Why Asia

Pan Asia is an Asian focused minerals exploration and development company with tungsten and lithium projects located in southern Thailand.

The Company is specifically focused on Asia for both geological and economic reasons.  Our projects are located in the Southeast Asian Tin – Tungsten Belt, which extends from Myanmar in the north through Thailand and Peninsular Malaysia to the Tin Islands in the South.  This belt appeals due to the occurrence of a suite of specialty metals associated with granite related tin, tungsten, lithium, tantalum, niobium, rubidium, cesium, rare earths and other rare metals – including kaolin clay.  This belt, which contains some of the largest historical tin producing districts in the world, specifically in Southern Thailand and much of Peninsula Malaysia, has experienced very limited modern exploration.

Complementing Pan Asia’s project suite is the Company’s target generation program, where the aim is to build a pipeline of target assets in energy and critical metals and rare earths which fit our stated criteria.  This program has been running for several years and Pan Asia has a pipeline of target assets in Asia which are at various stages of consideration.

Operating in Asia, especially in Thailand and Malaysia, gives the Company access to modern industrial economies with globally competitive cost environments. We are also located in close proximity to larger markets in Asia, the fastest growing and most populous region on earth.

We have a preference for Asia as countries in this geographic region offer competitively priced process inputs as well as being low-cost environments – something which applies to Asia in general and is why processors and manufacturers of all types choose to locate there.

A Simple Strategy

Pan Asia’s strategy is simple, we seek to secure exploration and development assets with the potential to be positioned in the lowest or leading third of the cost curve and which position the Company for downstream value adding opportunities. Cost curve positioning is paramount in our decision-making, as assets positioned further up the cost curve are generally more difficult to finance and develop. Regardless of the size or grade of an asset, if finance cannot be secured then the asset is worth relatively little.

The opportunity to move downstream is also very important. In general, value adding mine output will offer the Company better and more consistent profit margins and a larger footprint of customers, and exposure to new opportunities. Although at face value this may sound ‘optimistic’, for many specialty metals, including tungsten and lithium, value adding can be easily incorporated into a feasibility study if the geology, geography and cost environment is right.

Setting geology and metallurgy aside, as these are naturally essential requirements to achieve a low cost curve outcome, this strategy can be achieved by identifying projects that:

  • are located in globally competitive cost jurisdictions, in Pan Asia’s case Southeast Asia
  • are proximal to end user markets, in Pan Asia’s case markets for all process inputs and outputs exist throughout Southeast and East Asia
  • are well positioned to take advantage of downstream development opportunities, in Pan Asia’s case both tungsten and lepidolite style lithium can be value added and the value added output has application in markets throughout Asia
  • are strategically located in a key market with strong economic growth, in Pan Asia’s case the growth profiles of many Asian countries are very strong

For many exploration companies it is not possible to contemplate activities past the mine gate due to geography, geology and or commodity, and/or their cost environment. In general, value adding mine output will offer:

  • better and more consistent profit margins
  • a larger footprint of customers
  • exposure to new opportunities

A Simple Philosophy

Pan Asia’s management and investment philosophy is simple.  We act like owners because we are:

  • We aim for a stable and adaptable working environment which allows our technicians to focus on what matters so that performance and results will be achieved
  • Our staff are encouraged to make decisions and be accountable, naturally grooming them to act like leaders in their fields of focus
  • Our staff are discouraged from creating or participating in ineffective and bureaucratic decision-making processes

This allows us to achieve our objectives, which are:

  • To respond creatively to the demands of a quickly changing environment
  • To re-assess current opportunities as new information is generated
  • To position ourselves to act quickly and wisely when new opportunities present

We do a lot of work before we act. If the results are not as expected we work to exit quickly – we do not believe in massaging marginal assets.

Our shareholder – stakeholders reporting will be candid but at times our candor may be checked as it will prohibit our securing of new opportunities – good ideas and opportunities are rare.

Like Warren Buffet and Charlie Munger, we also eat our own cooking.