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Australian Equities Portfolio

Sandfire (neutral impact) announced the completion of its institutional entitlement offer and placement.

As mentioned last week, the company announced a transformative acquisition which will see it double in size, with the acquisition of a Tier 1 copper asset in Spain.

We elected to participate in the offer, though we took up half of clients’ entitlement.

Full participation would have seen the position double in size – a larger position than desired.

We note that the entitlement was at a price of $5.40 per share, relative to the current price of $5.48.

The cost of not taking up clients' full entitlement therefore has been small.

We continue to see Sandfire as an ideal exposure to copper with multiple options for growth. It is set to benefit from a growing demand for copper over the coming decades, compounded by depleting global resources.