Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Investor Presentation (August 2024)
22 slides from Lion Selection's investor presentation, Aug 12, 2024
Slide 1: Lion Selection Group
For personal use only Lion Selection Group ASX : LSX August 2024 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 Selection Group Limited: 27 years of investing, managing and selling
Lion Selection Group Limited 27 years of investing, managing and selling For personal use only ASX:LSX lionselection.com.au 3
Slide 4: Mining Cycle – The Lion Clock
Mining Cycle – The Lion Clock Central to Lion investment strategy For personal use only • Characteristic patterns define cycles for resources stocks • Particularly pronounced for micro-capitalisation stocks • Lion aligns investment behaviours to the cycle ASX:LSX lionselection.com.au 4
Slide 5: Investing in high growth Resources via Lion
Investing in high growth Resources via Lion Investing in a deeply discounted market Research driven process 1. 5. For personal use only Micro-capitalisation Resources down 75% since April 2022 In house due diligence, underpinned by deep experience and broad networks Targeting highest growth sector 2
Slide 6: Opportunity: Lion's target asset class is down 75%
Opportunity: Lion’s target asset class is down 75% 1. Equity prices for micro-capitalisation Resources 2. Liquidity for the mining space has collapsed: very For personal use only companies have collapsed, and are still falling challenging conditions for micro-capitalisation Resources companies to ra
Slide 7: Commodities VS Equities
Commodities VS Equities 1. Cyclical recovery: the next mining boom How will history describe the present…? Future supply 2. The mining industry is extremely under invested in future supply For personal use only Wonderful medium- to long-term fundamentals for A new marginal buyer of gold commodities
Slide 8: Deal Flow
Deal Flow • LISTED: Metals and Mining classified micro-caps Huge largest group on ASX. >600 (of >1900 listed Extremely broad access to investment companies)* opportunities universe • UNLISTED: Large community of startup, For personal use only explorers and deal makers • Extensive relationship networ
Slide 9: Investment Process
• High deal flow (1,000’s per year) Investment Process Highly • Highly selective conversion to investment (targeting 10-20 portfolio stocks) 27 years of deployment selective • 100% in-house due diligence, specialist mining investment team For personal use only • Growth target: Multiples • Long term
Slide 10: Investment Objective
Investment Objective Risk Multiples Valuation Avoid high Multiples on probability, price available terminal For personal use only outcomes People Highly Capable & Sincere Micro Capitalisation Leverage to most High capability, growth- Resources attractive commodities oriented teams • Target multiples
Slide 11: Investing at cyclical low prices
Investing at cyclical low prices $56.6M cash to invest1 Pre-discovery Definition Assessment Development Production For personal use only Precious, base and Pre-development Australia focus strategic materials stage Brightstar Resources Low capex, cash flow funds growth, strategically sized gold inven
Slide 12: Valuation: Sum of the parts
“The biggest risk for investors under these Valuation1 Sum of the parts circumstances is to be 31 July 2024 illiquid.” For personal use only Cash $56.6M 40.1cps Legacy Investments $9.4M 22.5cps New Investments * $22.4M Tax -$0.4M Total Value $88.0M 62.3cps Market Capitalisation $67.0M 47.5cps The Ne
Slide 13: Investment in Focus
Investment in Focus For personal use only Chasing hypergiant gold and copper deposits Never-before considered mineral systems over a large area: District scale discovery potential ✓ Gold and copper anomalism ✓ Hydrothermal system 400-450Ma ✓ G3 structural corridor Ultra-leveraged to discovery Lion 4
Slide 14: Golden Cornerstones
Golden Cornerstones ✓ Valuation upside ✓ Growth upside ✓ Strategic inventory size ✓ World best gold jurisdiction For personal use only Lion 5.1%* | $6.3M invested* Lion 17.6%# | $8M invested# 3.0Moz 5 1.84Moz 6 Harnessing low capex cash flow to fund growth Strong economics available unlocking strate
Slide 15: Board & Management
Board & Management Strong Foundation MANAGEMENT TEAM For personal use only BOARD Peter Maloney Chris Melloy Robin Widdup Craig Smyth Hedley Widdup Non-Executive Director Non-Executive Director Executive Chairman CFO CEO Peter has commercial Chris is a mining Robin’s mining 18 years mining 24+ years
Slide 16: Exceptional Access to People
Exceptional Access to People For personal use only Plutonic Limited Brightstar Resources Alto Metals Great Boulder Saturn Metals Venture Minerals Antipa Minerals Sunshine Metals Koonenberry Gold Vacancy… ? ASX:LSX lionselection.com.au 16
Slide 17: LSX Opportunity
LSX • Small and micro-cap resources companies have been Opportunity depressed by small cap sentiment and commodity price weakness (well-funded to acquire multiple, high % Lion has a strong cash position from top-of-market For personal use only • holdings) investment exits and is investing at deeply
Slide 18: LSX:ASX
LSX:ASX For personal use only Lion Selection Group | Well funded | Investing at cyclical low Powerful contrarian play in a weakened market Subscribe for Lion Announcements http://www.lionselection.com.au Level 2/175 Flinders Lane Melbourne VIC 3000 T +61 3 9614 8008 E info@lsg.com.au
Slide 19: The Lion Story
Founded in 1997 by Robin Widdup, Lion Selection Group has built a track record as a successful investor in mining assets and interpreter of the cycles of mining. The Lion Story In a 27-year history, Lion has been an early shareholder and contributed to the success of a long list of successful mining
Slide 20: Appendices: References
Appendices For personal use only References 1. Refer to Lion Selection Group announcement to ASX on 8 August 2024 2. Refer to Lion Selection Group announcement to ASX on 29 July 2024 3. Refer to Brightstar Resources announcement to ASX on 1 August 2024 “BTR and AME Strategic Merger. BTR consolidates
Slide 21: Commodities have differing risk profiles
Commodities have differing risk profiles Mineral commodities have differing “degrees of For personal use only Difficulty difficulty”, that result from: Diamonds Hard to find & Diamond mafia • Process risk (how challenging to separate Mineral Sands, Industrial Minerals, Technically complex from host
Slide 22: Mining Investor Landscape
Mining Investor Landscape Funds ETF Retail Lion Selection Group ASX100 Resources Index For personal use only 19 companies Capitalisations >$2.4B Index Inclusion Large Capitalisation ASX Small Resources Index & Liquidity 53 companies Capitalisations $150M-$4B • Management external to • Listed company
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