Geoff McNamara, Investment Director, Pacific Road Capital

1. Pacific Road Capital
Geoff McNamara – Investment Director
Discover Mongolia – Ulaanbaatar, Mongolia 4-5 September 2014

2. Who is Pacific Road?
• Private Equity (“PE”) Funding for Mining Projects
• Approximately USD$800 million under management
• 15 Active Investments
• 12 Countries
• 10 Commodities
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3. What We Mean by PE for Mining
• Not always private investments
– but always PE in style
• Very selective
• Prefer to see our money go into the investee company
• Don’t need control; do need influence
• Active, not activist (unless we have to be)
• Partner with management
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4. Base Resources – Kenya

5. PE Advantages Over Other Funding
• Sticky money
• Available when other sources dry up
• Follow-on money available
• Money comes with skillset
• Objectives are same as all other equity & management
• Less management time spent on IR & capital raisings
• More equity for management
• No reduction in exit optionality
• Cornerstone presence viewed favourably by other stakeholders
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6. Far West Mining/Capstone Mining – Chile
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7. Factors We Look For in Investments
The obvious:
• Project:
– preferred commodities
– country / location
– development status – post discovery, often later
– expected position on cost curve
– <$200m pre-money value (generally)
• People:
– track record
– skin in the game
– motivation
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8. Pacific Energy – Australia
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9. Factors We Look For…. (cont.)
The Specific:
• Preference for private company or project level investment
• Influence via ability to appoint director
• Partnership philosophy
– willingness of board/management to engage with us
• Other rights negotiated on case by case basis
• Exit plan – need to see viable prospects before investing
• Portfolio weighting – secondary importance
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10. Firestone Diamonds – Lesotho
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11. Pacific Road Capital
Thank you