Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Earnings Presentation (September 2020)
24 slides from Lion Selection's earnings presentation, Sep 8, 2020
Slide 1: Lion Selection Group July Quarter Review
For personal use only LION SELECTION GROUP July Quarter Review September 2020
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: Quarter Highlights
Quarter Highlights For personal use only Pani Joint Venture: Valuation Increased to $60.7m 1 ▪ ‘Link’ zone drilling – preliminary results appear broadly consistent with mineralisation on either side; assays awaited ▪ Concept study underway considering large-scale project with CIL processing Nusantar
Slide 4: Pani – Value in NTA
Pani – Value in NTA For personal use only 1 History of Lion holding value Potential evolution of Lion of Pani holding value of Pani (Incorporating value increases resulting from Lion (based on planned investment, expected completion of investment into Pani) Pani JV deal and project economic studies)
Slide 5: Pani: Unified Ground In North Sulawesi
Pani: Unified Ground In North Sulawesi For personal use only Pani IUP (1km x 1km) 66% Merdeka / 33% Lion + Contract of Work (surrounds IUP) 100% J Resources = Unified Pani 40% Merdeka / 40% J Res / 20% Lion Ownership structure: ▪ Incorporated Joint Venture ▪ Pending approval from regulators and J Re
Slide 6: Pani Drilling
Pani Drilling For personal use only ▪ Drilling targeting “link” zone – 13 holes completed ▪ Drilling paused pending unification deal completion ▪ Open North, South & West ASX : LSX | 6 Mineral Resources estimated on the Pani IUP and CoW are tabulated on slide 23
Slide 7: Pani: World Class Size and Shape
Pani: World Class Size and Shape For personal use only Notes: • Mineral Resources estimated on the Pani IUP and CoW are tabulated on slide 23 • Pani Resource 89.5MT at 0.82g/t Au for 2.37Moz Au4 • Resource estimate by J Resources on CoW 72.7MT at 0.98g/t Au for 2.30Moz Au5 ASX : LSX | 7
Slide 8: Nusantara – Catalyst rich and developing
For personal use only Nusantara – Catalyst rich and developing Awak Mas – Sulawesi, Indonesia | ASX:NUS ✓ Resource update: 2.35Moz 6 History ✓ Reserve update: 1.53Moz 2 ▪ 1990’s: Extensive drilling ✓ 127kozpa first four years 3 ▪ 2017: IPO ✓ DFS Financials: US$517m NPV 3 ▪ 2018: DFS, Partner – Indik
Slide 9: Numerous occurrences of gold
For personal use only Numerous occurrences of gold Large Mineralising System ASX : LSX | 9 Mineral Resource and Ore Reserves estimated for Awak Mas are tabulated on slide 24
Slide 10: First Class Partners in Indonesia
For personal use only First Class Partners in Indonesia ▪ Multi-asset mid- ▪ Multi-asset tier Indonesian ASX:LSX Indonesian gold miner energy, mining Nusantara Resources and services ▪ Backed by ASX:NUS Provident, Thohir conglomerate Group, Saratoga ▪ IDX Listed: EV ▪ IDX Listed: EV US$1.3B US$2.7B
Slide 11: First Class Partners in Indonesia
For personal use only First Class Partners in Indonesia ASX:LSX Nusantara Resources ASX:NUS Pani Awak Mas ▪ World Class Size & Shape ▪ Long life / high margin gold project gold project ▪ Drilling & Assessment to ▪ Seeking debt funding come ASX : LSX | 11
Slide 12: Erdene Resources – Rising strongly
For personal use only Erdene Resources – Rising strongly Bayan Khundii – Southern Mongolia | TSX:ERD Bayan Khundii BFS completed 7 Discovery upside Strongly Funded ▪ Low capex / high grade / shallow open pit ▪ New structure identified within pit design ▪ C$20m funding July 2020 ▪ 63kozpa x 6 yr LOM
