Terra Capital’s Natural Resources Fund has returned 15.6 per cent a year for 13 years as it rides the lithium, copper and clean energy investment boom.
Nobody’s lived the boom and bust cycle of Australia’s mining sector more than Terra Capital portfolio manager Matt Langsford.
“There were some tough times when a newspaper article every other day would say resources are dead. We had to do a lot of hand-holding for investors,” he says. “But we still managed to perform relatively well and now there’s a situation where lots of underinvestment is abutting growing demand for future-facing commodities like lithium and copper. So, this should be a great place to invest for the next 10 years.
Langsford argues Australia’s battery metal and clean energy producers in the copper, lithium, and uranium space have serious competition from Canadian rivals. He says the best uranium companies, alongside several high-quality copper companies, operate in Canada and trade on cheaper valuations as the market attracts less hot money.
“So being able to exploit those differences has been a massive benefit to us, and we’ve made a big effort to get over [to Canada] to see people and companies,” he says.“We always visit the mine site for our major investments. So, we get an understanding of how a mine is running, or where the company wants to build something, as a glossy presentation is never going to achieve that.”
“For potential investors in the fund, [having] skin in the game is important. You want people who’ve got their nuts on the line, and are hopefully doing the right thing for you as an investor,” says Langsford.
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