Our investment philosophy & structure
Our goal is to structure an investment portfolio that will realize exceptional and rapid growth in enterprise value and generate significant rates of return on invested capital - either through cash flows from project operations and/or the sale of assets - in excess of 30% per annum.
The experience and depth of the NovaDX management team allows us to make investments in the natural resource sector by using any of the following methods:
- Direct investments in projects: We can take control over the development of selected projects with a view to drive such projects to full valuation, or we can make direct investments in those projects whose assets are undervalued, and which can be among the lowest cost producers of commodities or processors of feed stocks. These projects will generate significant profit margins in periods of low commodity prices and even higher margins in periods of high commodity prices.
- Equity investments - private placements and LPs: We will make investments in select junior resource companies that are engaged in exploration and early development activities. Our private placements may be twinned with flow-through Limited Partnership Funds (LPs) in order to facilitate acquisition of shares at the maximum allowable discount to market price. As well, we aim to create further value by repeated acquisitions of the portfolios of LPs on a tax-free rollover basis in an exchange for NovaDX shares.
- Equity investments - Net Smelter Royalties: We may choose to create a number of longer-term cash flow streams by investing in net smelter royalties in more advanced situations where the project is worthy and management has fully demonstrated the capacity to develop natural resource assets.
- Other financial structures, including:
- Acquisition of production payments or net profit interests
- Purchase of debt, convertible equity, secured loans or guarantees
- Purchase of IPOs
- Participation in reorganization, privatizations, mergers, consolidations
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Our Investments
Holdings
Top 10 Holdings |
