Investment Strategy

The strategy is directed at undervalued resource companies in the natural resource and energy sectors. Investments are made with a high degree of confidence as detailed in-house research and analysis are undertaken. Moreover, close management contacts and frequent visits to production sites are fundamental to the investment process. Investments are made “off the beaten path” and wherever possible prior to companies becoming the focus of sell-side research and finally gaining media attention. This strategy is in part dependent on maintenance of close ties with the exploration, mining and energy industry.

The foundation of the strategy is the divestment when the determined target price has been reached. Target prices are based on conservative assumptions about commodity prices and realistic take-over premiums. Small producers and explorers in particular benefit from merger and acquisition strategies of the mid and large cap companies.