Investment Matters

Company News

Australian Equities sub-portfolio

Elmore (negative impact) began trading on Wednesday after completing a $6m placement.

The company will be utilising previously purchased crushing and screening equipment to provide a “mobile processing solution” for smaller mineral deposits, as well as providing consulting services.

The company has entered agreements with two miners to provide processing and consulting services over the next two years.

Over time it is looking to use the cash flow generated from these projects to purchase additional equipment and invest in prospective projects.

This business model is one similar utilised in the foundation and growth of Mineral Resources.

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Boral (positive impact) has announced a significant buyback utilizing the proceeds from its stake in USG Boral. We see the $700m buyback as providing strong support to the company in the near term.

In addition, the company is exploring options for its US fly ash business which may include a potential joint venture, strategic alliance or sale.

We are encouraged that Boral’s new management is delivering on its commitment to reassess and reposition Boral’s substantial asset base.

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Alternatives sub-portfolio

Clients have made an additional investment in the Acorn Capital Expansion fund.

The investment is part of an initial commitment made when clients first invested in the fund.

The capital has been allocated to two new investments: one in the Fintech and Biotech space.

The first is in a platform that provides an integrated payment solution for payment processors and banks.

The second is an exciting investment in the nascent field of oncolytic viruses: viruses engineered to infiltrate and destroy cancer cells.

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Property sub-portfolio

Garda Property Group (positive impact) announced it has completed the sale of three non-core assets, all above their book values. This capital will be reallocated to the trust’s industrial property development pipeline.

Leasing activity has continued to improve – with further leasing at Botanicca 9 and the newly built Berrinba now 100% committed.

The fund continues to provide a cheap exposure to industrial property through a property manager that is looking to value add through developments and re-leasing.

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The above market commentary represents the views and opinions of First Samuel Pty Ltd. Such market commentary contains information of a general nature only. Such market commentary is not intended to provide a sufficient basis on which to make any investment decision and should not be taken as such. It has not taken into consideration your objectives, needs or financial situation. Before making decisions in relation to any financial product, you should always obtain and read any relevant Product Disclosure Statement or information statement and seek personal financial advice.