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Energy Transition Materials


Our Energy Transition Materials Portfolio

Stocks Date of Initial Coverage Initial Entry Price Highest Point Performance from Initial Entry
REZ 1685887200 05-Jun-2023 $0.022 70% -60%
SLM 1685455200 31-May-2023 $0.200 570% -40%
SLM 1685455200 31-May-2023 $0.200 570% -40%
GUE 1676811600 20-Feb-2023 $0.150 37% -20%
MEG 1676552400 17-Feb-2023 $0.039 151% -64%
LYN 1668949200 21-Nov-2022 $0.256 127% -26%
TYX 1662386400 06-Sep-2022 $0.017 294% -24%
SGA 1658412000 22-Jul-2022 $0.163 249% 13%
CAY 1644757200 14-Feb-2022 $0.100 5% -20%
LNR 1644411600 10-Feb-2022 $0.029 134% -86%
AKN 1643893200 04-Feb-2022 $0.165 33% -85%
EV1 1637067600 17-Nov-2021 $0.200 183% -53%
KNI 1629813600 25-Aug-2021 $0.200 723% 0%
PFE 1628085600 05-Aug-2021 $0.200 -8% -76%
RAS 1625407200 05-Jul-2021 $0.065 585% -46%
BPM 1621346400 19-May-2021 $0.200 25% -45%
MAN 1614776400 04-Mar-2021 $0.080 -8% -50%
EMH 1614690000 03-Mar-2021 $1.100 40% -72%
FYI 1610974800 19-Jan-2021 $0.200 123% -68%
PUR 1606827600 02-Dec-2020 $0.014 204% -63%
LRS 1606309200 26-Nov-2020 $0.018 2332% 980%
EMN 1599141600 04-Sep-2020 $0.065 615% 31%
MNB 1598364000 26-Aug-2020 $0.030 550% 207%
LCL 1588168800 30-Apr-2020 $0.036 258% -70%
GTR 1588082400 29-Apr-2020 $0.018 89% -50%
GAL 1582981200 01-Mar-2020 $0.247 691% -3%
VUL 1566223200 20-Aug-2019 $0.200 5420% 1065%
Stocks Date of Initial Coverage Initial Entry Price Highest Point Performance from Initial Entry
REZ 1685887200 05-Jun-2023 $0.022 70% -60%
SLM 1685455200 31-May-2023 $0.200 570% -40%
SLM 1685455200 31-May-2023 $0.200 570% -40%
GUE 1676811600 20-Feb-2023 $0.150 37% -20%
MEG 1676552400 17-Feb-2023 $0.039 151% -64%
LYN 1668949200 21-Nov-2022 $0.256 127% -26%
TYX 1662386400 06-Sep-2022 $0.017 294% -24%
SGA 1658412000 22-Jul-2022 $0.163 249% 13%
CAY 1644757200 14-Feb-2022 $0.100 5% -20%
LNR 1644411600 10-Feb-2022 $0.029 134% -86%
AKN 1643893200 04-Feb-2022 $0.165 33% -85%
EV1 1637067600 17-Nov-2021 $0.200 183% -53%
KNI 1629813600 25-Aug-2021 $0.200 723% 0%
PFE 1628085600 05-Aug-2021 $0.200 -8% -76%
RAS 1625407200 05-Jul-2021 $0.065 585% -46%
BPM 1621346400 19-May-2021 $0.200 25% -45%
MAN 1614776400 04-Mar-2021 $0.080 -8% -50%
EMH 1614690000 03-Mar-2021 $1.100 40% -72%
FYI 1610974800 19-Jan-2021 $0.200 123% -68%
PUR 1606827600 02-Dec-2020 $0.014 204% -63%
LRS 1606309200 26-Nov-2020 $0.018 2332% 980%
EMN 1599141600 04-Sep-2020 $0.065 615% 31%
MNB 1598364000 26-Aug-2020 $0.030 550% 207%
LCL 1588168800 30-Apr-2020 $0.036 258% -70%
GTR 1588082400 29-Apr-2020 $0.018 89% -50%
GAL 1582981200 01-Mar-2020 $0.247 691% -3%
VUL 1566223200 20-Aug-2019 $0.200 5420% 1065%

How to invest in energy transition materials

Screenshot 2023-09-11 at 2.53.04 pm

Critical Minerals and the Commodities "Supercycle"

8 min

Macro Outlook Energy Transition Materials

Energy transition is a decades-long trend that we expect will show continued strength through the coming year.

