ORION EQUITIES LIMITED — Net Asset Value 2017

Sep 13, 2017

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Thursday, 14 September 2017

MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 31 August 2017

Month Ending:Net tangible assets (NTA) (before tax)Pre-Tax NTA Backing per shareNet tangible assets (after tax)Post-Tax NTA Backing per shareBased on total issued share capital	% Change31 August 2017Consolidated31 July 2017Consolidated
	$4.922m$5.100m-5.84%$0.3146$0.3259
	$4.922m$5.100m-5.84%$0.3146$0.3259
	15,649,22815,649,228

The 31August 2017 NTA backing includes a provision for $0.14 million being the 0.90 cent per share fully franked special divided announced on 31 August 2017 and expected to be paid on 29 September 2017.

Orion’s August 2017 NTA monthly performance with the provision for dividend added back was -3.14%.

The NTA position comprises the following items:

The NTA position comprises the following items:
Net Tangible Assets	Current MonthPrevious Month$’millions$’millions
Investment in listed Associated Entity:(a)Shares in Bentley Capital Limited (BEL)Investments in other listed securities:(a)Shares in Strike Resources Limited (SRK)(b)Other listed securitiesInvestment in units in managed fundInvestment in property (held for development/resale)Agribusiness assetsNet cash/receivables/payables/other assets/provisionsPre-Tax NTATax Provisions:(a)Prior year tax(b)Current year tax(c)Net deferred tax asset / (liability)Post-Tax NTA	1.8171.9440.4000.4000.002-0.0730.0741.2201.2201.5681.571(0.158)(0.109)
	$4.922$5.100
	------
	$4.922$5.100

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www.orionequities.com.au

Orion Equities Limited

Level 2, 23 Ventnor Avenue, West Perth, Western Australia 6005

A.B.N. 77 000 742 843

info@orionequities.com.au

| (08) 9214 9797

F | (08) 9214 9701

ASX : OEQ

20170914 OEQ ASX NTA Backing as at 31 August 2017

Notes:

• (1) The Company’s investment in BEL, an Associated Entity (i.e. in which the Company has a greater than 20% interest), is accounted for under the equity method in the consolidated financial statements. Under the equity method, the carrying amount of such investment is cost plus a share of the Associate Entity’s net profit or loss (after tax) for the financial year to month end as provided to the Company by such Associated Entity. Refer also Note 22 (Investments in Associates) on pages 44 and 45 of the Company’s 2017 Full Year Report for further details in this regard.

Accordingly, as at 31 August 2017, the Company’s 20,513,783 shares (26.95% interest) (31 July 2017: 20,513,783 shares and 26.95%) in BEL have a carrying value of $0.11 per share ($1.187m); this compares with BEL’s last bid price on ASX of $0.11 per share ($2.257m) and BEL’s after-tax NTA backing of $0.1431 per share ($2.934m), as at month end.

The Company notes that the 31 July 2017 comparative value has been restated in light of BEL restating its 31 July 2017 comparative NTA backing value – refer BEL ASX announcement dated 14 September 2017: NTA Backing as at 31 August 2017.

• (2) The fair value of investments in ASX-listed Strike Resources Limited ( SRK ) comprise 10,000,000 shares (31 August 2017: 10,000,000 shares) with a value of $0.040 per share (based on the closing bid price on 31 August 2017) (31 July 2017: $0.040).

• (3) The fair value of investments in other listed securities is based on each security’s last bid price on market at month end.

• (4) Units invested in the managed fund are valued at the audited unit price published by the investment manager, as at month end – the unit price reflects the net asset backing of the fund; there is no buy/sell spread price; there is no recognition of realisation costs as there are no exit fees charged on redemption of units.

• (5) Investment in property (held for resale) was valued by an independent qualified valuer (a Certified Valuer and Associate Member of the Australian Property Institute) as at 9 June 2017. Refer also Note 12 (Property held for Resale) on page 38 of the Company’s 2017 Full Year Report for further details in this regard.

• (6) Agribusiness assets comprise a 143 hectare property comprising olive grove freehold land (with a water licence entitlement), olive trees (with approximately 64,500, 18 year old plantings) and depreciable plant and equipment. The land (with the water licence entitlement) was valued by an independent qualified valuer (a Certified Valuer and Associate Member of the Australian Property Institute) as at 15 June 2017. The olive trees and depreciable plant and equipment are carried at net realisable value. Refer also Note 13 (Property, Plant and Equipment) on pages 38 and 39 of the Company’s 2017 Full Year Report for further details in this regard.

• (7) Tax Provision Item (c) includes where applicable, a provision for income tax on net unrealised gains on the Company’s investments in securities and its share of Associated Entities’ after-tax net profit for the month (deferred tax liability) and the recognition of future income tax benefits on net unrealised losses on the Company’s investments in securities and its share of Associated Entities’ after-tax net loss for the month (deferred tax asset). Refer also Note 5 (Tax) on pages 30 to 32 of the Company’s 2017 Full Year Report for further details in this regard.

FURTHER INFORMATION:

Farooq Khan Executive Chairman

Victor Ho Executive Director and Company Secretary

T |(08) 9214 9797 E | info@orionequities.com.au T |(08) 9214 9797 E | cosec@orionequities.com.au

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