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Voluntary quarterly intrinsic Net Asset Value (“NAV”) disclosure

Buy Brimstone Investment Corporation Stocks

Published: 2022-12-14 15:00:38 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 2022 is set out below.

Summary                                                         Change          30 September           31 December           31 December      31 December    31 December
                                                   Dec 2021 to Sep 2022                 2022                  2021                  2020             2019           2018
                                                                    (%)
Intrinsic NAV of Brimstone (Rm)                                   (11.6)               2 879.0               3 255.6               3 284.8         3 349.3        3 899.6
Book NAV (Rm)                                                       13.4               3 315.8               2 924.4               2 491.3         2 516.2        2 713.4
Intrinsic NAV per share (cents) ¹                                 (11.7)               1 160.5               1 314.0               1 299.3         1 419.3        1 615.1
Fully diluted Intrinsic NAV per share (cents) ¹                   (11.8)               1 139.9               1 292.6               1 282.7         1 410.3        1 598.8
Book NAV per share (cents)                                          13.2               1 336.5               1 180.3                 985.5         1 066.3        1 123.8
Market price per share (cents)
   Ordinary shares                                                  10.0                  693                    630                    581           765          1 050
   ‘N’ Ordinary shares                                              (8.3)                 595                    649                    650           775            949
Discount to Intrinsic NAV
  Ordinary shares                                                                       40.3%                 52.1%                 55.3%           46.1%          35.0%
  ‘N’ Ordinary shares                                                                   48.7%                 50.6%                 50.0%           45.4%          41.2%
Intrinsic NAV analysis by asset

An analysis of the Intrinsic NAV of Brimstone as at 30 September 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     Sep 2022       Sep 2022        Gross     Dec 2021      Dec 2021      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            (%)
                                           2022         31 Dec                                                                          (R'000)          share         (%)       (R'000)         share
                                             (R)          2021                                                                                         (cents)                                 (cents)
                                                            (R)
Oceana²                  25.1%             53.26          55.54   Market value per share      1 743 420             -            -    1 743 420         702.7          34.1    1 812 110        731.4           (3.9)
Sea Harvest ²            53.4%             12.00          13.80   Market value per share      1 914 378             -            -    1 914 378         771.6          37.4    2 201 210        888.4          (13.1)
Equites                   1.8%             16.10          22.99   Market value per share       224 734              -      (9 099)      215 635           86.9          4.4      289 930        117.0          (25.7)
Phuthuma Nathi            2.8%            137.00         134.95   Market value per share       259 673              -      (4 958)      254 715         102.7           5.1      251 517        101.5            1.2
Stadio                    5.1%                  3.81       3.75   Market value per share       165 983              -      (3 201)      162 782           65.6          3.2      160 635          64.8           1.2
MTN Zakhele Futhi         1.5%             22.62          31.00   Market value per share        41 141              -            -       41 141           16.6          0.8       56 383          22.8         (27.2)
Milpark                  12.8%                     -          -   Market approach               97 221              -      (5 545)       91 676           37.0          1.9       85 771          34.6           6.9
Investment property     100.0%                     -          -   Market approach               65 000              -            -       65 000           26.2          1.3       57 500          23.2          12.9
FPG Property Fund        10.2%                     -          -   Book value                   301 670              -     (30 640)      271 030         109.2           5.9      207 984          83.9          30.2
Aon Re Africa            18.0%                     -          -   PE valuation                  78 086              -     (15 143)       62 943           25.4          1.5       56 035          22.6          12.4
Obsidian                 70.0%                     -          -   Book value                    77 189              -      (8 573)       68 616           27.7          1.5       64 241          25.9           6.9
SAED                     25.0%                     -          -   Book value                    61 385              -            -       61 385           24.7          1.2       60 231          24.3           1.6
Other investments,      Various                    -          -   Valuation                     54 650              -      14 733        69 383           28.0          1.1       84 210          34.0         (17.6)
assets & liabilities
Cash / (Net debt)       100.0%                     -          -   Book value                    27 486    (2 170 582)            -   (2 143 096)       (863.8)          0.6   (2 132 147)      (860.5)           0.4

                                                                                              5 112 016   (2 170 582)     (62 426)    2 879 008        1 161.0        100.0    3 255 610       1 314.0         (11.7)



Intrinsic NAV per share (cents)                                                                  2 061         (875)          (25)        1 160
Fully diluted Intrinsic NAV per share (cents)                                                    2 024         (859)          (25)        1 140


  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)                                              (16 758 808)                       (12 280 092)
   Net shares in issue for Intrinsic NAV purposes                                                                      248 091 300                        252 570 016

 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.

14 December 2022

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.