Fund up 94% over 12 months

• The Fund returned 10.5% over the month of August and is now up 94% over the last 12 months.
• Clarity Pharmaceutical and Immutep also saw notable gains due to ASX300 inclusion, while Brazilian Rare Earths rose on strong drilling results and upcoming exploration updates.
• On the downside, Oncosil dropped 21% after a prior 100% gain, while Genetic Signatures and Magnite fell on limited news.

Join Fund Manager James McDonald for an exclusive webinar as he discusses the Fund’s current portfolio holdings, the factors influencing recent performance, and some of the market variables the investment team is considering moving forward. Register here.

Top Holdings (alphabetically)

Brazilian Rare Earths Ltd.

Australia

Materials

Brazilian Rare Earths Ltd. operates as a mineral exploration company. It focuses on the discovery and development of mineral resources in Brazil. The company was founded on March 3, 2021 by Bernardo da Veiga and is headquartered in Sydney, Australia.

Clarity Pharmaceuticals Ltd

Australia

Health Care

Clarity Pharmaceuticals Limited operates as a radio-pharmaceutical company. The Company focuses on the developing targeted therapies for the treatment of cancer and other serious diseases. Clarity Pharmaceuticals serves customers worldwide.

Genetic Signatures Ltd

Australia

Health Care

Genetic Signatures Ltd. is a research company, which engages in the identification and commercialization of individual genetic signatures for the diagnosis of infectious diseases. It is also involved in the sale of associated products into the diagnostic and research marketplaces. Its products include the treatment for gastrointestinal infections, respiratory, sexual health, anti-microbial resistance, meningitis, and tropical disease. It operates in the following geographical segments: Asia Pacific, Europe, Middle East, and Africa (EMEA), and Americas. The company was founded by Robert J. Birrell, Christopher M. Abbott, and Geoffrey Grigg on February 15, 2001 and is headquartered in Newtown, Australia.

IperionX Ltd

Australia

Materials

IperionX Ltd. engages in the development of low carbon titanium for advanced industries, including space, aerospace, electric vehicles and 3D printing. It produces titanium metal powders from titanium scrap at its operational pilot facility in Utah and intends to scale production at a Titanium Demonstration Facility in Virginia. The company was founded on May 5, 2017 and is headquartered in Charlotte, NC.

Iperionx Ltd. Sponsored ADR

United States

Materials

IperionX Limited focuses on sustainable mineral and material supply chains. The Company develops low carbon titanium for advanced industries including space, aerospace, electric vehicles, and 3D printing. IperionX serves customers worldwide.

US titanium producer IperionX rose 25% after announcing the first run of its furnace at its new manufacturing plant in Virginia. The furnace is the key component in the manufacturing process, so this milestone was important for many investors. We expect the plant to be gradually ramped up in Q4 and into 2025. Expectations of being incorporated into the ASX300 index also helped sentiment. Inclusion in this index forces some exchange traded funds to automatically buy the shares while many small cap fund managers benchmarked against the index also buy for risk management purposes. The company was included in the index in early September.

Ophthalmic drug developer Opthea rose 44%, recovering from depressed levels after a deeply discounted capital raise. The stock was also included in the ASX300 in early September. We expect Phase 3 results from one of two major Phase 3 clinical studies in April next year and the second in July, which will be significant catalysts for the company.

Prostate cancer radiation therapy developer Clarity Pharmaceutical rose 13.5% also on the back of ASX300 inclusion as did cancer immunotherapy developer Immutep, which was up 17%.

Brazilian Rare Earths rose 11% after releasing very positive drilling results from its Monte Alto deposit with grades of up to 39.1% Total Rare Earth Oxide (TREO) and most intercepts above 18%, far above the grade of the world’s current high-grade leader, Australian producer Lynas, at 6% grade. We expect further drilling results by year end from some of its other discoveries on its very large 1800sqkm tenement, which will help inform the market on the overall resource size. The Pelle deposit has a 30x larger surface area than Monte Alto so this will be of particular interest. We also expect metallurgical work to be released describing how the company will separate and produce the various metals including rare earths (used for magnets), niobium (used to strengthen steel alloys), Scandium (used to strengthen Aluminium alloys), Tantalum (used for capacitors) and Uranium. This will be important in assessing the cost of building the mine and processing facilities, and the optimal route to market.

On the negative side, Oncosil fell 21% giving back some of its 100% gains the prior month. Genetic Signatures and Magnite fell on little news.