Our investment philosophy is to combine:
- Macro thematics in key commodities
- A focus on investing into selected stages in the mining life-cycle where we have been consistently successful in the past
- Early identification of the investment potential of a project
- An intimate knowledge of resources industry participants
- Our linkages into Asian markets, resources buyers, financiers and investors
- Our ability to work collaboratively with investee companies to grow their value, leveraging our experience, expertise and networks
A detailed investment strategy is available for investors in The EMR Capital Resources Fund.
Key aspects of our investment strategy include:
We invest into companies with quality projects that have strong potential for superior returns and work collaboratively with investee companies to grow their value and realise their potential. Often our investments are in assets where the intrinsic value is unrecognised, underappreciated or overlooked and where we can lead the development of these assets to their full potential.
We add value by:
- Providing strategic input and expert support into the exploration, development, operational or commercial aspects of the investee company and its underlying projects
- Participating on the Board of the investee company
- Assist in lifting the profile and market’s view of the investee company
- Introducing and coordinating strategic, financial or joint venture partners
- Sourcing and coordinating funding for project development and capital expenditure
- Providing access to networks and relationships within Asian markets
- If required, providing, or sourcing, management or staff to support the investee company
We would typically seek to invest an amount of a sufficient size to allow us to participate on the Board of Directors of investee companies. We do not intend to participate in the operations of the investee companies but, rather, rely on quality management to operate.
We aim to achieve geographic diversification for the portfolio of investments and will only invest into countries where the risks are considered acceptable or manageable. Given the extensive global experience of our team, we are able to effectively evaluate country risks and the prospect of successful investments in a particular country.
We will review investment opportunities where the macro outlook for that commodity is strong, the quality of the project is high and there is strong potential for superior returns. Given our specialist expertise and experience across a comprehensive range of commodities, we are well placed to evaluate and capitalise on a wide range of opportunities.
We will invest in a diversified range of projects including projects in current production as well as earlier stage (pre-production) assets. Earlier stage projects provide higher growth potential and we seek to mitigate earlier stage risks by leveraging the experience and expertise of our team and other measures referred to under “risk management” below.
We mitigate investment risks through a series of measures including:
- Implementing a stringent and documented investment process
- Performing thorough technical, financial, commercial, legal due diligence on all potential investments
- Investing only in companies or projects whose management has either a proven track record in, or strong potential for, successful resources development, operations and commercialisation
- Developing a credible strategy to maximise the growth potential of the investments and the realisation of that potential
- Implementing a diversified portfolio strategy
- Participating on the Board of investee companies
- Investing in companies or projects where management interests are aligned to shareholders and investors
- Employing resources professionals who specialise in specific commodities and geographies and are able to effectively evaluate technical and infrastructure risks
- Appointing experienced independent executives to the Investment Committee
- Setting concentration limits in connection with any single investment