Energy transition refers to the global shift from technologies that use fossil fuels (coal, oil, and natural gas) to technologies that use renewable energy sources (wind and solar, and lithium-ion batteries).

The energy transition is part about the environment and part about reducing geo-political risk by reducing dependence on fossil fuels imported from unfriendly countries.

So suddenly the world is going to need a LOT more of the commodities used to transport and store energy - lithium, graphite, cobalt, copper, manganese, nickel and rare earths.

And after a decade of under-investment in new mines combined with how long it actually takes to build a new mine (7+ years) we don’t think new supply will be coming online any time soon.

Last year we saw $131 billion of investment committed in new lithium-ion battery gigafactories, with 102 gigafactories added to the ten year pipeline. As a result, by the end of the decade global production of lithium ion batteries is set to increase five-fold.

That means a lot more energy transition materials need to be mined — further supporting our thesis that this is a decade-long macro investment theme.

As an Australian, it’s easy to forget that much of the world is still to catch on to investing in the raw materials needed for the energy transition. Most investors interested in the space are likely investing directly in companies that make and sell lithium-ion batteries and products such as electric cars.

Discover the 5 Battery Materials Stocks we’ve Invested in for 2023

What the analysts say

Fastmarkets - The critical materials used in manufacturing batteries for electric vehicles (EV) and energy storage systems (ESS) – including lithium, cobalt, nickel, graphite and manganese – play a vital role in our move towards a zero-carbon future.

Benchmark Minerals - “For the world to meet demand for electric vehicle and energy storage batteries in the next decade, it will need to have built almost 400 new mines by 2035.”

S&P Global says as global efforts to decarbonise drive the rollout of technologies that are increasing demand for raw materials, for many commodities, the growing consumption is poised to outstrip the industry’s ability to ramp up supply, resulting in commodity deficits as early as 2024.

The bear case for Energy Transitions Materials

Demand destruction: commodity prices stay too high making building electric vehicles too expensive and the “switch to electric vehicles” is significantly slowed down and traditional petrol engines come back into favour.

Severe recession: if a worse than expected global recession eventuates, demand for everything will slow, including the pace of the global electrification effort.

Faster than expected new supply: sky high commodity prices have triggered a scramble to bring new projects and mines online. If this happens faster than expected and the market is flooded with supply earlier than expected, prices will likely come down and early stage projects may suffer.

Our Commentary on Energy Transition Materials

Our Energy Transition Materials Investments

REZ Company Logo

Resources & Energy Group Ltd (ASX:REZ)

Resources & Energy Group (ASX: REZ) is a junior explorer focused on making a metals discovery in Western Australia.

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Solis Minerals (ASX:SLM)

Solis Minerals (ASX: SLM) is a lithium explorer focused on hard rock lithium exploration in Brazil

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Solis Minerals (ASX:SLM)

Solis Minerals (ASX: SLM) is a lithium explorer focused on hard rock lithium exploration in Brazil

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Global Uraniuum and Enrichment (ASX:GUE)

Global Uranium and Enrichment Limited (ASX:GUE) (formerly Okapi Resources (ASX:OKR)) is a uranium explorer and developer with projects across four uranium districts in the USA & Canada.

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Megado Minerals (ASX:MEG)

Megado Minerals (ASX: MEG) is a junior exploration company aiming to make a critical minerals discovery in North America.

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Lycaon Resources (ASX:LYN)

Lycaon Resources (ASX: LYN) is a junior explorer focused on making a valuable metals discovery in Western Australia.

