A Year of Strong Performance

The Fund rose 11.2% (Class A) and 11% (Class B) in December and recorded a 109.1% (Class A) and 106.8% (Class B) return for 2024.

Looking into 2025 we believe the Fund is well positioned with approximately 55% of its assets invested in critical minerals processing technology, rare earth and gold mining, all of which should benefit from geopolitical uncertainty, and 40% in healthcare, a defensive sector by nature. Most of the Fund’s investments are in small companies, which tend to be more volatile than larger companies.

Top Holdings (alphabetically)

Brazilian Rare Earths Limited

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.

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.

MTM Critical Metals Limited

Australia

Materials

MTM Critical Metals Ltd. operates as a mineral exploration and development company. It focuses on gold and other precious metals discoveries in Western Australia. The company was founded on November 13, 2020 and is headquartered in West Perth, Australia.

Titanium metal producer IperionX, the Fund’s largest holding, rose 25% in December after fund manager Regal increased their stake from 6.1% to 7.4%. Broker Canaccord also released a positive research report on the company. The company is very well positioned to benefit from the reshoring of titanium to the USA in the coming years.

We added a new holding, Australian listed MTM Critical Metals, which has returned 100% over two weeks since investing although only 37% of the gain was reported in December. The company has developed and owns a patented technology called Flash Joule Heating, which is a method for efficiently extracting metals from electronic waste and mine tailings. It offers the potential to revolutionise metal processing by reducing energy consumption, reagent use, and waste.

Initially, the company is focused on recycling scrap Gallium and Germanium, which China has recently banned the export of to the USA in a tit for tat move over US restrictions on the export of semiconductors and semi equipment to China. China produces 100% of the world’s Gallium and 60% of Germanium, both of which are used heavily in the production of semiconductors. The price of Gallium has tripled this year to $1mln per tonne and Germanium to $1.7mln.

A new pilot plant to be built in Texas by year end will have the ability to produce 1 tonne per day of recycled material for major metal producer and partner Indium Corporation. The contractual details have yet to be finalised but even allowing for large discounts on sales prices and conservative margin assumptions it is possible to arrive at some impressive profit forecasts relative to the current market valuation of $137mln. Capex requirements for this plant are modest in the single digit millions. The company is now well funded to this end.

Additional major opportunities are available in the processing of lithium, rare earth, niobium and antinomy. Recycling of batteries, smartphones and wind turbines (e-waste rich in these metals) is also possible using this technology.

US listed prostate cancer Immunotherapy company Janux rose 39% after reporting impressive data from its phase 1 clinical study in prostate cancer. Further data is required but, unlike radiopharmaceuticals developed by Telix and Clarity, no complex radio isotope supply chain is required, and local healthcare centres can administer the drug. We do continue to hold Clarity and see room for both therapies but ultimately data will decide which therapies dominate the market.

Australian listed stem cell therapy company Mesoblast rose 37% after the FDA approved the company’s treatment for pediatric Graft versus Host (GVH) disease. The illness follows stem cell transplants and has a high mortality rate, which is significantly improved by this drug. Although this indication is not large it opens the door for stem cell therapy in other indications such as adult GVH, acute heart disease and back pain.

There were several detractors over the month. Radio therapy producer Clarity Pharmaceuticals fell 35%, possibly not helped by Janux data. We used the weakness to add to our position after significantly reducing the holding at higher levels in prior months. Pancreatic radiotherapy producer Oncosil Medical -25%, Greatland Gold -8% and molecular diagnostic producer Genetic Signature -7% all fell on little news.