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LION SELECTION GROUP LIMITED. — Net Asset Value 2022
Feb 8, 2022
65271_rns_2022-02-08_456e017d-a434-4d3f-a816-0873c1c8abb4.pdf
Net Asset Value
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9 February 2022
Net Tangible Asset Backing
Lion Selection Group Limited (Lion) advises that the unaudited net tangible asset backing of Lion as at 31 January 2022 is 71.7 cents per share (before tax) and 68.9 cents per share (after tax). This excludes $2.4m in contingent liabilities relating to Lion’s acquisition of investments from African Lion 3 (see note below).
| CommodityDecember 2021A$MPani Joint VentureGold63.3Based on the price of US$52M agreed for Lion’s interest in the Pani Joint Venture.Lion’s Pani interest is being acquired by Merdeka (Lion’s Pani joint venture partner)and Andalan International Pte Ltd (an entity controlled by Provident Capital)1, withthe transaction due to close on 28 February 2022. Consideration is cash (US$22Mupfront, US$10M deferred for 12 months) and Merdeka shares (US$20M upfront,with 12 months downside protection).PortfolioErdene ResourcesGold5.4Kasbah ResourcesTin2.0PhosCo LtdPhosphate2.7Other1.1Net Cash23.1 | January 2022A$M¢ps73.649.05.03.32.01.33.62.41.00.722.415.0 |
|---|---|
| Net Tangible Assets – Pre-TaxA$97.6mDeferred tax liability on theoretical disposal of Lion’s portfolio(A$3.2m)Net Tangible Assets – Post-TaxA$94.4m | A$107.6m71.7¢ps(A$4.2m)(2.8¢ps)A$103.4m68.9¢ps |
| Capital StructureShares on Issue:150,141,271Share Price:52¢ps31 January 2022 |
1 Lion Selection Group ASX Announcement 31 January 2022, Sale of Pani JV Interest for A$74M plus upside
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ASX Release – 9 February 2022
Contingent Consideration
Lion’s NTA excludes potential contingent consideration that may be payable if Lion sells its investment in either Celamin or Kasbah. Based on a theoretical sale of both investments at the date of the NTA, contingent consideration of $2.4m would arise (December 2021, $2.3m).
This obligation arises following Lion agreeing to purchase the shares it did not own in African Lion 3 Ltd (AFL3) to consolidate ownership (with the exception of Lion Manager Pty Ltd who opted to hold its investment). The transaction involved Lion agreeing to pay contingent consideration to be paid in certain circumstances for up to 5 years. The value of the contingent consideration depends on the ultimate exit price for Celamin and/or Kasbah, how long Lion holds the investments, and how much additional investment is required.
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ASX Release – 9 February 2022