ORION EQUITIES LIMITED — Net Asset Value 2018

Jul 15, 2018

Monday, 16 July 2018

ASX Code: OEQ

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 30 June 2018

Month Ending:% ChangeNet tangible assets (NTA) (before tax)Pre-Tax NTA Backing per share-4.2%Net tangible assets (after tax)Post-Tax NTA Backing per share-4.2%Based on total issued share capitalThe NTA position comprises the following items:Net Tangible Assets	% Change	30 June 2018Consolidated31 May 2018Consolidated
	-4.2%	$4.174m$4.359m$0.2668$0.2785
	-4.2%	$4.174m$4.359m$0.2668$0.2785
		15,649,22815,649,228
		Current MonthPrevious Month$’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		1.3291.4150.5300.5700.0220.019-0.0511.2201.2201.5461.549(0.473)(0.465)
		4.1744.359
		------
		**4.174 **4.359

Notes:

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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

ASX : OEQ T | (08) 9214 9797

F | (08) 9214 9701

20180716 OEQ ASX NTA Backing as at 30 June 2018.docx

• (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 42 and 43 of the Company’s 2017 Annual Report for further details in this regard.

Accordingly, as at 30 June 2018, the Company’s 20,513,783 shares (26.95% interest) (31 May 2018: 20,513,783 shares and 26.95%) in BEL have a carrying value of $0.065 per share ($1.329m); this compares with BEL’s last bid price on ASX of $0.095 per share ($1.949m) and BEL’s after-tax NTA backing of $0.1244 per share ($2.552m), as at month end.

• (2) The fair value of investments in ASX-listed Strike Resources Limited ( SRK ) comprise 10,000,000 shares (30 June 2018: 10,000,000 shares) with a value of $0.053 per share (based on the closing bid price as at 30 June 2018) (31 May 2018: $0.057).

• (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 36 of the Company’s 2017 Annual 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 36 and 37 of the Company’s 2017 Annual 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 28 to 29 of the Company’s 2017 Annual Report for further details in this regard.

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