Australian (ASX) Stock Market Forum

LRT - Lowell Resources Fund

Jump to new
They must have made a huge profit on Melbana Energy. They were into this one ages ago, well before the herd found out.
 
@bk1 I note they have a holding In KWR which has just embarked on a diamond drill campaign on Lake Goongarrie and is awaiting some Nickel hopeful assays. Also a few coincide with Tony Locantro's 2022 top picks: PGO, MKG, WSR. I'm reassured that they've stuck with a sizeable position in MGV which has gone nowhere since I accumulated.
 
LRT has gone down with the market, and hit $1.40 this week. Now $1.45 and the most recent NTA estimate from 17/06 was $1.70

Top 10 last month
Cash .............................................. 9.2%
Predictive Discovery ........ Gold.. 6.8%
Genesis Minerals .............. Gold.. 6.5%
Musgrave Minerals ...........Gold.. 5.9%
De Grey Mining ................ Gold.. 4.7%
Talon Metals ..................Nickel... 3.2%
Southern Cross G'fields .. Gold .. 2.8%
Larvotto Resources .. Au-Cu-Li... 2.6%
Pacgold .......................Gold .........2.6%
Comet Ridge ...............Gas ...........2.6%
South Harz Potash...... Potash ....2.5%

Fund Top Performer
Southern Cross Goldfields’ (SXG.ASX) share price rose by 217% by the end of the month, after listing on the ASX on 16th May. SXG, a spin out of long-term LRT holding Mawson Gold, is focused on epizonal (Fosterville-style) gold exploration in Victoria. LRT participated in both the seed equity and IPO raising for SXG. The company announced an intersection of 119m at 3.9g/t Aueq at its 100% owned Sunday Creek project north of Melbourne.

Unaudited management accounts for the Fund currently indicate that the Fund will distribute between 9c and 12c per unit of unfranked distribution for the financial year. This is subject to change and an updated estimate of the distribution will be announced in the final week of June. This distribution forecast compares with a distribution of 14.9835c per unit for the previous financial year
Click to expand...

Following a stellar couple of years, the fund hasn't done that well, recently: 12 months return of 6.5%, compared with 23.5% for S&P/ASX Small Resources Index (XSRD) and 16% for the ASX Resources 300 Index.

- always a good place to go mining for the Monthly Comp tip/ guess. If nothing jumps out, I may even go for LRT.
 
Go big or go home?

Entitlement Issue on the basis of 1 new unit for every 3 existing units (1:3) held at the Record Date with 1 free unlisted option attached to each new unit offered.

The Entitlement offer has been set at the last closing price of $1.35 per new unit and will raise up to $13.2m before costs ...
 
Noticed that LRT has a mineral deficiency in their portfolio. Not enough copper. An essential element for healthy patient (portfolio) growth.

2607c.PNG

Low level of lithium also.
 
Lowell trading at a discount again but my view is that the chart is still not a buy at this point because it has not bounced off the 1.30 support level. Price @ 1.29 finished the week on its low.
The dividend is good @ 0.116 which is 9% yield but has already gone ex 30th of June. Dividend is not franked which is a feature I shouldn't have ignored. Also I went off it after @coolcup's remark about the high management fee and low bar bonus performance fee.
I'm not selling but would only buy it again at a very cheap level.

Held

NAV statement 9 August:
"We advise that the estimated Net Asset Value per Unit of the Trust as at 5 August 2022 as $1.5816"

All Data Weekly
big - 2022-08-13T190727.116.gif
 
finicky said:
Lowell trading at a discount again but my view is that the chart is still not a buy at this point because it has not bounced off the 1.30 support level. Price @ 1.29 finished the week on its low.
The dividend is good @ 0.116 which is 9% yield but has already gone ex 30th of June. Dividend is not franked which is a feature I shouldn't have ignored. Also I went off it after @coolcup's remark about the high management fee and low bar bonus performance fee.
I'm not selling but would only buy it again at a very cheap level.

Held

NAV statement 9 August:
"We advise that the estimated Net Asset Value per Unit of the Trust as at 5 August 2022 as $1.5816"

All Data Weekly
View attachment 145385
Click to expand...

Looks very bottomish to me at the moment. Around $1.20 looks very tasty.

The reason for the capitulation is in their concentrated portfolio of mining minnows who have all far exceeded market moves to the downside. GDXJ, for example, has been creamed. But, IMO, it's a long term buying opportunity for quality developers. Might be another leg down, but that puts a 'for sale' sign out on some of the top stocks they play with.
 
Still trading below NTA, and by a significant amount

Fund Investment Actions - November 2022
  • In November, the Fund acquired a holding in UK North Sea gas developer Hartshead Resources.
  • In gold, the Fund trimmed its shareholdings in ASX listed gold developers De Grey Mining, Genesis Minerals and Predictive Discovery, while adding to its position in Musgrave Minerals.
  • In Rare Earths, the Fund rotated from Australian Rare Earths to another South Australian explorer Taruga Minerals.
  • The Fund completed its exit from its position in Hot Chili and added to its investment in Sipa Resources.
 
Never bought this as I am running a ‘Sean K Resources Fund’ that has outperformed this (unaudited), but I do own a number of their dodgy picks. Like following it for ideas.
 

Similar threads

motion
Uranium in for correction, not a rout
Replies
0
Views
8K
motion
motion
P
RCO - Royalco Resources
2 3
Replies
59
Views
15K
System
System
Top