Frequently Asked Questions

Steencore (“Company”) is a management company focused on the strategic acquisition and investment of advanced-stage mining projects with significant identifiable resources and selective energy assets. Company aims to construct a portfolio of mineral and energy projects capable of providing attractive economic profiles to be developed into commercially viable and economically robust companies.

Company was founded to capitalise on extraordinary opportunities in the mining and energy resource sector. Company’s investment team is composed of high-calibre professionals who have combined their knowledge and reputation within a small mining investment community to capitalise on economic dislocations inherent to the mining finance sector, especially the inability of smaller, mid-tier “junior” mining companies to access development capital for their earlier-stage projects.

Company’s Team has a diverse background in exploration, mining, energy, and trade finance.

Company’s vision is to be a leader among value-based mining and energy-related investment companies as measured by intermediate to long-term returns.
Investments will primarily be in the mining and energy sector. The portfolio will have exposure to oil, gas, and geothermal energy companies including mining companies with advanced strategic assets. The Company will generally take an intermediate to long-term view of its investments.
The Company was founded in August 2011.
The Investment team is a group of energy and mining engineers and investment experts who founded the Company in 2011, specifically to manage Steencore Mining & Energy Corp, focused on production logistics and sales in the mining and energy sectors.
Company is a Delaware-registered mining and energy resource development company. Company is an exempted company incorporated with a limited liability company. The base currency of the Company is the US Dollar.
Company is registered in the United States, with operations in Denver, Colorado, the United States, Rotterdam, the Netherlands DRC, Africa, and Lima, Peru.
Company currently consists of ten professionals which are composed of one (1) Managing Partner and nine (9) Senior Professionals. Company also collaborates with several affiliated experts to generate investment ideas. Managing Partner has a track record of attracting top talent and is well-connected within the global mining and energy industry, and will have “pick of the litter” employing an expert geologist, traders, and a technical team. The Company has in-house analysts that are specialised in the mining and energy resources sectors.
Company’s investment style is an application of private equity terms in its portfolio investments. Company’s private equity-type terms to be introduced into each of its portfolio investments include:
  1. Being a long-term investor requires from its potential investees covenant controls and conditions including no debt, dividends, distributions, sale of assets, etc., without Company’s prior consent;
  2. Participating as management and/or on the Board of Directors of the portfolio companies;
  3. Obtaining liquidation preferences;
  4. Obtaining voting agreements from existing major investors who are non-public entities;
  5. Depending on specific circumstances, Company may also seek lock-up agreements;
  6. Negotiating anti-dilution provisions;
  7. Company provides its investment in a project on a tranche by tranche basis until sufficient funding has been made to enhance the portfolio project to the point of having to make a construction decision (commercial feasibility);
  8. Initially investing in minority equity positions with its ownership increasing as each tranche is funded; and,
  9. Company does not expect to negotiate against itself and intends to set pricing for each tranche on the front end.

The above methodology will be employed for all of Company’s acquisitions and is one benefit of holistic funding commitments. Company intends to structure its investment commitments in tranches that are based on achieving performance milestones. Because of this, should a fatal flaw arise at any time during the development phase, Company can exit and limit its downside exposure.
The basic step-by-step investment procedure includes:
  1. Company will acquire and/or invest in advanced stage mining and  energy projects with significant identified resources;
  2. Strategy is characterised by taking an active role in fundamentally attractive, advanced mineral or energy project and, on occasion, joint ventures with mining and energy companies;
  3. By taking an active role in each of its projects, Company adds significant value, beyond its capital deployments, through its technical, operational, legal and financial know-how and helps accelerate the steps required to bring a resource project into the economical feasibility and, production phase;
  4. Strategy includes a fundamental, disciplined and rigorous  investment process utilising all its proprietary and independent research as well as Manager’s abilities to add further value through the utilisation of extensive network of contacts throughout the financial sector and the mining industry; and,
  5. Strategy factors evaluated include:
  1. Growth and profitability trends in mining assets;
  2. Returns on invested capital;
  3. Management credibility; 
  4. Competitive advantages;
  5. Major shareholders;
  6. Technical, operational, financial and legal risks;
  7. Corporate governance; and,
  8. Continued feasibility and scalability of each investment.
Company’s strategy differs from that of any known mining and energy resource company due to its focus on providing development capital. Company’s Private Equity investment strategy is currently unique in the sector.
Company believes it can produce highest long-term percentage of returns for Shareholders by primarily focussing on investments in projects in either advanced exploration or early development stage. Company’s investment strategy is, in part, based on a combination of the following factors:

