Recently, major investment funds like Resource Capital Funds, Tribeca Investment Partners and Terra Capital injected cash in the resource market due to which many small cap miners are benefitting.
Resource Capital Funds is a venture capital and private equity firm based in West Perth. The firm is currently having $3.6 billion worth of investments. The firmed was formed in 1998 and since its formation it has invested in 179 mining companies which include companies like Geopacific Resources (ASX: GPR) which is involved in the exploration and development of gold and copper, MZI Resources (ASX: MZI) which develops mineral sands, and Vimy Resources (ASX: VMY) which is involved in the exploration of Uranium.
Tribeca Investment Partners Pty Ltd is a boutique fund manager, based in Australia which invests globally in energy, traditional metals and “bulks” like iron ore and soft commodities. Currently Tribeca is having around $1 billion in investments. Around 30 percent of Tribeca portfolio is made up of small caps and only 7.5 percent of the total investments are in ASX- Listed Firms. On 4 October 2018, Lithium producer Tawana Resources (ASX: TAW) announced that it has been granted a waiver in respect of $20 million debt facility by Tribeca Investment Partners Pty Ltd. Tawana Resources’ shares traded at $0.250 with a market capitalization of $153.19 million as on 18 October 2018. On 24 August 2018, Superior Lake Resources (ASX: SUP) announced the appointment of Tribeca Investment Partners Pty Ltd. to arrange project finance facilities of up to US$60 million to assist in funding the development and restart of the Superior lake Project. Superior Lake Resources’ shares traded at $0.047 with a market capitalization of circa $41.13 million as on 18 October 2018. Tribeca’s goal is to give investors a compound annual return in excess of 15 per cent after fees and expenses over the long-term.
Terra Capital is a specialist investment manager which has maintained a diverse portfolio of undervalued assets throughout 2017. Terra Capital turns their portfolio between 6 and 8 times a year. Currently, Terra Capital is working to raise $30 to $50 million for a new offshore resource fund.
Both Terra capital and Tribeca Investment Partners Pty Ltd are very much interested in Uranium stocks, following the news in late July that major uranium explorer and producer- Cameco, indefinitely paused the production at its McArthur River Mine. Being the largest producer of Uranium, Cameco removed 11 percent of the global supply from the market by this move.
Uranium has been seeing many ups and downs from A long time, however things are looking good now, as the spot price recently reached a two-and-a-half year high of $US27.70 ($38.82) per pound which is a 36.5% gain compared to the last year.
Both Terra capital and Tribeca Investment Partners Pty Ltd are agreeing that the production from the resource market is promising right now, however there are many big resource companies that are trying to pick themselves up after the prolonged period of depressed commodity prices.
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