SUMMARY
- The Fund declined 7.6% over the month, largely reflecting sharp share price moves in a small number of high-conviction holdings rather than broader portfolio weakness.
- Weakness was concentrated in Artrya and Metallium, where share prices reacted to delays and sector sentiment, while underlying business progress and long-term earnings potential remained intact.
- IperionX provided a meaningful offset, rising strongly following index inclusion and continued US Government support, with further catalysts expected as contracts translate into revenue and funding momentum continues.
COMMENTARY
The Fund fell 7.6% in January. This follows a strong first half of FY26, with the Fund up 37.92% over the six months to December compared with 8.71% for the benchmark. Given the Fund’s focus on high-growth and commercialisation-stage companies, periods of consolidation following strong share price performance are not unusual.
Artrya declined approximately 25% over the month, following a very strong prior period in which the shares rose more than 550% over the six months to December 2025. Artrya’s technology functions as an AI-driven diagnostic assistant, enhancing the speed, accuracy and consistency of coronary artery disease assessment. The share price had rallied strongly in December as several funds accumulated meaningful positions ahead of the commercialisation of its FDA-approved modules (representing ~85% of the total addressable market) and the anticipated approval of the final outstanding module.
During January, Artrya announced a number of commercial agreements that exceeded expectations in terms of potential revenue. However, the timing of revenue generation was pushed back, and FDA approval of the final module has been delayed by one quarter. From a valuation perspective, we do not consider either development to be material. In fact, some analysts increased their price targets, albeit with reduced near-term revenue forecasts. The share price weakness appears primarily attributable to lower near-term revenue expectations rather than any change in the long-term opportunity.
Metallium, a critical minerals processing technology company, also gave back some of its strong 2025 gains, declining 21% in January. Toward month-end, Reuters reported that a US Senate Committee had raised concerns about government support for price floors in critical minerals. While MTM’s focus is on scaling its proprietary technology to extract precious metals through recycling printed circuit boards (electronic waste) and is arguably more exposed to the gold price, the stock was caught in a broader sell-off across the critical minerals sector.
IperionX rebounded strongly, rising 31% during the month. The move was driven by two key factors. First, IperionX was added to the REMX ETF, which experienced strong inflows in January, resulting in substantial ETF-driven buying. Second, the company continued to receive significant support from the US Government, including additional grant funding, transfers of scrap titanium feedstock at no cost, and an order to prototype parts for ground transportation vehicles.
Looking ahead, we see further catalysts in the form of additional commercial agreements, initial production orders converting to revenue, and the potential for further US government funding support across several holdings.