Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Investor Presentation (June 2013)
15 slides from Lion Selection's investor presentation, Jun 19, 2013
Slide 1: Lion Selection Group Ltd – Placement and Shareholder Purchase Plan June 2013
For personal use only Lion Selection Group Ltd Listed Investment Company Specialist Mining Investor ASX Listed : LSX Placement and Shareholder Purchase Plan June 2013
Slide 2: Disclaimer
Disclaimer • This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, For personal use only invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentat
Slide 3: Fundraising details
Fundraising details This raising is the first time Lion has raised money since its original listing in 1997 For personal use only • $5m Placement • Under available 15% capacity to sophisticated investors • Up to $5m underwritten by Baillieu Holst 1 SPP • To existing shareholders at placement price •
Slide 4: Use of Funds
Use of Funds Unique current market environment: For personal use only • Resources have under-performed the broader market • Junior Resources substantially discounted • Valuations are cheap – rare opportunity 160% Lion will seek to take ASX 100 140% Industrials advantage of opportunities both 120% AS
Slide 5: Lion – Listed Mining Investment Company
Lion – Listed Mining Investment Company For personal use only • Portfolio approach to high risk / high growth early phases of mining Specialist LIC • Portfolio of over 25 investments, global mandate • Focus on companies with quality people and projects, with the advantage Long term investor of being
Slide 6: Capital Structure and Investors
Lion Selection Group (ASX : LSX) For personal use only Capital Structure (pre-raising, 31 May 2013) Investors (pre raising, 3 May 2013) Shares 88.0m 1. Select Asset Management 17.5% Market Capitalisation (at 56¢ps) A$49.3m 2. Robin Widdup 10.9% NTA (at 66¢ps) A$58.4m 3. Mark Creasy 5.1% Options (exe
Slide 7: Performance: Total Shareholder Return
Performance: Total Shareholder Return For personal use only Annualised TSR to 31 May 13 Lion Small Resources All Ordinaries 1 Year -3.4% -42.6% 24.2% 3 Years 4.6% -20.3% 8.0% 5 Years 21.0% -19.2% 1.2% Lion: Long 10 Years 17.2% 8.0% 9.7% Term Focus 15 Years 16.2% 6.0% 8.5% Inception (15.8 years) 13.9
Slide 8: Lion Manager Track Record
Lion Manager Track Record Exited Investments: Winners and Losers For personal use only Pre-tax profit / loss Multiple on cost As at 31 May 2013. Source: Lion Manager
Slide 9: Lion Team
Lion Team Investment Team For personal use only Robin Widdup Geologist, Mining Analyst (J B Were), Founder of Lion Selection Group (1997) Mike Brook Geologist, Mining Analyst (J B Were), Lion since 2001 Craig Smyth Finance and Tax specialist, Lion since 2005 Hedley Widdup Geologist, Lion since 2007
Slide 10: Investment Philosophy
Investment Philosophy For personal use only Investment target zone Risk Assessment: No new news Production: Valued for cash flow Value • Investment philosophy is to target value uplift from project de- Exploration risk risking Re-rating to producer valuation: Technical risk • Could be 5-10x uplift •
Slide 11: Commodity degree of difficulty
Commodity degree of difficulty For personal use only Difficulty Hard to find + Diamond Mafia Diamonds Mineral Sands/Industrial Technically Complex Minerals/Nickel Laterites Difficult Marketing PGM’S, Rare Earth Massive Infrastructure + Marketing Bulks: Iron Ore, Coal Mixed Base Metals Pb/Zn/Cu/Ag Co
Slide 12: Valuation: NTA
Valuation: NTA For personal use only NTA at 31 May 2013 Commodity Market Value A$M % Portfolio Australia Doray Minerals Gold 4.0 YTC Resources Gold/Base Metals 2.0 One Asia Resources Rum Jungle Resources Phosphate 2.0 Auricup Resources Gold 1.9 • 24¢ of Lion’s 66¢ NTA Other Australia 0.2 18% • 2 gol
Slide 13: One Asia Resources
One Asia Resources Pani (90%) For personal use only • 1.88 Moz Resource (57.5MT at 1.02g/t) • Ongoing drilling on known extensions to mineralisation • PFS to be completed during 2013: heap leach, low strip open pit – expectations of low CAPEX and OPEX Awak Mas (earning 80%) • 2.1 Moz Resource + 0.5-
Slide 14: One Asia – Pani Project (90%)
One Asia – Pani Project (90%) For personal use only Source: One Asia Resources (www.oneasiaresources.com)
Slide 15: For personal use only
For personal use only In the opinion of the Lion team, Pani is shaping up as the best gold discovery that Lion has been involved with since its inception in 1997. The understanding of Pani will unfold as the project is put through the rigours of various studies, however at this early stage three key
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