Poacher Turned Gamekeeper: Sean Russo’s 40 Years on Both Sides of the Hedge

Host John Forwood Chief Investment Officer of the Lowell Resources Fund (ASX:LRT) welcomes viewers to the June 2026 session of Drilling Deeper, the live webinar series. We speak with a leading voice in metal and foreign exchange risk management in the mining sector: Sean Russo, Principal and Joint Managing Director of Noah's Rule. With deep expertise in navigating the complexities of resource sector investing, Sean brings a disciplined, risk-based approach to identifying trends and cycles in an asset class that rewards the prepared and punishes the complacent. In his early career, Sean worked his way up from a Trainee Bullion Dealer to Managing Director of Treasury at NM Rothschild and Sons (Australia), learning the art of hedge selling along the way. Using this knowledge, he then pivoted and in 2004 he founded Noah's Rule, an advisory firm that helps companies utilise hedging to manage market risk to build resilience through the inevitable mining cycles. Sean has a strong track record in delivering excellent strategic risk advice to CEOs, company boards and senior management. His success at Noah’s Rule draws on formidable industry knowledge gained over more than 40 years in financial markets. In this session of Lowell's Drilling Deeper Webinar, Sean talks on his experience of the good, the bad and the ugly of hedging within bull and bear phases of the metals markets, his risk management philosophies and what he looks for when investing his own money in the sector. All key takeaways for any investor looking to sharpen their edge in the resources market. You really don't want to miss this one. Chapters 00:00 Introduction & why understanding uncertainty matters in investing 02:30 Bonds, interest rates and why the gold market is attracting attention 07:45 Gold versus stocks, bonds and other asset classes 12:30 Commodity cycles, historical parallels and where we may be today 18:00 Sean Russo’s five most important lessons from 40+ years in financial markets 21:30 Why people, incentives and behaviour matter more than models 24:30 Learning to make decisions when the future is unknowable 29:00 Early life, Air Force ambitions and an accidental entry into finance 32:00 Working on the trading floor as a “chalkie” before electronic markets 35:00 Joining Rothschild and learning the gold business from the inside 38:30 Australia's gold industry in the 1980s and 1990s 40:30 How producer hedging developed and why it became so important 43:30 The rise of large hedge books and the impact on gold companies 46:00 The anti-hedging movement and lessons from the gold bear market 50:00 Founding Noah’s Rule and building an independent advisory business 54:00 Client-first principles, incentives and long-term trust 57:00 Westonia Mining: advising a client not to proceed with a financing 58:40 How that decision eventually led to the Catalpa transaction 59:00 The Catalpa hedge and how it later protected Evolution Mining during the 2013 gold collapse 1:01:30 Gold, copper and where we sit in the current commodity cycle 1:02:40 Why the Australian dollar could become one of the biggest risks for miners 1:04:20 The Noah’s Rule framework: balancing what’s possible, desired and required 1:05:30 Why companies should have a hedging policy rather than a “no hedging” policy 1:06:20 Making better decisions as circumstances change 1:07:20 Gold options, puts, collars and practical hedging strategies 1:08:50 Why put options became unusually attractive in the recent gold rally 1:10:20 Using options in project finance and mine acquisitions 1:11:20 Is mandatory hedging disappearing from mining finance? 1:13:40 Has gold risen too far, too fast? 1:14:50 What a multi-year gold consolidation could look like 1:15:20 Mining margins, rising costs and investor complacency 1:17:20 Can investors realistically beat professional FX traders? 1:18:40 Final thoughts on risk management, adaptability and surviving commodity cycles 1:19:20 Closing remarks and audience Q&A wrap-up Key Takeaways Risk management is about surviving uncertainty, not predicting the future. Successful miners balance opportunity, debt, dilution and downside protection. Hedging should be driven by circumstances, not ideology. The biggest risk for many Australian miners may be a stronger Australian dollar during a commodity boom. Gold may remain in a strong long-term bull market, but periods of consolidation are normal. Great advisory work often means telling clients what not to do. Long-term success comes from focusing on client outcomes rather than transaction volume. WATCH PREVIOUS WEBINARS At www.lowellresourcesfundsmanagement.com.au/webinars.html NOT FINANCIAL ADVICE This interview and update is not to be taken as financial advice. Please consult a financial professional before making any investment decision.