ORION EQUITIES LIMITED — Net Asset Value 2020

Jan 13, 2020

Tuesday, 14 January 2020

ASX Code: OEQ

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 31 December 2019

		31 December 2019	30 November 2019
Month Ending:	% Change	Consolidated	Consolidated
Net tangible assets (NTA) (before tax)		$2.013 m	$2.181 m
Pre-Tax NTA Backing per share	-7.71%	$0.1286	$0.1394
Net tangible assets (after tax)		$2.013 m	$2.181 m
Post-Tax NTA Backing per share	-7.71%	$0.1286	$0.1394
Based on total issued share capital		15,649,228	15,649,228
The NTA position comprises the following items:
		Current Month	Previous Month
Net Tangible Assets		$’millions	$’millions
Investment in listed Associated Entity:
(a)Shares in Bentley Capital Limited (BEL)		0.201	0.278
Investments in other listed securities:
(a)Shares in Strike Resources Limited (SRK)		0.450	0.480
Investment in property (held for development/resale)		1.100	1.100
Net cash/receivables/payables/other assets/provisions		**0.262 **	0.323
Pre-Tax NTA		2.013	2.181
Tax Provisions:
(a)Prior year tax		-	-
(b)Current year tax		-	-
(c)Net deferred tax asset / (liability)		-	-
Post-Tax NTA		2.013	2.181

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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

20200114 OEQ ASX NTA Backing as at 31 December 2019.docx

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 23 (Investments in Associates) on pages 39 and 40 of the Company’s 2019 Annual Report for further details in this regard.

Accordingly, as at 31 December 2019, the Company’s 20,513,783 shares (26.95% interest) (30 November 2019: 20,513,783 shares and 26.95%) in BEL have a carrying value of $0.01 per share ($0.201m); this compares with BEL’s last bid price on ASX of $0.04 per share ($0.821m) and BEL’s after-tax NTA backing of $0.07 per share ($1.434m)[1] , as at month end.

• (2) The fair value of investments in ASX-listed Strike Resources Limited ( SRK ) comprise 10,000,000 shares (30 November 2019: 10,000,000 shares) with a value of $0.045 per share (based on the closing bid price as at 31 December 2019) (30 November 2019: $0.048).

• (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) 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 30 June 2019.

• (5) 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 6 (Tax) on pages 25 to 26 of the Company’s 2019 Annual Report for further details in this regard.

FOR FURTHER INFORMATION:

Victor Ho Company Secretary T | (08) 9214 9797 E | cosec@orionequities.com.au

1 Refer BEL’s ASX Announcement dated 14 January 2020: NTA Backing as at 31 December 2019

2