Micro Factors:
  1. Company anticipates a constant pipeline of desirable, deep-value projects from small to mid-sized companies (“juniors”) because of the juniors’ need for cash to continue the development of these projects. Access to private capital has become increasingly difficult for junior companies;
  2. Base commodity metals such as copper and energy are just beginning to appreciate back to price levels they enjoyed prior to the onset of the 2008 economic crisis, as base metal prices and energy prices are dependent on worldwide industrial demand.  Precious metals, particularly gold, have rapidly increased in price due to their attractiveness as asset “holds” during potential future years of prolonged inflationary pressures; and,
  3. Company has opportunity to quickly become a “go to” source of capital for the juniors.
  Macro Factors:
  1. Increased production over the long-term is a necessity as worldwide demand will continue to rise and today’s mining facilities face the depletion of proven resources. Copper prices for example, have recovered from their 2008 lows despite limited increases in demand during the current worldwide recessionary climate;
  2. Copper is used primarily in the construction industry as well as in both electrical and electronic products. To a lesser extent, copper is used in industrial machinery and equipment, consumer products, and the transportation industry. Actions in these markets directly affect the demand for copper. There is a positive outlook for copper demand that is mainly attributable to high potential consumption in developing countries and transitional economies;
  3. Modern society is becoming heavily dependent on the production of both base and precious metals. The rise of stronger international economies, particularly in the so-called BRIC nations (Brazil, Russia, India, and China), taken in conjunction with global population growth, should increase global demand for base metals over time;
  4. In the increasingly uncertain financial world of the last decade, expansionary monetary policies created many market dislocations. Company believes investing in mining resources necessary to meet future Company Description demand for increased minerals production, may prove to be highly rewarding over an intermediate to long-term timeframe; and,
  5. In the current economic environment where globalisation and low-cost access to resources have been hindered by availability of capital, continuing strategic demand for natural resources creates enhanced opportunities for Company.
For nations with increasing demands for but little or no direct access to mineral resources, intermediate and long-term demand for mining developments, such as those invested in by Company, may increase dramatically.
  1. Managed by a highly qualified investment team with a proven track record of success in identifying, acquiring, developing, and selling mid-tier base and precious metal projects; combined with a network of expert consultants and advisors (including geologists and mining engineers) recognized as among the best available in the industry; and
  2. Management team and consultants are a combination of geologists, and engineers, and also include financial and legal experts able to identify, acquire, and advance high-quality projects from either Preliminary Assessment or Pre-Feasibility stages to the Bankable Feasibility stage and, to production; and
  3. Active roles in its investments through its private equity style in acquiring deep-value mining and mineral assets and energy companies ready for development but lacking development funding. From the onset of an investment, Company adds significant value through its technical, operational, legal, and financial know-how and its extensive network in the financial sector and mining industry; and
  4. Positioned to profit  from the  inefficient financial market that exists in the mining industry, which is created by the mismatch between relatively long project lead times and the cyclical nature of available funding. Company realizes the need for a “go -to” source of development funding, especially among smaller and mid-tier junior mining companies that have previously relied on public markets for financing. With an intermediate to  long-term investment vision, Company can pursue opportunities during all phases of development cycle; and,
  1. Acquired projects can be developed and financed at a relatively low cost as Company has the in-house capacity to bring a project to fruition and is not dependent on public money.
  2. Access to public funding is becoming very expensive, in part, due to requirements of increasingly complex
  3. regulatory regimes.
Company expects to close three to five deals per annum starting this year. Currently, negotiations in both the energy and mining areas are on, in part to be completed by the end of this year in the first quarter of this year.
Managing Partner has a highly qualified team to manage a value-driven company that has a mining and energy resource strategy:
  1. Managing Partner is an expert in the industry;
  2. Managing Partner is highly regarded in the industry and has extensive industry networks; and
  3. Company’s willingness and ability to take an active role in its portfolio projects, adding significant value by decreasing project lead times and successfully bringing projects to fruition.
Company follows a strategy that is clearly defined and effectively executed:
  1. Pursuing a focussed strategy in identifying and exploiting an opportunity;
  2. Utilizing strict due diligence guidelines prior to investment; and,
  3. Applying rigorous compliance standards with regards to managing transactions.
The basic step-by-step investment procedure includes:
  1. Company will acquire and or invest in advanced stage mining and energy projects with significant identified resources;
  2. Strategy is characterised by taking an active role in fundamentally attractive, advanced mineral or energy projects;
  3. By taking an active role in each of its mining and energy projects, Company adds significant value, beyond its capital deployments, through its technical, operational, legal, and financial know-how and helps accelerate the steps required to bring a resource project into the economical feasibility and, production phase;
  4. Strategy includes a fundamental, disciplined and rigorous investment process utilising all its proprietary and independent research as well as the Managing Partner’s abilities to add further value through the utilisation of an extensive network of contacts throughout the financial sector and the mining industry; and,
  5. Strategy factors evaluated include:

