Our fund purchases precious metals mining companies, predominantly on the ASX with a focus on producers and late-stage developers. We also purchase units in exchange-traded funds exposed to gold, silver and platinum group metals (PGM). The fund may sometimes hold, where appropriate, physical bullion and coins.
We have identified a potential to create a niche in the ASX-listed gold mining companies space. Most gold mining investment funds that are active have holdings of companies listed outside of the ASX and hence are subject to currency differentials and legislative differences. Our fund seeks to offer a unique exposure to ASX-listed gold mining companies, which nevertheless have mining operations overseas. However, focusing on the ASX keeps the fund more manageable and can exploit the advantages inherent in the ASX, which is still not being given the attention it deserves. Companies trading on the ASX may be trading at a discount compared to their peers listed on the New York Stock Exchange, Toronto Stock Exchange and London Stock Exchange. Furthermore, the weakness of the Australian dollar has made the gold price in our local currency more attractive than the gold price in US dollar terms, allowing gold mining companies with operations denominated in Australian dollars to enjoy better returns.
We build our own mining company database and access supplementary information to inform our investment decisions. Our methodology is predominantly based on fundamental analysis, although we developed our own valuation metrics. We also provide insights into our investment analysis in the form of company reports and in-depth research articles.
Unlike most investment houses who use discounted-cash flow models and price multiples to value mining companies, we use the Enterprise Value approach.
We offer a contrarian, evidence-based perspective to evaluating the state of the global and local economy. Inspired by the likes of Nassim Taleb, Peter Schiff, Doug Casey and Eric Sprott, we do not believe in what the official statistics or expert narrative tell us. Rather, we will investigate the raw data ourselves, observe market activity in the streets and shopping malls, and test the validity of popular opinion. Our views are backed by sound statistical methods and commonsense, and may sometimes conflict with the widely accepted consensus. We dare to take the position of the minority and walk the path less taken, as we believe that to beat the crowd, one cannot be following the crowd.
Australian Gold Fund
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