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Tyranna Resources Ltd (ASX:TYX)

Tyranna Resources (ASX: TYX) is a junior exploration company defining a hard rock lithium discovery in Angola, West Africa.

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Sarytogan Graphite (ASX:SGA)

Sarytogan Graphite (ASX:SGA) holds 100% of a huge graphite project in Kazakhstan, strategically located between Europe and China.

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Canyon Resources (ASX:CAY)

Canyon Resources (ASX:CAY) is developing one of the largest undeveloped, high grade direct shipping bauxite deposits globally in Cameroon, Africa.

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Lanthanein Resources Limited (ASX:LNR)

Lanthanein Resources Limited (ASX:LNR) is exploring for rare earths in the Gascoyne region, WA located in close proximity to Hasting Technology Metals’ advanced Yangibana Rare Earths project

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Auking Minerals (ASX:AKN)

AuKing Mining (ASX: AKN) owns 75% of a JORC copper/zinc resource near Halls Creek in WA. AKN is focused on exploring and developing this resource

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Evolution Energy Minerals (ASX:EV1)

EV1 is a sustainable, ESG friendly, advanced stage graphite project in Tanzania

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Kuniko Limited (ASX:KNI)

KNI holds a portfolio of battery metals exploration assets (copper, nickel, and cobalt) in Norway

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Pantera Minerals Ltd (ASX:PFE)

Pantera Minerals (ASX:PFE) is an early stage minerals exploration company based in Western Australia. PFE has a diverse suite of commodities within its tenements, including Iron-Ore, Lead, Zinc, Silver, Copper and Manganese

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Ragusa Minerals Ltd (ASX:RAS)

Ragusa Minerals (ASX: RAS) is a junior exploration company focused on its hard rock lithium project in the Northern Territory.

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BPM Minerals (ASX:BPM)

BPM Minerals (ASX:BPM) is an exploration company aiming to make lead-zinc discoveries in the Earaheedy Basin in WA, Australia. BPM also holds other early stage gold-nickel projects across WA

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Mandrake Resources Limited (ASX:MAN)

Mandrake Resources (ASX: MAN) is a junior exploration company aiming to make a lithium discovery in North America.

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European Metals Holdings (ASX:EMH)

European Metals Holding (ASX: EMH) is developing the largest hard rock lithium resource inside the European Union.

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FYI Resources (ASX:FYI)

FYI Resources Ltd (ASX: FYI) is an critical minerals technology and development company, focusing on a key battery metal input High Purity Alumina (HPA) and rare earths

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Pursuit Minerals Ltd (ASX:PUR)

Pursuit Minerals (ASX: PUR) is developing an advanced lithium brine project in Argentina.

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Latin Resources Limited (ASX:LRS)

Latin Resources (ASX: LRS) is a multi-commodity exploration and development company focussed primarily on lithium in Brazil and halloysite and kaolin in WA

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Euro Manganese (ASX:EMN)

Euro Manganese (ASX:EMN) is developing a High Purity Manganese project in the European Union (Czech Republic) through the recycling of a tailings resource from a historical mine site

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Minbos Resources (ASX:MNB)

Minbos Resources (ASX: MNB) is seeking to build high-margin phosphate fertiliser supply business with the potential to dramatically transform Angola’s food security and crop yields.

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Los Cerros (ASX:LCL)

LCL Resources Limited (ASX: LCL) acquired multiple high-grade copper, gold and nickel targets across five project areas in PNG in late-2022. This adds to its 2.6Moz Quinchia Gold Project in Colombia.

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GTi Resources (ASX:GTR)

GTi Energy (ASX: GTR) is an exploration company targeting Uranium discoveries in Wyoming, USA & Utah, USA

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Galileo Mining (ASX:GAL)

Galileo Mining (ASX: GAL | OTC:GALMF) is focused on expanding its PGE discovery in the Norseman region, WA whilst also chasing a large scale nickel discovery in the Fraser Range

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Vulcan Energy Resources (ASX:VUL)

Vulcan Energy Resources (ASX:VUL, FWB:6KO) is aiming to become the world’s first Zero Carbon LithiumTM producer.

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