Lion Selection Group (ASX:LSX) increased its investment portfolio by 19% to A$108.2 million in FY2026, even as net profit fell 77% to A$8.9 million after an exceptional prior year. The resources investor enters the new year with A$36 million in cash and term deposits, but remains exposed to volatile junior mining valuations and unresolved litigation.
- A$108.2 million investment portfolio, up 19%
- Net profit falls 77% to A$8.9 million
- A$22.5 million deployed during FY2026
- Medallion, Sunshine and PhosCo deliver major valuation gains
- A$36 million in cash and term deposits
Portfolio value rises as profit normalises
Lion Selection’s investment book expanded by A$16.9 million during FY2026 to A$108.2 million, but the accounting profit attached to that growth was far smaller than last year’s windfall. Net profit fell 77% to A$8.9 million, from A$39.2 million, as fair-value gains dropped to A$11.1 million from A$44 million.
That comparison is unusually demanding: Lion’s FY2025 result included an exceptional re-rating across its junior resources holdings. The latest figures still leave the company with net tangible assets of 96.7 cents a share before tax, or 93.6 cents after tax, compared with 89 cents after tax a year earlier. Its share price ended the financial year at 85 cents, according to the annual report.
The result also reflects a portfolio that is partly marked to market rather than monetised. Of the A$11.1 million fair-value gain, A$10.1 million related to investments still held at year-end, while A$1 million came from assets realised during the year. Lion received A$19.9 million from investment sales and committed A$18.3 million to new investments.
Medallion, Sunshine and PhosCo lead gains
Medallion Metals was the standout contributor, adding A$5.1 million to Lion’s valuation after acquiring the Cosmic Boy processing plant and nearby Forrestania gold project. Lion said Medallion is repurposing the infrastructure to process ore from its Ravensthorpe polymetallic project, Forrestania and third parties.
Sunshine Metals added A$4.8 million after identifying and de-risking a shallow, high-grade gold zone at its Liontown project and acquiring the Mt Moss processing plant and nearby tenements. PhosCo contributed another A$4.6 million as it advanced the Gasaat Phosphate Project, including the KM prospect and support from the European Bank for Reconstruction and Development.
Those gains were partly offset by a A$2.9 million reduction in Brightstar, which Lion attributed to acquisitions and a substantial equity raising to develop its Goldfields Gold Project. Koonenberry fell A$2.6 million after slower discovery news at its Enmore Gold Project. The largest holdings by carrying value were Saturn Metals at A$35.9 million, Medallion at A$14.7 million and Antipa Minerals at A$13.1 million.
Cash provides room for further deals
Lion finished July with A$36 million in cash and term deposits, down from A$39 million a year earlier, after investing A$22.5 million and paying a fully franked special dividend of 2 cents a share, worth A$2.9 million. The company said it continues to assess high volumes of deal flow across Australian junior resources, while rationalising holdings where the original investment case has not developed as expected.
The balance sheet gives Lion capacity to keep backing development-stage assets, but the investment model remains highly sensitive to listed equity prices and commodity sentiment. The company disclosed that a 10% move in the value of its investment securities would have changed post-tax profit by approximately A$10.8 million at year-end. That sensitivity is the other side of the portfolio’s growth: a stronger resources cycle can lift reported earnings quickly, while a reversal can work just as efficiently in the opposite direction.
A separate risk remains the Supreme Court of Victoria proceeding brought by PT Prima Mineralindo Nusantara, which seeks an unspecified amount of damages over allegations linked to the Pani Gold Project. Lion and its officers deny the allegations. Mediation is due to conclude by 30 October 2026, while the court has set the matter down for trial on 8 November 2027. For Lion, the immediate investment question is whether its newer, more development-focused holdings can convert valuation gains into realised returns before the next resources-cycle turn.
Bottom Line?
Lion has more capital to deploy, but FY2026 shows how dependent reported earnings remain on fair-value movements and the timing of portfolio realisations.
Questions in the middle?
- Can Medallion, Sunshine and PhosCo convert their processing and development strategies into sustained production progress?
- How much of Lion’s current portfolio valuation can be realised through future investment sales?
- What financial or reputational consequences, if any, could emerge from the PT Prima litigation?