Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Investor Presentation (March 2022)
17 slides from Lion Selection's investor presentation, Mar 15, 2022
Slide 1: Lion After Pani
For personal use only Lion Selection Group Lion After Pani March 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: Lion After Pani
1. Establish shareholder distributions and liquidity Lion After Pani • On-market buy-back For personal use only • 3.5cps special dividend April 2022 • 1.5cps annual dividend (following final accounts: circa November 2022) • Further special dividend will be considered early 2023 2. Immediate return t
Slide 4: Pani Sale: Value Crystallisation & Return to Investing
Pani Sale Value Crystallisation & Return to Investing For personal use only Pro Forma NTA3 Pani Sale (28 Feb 2022) A$M 67.4cps 17% above NTA1 Net Cash 47.8 NTA (pre distribution) 3.5x return on investment2 Cash by 28 January 2023 Share Sale Proceeds* 27.0 VS Provides for dividends Pani Deferred Cons
Slide 5: Planned Distributions
Planned On-Market Distributions • Commence April 2022 Buy-back For personal use only Dividends • 3.5cps special April 2022 Circa November • 1.5cps annual 2022 • A further special dividend will be considered following the receipt of deferred cash payment and determination of Merdeka shareholding (28
Slide 6: Dynamic Lion Investing Approach
Dynamic Lion Investing Approach For personal use only Proven Investment Process Pre-Production Mining Investing in 2022 25 years of Lion Demands a disciplined approach • Asset stage Pre-Production Mining, Companies and • Lowest possible jurisdiction risks Projects SEEK • Capital protection with attr
Slide 7: Investing Style – Across the Capital Structure
Investing Style – Across the Capital Structure Balance Capital Protection with Attractive Returns For personal use only Portfolio Construction Value Realisation • Project Interest • Sale Earn in or purchase To mining industry • Originate • Strategic consolidation Options for Lion Tenure pegging, str
Slide 8: Lion Investing Focus and Remaining Portfolio Exposure
Lion Investing Focus Remaining Portfolio Exposure Minimal follow on required: For personal use only Australia focus for new investments Phosco (ASX:PHO) Tunisia 130MT at 20.5% P2O5 4 ✓ Mining investment Recovery following project theft, feasibility study destination of choice Erdene (TSX:ERD) Precio
Slide 9: Experience: Funding / Strategic Development / M&A
Experience: Funding / Strategic Development / M&A History Pani JV Interest Challenging Exits For personal use only • Gold / Indonesia Profitable Outcomes • • $21m invested $74m exit $5.9m invested C$16.8m invested $9.5m exit C$25.4m exit $33.8m invested $23.4m invested $9.8m invested $31.7m invested
Slide 10: For personal use only
• Well funded For personal use only • Targeting pre-production mining investments the equity market can’t • Capital protection with attractive returns • With a dividend Subscribe for Lion Announcements http://www.lionselection.com.au Level 2/175 Flinders Lane Melbourne VIC 3000 T +61 3 9614 8008 E i
Slide 11: 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 12: Current Investment Portfolio
Current Investment Portfolio3 For personal use only Name Commodity Value Per Share PT Merdeka Copp & Gold Gold / Copper $27.0M 18.0c $68.3M Market Cap at $0.455/Share Pani Def. Consideration (due Cash $14.9M 10.0c 19% Owned 28 Jan 2023) by Board & Management Erdene Resources Gold $5.3M 3.5c 150M Sha
Slide 13: Pani Sale: [at least] US$52m total value
Pani Sale: [at least] US$52m total value1 Downside Protection For personal use only Exposure to Merdeka • US$22M cash (received) • US$20M Merdeka Stock (received) USD M 52 55 55 55.6 56.2 60 (“top up” payable Jan 2023 if market value is below US$20M) • US$10M deferred cash (due Jan 23) Deferred (sub
Slide 14: Mining Market Outlook
Mining Market Outlook For personal use only • Shortage of everything scenario • Rebounding global growth • Going green / battery material demand 2020 • S&P vs Commodities – commodities cheap VS 2019 2017 2016 • Superheated equity market • Armed conflict • Inflation • When the music stops, its always
Slide 15: Commodity Focus
Commodity Precious metals and battery materials focus For personal use only Gold Copper Nickel Lithium Preferred • Simple extraction • Large / liquid market • High value • Immense projected Development Focus • No marketing • Low value loss to concentrates demand growth • Excellent inflation smelters
Slide 16: 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 17: Footnotes
1. Lion Selection Group ASX announcement on 31 January 2022, Sale of Pani JV Footnotes interest for $74M plus upside 2. Lion has invested A$21m, including the acquisition of Pani from One Asia, since For personal use only 2018. Sale value A$74m per Lion Selection Group announcement to ASX on 31 Janu
Lion Selection Group — Investor Presentation (March 2022) on 6ix