The Role of the Patient Resource Investor

There is a necessary link between patience and successful long-term investing in metals and mining. Due to the volatility and cyclicality of resource investment, patience differentiates between long-horizon and short-horizon investors. Patience has value, because it supports the ability to invest for the long term and allows the maintenance of losing positions. Second, patience running out is bad, because it can trigger a value-destructive sale (capitulation) and sends the wrong signals, which can undermine the capacity to exercise patience in the future. Resource investors tend to be value investors, held at ransom by the vagaries of the market and risk off sentiment. However, it is important to recognise when the market is driven by sentiment and take advantage of it for long term value. Global geopolitical and fiscal risk has never been higher, combined with the need to decarbonize global energy, the two main book ends to the Amati Strategic Metals Fund remain key investment areas. Georges and Mark will highlight the opportunities the market currently offers resource investors.