Orion Equities : Net Tangible Asset Backing - 29 February 2020

Friday, 13 March 2020

ASX Code: OEQ

MARKET ANNOUNCEMENT

Net Tangible Asset Backing - 29 February 2020

		29 February 2020	31 January 2020
Month Ending:	% Change	Consolidated	Consolidated
Net tangible assets (NTA) (before tax)		$1.81 m	$1.999 m
Pre-Tax NTA Backing per share	-9.42%	$0.1157	$0.1277
Net tangible assets (after tax)		$1.81 m	$1.999 m
Post-Tax NTA Backing per share	-9.42%	$0.1157	$0.1277
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)	0.114*	0.206
Investments in other listed securities:
(a)	Shares in Strike Resources Limited (SRK)	0.400	0.460
Investment in property (held for development/resale)	1.100	1.100
Net cash/receivables/payables/other assets/provisions	0.196	0.233
Pre-Tax NTA	1.81	1.999
Tax Provisions:	-
(a)	Prior year tax	-
(b)	Current year tax	-	-
(c)	Net deferred tax asset / (liability)	-	-
Post-Tax NTA		1.81	1.999

• Orion notes that the carrying value of Bentley is based on equity accounting for Bentley as an associate entity; this carrying value is significantly lower than Bentley's market value ($0.574m at $0.028 last bid price per share) and Bentley's after-tax NTA backing ($1.348m at $0.0657 per share).

	www.orionequities.com.au
		Orion Equities Limited	A.B.N. 77 000 742 843
	Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005
ASX : OEQ	T | [phone]	F | [phone]	[e-mail]

20200313 OEQ ASX NTA Backing as at 29 February 2020

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 29 February 2020, the Company's 20,513,783 shares (26.95% interest) (31 January 2020: 20,513,783 shares and 26.95%) in BEL have a carrying value of $0.012 per share ($0.114m); this compares with BEL's last bid price on ASX of $0.028 per share ($0.574m) and BEL's after-tax NTA backing of $0.0657 per share ($1.348m)1, as at month end.
2. The fair value of investments in ASX-listed Strike Resources Limited (SRK) comprise 10,000,000 shares (31 January 2020: 10,000,000 shares) with a value of $0.04 per share (based on the closing bid price as at 29 February 2020) (31 January 2020: $0.046).
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.

AUTHORISED FOR RELEASE BY AND FOR FURTHER INFORMATION:

Victor Ho

Executive Director & Company Secretary

T | [phone]

E | [e-mail]

1 Refer BEL's ASX Announcement dated 13 March 2020: NTA Backing as at 29 February 2020

2