RARE EARTH ELEMENTS FUND A « market in the making » with promising investment opportunities - PowerPoint PPT Presentation

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RARE EARTH ELEMENTS FUND A « market in the making » with promising investment opportunities

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  1. RARE EARTH ELEMENTS FUND A «market in the making» withpromisinginvestmentopportunities Event: Swiss Mining Institute Geneva, Zurich; March 18-19, 2014 Presented by: Urs Gmür, CFA, Portfolio Manager - Dolefin SA

  2. Content • Basics of REE’s • Review of pastpricedevelopments • Strongfundamentals, investmentscatching up • REE-Fund

  3. Rare EarthsElements‘ Vitamins of the Modern Industry’ • Exceptionalmagnetic and luminescence properties • Not rare … but difficult to extract: only 4 minerals exploited today • The ores always consist of a 'basket of rare earths’ • Rare Earths are marketed primarily as oxides of high purity and mischmetal

  4. Strategicmetals in keygrowthdomains

  5. Growth by sectors: Source: Roskill, IMCOA and LKConsult

  6. Demand of Rare EarthOxides March 2014

  7. Review of REE-pricehistory:2010 marks the turning point 2010 - Year of the reckoning:

  8. Consequences of pricevolatility:Quality has itsprice • Industryneeds high qualityproducts • But difficultwithoutREEs • Alternatives discussed but how realistic ?

  9. Consequences of pricevolatility: Separatingwheatfrom the chaff • Calmafter the storm • Prices for LREEsretreatfrom panic-levels • But HREEsremain in shortage

  10. Importance of Private MoneyDo not count on Governments – stock marketis the «incubator», historically • How new inventions are financed: • Governmentshistoricallyunable or unwilling • New inventions seen as «gadget» • But…whenrelated stocks rally, people listen • Phantasy arises

  11. Importance of Private MoneyThe classical S-curve pattern • Inventions follow the S-curve pattern: Souce: The Next Great Bubble Boom, Harry S. Dent, Jr

  12. Importance of Private MoneyCycle related to the REE-market • REEsexpected to behavesimilarly:

  13. RARE EARTH ELEMENTS - FUND Metals of the Future

  14. Rare Earth Elements Fund (CHF) • The REE-Fund is a nicheFund underSwisslawthatinvestsin REE-relatedlisted stocks, worldwide. • The REE-Fundfollows a Mine-to-MarketinvestmentstrategycoveringMining, Refining, Manufacturing, Trading and Recyclingas to benefitfrom the whole value curve. • The REE-Fund isactivelymanaged as to takeadvantage of marketinefficiencies, appropriatestrategy for an emergingtheme.

  15. Investment Philosophy • Active approach to benefit from market inefficiencies • Maximum participation through REE growth drivers: • - BRICs- New Materials – Commodities- Green Energy- High-Tech / Nano

  16. Investment Process Derived from mine-to-market approach • Definingsectors (management team) • Sector allocation (management team with input fromscientificcommittee) • Portfolio construction (management team) • Implementation (asset manager) • Review (management team)

  17. Team…of Professionals • Management Team: • Asset Manager – DOLEFIN SA • Portfolio Management, Technical Analysis (stocks, FX) • GeologicalAdvisor – LKConsult • Bottom-up analysis (geology, site visits, etc.) • InvestmentCommittee (quarterly): • Dolefin SA • LKConsult • Scientificcommittee • (3 members: researchscientific, applied-researchscientific, industry)

  18. Portfolio…currentexposure Sectorallocation 10 largest holdings: 7.10% Tasman Metals(*) 6.65% Hitachi Metals 6.34% BYD 6.17% Molycorp 4.43% China Rare Earth 4.42% Eramet 4.35% Mitsui Mining&Smelting 4.34% China Molybdenum 4.42% Great Western Minerals 4.07% Chalco (*) includingwts

  19. Portfolio…Performance comparison Best in a difficultenvironment REE-Fund outperformed the REMX-ETF by 32.84% since its inception!

  20. ContactsFeel free getting in touchwith us! • Contacts: • DOLEFIN SA • Urs Gmür, CFA • 310, route de St-Cergue • CH-1260 Nyon • gmuer@dolefin.com • T: +41 22 99’404’88 • LK CONSULT • Laurent Krull, Senior Geologist, Msc • Avenue Reverdil 4 • CH-1260 Nyon • lkrull@lkconsult.com • T: +41 22 361’68’48

  21. Thankyou ! Investing in the Rare Earth Elements industry With a Mine-to-Market approach Thank you www.ree-fund.com