Resource Capital Funds – Latin America
Martin Valdes
Funding Mineral Exploration and Mining Projects
VII Simexmin
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The information provided is to be used as a general introduction to Resource Capital Funds and RCF Management LLC (together “RCF”), as presented. This presentation is not intended for potential or current limited partners in any fund advised by RCF or their affiliates. Information provided may include general market discussions, high level due diligence processes of RCF, and commodity specific information among other topics in light of the financing market for mining projects; this information is subject to change and is current only as of the date of this presentation. The information contained herein should not be relied upon for any investment making decision and is not an offer or solicitation of any securities or investment services. This presentation is not complete without the oral accompaniment.
Disclaimer
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Founded in 1998 with offices in Denver, Perth, Toronto, New York and Santiago
Invested in 148 companies covering
• 29 commodities over
• 47 countries
Our portfolio companies employ over 11,000 people
55 mining Board positions since inception
• 38 historically
• 17 presently
RCF has a team of more than 45 investment professionals with a diverse range of mining industry skills and backgrounds
Dedicated in-house technical team with experience ranging from resource modeling and mine planning through to project, environmental, social and operations management
RCF has total assets under management of US$2.3 Billion
Statistics as of 31 December 2015
Resource Capital Funds Fast Facts
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Private Equity
• Resources have been defined
• Seeks to identify mining assets with strong fundamentals and appropriate valuations
• Investments targeting development, expansion or restructuring of a company’s mineral assets
• Strategies can include Equity, Mezzanine Debt, Royalties or Bridging Finance
Venture Capital
• Investments are targeting less mature companies to gain exposure to early stage development potential
• Smaller investment tickets
• High risk and therefore higher returns
Statistics as of 31 December 2015
Private Equity vs Venture Capital Revisiting definitions from a mining Private Equity perspective
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Valuation at Different Stages
NP
V /
Sh
are
Mu
ltip
le
2x
1x
Opportunity to realize value accretion
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Funding Exploration Where RCF can assist with unlocking exploration value
Planning
Reconnaissance
Target Delineation
Target Testing
Discovery
Deposit Definition
Investment Risk Investment Size RCF Exploration
Investment Range
RCF is seeking the appropriate
level of risk relative to
investment size
Higher Lower
Lower Higher
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Majors divesting non-core assets in the region (ie Anglo)
Minority interests remain valuable mostly by Japanese trading houses
• An important part of the deal value of transactions done in Chile comes from Japanese houses
Financial players looking for opportunities but not easy to make deals
Long life / low cost producing assets maintain value in down cycle
• Zaldivar, Candelaria
Increased amount of royalty/stream financing
• Royal Gold (El Morro)
• Franco-Nevada (Candelaria)
Strategic JV´s among operators to look for synergies in infrastructure
• Corridor Project in Chile (Goldcorp/Teck)
Mining M&A Trends in the Region What is driving Mining M&A in the Region
www.resourcecapitalfunds.com
NEW YORK RCF Management L.L.C.
224 Wall Street, Suite 202 Huntington, NY 11743, USA
Tel. +1 631 692 0043
TORONTO RCF Management (Toronto) Inc.
25 York Street, Suite 610 Toronto, Ontario M5J2V5, Canada
Tel. +1 647 726 0642
DENVER RCF Management L.L.C.
1400 Sixteenth Street, Suite 200 Denver, CO 80202, USA
Tel. +1 720 946 1444
PERTH Resource Capital Funds
Management Pty Ltd
Level 3, 24 Kings Park Road West Perth, WA 6005, Australia
Tel. +61 8 9476 1900
SANTIAGO RCF Management L.L.C
Nueva Costanera 4040, 31
Vitacura, Santiago, Chile
Tel. +56 2 2245 4361