  1. Growth and profitability trends in mining assets;
  2. Returns on invested capital;
  3. Management credibility; 
  4. Competitive advantages;
  5. Major shareholders;
  6. Technical, operational, financial, and legal risks;
  7. Corporate governance; and,
  8. Continued feasibility and scalability of each investment.
Managing Partners make all final investment decisions, though team members generally reach a consensus regarding the decisions.
None.
Through annual evaluations performed by management, an outside consultant, and an auditor.
As a result of Company’s imposing of private equity terms in its portfolio investments, Company holds seat(s) on the board of invested companies through which Company can continually assess potential obstacles. Company has put in place a rigorous risk management process, which includes analysis of various project-specific risk factors, and will be implementing systems that will monitor all facets of Company’s portfolio. As work progresses and knowledge of a project increases, a portfolio holding’s risk profile may either decrease or increase and is monitored regularly.
Yes. Company takes a board seat on each portfolio company as well as institutes control mechanisms before its initial investment. Company often communicates with the management of both prospective and existing portfolio companies to discuss the companies’ businesses and to advise on issues, on which Company believes management should act to increase shareholder value.
Managing Partner has served on Boards of publicly traded companies where he has gained extensive experience in dealing with investors. Company keeps shareholders informed of major Company activities and aims to maintain collegial relations with investors. Managing Partner views investors as partners.
By the Managing Partner. If a portfolio investment is reviewed to determine whether it merits Company’s continuing support, the decision to continue supporting that investment must be made unanimously by the investment team.
In order to proceed in good faith, the seller requires that the LOI (Letter of Intent) is no more than five days old.
Revocable letters of credit will not be accepted as payment.
A soft quote can be obtained by contacting us and completing the details of your desired order.
Buyers are free to order any reasonable quantity of any product they desire, however they should be aware that the seller will not regard any shipment as a trial shipment, and that no extra product will be held in reserve for a buyer for subsequent orders. The price will be based on the ordered quantity.
Regularly, no, sellers do not supply SGS reports prior to opening negotiations. Proof of product is provided at a later stage in the negotiation process. These documents are handled bank to bank, not from the seller to the buyer or vice versa.
The preferred method of payment is a Bank Guarantee, however a Documentary Letter of Credit or swift payment MT 103 are also acceptable. In all cases, the financial instrument must be issued or guaranteed by a Top Western Bank.
 
