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Voluntary Quarterly Intrinsic Net Asset Value disclosure

Published: 2022-05-27 09:01:05 ET
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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 2022 is set out below.

Summary                                                         Change                31 March          31 December           31 December     31 December    31 December
                                                   Dec 2021 to Mar 2022                   2022                 2021                  2020            2019           2018
                                                                    (%)
Intrinsic NAV of Brimstone (Rm)                                     3.6%                3 372.7               3 255.6               3 284.8        3 349.3        3 899.6
Intrinsic NAV per share (cents) ¹                                   3.7%                1 362.1               1 314.0               1 299.3        1 419.3        1 615.1
Fully diluted Intrinsic NAV per share (cents) ¹                     3.7%                1 339.9               1 292.6               1 282.7        1 410.3        1 598.8
Market price per share (cents)
   Ordinary shares                                                26.8%                    799                   630                   581            765          1 050
   ‘N’ Ordinary shares                                            26.3%                    820                   649                   650            775            949
Discount to Intrinsic NAV
  Ordinary shares                                                                        41.3%                 52.1%                 55.3%          46.1%          35.0%
  ‘N’ Ordinary shares                                                                    39.8%                 50.6%                 50.0%          45.4%          41.2%
Intrinsic NAV analysis by asset

An analysis of the Intrinsic NAV of Brimstone as at 31 March 2022 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 2022       Mar 2022        Gross      Dec 2021      Dec 2021      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            (%)
                                           2022         31 Dec                                                                         (R'000)          share          (%)        (R'000)         share
                                            (R)           2021                                                                                        (cents)                                   (cents)
                                                            (R)
Oceana²                  25.0%             57.00          55.54   Market value per share      1 859 745             -            -    1 859 745         751.1          33.2     1 812 110        731.4            2.7
Sea Harvest ²            53.4%             14.00          13.80   Market value per share      2 233 111             -            -    2 233 111         901.8          39.9     2 201 210        888.4            1.5
Equites                   1.8%             22.94          22.99   Market value per share       320 211              -     (29 722)      290 489         117.3           5.7       289 930        117.0            0.3
Phuthuma Nathi            2.8%            141.00         134.95   Market value per share       267 255              -      (6 595)      260 660         105.3           4.8       251 517        101.5            3.7
Stadio                    5.1%                  4.05       3.75   Market value per share       176 438              -      (5 459)      170 979          69.1           3.1       160 635          64.8           6.6
MTN Zakhele Futhi         1.5%             32.50          31.00   Market value per share        59 111              -            -       59 111          23.9           1.1        56 383          22.8           4.8
Milpark                  12.8%                     -          -   Market approach               92 873              -      (6 848)       86 025          34.7           1.7        85 771          34.6           0.3
Investment property     100.0%                     -          -   Capitalisation rate           57 500              -            -       57 500          23.2           1.0        57 500          23.2           0.0
FPG Property Fund         9.9%                     -          -   Book value                   229 681              -     (20 923)      208 758          84.3           4.1       207 984          83.9           0.5
Aon Re Africa            18.0%                     -          -   PE valuation                  69 906              -     (13 376)       56 530          22.8           1.2        56 035          22.6           0.9
Obsidian                 70.0%                     -          -   Book value                    71 960              -      (7 443)       64 517          26.1           1.3        64 241          25.9           0.8
SAED                     25.0%                     -          -   Book value                    60 608              -            -       60 608          24.5           1.1        60 231          24.3           0.8
Other investments,      Various                    -          -   Valuation                    132 566              -      30 002       162 568          65.7           2.4        84 210          34.0          93.2
assets & liabilities
Cash / (Net debt)       100.0%                     -          -   Book value                   (29 287)   (2 168 635)            -   (2 197 922)       (887.6)         (0.6)   (2 132 147)      (860.5)           3.1

                                                                                              5 601 678   (2 168 635)     (60 364)    3 372 679         1 362         100.0     3 255 610        1 314            3.7



Intrinsic NAV per share (cents)                                                                  2 262         (876)          (24)        1 362
Fully diluted Intrinsic NAV per share (cents)                                                    2 225         (862)          (24)        1 340


  Notes:

  1. Based on 248 million shares (December 2021: 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)                                              (17 235 183)                       (13 140 245)
     Net shares in issue for Intrinsic NAV purposes                                                                                  247 614 925                        251 709 863
 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 2021, 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.

27 May 2022

Sponsor

Nedbank Corporate and Investment Banking, a division of Nedbank Limited