General Discussion Topics, page-3160

Like several other similar fund managers, Lion Selection Group have stated that they are sitting on the sidelines waiting to pounce on microcap mining companies when the time is right. They are already shareholders in GBR and have $76m cash to invest. They have been scouring through 511 ASX metals companies with market caps less than $50m to come up with a short list which includes GBR.

Lion Selection Group are not the only ones though. We also have Collins St who are now our number one holder on our register which I understand would like to further increase their holding. I also know of another small manager in Perth with $100m to invest in the WA microcap gold sector and GBR is one of those they may be considering.

At current prices just $7m would take a fundie to the 20% pre-takeover threshold. A buy of just half this size will soak up much of our free stock and with other fundies waiting in the wings they wouldn't want to wait much longer, better to get in ahead of the competition to avoid chasing the price higher. I also noticed that Collin's St now own around 12% of CMO and that's another company that could really push higher, I still have a lot of confidence in the Mt Venn project.

Yes ... we are in the doldrums right now no doubt, but things could turn quickly when the time is right, and I believe this may be our year.

Some extracts from the Lion Selection Group Report to their shareholders:

(click link to read the full report - Lion Selection Group Report September 2023 - 02735733.pdf (weblink.com.au)

"Weakening equity market conditions are reducing the price of micro-capitalisation resources companies at a time where Lion is very well funded, creating a once-in-a-cycle investing opportunity"

"Lion has $76.1M net cash which is earning a strong return of interest while its purchasing power (for investing in micro-cap resources companies) has increased strongly over the past 18 months as the market (especially for micro-cap resources companies) has weakened."

"Lion is extremely well positioned to benefit from the eventual recovery in the mining cycle. We are well-funded and have a clear focus, with the ability to be opportunistic as markets weaken."

"Lion has added five new names to the portfolio since exiting Pani, making $5.75M of new investments in 2022 and 2023. This activity has seen a heavy weighting toward pre-development gold companies, which are amongst the most contrarian opportunities in the market at present".

"Lion invested in Great Boulder Resources (ASX:GBR) in April 2022 and followed this investment in March 2023, then invested in Alto Metals (ASX:AME) in July 2023. These companies share similar characteristics in their investment thesis. Both are strongly exposed to the theme of consolidation in the Western Australian gold sector and contain relatively shallow established gold Resources.

Both have delivered growth in Resources during 2022 and 2023 and have attractive targets to test to potentially add to their respective mineral inventories, within large areas of historically under- (or un-) explored greenstone geology under their control. Lion has always been attracted to gold
investments for their low risk profile, as gold is typically far easier to separate and sell than other commodities and both of these investments have the potential for multiple commercialisation scenarios."