Letters of credit must be confirmed, irrevocable, divisible, and payable on sight. If the product is to be shipped in installments, then the letter of credit must revolve to cover each subsequent shipment.
SGS Inspections are paid for by the seller, and are carried out at the port of loading. At the port of discharge, SGS Inspections are paid by the buyer.
Yes. The seller requires bank details to be submitted with an LOI / ICPO in order to conduct a soft probe of the buyers accounts. The soft probe is used to gather evidence that the buyer is able to cover the cost of the trade, and provides assurance to the seller that the proposed trade is viable.
 
The buyers Letter of Intent therefore must include bank details, authorization for a soft probe, and contact details for the buyers banking officer.
Generally speaking, no. The standard procedure is in place due to the fact that it is regarded as providing the highest possible levels of protection to both sellers and buyers.
Please see "​Policies and Procedures" or the specific offer of the product you are looking for.
The basic step-by-step investment procedure includes:
  1. Company will acquire and or invest in advanced stage mining and energy projects with significant identified resources;
  2. Strategy is characterised by taking an active role in fundamentally attractive, advanced mineral or energy projects;
  3. By taking an active role in each of its mining and energy projects, Company adds significant value, beyond its capital deployments, through its technical, operational, legal, and financial know-how and helps accelerate the steps required to bring a resource project into the economical feasibility and, production phase;
  4. Strategy includes a fundamental, disciplined and rigorous investment process utilizing all its proprietary and independent research as well as the Managing Partner’s abilities to add further value through the utilization of an extensive network of contacts throughout the financial sector and the mining industry; and,
  5. Strategy factors evaluated include:
  1. Growth and profitability trends in mining assets;
  2. Returns on invested capital;
  3. Management credibility; 
  4. Competitive advantages;
  5. Major shareholders;
  6. Technical, operational, financial, and legal risks;
  7. Corporate governance; and,
  8. Continued feasibility and scalability of each investment.
Company’s processes and tactics will continue to be improved over time, but Company’s core deep-value, private equity style investment strategy will not change materially.
No.
Yes. Company anticipates it may have up to 100% of its portfolio invested in companies headquartered outside the United States, such as LATAM, Africa, and Asia. In addition, Company’s U.S.-headquartered portfolio companies may conduct a significant portion of their business overseas, thus, Company’s total international exposure may occasionally be as much as 100%.
Company will continue to expand its research sources, expand its proprietary analysis templates, models, and other internal processes, but the core deep-value private equity style investment strategy will not change.
Company is differentiated from other value-oriented investors as follows:
  1. Disciplined investment process utilises independent research and analysis while exploiting its strong network in the mining industry and energy sector;
  2. Focussed portfolio of five (5) to ten (10) high quality project investments;
  3. Focussed on finding investments in the advanced exploration or early development stage, which limits risks and provides greater visibility of future cash flows and/or returns;
  4. Has and will continue to attract highly qualified senior mining management and exploration geologists;
  5. The management team is a combination of geologists, mining engineers, and financial and legal experts that can identify, acquire, and advance mineral projects from exploration to Bankable Feasibility stage or, possibly, production;
  6. Active roles in its investments and adds significant value through technical, operational, legal, and financial “know-
  7. how” and its extensive network of contacts in both financial sector and mining industry;
  8. Positioned to profit from inefficient manner in which financial markets respond to the capital needs of the mining industry. With its intermediate- to long-term investment strategy, Company can pursue opportunities through all phases of the development cycle;
  9. Acquired projects can be developed and financed at relatively low cost because Company has the in-house capacity to bring a project to fruition and is not dependent on public money which is becoming expensive, in part, due to the requirements of increasingly complex regulatory regimes; and,
  10. Strives to be tax-efficient by holding investments for more than one (1) year so most gains would be recognised as long-term capital gains, a low rate of UBTI, and, when prudent, losing positions are sold prior to holding positions for one (1) so most losses would be recognised as short-term capital losses.
  1. Quality of the asset; and,
  2. Capability of the prospective management team.
  1. Targets investing in a maximum of five (5) to ten (10) projects;
  2. Will invest in projects that provide exposure to both base metals, with a copper-centric focus, other non-ferrous metals and ores; and,
  3. Intends to invest in industrial projects that are in various pre-production development stages.
Each potential investment is first evaluated on the basis of whether it meets Company’s basic investment profile.

