NGE Capital : Investment and NTA update | March 2019

Investment and NTA update | As at 31 March 2019

NGE CAPITAL LIMITED SUMMARY

ASX ticker	NGE
Share price (31-Mar-19)	$0.770
Shares outstanding	37,194,774
Market cap	$28.6m
NTA per share before tax	$0.807
NTA per share after tax	$0.849
NTA before tax	$30.0m
NTA after tax	$31.6m

OVERVIEW

NET TANGIBLE ASSETS (NTA) PER SHARE

	31 Mar 2019	28 Feb 2019
NTA per share before tax	$0.807	$0.879
NTA per share after tax	$0.849	$0.902

NTA PER SHARE PERFORMANCE SUMMARY

			Last 12	Since inception (1)
1 month		Year-to-date	months	(p.a.)	(cum.)
	-8.2%	5.5%	31.9%	21.7%	58.2%
Note:	Returns are before tax and net of all operating expenses. As an internally managed LIC
	NGE does not incur external management and performance fees.

(1)From 30 November 2016, the date on which NGE became a LIC.

NGE Capital Limited is an internally managed Listed Investment Company which allows investors to gain exposure to a concentrated, high conviction, actively managed portfolio of financial assets. NGE primarily focuses on listed ASX and international equities, with the aim of generating strong risk-adjusted returns over the medium to long term.

INVESTMENT STRATEGY

NGE has a flexible investment mandate and invests according to a defined set of investment principles, summarised as follows:

• Only invest in a compelling opportunity,

otherwise hold cash;

TOP HOLDINGS (% OF NTA)

Company	Ticker	%
United Company RUSAL	HKE:0486	23.7%
Karoon Energy	ASX:KAR	17.4%
Yellow Cake plc	LSE:YCA	14.5%
Powerwrap	Unlisted	13.9%
Eureka Group	ASX:EGH	7.8%
Horizon Oil	ASX:HZN	7.7%
Base Resources	ASX:BSE	7.5%
Warrior Met Coal Inc	NYS:HCC	6.7%

PORTFOLIO COMPOSITION

	31 Mar 2019
Listed equities	88%
Unlisted equities	14%
Convertible notes	3%
Net cash and other	(5%)

Total

100%

• Invest based on fundamental analysis;

• Target investments that can generate

strong returns with an adequate margin

of safety; and

• Aim to hold a concentrated portfolio of

high conviction investments.

BOARD & MANAGEMENT

David Lamm	Executive Chairman &
	Chief Investment Officer
Adam Saunders	Executive Director &
	Portfolio Manager
Ilan Rimer	Non-Executive Director
Les Smith	Company Secretary &
	Chief Financial Officer

UNRECOGNISED TAX LOSSES

The Company has ~$43 million of Australian unused and unrealised losses available as at 31 March 2019. In the aggregate these losses equate to a potential future tax benefit of ~$12.0m or ~$0.32 per share (of which only a small portion is recognised in our after tax NTA). The Company has received tax advice that these losses are available to be offset against future tax liabilities so long as NGE continues to satisfy the continuity of ownership test as set out in Divisions 165 and 166 of the Income Tax Assessment Act 1997 (Cth).

MONTHLY COMMENTARY

NGE's portfolio produced a return of -8.2% for the month of March. On a rolling 12- month basis, the portfolio is up 31.9%.

During the month it was reported that Powerwrap is planning an IPO for May, targeting a $15m raise at $0.35 per share. Accounting for the company's recent 5 for 1 share consolidation, this equates to a pre-consolidation price of $0.07. Accordingly and in accordance with NGE's Investment Valuation Policy, we have revalued our Powerwrap holding to $0.07 per share as at 31 March 2019, from $0.10 per share (on a pre- consolidation basis).

CONTACT DETAILS

Level 4, North Building

333 Collins Street

Melbourne VIC 3000

[phone]

[e-mail]

www.ngecapital.com.au

IMPORTANT INFORMATION:

While management of NGE Capital Limited (NGE Capital) have taken every effort to ensure the accuracy of the material in this document, the material is provided for information purposes only. No representation or warranty, express or implied, is or will be made by NGE Capital or its officers, directors, employees or advisers as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in, or implied by, this document, or as to the reasonableness of any assumption, forecasts, prospects or returns contained in, or implied by, this document or any part of it. This document does not constitute investment, legal, taxation or other advice and the document does not take into account your investment objectives, financial situation nor particular needs. You are responsible for forming your own opinions and conclusions on such matters and should make your own independent assessment of the information contained in, or implied by, this document and seek independent professional advice in relation to such information and any action taken on the basis of the information. This document is not, and does not constitute advice or an offer to sell or the solicitation, invitation or recommendation to purchase any securities that are referred to in this document.