Lion Selection Group Ltd. · ASX:LSX
Lion Selection — Quarter ended 30 April 2022 Earnings Presentation
15 slides from Lion Selection's earnings presentation, Jun 6, 2022
Slide 1: Lion Selection Group Update - Quarter Ended 30 April 2022
For personal use only Lion Selection Group Update Quarter Ended 30 April 2022 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: Transformational Quarter
1. Pani Sale Closed Transformational ✓ Received US$22m cash Quarter For personal use only ✓ Received US$20M of Merdeka shares • Up to US$10m of deferred cash to be paid in January 2023 (subject to performance of Merdeka shares) 68.8cps 2. Dividends Re-Established Net Asset Backing ✓ 3.5cps unfranked
Slide 4: Merdeka Copper Gold holding
Lion holding (shares) 72.8m Merdeka Copper Gold TBK Lion entry price / sum invested 36.5cps / A$26.5m* (MDKA:IDX) For personal use only Price at 30 April / holding value 51.7cps / A$37.6m *US$20m of Merdeka received by Lion as part consideration for the sale of Pani on 25 January 2022 • Merdeka Ente
Slide 5: Current Investments & Cash
Current Investments & Cash 2 For personal use only Name Value Per Share Net Cash $42.4M 28.3c $71.9M Market Cap at $0.48/Share 19% Owned (A$89.8M cash by Feb 2023*) PT Merdeka Copper & Gold $37.6M 25.1c (Lion to crystallise no less Lion holds 72.8M Merdeka shares (MDKA:IDX) by Board & Management whi
Slide 6: Lion Investing Focus
Lion Investing Focus Lion Re-Commenced New Opportunity Investing For personal use only Australia focus for new investments • Investment made into Great Boulder Resources ✓ Global mining investment (ASX:GBR) destination of choice Precious Metals • Actively seeking and assessing direct and portfolio i
Slide 7: Lion Entity Status
Lion Entity Status For personal use only Lion is examining the alternatives to being classified as a Listed Investment Company (LIC) to identify what classification is considered most suitable for Lion’s investment operations, such as being classified as a mining entity History – LIC Future – Mining
Slide 8: Proven Lion Investing Process
Proven Lion Investing Process 25 years of junior mining investing success For personal use only Lion invests across the capital structure, seeking to balance capital protection with attractive returns Access to deal flow Experienced investment team Lion target investments Seek • In-house technical •
Slide 9: Mining Market Outlook
Mining Market Outlook For personal use only 2020 S&P 500 VS US 3m Rate VS US CPI US Equities Treasury Bonds 12 Mo % change 2019 Bear case Bull case 2017 • Inflation – embedded • Inflation – transitory 2016 • Shortage of everything • Record commodity prices • Ukraine • Electrification • Transport cos
Slide 10: Mining Market Outlook: Energy vs Metal Commodities 2000-2022
Mining Market Outlook Energy vs Metal Commodities: 2000-2022 For personal use only Energy Index Metal Index ASX:LSX Source: IMF lionselection.com.au 10 1 0
Slide 11: For personal use only
• Well funded • High quality NTA – high proportion as For personal use only 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 30
Slide 12: Lion Selection Group – Established 1997
Lion Selection Group – Established 1997 Large discount to highly certain underlying value For personal use only Well Funded Strong cash position following large asset divestment Proven Approach 25 years experience / strong deal flow / exceptional people networks Target Investments Pre-production min
Slide 13: Board & Management
Board & Management Strong Foundation For personal use only MANAGEMENT TEAM BOARD Barry Sullivan Peter Maloney Chris Melloy Robin Widdup Craig Smyth Hedley Widdup Chairman Non-Executive Director Non-Executive Director Managing Director Executive Director Executive Director Barry is a mining Peter has
Slide 14: Experience: Funding / Strategic Development / M&A
Experience: Funding / Strategic Development / M&A History Pani JV Interest Long-term investments For personal use only • Gold / Indonesia $21m invested Active Exit Management • • $74m exit* Profitable Outcomes $5.9m invested C$16.8m invested $9.5m exit C$25.4m exit $33.8m invested $23.4m invested $9
Slide 15: Footnotes
1. Merdeka Investor Presentation: May 2022. Footnotes https://merdekacoppergold.com/en/download/investor-presentation-q1-2022- may-2022-2/ For personal use only 2. Lion Selection Group ASX announcement on 4 May 2022, Net Tangible Asset Backing 3. Distributions by Lion Selection (ASX:LSG, ASX:LST, NS
Lion Selection Group — Quarter ended 30 April 2022 Earnings Presentation on 6ix