Insight into the Amati Strategic Metals Fund

Resource investing can be a lonely space at the best of times. As value investors we avoid the crowded trades, but usually when the sales are on, the markets are busy. This is not the case for the precious metal equity markets. The generalist investor is still chasing tech and the broader index. We suggest you starve your distractions and feed your curiosity. With gold prices hitting all-time highs and the silver price following, the all in profit margins are well over US$750/oz for the gold producers generating an average 7% free cash flow yield with some mid cap producers over 15%. Surprising then that the gold equity valuations still remain well below historical averages. We will discuss how the WS ASMF has been repositioned through active management to take advantage of this precious metal opportunity, and highlight the leverage the fund can have to rising commodity prices and the opportunity for M&A.