Slide 13: Lion NTA – July 2020
For personal use only Lion NTA – 31 July 2020 June 2020 July 2020 A$M A$M ¢ps Pani Joint Venture 40.3 60.7 40.5 Nusantara Resources 15.7 16.8 11.2 Erdene Resources 4.3 7.8 5.2 Sihayo Gold 2.2 2.1 1.4 Celamin Holdings 1.0 1.1 0.7 Other 0.4 0.5 0.3 Net Cash 13.3 10.8 7.2 Net Tangible Assets A$77.2m A$
Slide 14: Lion – Investment Thesis
Lion – Investment Thesis ▪ Management team For personal use only ▪ Proven track record over more than 23 years: 8.4%pa TSR 8 ▪ Board and management 19% shareholding ▪ Key Investments: 2x Multi-Million Ounce Gold Projects ▪ Pani JV (to become 20%): 2.30Moz 4 + 2.37Moz 5 Resources being combined ▪ Nus
Slide 15: 2020: COVID, Gold Mainstream, Canada Rediscovered Explorers
For personal use only COVID 19 2020: First Ever AFL Grand Final Outside Victoria The year of Gold – Became Mainstream Canada – Rediscovered Explorers ASX : LSX | 15
Slide 16: 2020… In One Slide
2020… IN ONE SLIDE ASX Mining Equity Indices: ASX100 Resources & ASX Gold Index For personal use only Late February COVID 19 January August ? Miraculous recovery… built on stimulus ASX : LSX | 16 Source: IRESS Data
Slide 17: 2020: Gold became Mainstream
For personal use only 2020: Gold became Mainstream 2019 Jun – August 2019: 2020 CY Performance: Period of most 2019 Jan-Jul Performance: +US$460 +US$230 gold price gains (+US$550/oz to peak) 2020: Gold price gains steady through YTD (excl COVID crash) ASX : LSX | 17 Source: IRESS Data
Slide 18: 2020: Canada Rediscovering Explorers
For personal use only 2020: Canada Rediscovering Explorers Equity Funding by Miners on TSXV Funding by miners on TSXV: +86% YoY to July 2020 2019: Gold: +US230/oz 2020: Gold: +US460/oz | Jan - Jul ASX : LSX | 18 Source: TMX Market Intelligence Report
Slide 19: Lion Clock: O'Clock
For personal use only Lion Clock: 10 O’Clock ASX : LSX | 19
Slide 20: Effect of COVID19: Liquidity Surge
For personal use only Effect of COVID19: Liquidity Surge Pre-COVID Crash Post-COVID Crash January 2020 August 2020 Lion Clock 10 9 Liquidity • Investors seeking quality explorers • Investors warming to explorers • Rewarding discoveries • Pricing exploration potential • Strong preference for safe jur
Slide 21: Invitation
For personal use only Invitation Register for: ▪ Lion updates ▪ Future market briefings ▪ Gold and Mining market commentary http://www.lionselection.com.au/subscribe-to-announcements/ Or visit: www.lionselection.com.au ASX : LSX | 21
Slide 22: Notes
For personal use only Notes 1. Refer to ASX announcement by Lion Selection Group, 4 August 2020 “Pani Update and Valuation Revision” 2. Refer to ASX announcement by Nusantara Resources, 16 June 2020 “Awak Mas Ore Reserves Increase by 34% to 1.53m ounces” 3. Refer to ASX announcement by Nusantara Res
Slide 23: Pani: Mineral Resources
For personal use only Pani: Mineral Resources Pani IUP Contract of Work (Lion 33% / Merdeka 66.7%) (J Resources 100%) 0.2g/t cut off 4 0.4g/t cut off 5 Category Tonnage Grade Contained Gold Tonnage Grade Contained Gold (MT) (g/t Au) (Moz) (MT) (g/t Au) (Moz) Measured 10.8 1.13 0.39 15.5 1.03 0.51 In
Slide 24: Awak Mas: Mineral Resource and Ore Reserves
Awak Mas: Mineral Resource and Ore Reserves Mineral Resource Estimate – April 2020 6 Ore Reserve Estimate – June 2020 2 For personal use only 0.5g/t cut off 0.5g/t cut off Deposit Category Tonnes (Mt) Au (g/t) Au (Moz) Deposit Classification Tonnes (Mt) Au (g/t) Au (Moz) Awak Mas Measured - - - Awak
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