Getting close to 4 mil dollars of assetsThe Company’s investment...

Getting close to 4 mil dollars of assets

The Company’s investment in Bentley Capital Limited (ASX:BEL), an Associated Entity (i.e. in which the
Company has a greater than 20% interest), is accounted for under the equity method in the consolidated
financial statements. Under the equity method, the carrying amount of such investment is cost plus a share
of the Associate Entity’s net profit or loss (after tax) for the financial year to month end as provided to the
Company by such Associated Entity. Refer also Note 23 (Investments in Associates) on pages 39 and 40 of
the Company’s 2019 Annual Report for further details in this regard.
Under the equity method of accounting for Associate entities, the Company’s carrying value of its
investment in BEL is reduced from historical cost as a consequence of the Company’s accumulated
recognition of BEL’s net losses. The Company is not required to carry the BEL investment at a negative value
(ie. below Nil) and if BEL should generate net profits in the future (after reducing the carrying value to Nil),
the Company will recognise a share of BEL’s net profits in this regard under the equity method, which will
permit the Company to start recognisng a positive carrying value for BEL.
Accordingly, as at 30 June 2020, the Company’s 20,513,783 shares (26.95% interest) (31 May 2020: 20,513,783
shares and 26.95%) in BEL have a $0.17m carrying value; this compares with BEL’s last bid price on ASX of
$0.035 per share ($0.718m) and BEL’s after-tax NTA backing of $0.0684 per share ($1.4m)1, as at month end.
(2) The fair value of investments in ASX-listed Strike Resources Limited (ASX:SRK) comprise 10,000,000 shares (31
May 2020: 10,000,000 shares) with a value of $0.052 per share (based on the closing bid price as at 30 June
2020) (31 May 2020: $0.05