At this stage in the commodities cycle, it is not necessary for investors to prospect for unproven resources in unstable jurisdictions with uncertain cash flow timing.  Consequently, from a risk-reward perspective, Talex typically pursues opportunities satisfying the following criteria:

Immediate or Near-Term Cash Flow 

Projects must be currently producing cash flow (possibly with a need for additional capital to scale up) or be capable of achieving production within 24 months following investment. 

2×-3× Target Returns and Upside Growth Potential. 

Talex targets projects with cash-on-cash returns of at least 2×-3× over a 5-7 year period. In addition, Talex focuses on opportunities with potential for additional upside over the long term through monetization of resources that have not yet been well-defined or through operational improvements.

Specific Scope of Minerals 

Precious, base and some specialist metals.

Defined Resource/No Exploration Risk 

Investors do not need to assume exploration risk at this stage in the cycle. Resources need to be well-defined, with no metallurgical risk.

Stable Jurisdictions 

Talex focuses on the Americas, Europe and selected Asian & African jurisdictions, typically with established legal systems, mining-friendly legislation and reliable creditor rights regimes.    We also consider projects in Russia/CIS in limited circumstances.

Excellent Management Teams  

Talex focuses on experienced and committed management teams with proper performance incentives.  We do not engage in “hostile takeovers”.

No Permitting Risk, Environmental or “First Nations” Risk 

Except in narrow circumstances for world class assets.