THORNEY OPPORTUNITIES LTD — Net Asset Value 2024

Oct 7, 2024

==> picture [540 x 92] intentionally omitted <==

----- Start of picture text -----

INVESTMENT UPDATE AND NTA REPORT
SEPTEMBER 2024
----- End of picture text -----

PORTFOLIO SNAPSHOT: NET TANGIBLE ASSET BACKING PER SHARE (NTA)

NTA Current Month	Before Tax1	After Tax1
30 September 2024	95.4 cents	87.5 cents
NTA Previous Month	Before Tax1	After Tax1
31 August 2024	94.9 cents	86.2 cents

¹ Figures are unaudited and approximate.

KEY ASX INFORMATION (AS AT 30 SEPTEMBER 2024)

ASX Code TOP Structure Listed Investment Company Inception date January 2014 Market $117.1 million Capitalisation Share Price 64.5 cents Shares on Issue 181,538,931 Dividends Half yearly Management Fee 0.75% half yearly Performance Fee 20% of net NTA increase over high water mark base financial year Manager Thorney Investment Group

INVESTMENT PERFORMANCE*

As at 30 September 2024 1 Month 1 Year 3 Years Since Inception	As at 30 September 2024 1 Month 1 Year 3 Years Since Inception	As at 30 September 2024 1 Month 1 Year 3 Years Since Inception	As at 30 September 2024 1 Month 1 Year 3 Years Since Inception	As at 30 September 2024 1 Month 1 Year 3 Years Since Inception
TOP investment portfolio	0.51%	31.31%	11.22%	12.97%
S&P Small Ordinaries Accum. Index	5.06%	18.79%	-0.57%	9.54%
Performance versus Index	-4.55%	12.52%	11.79%	3.43%

*Investment performance is calculated on a pre-tax NTA plus dividends basis and after accrued management fees.

TOP SECURITIES

Rank	Company	% of Portfolio
1	20 Cashews	16.0
2	Southern Cross Electrical Engineering	12.9
3	Austin Engineering	11.9
4	Solvar	6.6
5	AMA Group	5.7
6	Service Stream	5.3
7	COG Financial Services	4.8
8	Retail Food Group	3.0
9	Early Pay	2.7
10	Cooper Energy	2.4

TOP FULLY FRANKED DIVIDEND HISTORY

==> picture [510 x 152] intentionally omitted <==

----- Start of picture text -----

2.40 2.50 2.55
2.15
2.00
1.80
1.50 1.40 1.45 1.50
1.25
1.15 1.35
1.27
1.14
0.90
0.50 0.60 0.65
1.00 1.05 1.05
0.50 0.55 0.60 0.60 0.66 0.73 0.80
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Interim dividend (cps) Final dividend (cps)
----- End of picture text -----

THORNEY OPPORTUNITIES LTD | Level 45, 55 Collins St. Melbourne VIC 3000 Australia | ABN: 41 080 167 264

PORTFOLIO SECTORS

ALLOCATION OF INVESTMENTS

==> picture [445 x 141] intentionally omitted <==

----- Start of picture text -----

16.5% Cash 24%
Commercial and
7%
Professional Services
Consumer Discretionary 5%
59.2%
Media 16%
24.3%
Financials 15%
ASX-listed securities Infrastructure, Energy and
Unlisted securities Resources 33%
Cash
----- End of picture text -----

CASH BALANCE AND AVAILABLE FACILITIES

• Cash held short-term with the major banks: $42.1 million, with prime broker and margin lending facilities undrawn.

OVERVIEW

• The TOP NTA (after tax) as at 30 September 2024 was 87.5 increasing by 1.5%, compared to 31 August 2024.

• During the month, TOP’s positive portfolio performers, being Service Stream, AMA Group, and Solvar, were offset by softer performance from COG Financial Services and Southern Cross Electrical.

• TOP purchased 710,911 shares under its on-market share buyback at an average price of $0.648 during the month. The current on-market share buyback expires on 10 March 2025.

• TOP retains substantial investment capital for deployment as compelling opportunities emerge.

CHAIRMAN’S COMMENTS

“TOP’s strong balance sheet, with deployable investment capital of around $40 million, is positioned well for identifying and assessing new undervalued investment opportunities.

Slowdown in global growth of the world’s major economies over recent months and despite record highs being touched in equity markets, the conversation has centred around the position central banks will take in relation to monetary policy. We have seen the ECB commence their interest rate easing cycle with a 25 basis point cut in June, followed by a further 25 basis point cut in September whilst the US Federal Reserve cut rates by 50 basis points in mid-September with the expectations of further cuts this calendar year. Many commentators are suggesting that this easing policy momentum will accelerate into 2025 and will both help to mitigate the risk of an economic hard-landing as well as reinvigorate global growth.

In Australia, everyone has a view on what the RBA should and shouldn’t do about interest rates, and when they should act. Currently, the RBA is holding its line and not bowing to political pressure. In the RBA’s September minutes, it stated that “our current forecasts do not see inflation returning sustainably to target until 2026” suggesting that an easing of interest rates in Australia is not likely until at least 2025. That being said, the voices advocating for an interest rate cut this calendar year are getting louder.

Irrespective of the RBA’s decision, we will be carefully trawling the market for mis-priced opportunities and remain well-placed to take advantage of these scenarios when they emerge.

I maintain my view that the persistent share price discount is unjustified. This is particularly the case given the current cash balance. I believe that the inherent value in the portfolio remains and makes for a compelling buying opportunity hence I have continued to buy shares under TOP’s on-market buyback.

INVESTMENT PHILOSOPHY

CONTACT

TOP undertakes thorough due diligence to identify fundamentally Craig Smith – Company Secretary mispriced or undervalued companies and combine that with E: craig.smith@thorney.com.au constructive advocacy with boards and management to implement T: + 61 3 9921 7116 change when required.

INVESTMENT OBJECTIVES

• Producing absolute returns for shareholders over the medium-to long-term

• Delivering a strong fully franked dividend stream to shareholders

ABOUT THORNEY OPPORTUNITIES LTD

Thorney Opportunities Ltd (TOP) is an ASX-listed investment company that invests in listed and unlisted equities and financial assets, in a variety of sectors, including media, automotive, energy, engineering and mining services and financial services. Our primary focus is on the careful selection of investments which enables us to be a constructive catalyst towards unlocking the value in the companies identified. TOP is managed by the privately owned Thorney Investment Group pursuant to a longterm investment management agreement.

You can invest in TOP by purchasing shares on the Australian Securities Exchange (ASX).

For more information visit: https://thorney.com.au/thorney-opportunities/

This monthly report has been prepared by Thorney Management Services Pty Ltd (TMS) ABN 88 164 880 148, AFSL 444369. TMS is the investment manager of Thorney Opportunities Ltd (TOP or Company) ACN 080 167 264. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. This information does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of the Company’s securities. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. References to securities in this publication are for illustrative purposes only and are not recommendations and the securities may or may not be currently held by the Company. Past performance is not indicative of future performance. This information is believed to be accurate at the time of compilation and is provided in good faith. No company in the Thorney Investment Group (Thorney Investment Group Australia Limited ABN 37 117 488 892 and its subsidiaries including TMS) nor the Company guarantees the performance of the Company or the return of an investor’s capital.

Investment Update and NTA Report | September 2024 2