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04.09.2014, Introduction to Pacific Road Capital, Geoff McNamara

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Geoff McNamara, Investment Director, Pacific Road Capital

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04.09.2014, Introduction to Pacific Road Capital, Geoff McNamara

  1. 1. Pacific Road Capital Geoff McNamara – Investment Director Discover Mongolia – Ulaanbaatar, Mongolia 4-5 September 2014
  2. 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 1
  3. 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 2
  4. 4. Base Resources – Kenya
  5. 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 3
  6. 6. Far West Mining/Capstone Mining – Chile 6
  7. 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 4
  8. 8. Pacific Energy – Australia 8
  9. 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 5
  10. 10. Firestone Diamonds – Lesotho 10
  11. 11. Pacific Road Capital Thank you

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