale potential. The other is Metro Mining, which has a bauxite project in northern Queensland with high demand and a 17-year mine life.

Summary & Key Takeaways

• The fund has decreased its energy overweight and mining underweight, transitioning into more defensive energy companies like ExxonMobil and attractive mining stories.

• The portfolio has shifted from larger cap to smaller and mid-cap companies, with a focus on higher growth companies with strong growth prospects.

• The fund is particularly excited about Mag Silver, which is developing one of the best undeveloped silver resources, and Petra, which owns the prolific Cullinan diamond mine.