Heemskirk Investment Division

Consistent with our Mining House Business Model, we engage in a number of activities including strategic investments (Los Santos, Heemskirk Canada and Pajingo), mining finance and resource equity investments.  This month we will summarise the role and activities of the Resource Investment Division.

The Division is run out of our Melbourne office.  Investments are undertaken both in listed and unlisted resource companies across any commodity and geographic region. 

Our understanding of company fundamentals and valuations as well as commodity price trends, economic cycles and political risk factors enables us to seek to capitalise on opportunities as well as manage risk.

Whilst the primary objective of the Division is to generate a profit for the HSK Group, our investments also:

•  Enable us to maintain contact with key people in projects at an early stage. These early stage investments may develop into strategic investments with direct interest in a project.
•  Provide a source of cash/funding for the Group as required.
•  Allow us to maintain relationships, via transaction fees, with brokers and research groups for high quality input into investment ideas.

We may also participate in capital raisings via placements, Initial Public Offerings and we provide seed capital for early or start up ventures.

Since the Company commenced, the Division has contributed very positively to the Group's revenue and was the sole source of income in the early years.  In line with our initial strategy, and as the Company has evolved, the relative value of our business units has changed over time with Strategic Assets increasing to more than 70% of total value and equity investments dropping to 20% or less.  Seed capital will remain at 5% or less.