Net Asset Backing Update
New Zealand Exchange Limited
P.O. Box 2959
Wellington
14 January 2011
Dear Sir,
Widespread Portfolios Net Asset Backing
We wish to advise that the unaudited net asset backing per Widespread Portfolios share, as at 8 a.m. today, ranges from 42.5 cents to 45.9 cents.
The lower figure is based on the most recent sale price of AMR shares in Canada, the higher one is based on our share of AMR’s net assets. We consider the latter approach relevant as, despite recent dilution of our holding in percentage terms, we still hold a strategic stake and have both board representation in AMR and a continuing management influence.
We don’t consider the most recent sale price in Canada to be an accurate indicator of AMR’s enterprise value as the stock is very thinly traded. The top 20 AMR shareholders are long-term holders who collectively hold 98.6% of the company and most of the remaining smaller shareholdings are registered in New Zealand and are therefore not easily traded in Canada
Portfolio Weighting
As can be seen from the table below the AMR shareholding is no longer our key asset. Our direct and indirect holdings in the Chatham Rise Rock Phosphate Project continue to hold that position.
|
NET ASSET BACKING PER SHARE |
Per WID share |
Per WID share |
|
Investment |
AMR @ market |
AMR at share of NTA |
|
Chatham Rise Project (independent valuation) |
0.232 |
0.232 |
|
Asian Minerals (AMR) |
0.073 |
0.107 |
|
Widespread Energy (oil & gas assets) |
0.026 |
0.026 |
|
King Solomon Mines |
0.039 |
0.039 |
|
Other investments & cash |
0.055 |
0.055 |
|
Total ($NZ per WID share) |
0.425 |
0.459 |
|
Current WID share price |
0.160 |
0.160 |
|
Discount to Net Asset Backing |
62.3% |
65.2% |
Diluted Net Assets per share
Using the share of AMR’s net assets approach, the fully diluted NTA per WID share is 93 cents assuming the listed warrants are exercised @ $2.982 and the unlisted director-held warrants are exercised @ $3.282. All warrants expire on 30 June 2012.
Net asset data is also available on our website (www.widespread.co.nz) and is updated daily. For more information on the Chatham Rise project see www.rockphosphate.co.nz.
For and on behalf of the Board,
Chris D Castle
Onekaka, 14 January 2011
