Investment Strategy

Investment Size
PRCM is focused on expansion capital opportunities to take mining projects through feasibility, financing and construction stages. The Fund will also target sector-related infrastructure, services and buy-out opportunities. The typical targeted investment size will be US$15 million to US$40 million, which may occur in stages. Larger investments can be made in conjunction with investors in our Fund who are interested in co-investment opportunities.

Attractive to Potential Purchasers
PRCM seeks to invest in projects and companies that can provide superior rates of return and will utilise its extensive resources industry operating experience, financial skills and broad network of contacts to help investee companies achieve this. PRCM will invest in quality projects that are, or have the potential to be developed into, low cost mines that can be sustained throughout the commodity price cycle.

Commodities and Development Stage
Investments will be via equity, quasi-equity and debt securities and will be broadly focused on precious metals, base metals and some bulk commodities. Investment will be at the scoping/pre-feasibility stage or later with a view to taking the project through feasibility and construction to an operating mine. Pure exploration opportunities will be avoided.

Active Partnership with Management
PRCM will be actively involved in each investee company or joint venture and will seek to appoint a director or equivalent to the Board or management committee. The competence and experience of management teams of target assets will be a critical factor in the consideration of potential investments. PRCM expects to add value to, and have significant involvement in, the strategic direction and operational management of its portfolio investments. PRCM is a patient investor with a typical hold period of 3 to 5 years, however a clear exit strategy will be required prior to making any new investment.

An Operating Approach
PRCM’s approach to investing is to acquire/invest in businesses with attractive operating fundamentals and then work in partnership with management to strengthen the strategic and financial position through growth strategies and operating improvements. Our commitment is to earn return through enhancing the long-term fundamental value of a business rather than through the use of excessive leverage. A relatively conservative capital structure mitigates risk and provides companies with the financial flexibility to grow. This is the traditional model of successful mining companies.

Risk Management
PRCM adopts a strong focus on risk management in the investment decision process and thereafter, taking a conservative approach to process technologies for extraction of metal from ore. Investment will be in projects with risks that are understood and able to be managed.

Geographic Constraints
PRCM will access investment opportunities in the resource rich regions of the world including Australia, Asia, Africa and the Americas, in locations where country risk is manageable.

Asset Realisation
The typical investment hold period is three to five years. This time horizon will be refined in the context of the timing of follow on investments, where appropriate, and market conditions. Possible exit strategies will be identified prior to any investment and may include sale to a joint venture partner, conversion into parent company stock, IPO, market placement to institutional investors and trade sale. Where circumstances permit, contractual exit rights will be incorporated into transaction documentation.