Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Shareholder Meeting (December 2020)
23 slides from Lion Selection's shareholder meeting presentation, Dec 10, 2020
Slide 1: Annual General Meeting Review
For personal use only LION SELECTION GROUP Annual General Meeting Review December 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: Lion Selection Group
Lion Selection Group For personal use only Listed Mining Investment Company • ASX : LSX Established in 1997 • 23 years track record • Total Shareholder Returns: 32.9% 1 year / 11.4% 3 year / 20.7% 5 year (9.0%pa over 23 years) Key investments: 2x Multi-Million • Pani JV – 4.6Moz between two Resource
Slide 4: Highlights
Highlights For personal use only Portfolio ▪ Pani – Drilling & concept study complete ▪ Nusantara – Appointment of banking-oriented CFO, FEED nearing completion ▪ Erdene – debt mandate letter working toward up to US$55m senior debt funding Mining Sector ▪ Gold reacting to mild strengthening in US bo
Slide 5: Portfolio Highlights
For personal use only Portfolio Highlights ASX : LSX | 5
Slide 6: Pani – NTA / Catalysts / Metrics
Pani – NTA / Catalysts / Metrics For personal use only Potential evolution of Implied value for Lion Pani interest Lion holding history of Pani Pani holding value EV/Reserve Oz ASX gold prod A$m EV/Resource Oz ASX gold prod value of ASX gold expl & dev EV/Resource Oz Pani to Lion A$60.7m A$39.3m A$1
Slide 7: Pani Drilling
Pani Drilling For personal use only ▪ Drilling targeting “link” zone – preliminary program completed ▪ Concept study completed ASX : LSX | 7 Mineral Resources estimated on the Pani IUP and CoW are tabulated on slide 23
Slide 8: Partner at Pani: Merdeka (US$3B Market Cap)
Partner at Pani: Merdeka (US$3B Market Cap) For personal use only Slide extracted from Merdeka Copper Gold Investor Presentation, September 2020: https://www.merdekacoppergold.com/en/i nvestor-relations/presentation/ ASX : LSX | 8
Slide 9: Nusantara Resources Multi-Million Ounce Gold Project
Nusantara Resources (ASX:NUS) For personal use only Multi-Million Ounce Gold Project • 2.35Moz Resource 3 / 1.53Moz Reserve 4 • Reserve grade >2x gold industry pipeline Low Cost / High Margin: AISC US$875/oz 5 • Lowest half of the gold industry cost curve • Extremely robust margin at spot Long Life:
Slide 10: Nusantara Key Shareholder: Indika
Nusantara Key Shareholder: Indika For personal use only Slide from Indika Energy Investor Presentation: https://www.indikaenergy.co.id/wp-content/uploads/2020/05/Corporate-Results-Presentation-6M20-1.pdf ASX : LSX | 10
Slide 11: Nusantara – Valuation Metrics
Nusantara – Valuation Metrics For personal use only Market Prices Indika project Implied value NPV5 transactions EV/Reserve Oz ASX gold prod A$m value of Awak Mas EV/Resource Oz ASX gold prod (100% basis) ASX gold expl & dev EV/Resource Oz A$56m implied value of 100% of Awak Mas, based on Nusantara
Slide 12: Indonesia – Gold Mining Jurisdiction
For personal use only Indonesia – Gold Mining Jurisdiction Globally significant gold nation • Equal 11th largest producer ▪ Multi-asset mid- tier Indonesian • 4th largest gold Reserves Indonesia: Absolute gold miner ▪ Backed by Internationally competitive Essentials Provident, Thohir Group, Saratoga
Slide 13: Indonesia – Gold Mining Jurisdiction
For personal use only Indonesia – Gold Mining Jurisdiction Western Australia #1 Fraser Institute Investment Attractiveness Index 2019 Indonesia #27 Victoria #43 New South Wales #47 Score Burkina Faso #51 Mali #68 ASX : LSX | 13
Slide 14: Lion NTA – October 2020
For personal use only Lion NTA – 31 October 2020 July 2020 October 2020 A$M A$M ¢ps Pani Joint Venture 60.7 61.2 40.7 Nusantara Resources 16.8 14.2 9.5 Erdene Resources 7.8 5.2 3.4 Sihayo Gold 2.1 1.6 1.1 Celamin Holdings 1.1 1.4 0.9 Other 0.5 0.7 0.5 Net Cash 10.8 10.0 6.7 Net Tangible Assets A$77.
Slide 15: Mining Market Developments
For personal use only Mining Market Developments ASX : LSX | 15
Slide 16: Gold VS Year Bond Rates
For personal use only Gold VS 10 Year Bond Rates • Bull market commenced prior to COVID-19, when long term QE / rates assumptions reversed • Effect of Pandemic – expansion of QE and stimulus, weakened economies • Recent gold weakness – mild strengthening of rates, vaccine news ASX : LSX | 16
Slide 17: Gold VS Equities (S&P 500)
For personal use only Gold VS Equities (S&P 500) • Effect of stimulus and QE: equities trade at super premium • High risk market no one can afford to be out of ASX : LSX | 17
Slide 18: Gold ETF holdings
For personal use only Gold ETF holdings 2003-2020 Total Gold ETF Holdings (All Data, Monthly) 2020 SPDR Gold Holdings (2020 only, daily) ASX : LSX | 18
Slide 19: Junior Mining Equity Issuance
For personal use only Junior Mining Equity Issuance ASX (Source: Austex) 5B reporting companies tally • 2019: A$3,481m • 2020: A$3,465m (3 Q only) TSXV (Source: TMX Market Intelligence) • 2019: C$2,166m • 2020: C$3,100m (3 Q only) Q3 2020 – Doubled quarterly equity issuance by juniors, led by gold c
Slide 20: Lion Clock: O'Clock
For personal use only Lion Clock: 10 O’Clock ASX : LSX | 20
Slide 21: Notes
For personal use only Notes 1. Refer to ASX announcement by Lion Selection Group, 4 August 2020 “Pani Update and Valuation Revision” 2. Gold company EV/Resource Oz and EV/Reserve Oz averages based on research by PCF Capital: PCF Resources Thermometer, November 2020. https://cdn-au.mailsnd.com/27632/
Slide 22: 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 6 0.4g/t cut off 7 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 23: Awak Mas: Mineral Resource and Ore Reserves
Awak Mas: Mineral Resource and Ore Reserves Mineral Resource Estimate – April 2020 3 Ore Reserve Estimate – June 2020 4 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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