Lion Selection Group Ltd. · ASX:LSX

Lion Selection — Investor Presentation (June 2022)

20 slides from Lion Selection's investor presentation, June 2022

  1. Slide 1: Right Side of the BOOM

    Hedley Widdup RRS Right Side of the BOOM June 2022 www.lionselection.com.au

  2. 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

  3. Slide 3: Equity Market Breakdown: Key Markets and Sectors 2022 YTD

    ASX:LSX -20% -40% 20% 40% 0% Energy Utilities Resources +10% Materials Financials ex REIT Financials Gold Industrials Key Markets and Sectors (2022 YTD) Consumer Staples Equity Market Breakdown ASX200 Health Care Telecoms S&P500 REIT Consumer Discretionary NASDAQ Info Tech -33% lionselection.com.au

  4. Slide 4: Inflation: embedded or transitory? That is the question

    Inflation Embedded Transitory OR Inflation ? Inflation ? That is the question ASX:LSX lionselection.com.au 4

  5. Slide 5: Inflation, Interest Rates and Equities

    Inflation, Interest Rates and Equities S&P 500 US Equities US CPI 12 Mo % change US 3m Rate Treasury Bonds ASX:LSX lionselection.com.au 5

  6. Slide 6: 13 Years of Bad News

    13 Years of BAD News Chinese Corruption Purge Climate Change Triple US Hurricanes Chinese Sovereignty Post GFC economic Creep recovery Hong Kong Riots S&P 500 Russia Annexes US Equities Crimea N. Korea Missile and Nuclear tests ISIS Arab Spring California Wildfires Donald Trump… COVID-19 (BLIP) Euro

  7. Slide 7: Inflation… Bad News this time?

    Inflation… Bad News this time ? Bear case Bull case • Inflation – embedded • Inflation – transitory • Shortage of everything • Record commodity prices • Ukraine • Electrification • Transport costs • Decade of under- investment in new supply • COVID disruption • China reopening/ • Deglobalisation sti

  8. Slide 8: Mining Sector

    Mining Sector

  9. Slide 9: Mining Bust: Financial Behaviour

    Financial Behaviour Mining Bust Mining Bust Model Financial Citizens 2021 2011 ASX:LSX lionselection.com.au 9

  10. Slide 10: Financial Behaviour: Model Financial Citizens

    2021 Financial Behaviour Model Financial Citizens ASX200 2011 2.3x 2011 Mining Dividends Capitalisation 21% A$7.8B Capitalisation 2021 Mining Dividends 16% A$35B Dividend 19% Banks Mining Dividend 46% Energy Other ASX:LSX lionselection.com.au 10 1 0

  11. Slide 11: Investment by the Industry

    Investment by the Industry Exploration & Capex (in Australia) Australian Mineral Exploration Quarterly expenditure A$3.6B in 2021 Australian Mining Capex Quarterly expenditure A$38B in 2021 Source: ABS, Series 8412 & 5625 ASX:LSX lionselection.com.au 11 1 1

  12. Slide 12: Miners make commodities…which are hard assets

    Inflation Felt by miners COVID / Post COVID / Natural Cyclical Activity Compression / Conflict Exploration Operating Costs Capital Costs • Availability • Energy • Steel • Turnaround • Labour • Time Miners make commodities…which are hard assets ASX:LSX lionselection.com.au 12 1 2

  13. Slide 13: Fundraising by Juniors

    Fundraising by Juniors ASX 5B reporting companies (Source: Austex Data) 2021: Record Year TSXV listed Miners (Source: TMX Market Intelligence) A$9.7B C$6.0B 2022: ?? ?? ASX:LSX lionselection.com.au 13 1 3

  14. Slide 14: Guidance from History? (2002 – Present)

    Guidance from History ? (2002 – Present) ASX100 Resources ASX100 Industrials Dot.com bubble Global Financial Crisis and Tech Wreck NASDAQ ASX:LSX lionselection.com.au 14 1 1999-2001 2007-2009 4

  15. Slide 15: Guidance from History? Tech Wreck 1999-2001

    Guidance from History ? Tech Wreck 1999-2001 1. Tech meltdown in NASDAQ had little effect on ASX100 Indices ASX100 Resources ASX100 Industrials NASDAQ 2. Mining didn’t rally until after tech was done ASX:LSX lionselection.com.au 15 1 5

  16. Slide 16: Guidance from History? Global Financial Crisis 2007-2009

    Guidance from History ? Global Financial Crisis 2007-2009 Resources peak lagged Industrials by months ASX100 Resources ASX100 Industrials ASX:LSX lionselection.com.au 16 1 6

  17. Slide 17: So far: July 2021 - Present

    So far July 2021 - Present ASX100 Resources ASX100 Industrials NASDAQ ASX:LSX lionselection.com.au 17 1 7

  18. Slide 18: So far: July 2021 - Present

    So far July 2021 - Present ASX100 Resources +10% ASX100 Industrials -8% NASDAQ -23% 4 Jan 2022 ASX:LSX lionselection.com.au 18 1 8

  19. Slide 19: Lion Clock Conclusions

    Lion Clock Conclusions Equities Mining Equities 1 2 Tech fallen Market could pay more Miners strong for Miners Junior miners – Unlikely to rally before liquidity on pause tech has unwound 2020 2019 Inflation 2017 Mining Equities 3 4 2016 Big call to bet against Financially healthy inflation Likely t

  20. Slide 20: Well funded, high quality NTA; contact details

    • Well funded • High quality NTA – high proportion as cash / value protected shares • Targeting pre-production mining investments the equity market can’t • With dividends Subscribe for Lion Announcements http://www.lionselection.com.au Level 2/175 Flinders Lane Melbourne VIC 3000 T +61 3 9614 8008 E

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