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Voluntary Quarterly Intrinsic Net Asset Value (“NAV”) disclosure

Buy Brimstone Investment Corporation Stocks

Published: 2023-06-22 16:52:28 ET

Brimstone Investment Corporation Limited
(Incorporated in the Republic of South Africa)
Registration number 1995/010442/06
Share Code: BRT ISIN: ZAE000015277
Share Code: BRN ISIN: ZAE000015285
("Brimstone" or the “Company”)

Voluntary Quarterly Intrinsic Net Asset Value (“NAV”) disclosure

A full analysis of the Intrinsic NAV, together with applicable explanations for the quarter ended 31 March 2023 is set out below.

Summary                                                         Change                31 March          31 December           31 December     31 December    31 December
                                                   Dec 2022 to Mar 2023                   2023                 2022                  2021            2020           2019
                                                                    (%)
Intrinsic NAV of Brimstone (Rm)                                   (7.1%)                3 053.8               3 287.2               3 255.6        3 284.8        3 349.3
Intrinsic NAV per share (cents) ¹                                 (7.5%)                1 225.5               1 325.0               1 314.0        1 299.3        1 419.3
Fully diluted Intrinsic NAV per share (cents) ¹                   (7.3%)                1 206.9               1 301.5               1 292.6        1 282.7        1 410.3
Market price per share (cents)
   Ordinary shares                                                19.8%                    630                   526                   630            581            765
   ‘N’ Ordinary shares                                            27.2%                    716                   563                   649            650            775
Discount to Intrinsic NAV
  Ordinary shares                                                                        48.6%                 60.3%                 52.1%          55.3%          46.1%
  ‘N’ Ordinary shares                                                                    41.6%                 57.5%                 50.6%          50.0%          45.4%
Intrinsic NAV analysis by asset

An analysis of the Intrinsic NAV of Brimstone as at 31 March 2023 is set out below, including the valuation basis of each asset. Where applicable, Intrinsic NAV is net of ring-fenced
debt and potential CGT relating to that asset.

Asset                       %          Closing         Closing    Valuation basis          Gross value        Debt           CGT     Mar 2023       Mar 2023        Gross     Dec 2022      Dec 2022      Increase /
                          held      share price          share                                 (R'000)      (R'000)       (R'000)    Intrinsic      Intrinsic     portfolio    Intrinsic     Intrinsic   (Decrease)
                                      at 31 Mar        price at                                                                           NAV       NAV per      weighting          NAV      NAV per            (%)
                                           2023         31 Dec                                                                         (R'000)          share          (%)       (R'000)         share
                                            (R)           2022                                                                                        (cents)                                  (cents)
                                                            (R)
Oceana²                  25.1%             69.37          63.29   Market value per share      2 270 767             -     (22 694)    2 248 073         902.2          42.6    2 071 743        835.1            8.0
Sea Harvest ²            53.4%             10.10          12.00   Market value per share      1 611 545             -            -    1 611 545         646.7          30.3    1 914 707        771.8          (16.2)
Equites                   1.8%             15.37          16.84   Market value per share       214 544              -      (6 898)      207 646          83.3           4.0      223 733          90.2          (7.6)
Phuthuma Nathi            2.8%            134.20         133.11   Market value per share       254 366              -      (3 811)      250 555         100.6           4.8      248 935        100.3            0.3
Stadio                    5.1%                  4.50       4.91   Market value per share       196 043              -      (9 694)      186 349          74.8           3.7      200 352          80.8          (7.4)
MTN Zakhele Futhi         1.5%             19.50          19.40   Market value per share        35 467              -            -       35 467          14.2           0.7       35 285          14.2              -
Milpark                  12.8%                     -          -   Market approach              100 470              -      (6 246)       94 224          37.8           1.9       94 224          38.0          (0.5)
Investment property     100.0%                     -          -   Market approach                     -             -            -             -             -          0.0       65 000          26.2        (100.0)
FPG Property Fund        10.2%                     -          -   Book value                   312 348              -     (32 947)      279 401         112.1           5.9      279 401        112.6           (0.4)
Aon Re Africa            18.0%                     -          -   PE valuation                  78 086              -     (15 143)       62 943          25.3           1.5       62 943          25.4          (0.4)
Obsidian                 70.0%                     -          -   Book value                    65 804              -      (6 114)       59 690          24.0           1.2       59 690          24.1          (0.4)
SAED                     25.0%                     -          -   Book value                    62 172              -            -       62 172          25.0           1.2       61 781          24.9           0.4
Other investments,      Various                    -          -   Valuation                     49 946              -      14 733        64 679          26.0           0.9       71 122          28.7          (9.4)
assets & liabilities
Cash / (Net debt)       100.0%                     -          -   Book value                    72 921    (2 181 841)            -   (2 108 920)       (846.3)          1.3   (2 101 674)      (847.1)          (0.1)

                                                                                              5 324 479   (2 181 841)     (88 814)    3 053 824       1 226.0         100.0    3 287 242       1 325.0          (7.5)



Intrinsic NAV per share (cents)                                                                  2 137         (876)          (36)        1 226
Fully diluted Intrinsic NAV per share (cents)                                                    2 104         (862)          (35)        1 207


  Notes:

  1. Based on 249 million shares (December 2022: 248 million shares) in issue, net of treasury shares as calculated below:

                                                                                                                        Number of shares in issue     Fully diluted number of shares
     Gross number of shares in issue                                                                                                 264 850 108                        264 850 108
     Treasury shares (fully diluted number is net of notionally realised unvested FSPs)                                              (15 668 269)                       (11 816 901)
     Net shares in issue for Intrinsic NAV purposes                                                                                  249 181 839                        253 033 207
 2. No CGT provided on shareholding in Oceana and Sea Harvest due to potential use of the corporate relief provisions of the Income Tax Act.

The Intrinsic NAV information presented has been prepared on a basis consistent with that used in the integrated report for the year ended 31 December 2022, which is available
on the Company’s website at www.brimstone.co.za.

The above information is the responsibility of the directors and has not been reviewed or reported on by the Company’s auditors.

22 June 2023

Sponsor

Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.