Cadence Capital Limited returned a positive gross performance of 4.3% in April, compared to the All Ordinaries Accumulation Index which was up 3.9% over the month. Financial year to date the fund is up 39.5%, outperforming the index by 14.9%. The largest contributors to performance during April were Chalice Gold Mines, Uniti Group, Resimac Group and Betmakers Technology. The largest detractors from performance were Whitehaven Coal and Pinterest. As at 30 April 2021, the Company was 77.0% invested.
On the 29 April 2021 the Company went Ex its 2.0 cents fully franked interim dividend. This dividend will be paid on the 13 May 2021. The Company’s dividend re-investment plan (DRP) is not in operation for this interim dividend.
Earlier this month the Company released its March 2021 Quarterly Webcast. In this webcast, Karl Siegling firstly provided an update on the Company’s performance, upcoming dividend payment and CDM’s discount to NTA. Jackson Aldridge and Charlie Gray then discussed the Company’s current investment themes and positioning. Karl Siegling finished with an update on DeepGreen Metals and the outlook for 2021.
¹After accruing for the 2.0c fully franked interim dividend payable on 13th May 2021* NTA’s do not include the accretion of the DeepGreen Metals transaction announced on 5th March 2021
* Gross Performance: before Management and Performance Fees
Fully Franked Dividends Declared Since Listing
* Off market equal access buy back
Historic Portfolio Exposure
Portfolio Sector Analysis
Top 20 Portfolio Positions
Portfolio Market Capitalisation Analysis
On the 5 March the Company updated shareholders on its investment in DeepGreen Metals via an ASX announcement. DeepGreen Metals announced that it intends to list through a merger with Sustainable Opportunities Acquisition Corporation (NYSE Code: SOAC). The combined company will be renamed The Metals Company and is expected to begin trading under the NYSE ticker code TMC.
The DeepGreen Metals investment is approximately 2.8% of the portfolio and is valued at the weighted average cost of the most recent purchases made in FY2020. The proposed listing is at a valuation substantially higher than our current valuation. The transaction reflects a pro forma equity value for The Metals Company (TMC) of approximately US$2.9 billion and enterprise value of US$2.4 billion. The recent raising of US$330 million was completed at a price of US$10 per share. Our investment is currently valued at US$1.38 per share. Upon listing this would equate to a substantial uplift in Pre and Post Tax NTA for CDM shares. This transaction is subject to shareholder and court approvals. Once the TMC shares are listed and trading freely we will value this investment at market price.
Importantly, the Company’s weekly and monthly NTA announcements will not include the full value accretion of the DeepGreen transaction until the proposed TMC listing.
A summary of the proposed merger transaction is available on both the DeepGreen Metals company website or on the SEC website . We will keep shareholders informed of the progress of this listing through ASX announcements and monthly newsletter announcements.
We encourage you to visit our 52 books you should read before buying your next stock page on our website. We have compiled a list of books/ documentaries that have influenced our investment style or helped provide insight into the Cadence investment process. To view all previous Cadence webcasts and press articles, please visit the Media Section of the website.