Financial Due Diligence:
To determine operational metrics of potential investments under review, Company will focus on two primary valuation methods:
  1. Using extrapolated resources; Company will prepare future discounted cash flow projections. Initially, these will be weak due to the early stage status of targeted advanced exploration-stage projects. Over time, this methodology will become increasingly relevant as Company learns more about a specific project and reduces or eliminates certain risk elements. Once Company can establish proven reserves, confidence in cash models, subject always to commodity pricing assumptions, increase dramatically; and,
  2. b) Second valuation method is comparative valuations. Company can use analogies of recent marketplace transactions to value projects under review. Company will monitor transactions of publicly-traded non-portfolio companies and M&A activities of its niche sectors throughout the natural resource industry.

Technical Due Diligence:
Company due diligence processes will rely on consultative experts who have specific knowledge within a project’s setting. Typically, Company would expect to directly engage a technical team of geologists, metallurgical experts and engineers to evaluate merits of any given investment opportunity. Further, Company expects to engage legal and environmental experts to assess permissibility, legal ownership questions and environmental risks of any targeted investment. Localised expertise will be sought as required. As Company grows in size, Company expects to increase its in-house technical expertise accordingly.

Collaborative, regular weekly investment meetings are held with all team members and affiliates. All participants engage in active discussions regarding prospects, risks, position size, and alternatives for both prospective investments and existing positions. Managing Partner makes all final decisions, though team members generally reach a consensus regarding the investment decisions.

A list of selected experts that Company will potentially engage, from geologists to attorneys, is available upon request.
Each member contributes to his/her area(s) of expertise, including financial, technical, operational, and legal. Managing Partners will make all final decisions, though team members generally reach a consensus regarding the investment decisions.
Company will typically invest in a project that is in advanced phase or early development stages with significant identified mineral resources. All projects have an attractive economic profile and can be developed into low-cost operating companies. Company aims to advance a project to “bankable feasibility” stage where most future pre-production project value can be captured. At “bankable feasibility,” Company’s portfolio investments should become interesting acquisition targets for large companies.
Average size investment depends on the development stage of the investment at acquisition.
Expectation is to maintain a portfolio of five (5) to ten (10) high-quality projects.
Company expects to make its initial investment in all five (5) to ten (10) portfolio projects within two (2) years. Follow-on investments throughout the term of Company will occur on a project-by-project basis and will be made based on development funding requirements necessary to advance each respective portfolio asset.
Due to the nature of investment, on a transactional basis, an investment horizon of five (5) to seven (7) years is anticipated. Depending on the number of portfolio investments nearing maturity, annual turnover may vary significantly.
Company defines risk, not as volatility of portfolio returns but instead assesses each investment to determine its probability to result in long-term losses affecting its entire portfolio. Company uses expertise, experience, and a network of experts in the global resource sector (mining and energy) community to carefully weigh the risks of each project Company considers. Company will move forward with only projects where the potential for success far outweighs all foreseeable risks.


