Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Shareholder Meeting (December 2019)
21 slides from Lion Selection's shareholder meeting presentation, Dec 5, 2019
Slide 1: Lion Selection Group Annual General Meeting
LION SELECTION GROUP For personal use only Annual General Meeting December 2019
Slide 2: Disclaimer
Disclaimer • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it For personal use only constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentat
Slide 3: Portfolio Review
For personal use only Lion Selection Group Portfolio Review ASX : LSX | 3
Slide 4: Lion Net Tangible Assets
Lion Net Tangible Assets % held A$ million ¢ps A$ million ¢ps For personal use only Nov 2019 Nov 2018 Lion Selection Group (LSX) Pani JV 33.3 39.2 26.1 38.7 25.8 Gold ▪ Founded 1997 • Fair value for Pani based on Merdeka’s acquisition of 66.7% interest in the Pani JV from Lion’s former JV partner in
Slide 5: Lion share price and NTA journey
For personal use only 7 year journey… Pani IUP threat • Pani license secure, seeking regional consolidation Lion Share Price Lion NTA ASX : LSX | 5
Slide 6: Two, multi-million ounce gold projects
For personal use only Two, multi-million ounce gold projects Pani: Lion 33% ▪ Targeting unification of region to combine resources and unlock optimal development ▪ Drilling underway ▪ Development studies 2020 Nusantara: Lion 23% ▪ DFS in place3 ▪ Exploration success: outside Resource / Reserve shell
Slide 7: Pani Looking south
For personal use only Pani Looking south 700m IUP Boundary Informal workings Informal workings ASX : LSX | 7
Slide 8: Pani Looking North
Pani Looking North For personal use only 1 ASX : LSX | 8
Slide 9: Pani Timeline
For personal use only Pani Timeline History: 2012 2014 2017 2018 Pani drilling by One Asia: Pani Resource Resolution of Pani dispute Merdeka acquires 66% long gold intersections 2.37Moz with J Resources interest in Pani JV 1960s to 90’s 2013 2015 2018 2019 Pani region initially Pani ownership Pani J
Slide 10: Nusantara
For personal use only Nusantara Strategy: engage with strategic local partner Main Pit Expansion Potential5 • 1.1Moz Reserve 4 Build It • 100koz pa 3 • Expand Resource Grow It • Review optionality ASX : LSX | 10
Slide 11: Roxgold – SOLD
For personal use only Roxgold – SOLD African Lion Investing Roxgold Resources African Lion Selling High grade gold, Burkina Faso TSXV Listed (ROXG) Held by African Lion 3 (Lion 23.7%) ▪ C$ 16.9m invested ▪ C$ 25.3m proceeds Construction Commences ▪ C$ 8.5m profit ▪ (US$ 4.45m distribution to Lion) F
Slide 12: EganStreet – SOLD
For personal use only EganStreet – SOLD Lion Investing Lion Sale EganStreet Resources High grade gold, Australia ▪ A$ 5.9m invested ▪ A$ 9.6m proceeds ▪ A$ 3.7m profit ▪ Incorp as Auricup 2010 ▪ Lion first investment 2011 ▪ Missed the IPO market 2011 & 2012 ▪ New Management 2015 Silver Lake T/O bid
Slide 13: Other investments
For personal use only Other investments Gold Erdene Kin-Gin Tin Kasbah, Morocco – Large, development ready tin project Phosphate Celamin, Tunisia • Ownership dispute 2015 • Won international arbitration November 2017 • Local Partner March 2019 • Arbitration decision enforced in Tunis April 2019 ASX
Slide 14: Mining Market Overview
For personal use only Mining Market Overview ASX : LSX | 14
Slide 15: Miners – best and worst performers
For personal use only Miners – best and worst performers Gold 2.6x ASX100 Resources Small Non-Index Resources 1.9x Resource Index 1.9x Juniors Returns: ASX100 Industrials Small Industrials 0.8x Jan 2016 – 1.2x 1.2x 100%: Present Break Even ASX : LSX | 15
Slide 16: Who is buying miners
For personal use only Who is buying miners Institutional Retail • The bigger the better Production ✓ • Very strong recovery in large cap miners since 2016 Development • By exception only Exploration ½ • Only small quantum ASX : LSX | 16
Slide 17: Challenges for funding of juniors
Challenges for funding of juniors ▪ For personal use only Distractions Massive Venture Capital Inflows / Regulatory platform in Tech Huge investment into unlisted tech Pot North America / Equity market infatuation ▪ Investment market stratification ▪ Exchange Traded Funds (ETFs) ▪ Index Funds ▪ Roya
Slide 18: Growth oriented thinking in full flight
Growth oriented thinking in full flight ▪ Seeing two styles of M&A: For personal use only ▪ Large deals (Barrick / Randgold, Newmont / Goldcorp, Kirkland / Detour) (not hostile, non-competitive premiums) ▪ Producers investing in / taking over juniors (Industry cash flow the primary source of investm
Slide 19: ASX100 Resources Index – 2011 to 2019
ASX100 Resources Index – 2011 to 2019 Glencore IPO For personal use only US$11B Gold project purchases by ASX mid tier Gold M&A Gold Price Rallies Acute investor concern: Progressive dividend policies BHP / RIO: New dividend policies Winu Stavely ? Realisation: Fosterville Miners have been over spen
Slide 20: Lion Mining Clock
For personal use only Lion Mining Clock ✓ Exploration activity increasing ✓ Growth oriented thinking has re-emerged ✓ Large acquisitions (gold) Canadian market holding back global sentiment – distracted by cannabis ASX : LSX | 20
Slide 21: Notes
Notes ▪ 1. Refer to One Asia Resources Limited news release 3 December 2014, (https://www.lionselection.com.au/wp- For personal use only content/uploads/2018/08/PANI%20JORC%20RESOURCE.pdf). ▪ 2. Refer to J Resources 31 December 2018 Annual Report, (http://www.jresources.com/investors/article/final-r
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