Lowell Resources Fund’s Earnings Per Unit Skyrocket to $1.111

Strong Half-Year Growth Amid Bullish Commodity Markets

Lowell Resources Fund (ASX: LRT) has delivered an impressive financial performance for the half-year ended 31 December 2025, with net assets attributable to unitholders soaring to $118.6 million, up from $53 million a year earlier. This 123.89% increase in net assets was accompanied by a dramatic rise in earnings per unit, which climbed to $1.111 from just $0.047 in the prior corresponding period.

The Fund’s operating profit also reflected this momentum, reaching $46.2 million compared to $1.7 million previously, underscoring the strength of its investment strategy focused on emerging resources equities.

Gold Equities Dominate Portfolio Strategy

Central to the Fund’s success has been its overweight position in gold equities, which accounted for 53% of the portfolio at the end of December 2025. The period saw the US dollar gold price surge by approximately 30% to a record US$4,319 per ounce, with the Australian dollar gold price rising by 29%. Key holdings such as Astral Resources, Freegold Ventures, and Saturn Metals contributed significantly to the Fund’s performance.

While gold led the charge, the Fund also maintained exposure to other commodities. Copper prices rose 12%, uranium edged up 4%, and minor metals like tungsten and lithium carbonate experienced strong gains, reflecting broader market trends in critical minerals and resource stockpiling.

Portfolio Diversification and Market Conditions

The Fund’s energy sector exposure was reduced to 2%, with Queensland gas developer Comet Ridge remaining the largest holding in oil and gas. This cautious stance came as crude oil prices fell 12% amid concerns over oversupply despite geopolitical tensions. Precious metals beyond gold, including platinum and palladium, also saw notable price increases, benefiting holdings such as Southern Palladium and Unico Silver.

Lowell Resources Fund’s long-only, ungeared investment approach has allowed it to capitalise on the rising commodity cycle while managing risk. The Fund’s net asset value per unit climbed to $2.8550, more than doubling from $1.2806 a year earlier, reflecting both market appreciation and effective portfolio management.

Governance and Fee Structure Updates

During the period, unitholders approved amendments to the remuneration of the Fund Manager, Lowell Resources Funds Management Pty Ltd, including benchmarking performance fees to the S&P/ASX Small Resources Accumulation Index (XSRAI). This move aligns manager incentives more closely with benchmark performance, potentially benefiting unitholders over the long term.

The Fund remains compliant with all regulatory and accounting standards, with no material contingent liabilities or significant events reported post-period. The auditor, Nexia Melbourne Audit Pty Ltd, issued an unqualified review report, confirming the integrity of the financial statements.

Looking Ahead

With commodity prices remaining volatile yet generally supportive, Lowell Resources Fund’s concentrated exposure to gold and critical minerals positions it well for continued growth. However, investors will be watching closely how the Fund navigates potential headwinds such as fluctuating energy prices and geopolitical risks that could impact resource markets.