Appian Holdings Limited ("Appian") is the manager to the Appian Natural Resources Fund (the "Fund"), a leading private equity vehicle which invests in metal and mining companies, assets and management teams across selected geographies and commodities.
Utilising an innovative investment model, Appian combines a best in class private equity approach with a collaborative investment style that ensures that portfolio companies and all stakeholders benefit from Appian's involvement.
Drawing together a team of industry professionals from some of the world's leading mining companies, large international private equity houses and top-tier investment banks (via utilising its Investment Advisor, Appian Capital Advisory LLP ("ACAL" or the "Investment Advisor"), Appian is well placed to assist companies and deliver value on both operational and corporate fronts.
In particular the team of the Investment Advisor:
1. Brings together Tier 1 expertise to the small segment of the market
2. Has brought over 60 mines into production
3. Has over 200 years of combined mining experience
4. Includes 14 geological engineers and mining engineers
With a long-term investment horizon, Appian invests into real/tangible metals and mining assets, where it can fundamentally create value and provide investors with attractive returns over the life of the Fund. Appian's investment strategy is focussed on acquiring or investing in small to medium-sized assets or companies and creating significant value in these projects through a hands-on value build approach, adding strategic and operational value.
Appian's strategy is to purchase and build "defensive assets" which have the potential to be economically viable in most commodity price environments. Appian's focus will be on near-term cash flow generation.
This strategy involves buying "real" assets with:
1. Low marginal cost of production relative to the industry average - ideally in the first or second quartiles of their respective commodity cash cost curves, and therefore insulated from any potential sudden price downturn, with the ability to produce cash flow regardless of price environment.
2. Near-term production potential - minimizes exploration and development risk, ability to produce over the near-term and in the current commodity price environment, and less leveraged to external factors which could impact the project's viability.
3. Control or ability to involve technical team - the Fund will aim to achieve majority control, negative control and/or influence in its portfolio companies as well as board representation allowing the team to build tangible value at the asset and company level.
4. Capital and operating cost streamlining opportunities - the technical team will review each asset to determine asset and operating cost streamlining.
5. Minimal infrastructure constraints - due to the time lagged nature of infrastructure development, the investment team intends to target assets which are not reliant on large and complex infrastructure requirements, including freight and port.
In its investment approach and portfolio company management, Appian is committed to meeting the highest international environmental, social and governance standards and is a signatory of the United Nations-backed Principles for Responsible Investment.
Appian believes that adhering to the highest environmental, social and governance standards benefits all stakeholders in the private equity domain: investors, portfolio company shareholders, management and employees, together with the local community to that portfolio company.