26 May - 4 min read

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

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 31 March 2021 is set out below.

Summary                                                                    Change          31 March          31 December             31 December    31 December    31 December
                                                             Dec 2020 to Mar 2021              2021                 2020                    2019           2018           2017
                                                                              (%)
Intrinsic NAV of Brimstone (Rm)                                               5.5           3 466.2              3 284.8                 3 349.3        3 899.6        4 317.9
Book NAV (Rm)                                                                 0.7           2 509.8              2 491.3                 2 516.2        2 713.4        2 782.0
Intrinsic NAV per share (cents) ¹                                             5.2           1 367.2              1 299.3                 1 419.3        1 615.1        1 800.9
Fully diluted Intrinsic NAV per share (cents) ¹                               4.9           1 345.4              1 282.7                 1 410.3        1 598.8        1 750.9
Book NAV per share (cents)                                                    0.5             989.9                985.5                 1 066.3        1 123.8        1 160.3
Market price per share (cents)
   Ordinary shares                                                           10.7               643                  581                     765          1 050          1 300
   ‘N’ Ordinary shares                                                       12.3               730                  650                     775            949          1 125
Discount to Intrinsic NAV
  Ordinary shares                                                                             53.0%                55.3%                   46.1%          35.0%          27.8%
  ‘N’ Ordinary shares                                                                         46.6%                50.0%                   45.4%          41.2%          37.5%

Intrinsic NAV analysis by asset

An analysis of the Intrinsic NAV of Brimstone as at 31 March 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      March 2021   March 2021      Gross    December   December  Increase /
                         held  share price        share                                (R'000)       (R'000)     (R'000)      Intrinsic    Intrinsic  portfolio        2020       2020  (Decrease)
                               at 31 March     price at                                                                     NAV (R'000)      NAV per  weighting   Intrinsic  Intrinsic         (%)
                                      2021           31                                                                                        share        (%)         NAV    NAV per
                                               December                                                                                      (cents)                (R'000)      share
                                                   2020                                                                                                                        (cents)
 Oceana²               25.01%        66.00        64.25   Market value per share     2 153 389             -           -      2 153 389       849.3       35.8    2 096 292      829.2         2.4
 Sea Harvest ²          54.2%        15.00        14.26   Market value per share     2 393 491             -           -      2 392 491       943.6       39.7    2 274 461      899.7         4.9                   
 Life Healthcare 3       0.6%        18.50        16.82   Market value per share       152 618     (228 736)    (30 348)      (106 465)      (42.0)        2.5    (452 883)    (179.1)      (76.6)
 Life Healthcare         100%                             Option valuation              75 664             -    (16 949)         58 716        23.2        1.3      268 883      106.4      (78.2)
 Zero Cost Collar 4
 Equites                 2.2%        18.83        17.37   Market value per share       262 841             -    (17 972)        244 869        96.6        4.4      229 055       90.6         6.6
 Phuthuma Nathi          2.8%       133.00       118.75   Market value per share       252 091             -     (3 443)        248 648        98.1        4.2      225 082       89.0        10.2
 Stadio & Milpark        5.2%         2.85         1.95   Market value per share       169 967             -           -        169 967        67.0        2.8      130 759       51.7        29.6
                                                          & cost
 Investment            100.0%                             Capitalisation rate           57 500             -           -         57 500        22.7        1.0       57 500       22.7       (0.3)
 properties
 FPG Property            9.9%                             Book value                   202 477             -    (15 604)        186 873        73.7        3.4      171 453       67.8         8.7
 Fund
 MTN Zakhele Futhi       1.5%        13.45         9.67   Market value per share        24 463             -           -         24 463         9.6        0.4       17 588        7.0        38.7
 Aon Re Africa          18.0%                             PE valuation                  69 906             -    (13 871)         56 035        22.1        1.2       62 319       24.7      (10.3)
 House of Monatic      100.0%                             Adjusted book value            6 369             -           -          6 369         2.5        0.1        6 369        2.5       (0.3)
 Other investments    Various                             Valuation                    132 864             -    (10 384)        122 480        48.3        2.2      127 559       50.5       (4.3)
 Cash / (net debt)     100.0%                             Book value                    69 760   (2 139 894)    (78 969)    (2 149 103)     (847.7)        1.2  (1 929 664)    (763.3)        11.0
                                                                                     6 022 401   (2 368 629)   (187 540)      3 466 232       1 367      100.0    3 284 773      1 299         5.2



 Intrinsic NAV per share (cents)                                                         2 375         (934)        (74)          1 367
 Fully diluted Intrinsic NAV per share (cents)                                           2 338         (919)        (73)          1 345

 Notes:
 1. Based on 254 million shares (December 2020: 253 million shares) in issue, net of treasury shares as calculated below:
                                                                                                                                                    Number of shares in        Fully diluted number
                                                                                                                                                                  issue                   of shares
 Gross number of shares in issue                                                                                                                            264 850 108                 264 850 108
 Treasury shares (fully diluted number is net unvested FSPs)                                                                                               (11 313 861)                 (7 218 923)
 Net shares in issue for Intrinsic NAV purposes                                                                                                             253 536 247                 257 631 186

 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. Brimstone has entered into a securities lending arrangement with Nedgroup Securities. At the end of the lending arrangement, Nedgroup Securities will be obligated to return the shares to
    Brimstone.
 4. The Zero Cost Collar derivative over the Life Healthcare investment was valued as at 31 March 2021.

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.

26 May 2021

Sponsor

Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 26-05-2021 02:00:00
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