Lowell Resources Funds Management is shifting its focus to rare earths after achieving career-best returns last year, driven by investments in precious metals. The company, led by stockpicker John Forwood, sees an opportunity as the United States and Australia aim to reduce China’s dominance in the rare earths sector, crucial for defence, automotive, and renewable energy technologies. Lowell Resources is a listed investment company that actively manages a portfolio of resource-based investments, seeking to deliver strong returns for its shareholders. Lowell’s funds are strategically invested across various commodities and mining operations, capitalizing on opportunities in the resource sector.
Forwood’s primary rare earths play is Brazilian Critical Minerals, in which Lowell Resources holds a 5.2 per cent stake. Brazilian Critical Minerals, formerly known as BBX Minerals, is one of a dozen ASX-listed companies exploring for rare earths. With a market capitalisation of $52.4 million, the company’s key assets include the Ema and Apui projects in Brazil. Forwood highlights the project’s simple metallurgy as a key advantage, noting the potential for significant returns.
Lowell Resources delivered a 126.4 per cent return last year, significantly outperforming the S&P/ASX Small Resources Accumulation Index. The fund, which manages approximately $140 million, has investments spread across gold, copper, nickel, silver, lithium, uranium, manganese, and oil and gas. The rising prices of gold and silver, coupled with strong performance from oil developer Finder Energy and manganese developer Black Canyon, contributed to the fund’s success.
Forwood’s investment strategy focuses on identifying undervalued opportunities in the speculative end of the mining sector. Despite the risks associated with critical minerals, Forwood’s extensive experience in geology and investment banking positions him to navigate the complexities of the resources market. He aims to leverage Lowell’s expertise to capitalize on the growing demand for rare earths and other critical minerals.
