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Brimstone Investment Corporation - N Shares (JSE:BRN) News - Voluntary Quarterly Intrinsic Net Asset Value (“NAV”) disclosure
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 2021 is set out below.
Summary Change 30 September 31 December 31 December 31 December 31 December
Dec 2020 to Sep 2021 2021 2020 2019 2018 2017
(%)
Intrinsic NAV of Brimstone (Rm) 2.8 3 376.9 3 284.8 3 349.3 3 899.6 4 317.9
Intrinsic NAV per share (cents) ¹ 4.9 1 362.8 1 299.3 1 419.3 1 615.1 1 800.9
Fully diluted Intrinsic NAV per share (cents) ¹ 4.5 1 340.6 1 282.7 1 410.3 1 598.8 1 750.9
Market price per share (cents)
Ordinary shares 11.9 650 581 765 1 050 1 300
‘N’ Ordinary shares (0.2) 649 650 775 949 1 125
Discount to Intrinsic NAV
Ordinary shares 52.3% 55.3% 46.1% 35.0% 27.8%
‘N’ Ordinary shares 52.4% 50.0% 45.4% 41.2% 37.5%
Intrinsic NAV analysis by asset
An analysis of the Intrinsic NAV of Brimstone as at 30 September 2021 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 September September Gross December December Increase /
held share price share (R'000) (R'000) (R'000) 2021 2021 portfolio 2020 2020 (Decrease)
at 30 price at Intrinsic Intrinsic weighting Intrinsic Intrinsic (%)
September 31 NAV (R'000) NAV per (%) NAV NAV per
2021 December share (R'000) share
2020 (cents) (cents)
Oceana² 25.0% 66.54 64.25 Market value per share 2 171 008 - - 2 171 008 876.2 38.9 2 096 292 829.2 5.7
Sea Harvest ² 54.2% 13.50 14.26 Market value per share 2 153 242 - - 2 153 242 869.0 38.6 2 274 461 899.7 (3.4)
Life Healthcare 3 0.0% - 16.82 Market value per share - - - - - - (452 883) (179.1) (100.0)
Life Healthcare Zero 100% - - Option valuation - - - - - - 268 883 106.4 (100.0)
Cost Collar
Equites 2.0% 20.63 17.37 Market value per share 287 966 - (23 600) 264 367 106.7 5.2 229 055 90.6 17.8
Phuthuma Nathi 2.8% 127.01 118.75 Market value per share 240 738 - (900) 239 838 96.8 4.3 225 082 89.0 8.7
Stadio 4 5.1% 3.17 1.95 Market value per share 138 101 - - 138 101 55.7 2.5 84 952 33.6 65.9
MTN Zakhele Futhi 1.5% 24.06 9.67 Market value per share 43 760 - 43 760 17.7 0.8 17 588 7.0 153.8
Milpark4 14.5% - - Market approach 70 429 (2 074) 68 354 27.6 1.3 45 807 18.1 52.2
Investment property 100.0% - - Capitalisation rate 57 500 - - 57 500 23.2 1.0 57 500 22.7 2.0
FPG Property Fund 9.9% - - Book value 218 968 - (19 298) 199 671 80.6 3.9 171 453 67.8 18.8
Aon Re Africa 18.0% - - PE valuation 69 906 - (13 871) 56 035 22.6 1.3 62 319 24.7 (8.3)
Obsidian4 70.0% - - Book value 75 568 - (8 527) 67 041 27.1 1.4 48 752 19.3 40.3
SAED4 25.0% - - Book value 59 849 - - 59 849 24.2 1.1 54 276 21.5 12.5
Other investments, Various - - Valuation (86 525) - 33 798 (52 727) (21.3) (1.6) 88 458 35.0 (160.8)
Assets & Liabilities4
Cash / (Net debt) 4 100.0% - - Book value 78 298 (2 167 480) - (2 089 182) (843.1) 1.4 (1 987 222) (786.1) 7.3
5 578 808 (2 167 480) (34 472) 3 376 856 1 363 100.0 3 284 773 1 299 4.9
Intrinsic NAV per share (cents) 2 251 (875) (14) 1 363
Fully diluted Intrinsic NAV per share (cents) 2 215 (861) (14) 1 341
Notes:
1. Based on 248 million shares (December 2020: 253 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 unvested FSPs) (17 061 451) (12 966 513)
Net shares in issue for Intrinsic NAV purposes 247 788 657 251 883 596
2. No CGT provided on shareholding in Sea Harvest and Oceana due to potential use of the corporate relief provisions of the Income Tax Act.
3. The Life Healthcare investment was disposed of to settle the related Zero Cost Collar funding.
4. Brimstone has amended the presentation of this Intrinsic NAV report to provide users with more relevant information in respect of its investment portfolio at 30 September
2021. Therefore, to achieve comparability with the current period, the Intrinsic NAV report as published for the year ended 31 December 2020 has been re-presented below.
There was no impact on the value of the respective assets.
R’000 31 December 2020 31 December 2020 Effect on Intrinsic NAV
Previous presentation Revised presentation
Stadio and Milpark 130 759 - (130 759)
Stadio - 84 952 84 952
Milpark - 45 807 45 807
Obsidian - 48 752 48 752
SAED - 54 276 54 276
House of Monatic 6 369 - (6 369)
Other investments 127 559 - (127 559)
Other investments, Assets and Liabilities - 88 458 88 458
Cash/(Net debt) (1 929 664) (1 987 222) (57 558)
Net effect on Intrinsic NAV -
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 2020, 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.
19 November 2021
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 19-11-2021 11:00:00
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