Acquisitions from or joint ventures with private or public small and mid-tier companies. Company’s private equity style terms will provide Company active  participation in management  decisions and enable it to pre-determine investment tranche structures and exit strategies.
Investments are denominated in the US dollar. Certain Company assets may, however, be invested in securities and other investments which are denominated in other currencies. Accordingly, the value of such assets may be affected favourably or unfavourably by fluctuations in currency rates.
Yes. To the extent that Company engages in currency hedging, Company may be exposed to certain additional risks. Although Company will use its best endeavours to ensure that prudent hedging techniques are employed, Company may be exposed to considerable losses as a result of its hedging policy.
Company defines risk, not as volatility of portfolio returns but instead assesses each investment to determine its probability to result in long-term losses. Each potential portfolio investment is evaluated to identify both general investment risks and project-specific risks related to mining and minerals development.
Due to the nature of the investment, on a transactional basis, an investment horizon of five (5) to seven (7) years is anticipated. An investment may take longer than five (5) years in order to maximise potential gains. However, the holding period for an investment can be significantly shorter than anticipated and Company may opportunistically sell its investments. Company evaluates potential exit strategies for each portfolio investment prior to investing.
There are a number of risk factors that could negatively impact Company performance including:
  1. Regulatory requirements significantly affect operations and may have a material adverse effect on future cash flow, operational and financial health;
  2. There are no assurances that necessary exploration and permits and licences will be issued, or if issued that they will be renewed or that Company or the companies it invests in can comply with the conditions imposed;
  3. Development projects are uncertain and consequently, it is  possible that actual cash operating costs and economic returns will differ significantly from those estimated for a project prior to production;
  4. There is no assurance that these opportunities will be at all times in complete compliance with environmental, health, and safety laws or that potential costs of current and future environmental, health and safety laws will not materially adversely affect Company's future cash flow, operational and financial health;
  5. Company and/or its investments are subject to risks relating to the global economy. For instance, the copper market is highly cyclical, since it is used in many cyclical industries. Copper is a commodity sold at dollar-denominated spot rates, which historically are subject to wide price fluctuations;
  6. Company and/or its investments may be subject to risks related to community action;
  7. Company will be subject to the risk of the inability of any counterparty (including the Bank or Custodian) to perform concerning transactions, whether due to insolvency, bankruptcy, or other causes;
  8. Geopolitical risk is evident in Company’s expected regions of investment, particularly in South America and Asia;
  9. Transfer risk exists in many countries, especially in copper-producing regions;
  10. Risks inherent in acquisitions that Company may undertake could adversely affect its growth and financial outlook; and,
  11. There is no assurance that the title to Company's mineral properties will not be challenged.
Risks are mitigated through thorough due diligence and continuous monitoring of the project's operating management. Furthermore, Company seeks to develop projects in politically low-risk territories.
Typically, Company will look to sell and/or farm-out poor-performing projects to another operator. In some cases, orphaning or keeping a project on hold if no buyer can be found may be implemented.
Advancing a project from an advanced exploration stage to a decision on future construction (e.g. bankable feasibility) generally captures the highest risk-weighted return on investment in the natural resource sector. A commercial project at the bankable feasibility stage is marketable. Managing Partner believes Company should retain some flexibility in determining optimal exit points but would expect to create a project liquidity event in any one or a combination of the following:
  1. Sale or merger of Company’s investment to a third-party company that will construct and operate;
  2. Distribute to Company investors the traded shares Company holds in the portfolio company. This would likely be in conjunction with a secondary float or financing by the portfolio company to raise the necessary capital to construct the operating facilities to bring the mine into commercial production;
  3. Sale of shares held in the portfolio company through an IPO, a secondary offering, an M&A transaction, or LBO by an acquirer;
  4. Combine various portfolio companies or projects, creating a large-scale, multi-project company that would be offered in the public market or to larger concerns. For example, multi-mine companies carry a higher valuation premium due to diversification of risks; and,
  5. Continue to hold portfolio assets and raise development capital to construct and operate our energy companies and mining companies.
Each alternative liquidity event noted above would be available to Company at higher valuations as a result of reduced risks and enhanced scale of operating assets created by Company’s investment in an underlying portfolio company.
     
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