Announcement PDF CONTANGO MICROCAP LIMITED (CTN) MONTHLY NTA STATEMENT 31 JULY 2017 Contango Microcap Limited (CTN) is Australia’s longest running micro-cap LIC. The company was founded in 2004 and has delivered significant performance since its inception. The aim of the company is to achieve of a long term return over and above the benchmark ASX All Ordinaries Accumulation Index and to also pay regular and franked dividends. To achieve its objective, the fund invests in a diversified portfolio of ASX listed micro-cap stocks with a market cap of between $30 million and $350 million. The Company’s portfolio is managed by Contango Asset Management Limited. Contango Asset Management use a unique top-down and bottom-up investment approach that has delivered strong returns since inception. ASSET COMPOSITION ASSET COMPOSITION Report Date: 31 July 2017 ASX Code: CTN / CTNG Listed on ASX: 25 March 2004 Investment Manager: Contango Funds Management Ltd Benchmark: Small Ordinaries Index No. of stocks held: 88 Max cash position: 50% Stock universe: Market cap $30m-350m Portfolio size: $200.5 million Shares on issue: 168.088 million Share Price: $0.940 NET TANGIBLE ASSETS 30 JUNE 31 JULY 2017 2017 Investment Type $m % $m % Resources 43.4 26.9 39.1 24.0 Industrials 127.6 78.9 133.7 81.9 Equity index futures 7.8 4.8 10.0 6.1 Liquidity 18.4 11.4 17.0 10.4 Borrowings (Convertible notes) (26.2) -16.2 (26.2) -16.1 Tax liability (9.4) -5.8 (10.4) -6.3 $161.6 100.0 $163.2 100.0 Net Assets After Tax Ordinary Shares on Issue Convertible Notes on Issue KEY DETAILS 168.289M 168.088M 265,000 265,000 NET TANGIBLE ASSETS 30 JUNE 2017 31 JULY 2017 NTA of investments before tax $1.016 $1.033 NTA of investments before tax on unrealised gains $1.001 $1.014 NTA after tax $0.960 $0.971 Month-end closing share price (CTN.ASX) $0.900 $0.940 Month-end closing convertible note price (CTNG.ASX) $100.25 $100.50 Contango MicroCap Limited ABN 47 107 617 381 Phone: +61 3 9222 2333 . Address: Level 27, 35 Collins Street, MELBOURNE VIC 3000 E: info@contangomicrocap.com.au | W: www.contango.com.au MONTHLY PORTFOLIO UPDATE For the month of July 2017, the Contango Microcap fund returned 1.9% versus the Small Ordinaries (S&P/ASX Small Ordinaries index) of 0.3%, resulting in an outperformance of +1.6%. The Small Ordinaries index modestly outperformed the S&P/ASX 100 which reported a return of -0.02%. The month was characterized by a continued strong performance from small resources helped by mostly stronger commodity prices. Many industrial metal prices moved higher (Nickel +8.8%, Copper +6.9%, Zinc +1.2% all rose) which assisted fund performance given its exposure to this sector. Oil and iron ore also rose during the month. General economic indicators were mostly benign to modestly positive in July. Another factor was the rise in the AUD which hurts larger Australian businesses that derive earnings from offshore but are not linked to commodity prices. Generally smaller cap names derive less of their core earnings from offshore locations (apart from miners) and can therefore outperform bigger offshore earners when the AUD is strengthening. The best performing sectors were Energy (+5.8%), Utilities (+5.0%), Industrials (+3.3%) and Financials (+2.0%). The weakest performing sectors were Healthcare (-4.9%), Telecommunications (-3.8%), Real Estate (-2.4%) and Information Technology (-1.8%). Key positive contributors to the portfolio for the month included: Nearmap (+22%), RXP Services (+17%), Mt Gibson Iron (+34%) Oceania Healthcare (+14%), Australian Ethical Funds Management (+20%), Praemium (+20%), Silver Chef (+12%) Tawana Resources (+12%) Avanco Resources (+17%) and Red River (+6.6%). Key detractors over the month were: Blackham Resources (-32%), Catapult (-13%) Pacific Energy (-9%), Range (-33%), Beadell Resources (-14%), Programmed Maintenance^ (+62%) received a very generous takeover offer from offshore. A2 Milk^ (+10%), Metcash^ (+11%), Australia Oil and Gas (18%), and Mineral Resources^ (+13%). PERFORMANCE* PERFORMANCE CTN ASX SMALL PORTFOLIO ORDS ADDED VALUE 1 Months 1.9% 0.3% 1.6% 3 Months 0.8% 0.2% 0.6% 1 Year -11.5% -1.1% -10.4% Since Inception (Mar 2004) pa 14.1% 5.1% 8.9% TOP 10 HOLDINGS WEIGHT (%) CODE STOCK EML EML PAYMENTS LTD 3.0 ENN ELANOR INVESTOR 2.6 ASL AUSDRILL LTD 2.4 RVR RED RIVER RESOURCES 2.2 VLW VILLA WORLD LTD 2.1 ASB AUSTAL LIMITED 2.1 XIP XENITH IP GROUP LTD 1.9 RXP RXP SERVICES LTD 1.9 HPI HOTEL PROPERTY I 1.9 HUB HUB24 LTD 1.8 Source: Bloomberg SECTOR ALLOCATIONS SECTOR WEIGHT % Consumer Discretionary 9.6 Consumer Staples 6.7 Energy 3.8 Financials Ex-REITs 11.9 Health Care 8.2 Industrials 9.4 Information Technology 11.5 Materials 16.2 REITs 6.7 Telecommunication Services 2.0 Utilities 0.6 [Cash] 8.3 [Futures] 5.1 For enquiries please contact: Email: info@contangomicrocap.com.au NOTES * Past performance is not a predictor of future returns. ^ Denotes stocks not held in portfolio DISCLAIMER: Contango Microcap Ltd (CTN) has prepared this update for information purposes only related to the underlying investment portfolio. The NTA information in this document is unaudited and approximate. This document does not contain investment recommendations nor provide investment advice. Investors in LICs should understand the distinction between Investment Portfolio Performance, NTA Performance and Share Price return. Neither CTN nor its related entities, directors or officers guarantees the performance of, or the repayment of capital or income invested within CTN or any associated product. Contango Funds Management Limited ABN 52 085 487 421 AFSL No. 237119 is the investment manager of CTN. We strongly encourage you to obtain detailed professional advice and to read any relevant offer document in full before making any investment decision. CTN may not be suitable for your investment needs. This is not an offer to invest in any financial product.