Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Noosa Mining & Exploration Conference 2014
16 slides from Lion Selection's conference presentation, Jul 18, 2014
Slide 1: Lion Selection Group Ltd – Building Emerging Miners
For personal use only Lion Selection Group Ltd Listed Investment Company Specialist Mining Investor ASX : LSX Building Emerging Miners July 2014
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: Miners vs Market
Miners vs Market For personal use only Since April 2011 (to bottom) Recent performance BHP / RIO lost ~30% BHP / RIO up ~20% (since mid-2013) Junior Miners lost ~70% Junior Miners up ~10% (since early 2014) Pre-production micro caps lost ~90% Pre-production micro caps Highly Selective Performance Ap
Slide 4: The Sky is Falling!
DR. Lion Selection Group “The SKY is FALLING!” cried Chicken Licken.
Slide 5: Uniformitarianism – It's NEVER different this time
Uniformitarianism – It’s NEVER different this time 1974 1983 1988 1999 2008 2013 For personal use only BHP ASX100 Res ASX Small Res 2008 - 2013 • Equities re-started 1974 - 83 1988 - 99 by economic • Korean industrialisation • Early Chinese industrialisation stimulus • 1980 gold bubble • East Asian
Slide 6: Where is the risk money?
Where is the risk money ? Dot-com. Better than sliced bread. (Again, LMAO…) For personal use only Tech boom / tech Broad Bull Market Post GFC Another tech boom wreck Recovery Gold equities Lull for gold equities (with underperform economic stimulus) Source: IRESS Data
Slide 7: Turning the tap back on…
Turning the tap back on… For personal use only Catalysts History tells us : • M&A Cycle follows cycle • Exploration • Commodities There will be • Cyclical return of another mining risk money boom
Slide 8: Early in a new cycle
Early in a new cycle 1997, 2008, For personal use only 2012/13 2014 2004-07, 2010-11
Slide 9: Lion – Listed Mining Investment Company
Lion – Listed Mining Investment Company • Junior mining companies – project Portfolio • Weight investment towards best For personal use only Focus exposures development phase approach • Investment decisions not driven by • Mining, finance and investment LIC structure Team experience funding structur
Slide 10: Returns to Shareholders
Returns to Shareholders Value For personal use only cps Annualised Total Shareholder Return 1-5 (30 Jun 14) Value Returned Since (Distributions reinvested) Lion ASX Small Res Inception On one share since 1997 IPO 5 Year Return 2.9% -11.9% (at 30 Jun 14) 10 Year Return 8.6% 2.6% 15 Year Return 12.7%
Slide 11: 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 30 June 2014. Source: Lion Manager
Slide 12: Lion Selection Group – Capital Structure
Lion Selection Group (ASX : LSX) For personal use only Capital Structure Investors Shares 106.9m 1. Select Asset Management 17.7% Market Cap (at 30¢ps) A$32.1m 2. Robin Widdup 10.8% NTA (at 61¢ps) A$65.7m 3. Mark Creasy 4.1% Options (ex at 80¢ before 12/12/14) 14.7m Directors & Management 23% Uncomm
Slide 13: Valuation: NTA
Valuation: NTA For personal use only NTA at 30 June 2014 Commodity Market Value A$M % Portfolio Australia Doray Minerals Gold 6.8 Rum Jungle Resources Phosphate 1.5 Auricup Resources Gold 1.5 Other Australia 0.1 15% Africa One Asia Resources Roxgold Gold 5.1 Toro Gold Gold 1.9 • 27¢ of Lion’s 61¢ NT
Slide 14: One Asia Resources
One Asia Resources • 127m shares at 75cps = $95.6m Market Cap For personal use only • 2 undeveloped gold projects on Indonesian Island Sulawesi Pani (90%) Awak Mas (100%) • 1.88 Moz Resource (57.5MT at 1.02g/t) • 2.55 Moz Resource • Drilling outside Resource has discovered • PFS / Scoping estimates:
Slide 15: For personal use only
• Mining investment market is at cyclical low For personal use only • Opportunities abound – Funding risk is key • Lion is an LIC – Investment decisions not driven by funding structure • 45% of Lion’s NTA is One Asia Resources – Challenges to resolve
Slide 16: Lion Selection Group – Building Emerging Miners
LION SELECTION GROUP ASX : LSX For personal use only BUILDING EMERGING MINERS People • Projects • Opportunities SPECIALIST LISTED INVESTMENT COMPANY www.lionselection.com.au
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