Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Q ended 31 July 2022 Earnings Presentation
13 slides from Lion Selection's earnings presentation, Sep 5, 2022
Slide 1: Lion Selection Group Update – Quarter Ended 31 July 2022
For personal use only Share price at 31 July 2022 NTA at 31 July 2022 Expecting at least 54cps CASH backing by Feb 231 Lion Selection Group Update Quarter Ended 31 July 2022 www.lionselection.com.au
Slide 2: Disclaimer
This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any
Slide 3: NTA to become majority cash
NTA – to become 1. Net Tangible Asset (NTA) Backing 65.3cps majority CASH • 27.2cps CASH For personal use only • 29.7cps Merdeka shareholding + Deferred Cash (will be converted to CASH by Feb 2023) • 8.4cps Investments 65.3cps 2. VS 44cps share price Net Asset Backing • 33% discount to NTA (after ta
Slide 4: Merdeka Copper Gold & Deferred Cash Payment
Merdeka Copper Gold TBK & Deferred Cash Payment 19.2cps + 10.5cps For personal use only Value of Remaining Pani Exit Proceeds As at 31 July 2022 US$30m $35 $30 Value to Lion: Value of Deferred Cash $25 Value of Cash top up Value of Cash top up No less than US$30m Total Value USDm $20 $15 $10 Value o
Slide 5: Lion Investing Focus and Investment Targets
Lion Investing Focus Lion Investment Targets: Junior Miners and Explorers For personal use only Australia focus for new investments • Extremely leveraged to ✓ Global mining investment destination of choice liquidity / sensitive to equity Precious Metals market weakness Au Ag PGE ✓ Low to moderate pr
Slide 6: Mining Market Outlook
Mining Market Outlook Many qualities of a mining cycle peak are in place: For personal use only • Equity market has weakened substantially (in response to increasing interest rates) • Equity market weakness reduced liquidity to the 2021 mining sector, dramatically for junior mining and 2020 explorat
Slide 7: Current Investments & Cash
Current Investments & Cash 2 For personal use only Name Value Per Share Net Cash $40.3M 27.2c $65.3M (at least A$80M cash by Feb 2023*) Market Cap at $0.44/Share PT Merdeka Copper & Gold $28.5M 19.2c 19% Owned (Lion to crystallise no less Lion holds 72.8M Merdeka shares (MDKA:IDX) by Board & Managem
Slide 8: For personal use only
• Well funded (A$40.3m cash + sale of Merdeka / Deferred cash payment by For personal use only Feb 2023) • Targeting pre-production mining investments the equity market can’t • High certainty NTA in a volatile market • With dividends Subscribe for Lion Announcements http://www.lionselection.com.au L
Slide 9: Lion Selection Group – Established 1997
Lion Selection Group – Established 1997 Large discount to highly certain underlying value For personal use only Well Funded Strong cash position following large asset divestment Proven Approach 25 years experience / strong deal flow / exceptional people networks Target Investments Pre-production min
Slide 10: Board & Management
Board & Management Strong Foundation For personal use only MANAGEMENT TEAM BOARD Barry Sullivan Peter Maloney Chris Melloy Robin Widdup Craig Smyth Hedley Widdup Chairman Non-Executive Director Non-Executive Director Managing Director Executive Director Executive Director Barry is a mining Peter has
Slide 11: Proven Lion Investing Process
Proven Lion Investing Process 25 years of junior mining investing success For personal use only Lion invests across the capital structure, seeking to balance capital protection with attractive returns Access to deal flow Experienced investment team Lion target investments Seek • In-house technical •
Slide 12: Experience: Funding / Strategic Development / M&A
Experience: Funding / Strategic Development / M&A History Pani JV Interest Long-term investments For personal use only • Gold / Indonesia $21m invested Active Exit Management • • $74m exit* Profitable Outcomes $5.9m invested C$16.8m invested $9.5m exit C$25.4m exit $33.8m invested $23.4m invested $9
Slide 13: Footnotes
Footnotes 1. Assuming Merdeka shares sold and deferred cash received using values (share price and exchange rate) as at 31 July 2022, further expenditure on on-market buy-back, and dividend payment of 1.5cps. Refer to Lion Selection Group ASX For personal use only announcement on 24 August 2022, Qua
Lion Selection Group — Q ended 31 July 2022 Earnings Presentation on 6ix