Lowell Reports $22.17M Profit and 72.5% NAV Growth in FY2025
Lowell Resources Fund (ASX, LRT) reported a stellar FY2025 with net assets soaring 72.5% to $72.3 million and profits jumping over 1400%, driven by strong gold and precious metals exposure.
- Net assets increased 72.54% to $72.3 million
- Profit surged 1406.74% to $22.17 million
- Gold exposure rose to 57% of portfolio
- Distribution of $1.135 million declared
- 10% on-market unit buy-back announced
Robust Growth Amid Junior Resources Rebound
Lowell Resources Fund (ASX – LRT) has delivered a remarkable financial performance for the year ended 30 June 2025, with net assets attributable to unitholders climbing 72.54% to $72.3 million. This surge was accompanied by a dramatic 1406.74% increase in net profit, reaching $22.17 million, underscoring the Fund’s successful navigation of a resurging junior resources sector.
The Fund’s net asset value (NAV) per unit rose significantly to $1.7755 pre-distribution, up from $1.4351 the previous year, reflecting strong portfolio gains. Despite the junior resources sector’s volatility, Lowell’s focused strategy on emerging mining and oil and gas companies has paid off handsomely, outperforming key benchmarks including the S&P/ASX Small Resources Accumulation Index.
Gold and Precious Metals Lead the Charge
Gold and precious metals remain the cornerstone of Lowell’s portfolio, with exposure increasing from 39% to 57%. The Fund benefited from gold’s rally to record highs, driven by robust demand from non-western central banks, notably China. This bullish environment bolstered the Fund’s largest holdings, including WA-focused gold developer Astral Resources and Canadian-listed Freegold Ventures, which holds the Golden Summit deposit in Alaska.
While battery minerals prices remained subdued due to oversupply and slower-than-expected electric vehicle sales, Lowell maintained a cautious stance with only 1% exposure to battery metals. Copper exposure stood at 15%, buoyed by takeover activity and strategic holdings in New World Resources and South American explorers Sunstone Metals and Hannan Metals.
Strategic Portfolio and Governance Highlights
The Fund’s portfolio remains heavily weighted towards pre-development stage projects, with nearly 90% of NAV invested in exploration to feasibility stage companies. Cash holdings stood at 10.7% pre-distribution, providing liquidity to capitalize on emerging opportunities.
Governance remains a priority, with Cremorne Capital Limited as Responsible Entity and Lowell Resources Funds Management Limited as Investment Manager. The Fund adheres to robust risk management and compliance frameworks, supported by an Audit and Risk Committee and external audit by Nexia Melbourne Audit Pty Ltd.
Distribution and Capital Management Initiatives
Lowell declared a distribution of $1.135 million ($0.0274 per unit) for FY2025 and announced an on-market buy-back program for up to 10% of units, commencing August 2025. Additionally, a proposed amendment to the Fund’s constitution aims to reduce management fees and restructure performance fees, signaling a focus on enhancing unitholder value.
Despite strong NAV growth, the Fund’s units continue to trade at a discount to NAV, with the ASX price rising modestly from $1.30 to $1.38 over the year. The Manager’s efforts to boost liquidity and profile include regular investor communications, webinars, and industry engagement.
Bottom Line?
With gold prices setting new records and strategic fee reforms underway, Lowell Resources Fund is poised for continued investor interest amid evolving junior resource markets.
Questions in the middle?
- How will the proposed fee restructuring impact future Fund performance and investor returns?
- Can Lowell capitalize on potential rebounds in battery minerals markets to diversify exposure?
- What market conditions might narrow the persistent discount between NAV and ASX trading price?
