Resourceful investing
The resource sector is only halfway through its cycle, so investors can expect to enjoy a further three to five years of good returns, according to LinQ Capital managing director Clive Donner.
A run of strong performances in the sector has enabled the LinQ Resources Fund to experience a 231 per cent increase in profit during the past financial year.
Donner said he was confident the sector would continue to deliver good results, at least for another half decade.
“We continue to see opportunities for value in our sector,” he said.
“I don’t think it’s possible to cool off with the fundamentals that are currently in place, such as the demand for metals being quite significant.
“It can take a decade for the iron/ore sector to get its prices up… this cycle is going to take another three to five years.
“We will shift to producers when markets start to weaken.”
The success of the LinQ fund has boosted its audited profit to $37.3 million with a distribution of 7.5 cents per unit, which is up 275 per cent on last year’s distribution of 2 cents.
Donner said the company’s strategy was to seek out smaller resource businesses and actively apply its sector and financing expertise to help them realise their potential.
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