Lion Selection Group provides a listed, expertly managed exposure to the high-risk/high-reward junior mining sector, where a long-term view and portfolio approach are vital:
- A specialist investor – ASX listed investment company focused on junior mining and exploration companies.
- A Board of Directors with extensive mining industry, company administration, finance and mining investment experience.
- Lion captures the structural and portfolio benefits of being a listed investment company combined with the proven and successful investment process and track record of Lion Manager Pty Limited.
- Directors and Lion Manager are aligned with shareholders through ownership.
- The investment philosophy of Lion supports investments through the project assessment and development phase, generally exiting after project completion and a meaningful value re-rating.
- With a track record spanning more than 15 years and comprehensive experience in mining and finance, Lion Selection Group has become a focal point for mining investment opportunities – across all global exchanges and many unlisted companies.
History
Lion Selection Group was founded in 1997 to invest in the broad but poorly understood sub-sector of mining – junior resources companies. The name Lion Selection Group Limited was chosen as a name to reflect the culture and philosophy of the organisation:
- Lion – watchful, aggressive and searching.
- Selection – carefully picking opportunities and people and backing them.
Inspiration was taken partly from a highly successful mining development company named Selection Trust Ltd, which was formed in London by Chester Beatty at the start of the 20th century when technology assisted mining to grow on a global scale for the first time. The breakdown of geographical barriers and the easing of political structures in the late 20th century followed by the emergence of the Chinese economy in the early 21st century has provided a similar opportunity.
Lion Selection Group invests on similar principles as Chester Beatty’s Selection Trust, setting a high standard for project selection from the universe of global opportunities, combined with highly skilled, experienced and motivated people.
Over a history spanning more than 15 years, Lion Selection Group has produced substantial returns to shareholders, totalling more than $3.20/share (on top of the value of a Lion share).
Lion’s milestones
| 1997 | Lion Selection Group was founded by Robin Widdup and listed on ASX (ASX:LSG), raising $100m with Lion Manager Pty Limited as investment manager. |
| 1999 | Lion invests in African Lion, a geographically focused fund also managed by Lion Manager, alongside a grouping of development banks. |
| 2004 | AuSelect listed on ASX to make follow-on investments in companies where further investment by Lion was restricted by its Pooled Development Fund status. African Lion 2 was formed on the back of a successful African Lion Fund, with a similar grouping of shareholders. |
| 2006 | Asian Lion Fund formed to replicate the concept of Lion investing alongside development banks, this time focused in Asia. AuSelect took over Sedimentary Holdings (ASX:SED), and thereby became 30% joint venture partner with Newcrest at the Cracow Gold Mine. |
| 2007 | AuSelect merged with Lion Selection Group to form Lion Selection Limited (ASX:LST), which simultaneously ceased to be a Pooled Development Fund. |
| 2008 | African Lion 3 formed to continue the Lion/development bank investment alliance into Africa. Lion undertook an off-market buyback returning $150m to shareholders. |
| 2013 | After three years on NSX, Lion relisted on ASX as Lion Selection Group (ASX:LSX). |
Returns to shareholders
| Date | Type | Amount cps |
|---|---|---|
| February 2002 | Dividend | 3 |
| February 2003 | Dividend | 3 |
| October 2003 | Dividend | 8 |
| February 2004 | Dividend | 3 |
| May 2004 | Dividend | 10 |
| February 2005 | Dividend | 10 |
| February 2006 | Dividend | 10 |
| December 2006 | Dividend | 27 |
| February 2007 | Dividend | 10 |
| February 2008 | Dividend | 3 |
| December 2008 | Off Market Buyback | 811 |
| December 2009 | Cash return | 10 |
| December 2009 | Catalpa Spin Off | 1552 |
| Total distributions 1997 - present | 333 |
Notes:
1. $149,982,734.06 (total funds returned) ÷ 184,197,983 (shares on issue prior to the buyback) = $0.81/share.
2. $1.55/share is the closing price of Catalpa on 11 December 2009, the first day Catalpa could be traded after completion of the Lion demerger.
