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

Buy Brimstone Investment Corporation Stocks

Published: 2023-12-01 10:00:35 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 30 September 2023 is set out below.

Summary                                                         Change          30 September           31 December           31 December      31 December    31 December
                                                   Dec 2022 to Sep 2023                 2023                  2022                  2021             2020           2019
                                                                    (%)
Intrinsic NAV of Brimstone (Rm)                                     (4.7)              3 131.4               3 287.2               3 255.6         3 284.8        3 349.3
Intrinsic NAV per share (cents) ¹                                   (3.7)              1 275.5               1 325.0               1 314.0         1 299.3        1 419.3
Fully diluted Intrinsic NAV per share (cents) ¹                     (4.1)              1 248.5               1 301.5               1 292.6         1 282.7        1 410.3
Market price per share (cents)
   Ordinary shares                                                   3.6                  545                    526                    630           581            765
   ‘N’ Ordinary shares                                            (10.3)                  505                    563                    649           650            775
Discount to Intrinsic NAV
  Ordinary shares                                                                       57.3%                 60.3%                 52.1%           55.3%          46.1%
  ‘N’ Ordinary shares                                                                   60.4%                 57.5%                 50.6%           50.0%          45.4%
Intrinsic NAV analysis by asset

An analysis of the Intrinsic NAV of Brimstone as at 30 September 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     Sep 2023       Sep 2023        Gross     Dec 2022      Dec 2022      Increase /
                          held      share price          share                                 (R'000)      (R'000)       (R'000)     Intrinsic      Intrinsic    portfolio    Intrinsic     Intrinsic   (Decrease)
                                      at 30 Sep        price at                                                                            NAV       NAV per     weighting          NAV      NAV per            (%)
                                           2023         31 Dec                                                                          (R'000)          share         (%)       (R'000)         share
                                             (R)          2022                                                                                         (cents)                                 (cents)
                                                            (R)
Oceana²                   25.10            75.50          63.29   Market value per share      2 471 427             -            -    2 471 427        1 006.6         46.0    2 071 743        835.1           20.5
Sea Harvest ²              53.4                 9.81      12.00   Market value per share      1 565 273             -            -    1 565 273         637.6          29.1    1 914 707        771.8          (17.4)
Equites                     1.8            12.59          16.84   Market value per share       175 739              -            -      175 739           71.6          3.3      223 733          90.2         (20.6)
Phuthuma Nathi              2.8           101.00         133.11   Market value per share       191 438              -            -      191 438           78.0          3.6      248 935        100.3          (22.2)
Stadio                      5.1                 5.16       4.91   Market value per share       224 796              -     (15 905)      208 891           85.1          4.2      200 352          80.8           5.3
MTN Zakhele Futhi           1.5            17.50          19.40   Market value per share        31 829              -            -       31 829           13.0          0.6       35 285          14.2          (8.5)
Milpark                    12.8                    -          -   Market approach              100 470              -      (6 246)       94 224           38.4          1.9       94 224          38.0           1.1
Investment property       100.0                    -          -   Market approach                     -             -            -             -             -          0.0       65 000          26.2        (100.0)
FPG Property Fund          10.2                    -          -   Book value                   331 865              -     (37 162)      294 703         120.0           6.2      279 401        112.6            6.6
Aon Re Africa              18.0                    -          -   PE valuation                  78 086              -     (15 143)       62 943           25.6          1.5       62 943          25.4           0.8
Obsidian                   70.0                    -          -   Book value                    65 804              -      (6 114)       59 690           24.3          1.2       59 690          24.1           0.8
SAED                       25.0                    -          -   Book value                    71 756              -            -       71 756           29.2          1.3       61 781          24.9          17.3
Other investments,      Various                    -          -   Valuation                     54 948              -      19 030        73 978           30.1          1.0       71 122          28.7           4.9
assets & liabilities
Cash / (Net debt)       100.0%                     -          -   Book value                    13 087    (2 183 589)            -   (2 170 502)       (884.1)          0.1   (2 101 674)      (847.1)           4.4

                                                                                              5 376 518   (2 183 589)     (61 540)    3 131 389        1 275.0        100.0    3 287 242        1 325           (3.8)



Intrinsic NAV per share (cents)                                                                  2 190         (889)          (25)        1 275
Fully diluted Intrinsic NAV per share (cents)                                                    2 144         (871)          (25)        1 248


  Notes:

  1. Based on 246 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)                                              (19 337 627)                       (14 035 687)
     Net shares in issue for Intrinsic NAV purposes                                                                                  245 512 481                        250 814 421
 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.

1 December 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.