ORION EQUITIES LIMITED — Net Asset Value 2024

Jun 6, 2024

ASX Code: OEQ

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Friday, 7 June 2024

MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 31 May 2024

Month Ending:%Change31 May 2024Consolidated30 April 2024ConsolidatedNet tangible assets (NTA) (before tax)$7.002m$6.995mPre-Tax NTA Backing per share+0.10%$0.4474$0.4470Net tangible assets (after tax)$5.502m$5.495mPost-Tax NTA Backing per share+0.13%$0.3516$0.3511Based on total issued share capital15,649,22815,649,228The NTA position comprises the following items:Current MonthPrevious MonthNet Tangible Assets$’millions$’millionsInvestment in listed Associated Entity:(a)Shares in Bentley Capital Limited (ASX:BEL)*(refer below)-Investments in other listed securities:(a)Shares in Strike Resources Limited (ASX:SRK)0.4000.400Investment in property (held for development/resale)1.8501.850Net cash/receivables/payables/other assets/provisions4.7524.745Pre-Tax NTA7.002 6.995Tax Provisions:(a)Prior year tax--(b)Current year tax(1.500)(1.500)(c)Net deferred tax asset / (liability)--Post-Tax NTA5.5025.495	%Change31 May 2024Consolidated30 April 2024Consolidated	%Change31 May 2024Consolidated30 April 2024Consolidated
	+0.10%	$7.002m$6.995m$0.4474$0.4470
	+0.13%	$5.502m$5.495m$0.3516$0.3511
		15,649,22815,649,228
		Current MonthPrevious Month$’millions$’millions*(refer below)-0.4000.4001.8501.8504.7524.7457.002 6.995--(1.500)(1.500)--5.5025.495
Investment in listed Associated Entity:(a)Shares in Bentley Capital Limited (ASX:BEL)Investments in other listed securities:(a)Shares in Strike Resources Limited (ASX:SRK)Investment in property (held for development/resale)Net 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

• Orion notes that the carrying value of its 20,513,783 shareholding in Bentley is based on ‘equity accounting’ for Bentley as an associate entity – as set out in Note (1), this manner of accounting has technically reduced the carrying value to Nil – whereas this compares with Bentley’s last closing price on ASX of $0.02 per share (valuing Orion’s investment at $0.41m) and Bentley’s after-tax NTA value of $0.0189 per share (valuing Orion’s investment based on Bentley’s NTA backing at $0.388m) as at 31 May 2024.

www.orionequities.com.au

Orion Equities Limited

A.B.N. 77 000 742 843

Suite 1, Level 1, 680 Murray Street, West Perth, Western Australia 6005 ASX : OEQ T | (08) 9214 9797 F | (08) 9214 9701 E

E |info@orionequities.com.au

20240607 OEQ ASX NTA Backing as at 31 May 2024.docx

Notes:

• (1) The Company’s investment in Bentley Capital Limited (ASX: 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 19 (Investments in Associates) on pages 36 and 37 of the Company’s 30 June 2023 Annual Report for further details in this regard.

Under the equity method of accounting for Associate entities, the Company’s carrying value of its investment in BEL has been reduced from cost to nil – as a consequence of the Company’s accumulated recognition of BEL’s net losses. The Company is not required to carry the BEL investment at a negative value (ie. below Nil) and if BEL should generate net profits in the future, the Company will recognise a share of BEL’s net profits under the equity method, which will permit the Company to recognise a positive carrying value for BEL.

Accordingly, as at 31 May 2024, the Company’s 20,513,783 shares (26.95% interest) (30 April 2024: 20,513,783 shares and 26.95%) in BEL have a nil carrying value; this compares with BEL’s last bid price on ASX of 2 cents per share ($0.0.41m) and BEL’s after-tax NTA backing of 1.89 cents per share ($0.388m)[1] , as at month end.

• (2) The fair value of investments in ASX-listed Strike Resources Limited (ASX: SRK ) comprise 10,000,000 shares (30 April 2024: 10,000,000 shares) with a value of $0.04 per share (based on the closing bid price as at 31 May 2024) (30 April 2024: $0.04).

• (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 licensed valuer of the Australian Property Institute as at 30 June 2023.

• (5) Tax Provision Item (b) (Current year tax) includes a Provision for Income Tax expense of $1.5 million in respect of the total gross consideration received ($2 million) and receivable ($3 million, on 30 June 2024) on the termination of a royalty in relation to the Paulsens East Iron Ore Project[2] . The Company notes that it is undertaking a review of this income tax position vis a vis the utilisation of available carried forward tax losses of $12.6 million.

• (6) Tax Provision Item (c) (Net deferred tax asset / (liability)) 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 26 to 27 of the Company’s 30 June 2023 Annual Report for further details in this regard.

AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION:

Victor Ho

Executive Director & Company Secretary

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

1 Refer BEL’s ASX Announcement dated 7 June 2024: NTA Backing as at 31 May 2024

2