Fairfax Africa Holdings Corporation

Second Quarter Financial Results - Seite 2

• Net loss of $4.2 million included a net change in unrealized losses on investments of $10.9 million, principally from decreases in the market price of the company's investment in Atlas Mara common shares ($7.3 million), GroCapital Holdings common shares ($6.8 million), its indirect equity interest in AGH ($6.0 million) and CIG common shares ($3.2 million), partially offset by unrealized gains on the Nova Pioneer Bonds ($4.2 million), Philafrica common shares ($3.3 million), CIG loan ($2.2 million) and net foreign exchange gains of $5.8 million reflecting a strengthening of the South African rand relative to the U.S. dollar.
  
  
• In the second quarter of 2020 the company advanced $39.1 million under the secured lending arrangement with Atlas Mara, which earns interest at a rate of 10% per annum and matures on March 31, 2021.
  
  
• On May 27, 2020 the company entered into a secured lending arrangement with Philafrica pursuant to which Fairfax Africa agreed to provide up to $8.6 million (150.0 million South African rand) of financing during a commitment period which ended on June 17, 2020. The facility will earn interest at a rate of South African prime plus 2.0% per annum and will mature on March 31, 2021. During the second quarter of 2020 the company advanced $5.7 million (100.0 million South African rand) under the facility.
  
  
• On June 30, 2020 the company invested an additional $1.8 million (32.0 million South African rand) in GroCapital Holdings. Upon completion of this transaction, the company had invested aggregate cash consideration of $19.4 million (285.7 million South African rand).
  
  
• During this period of uncertainty, Fairfax Africa remains in strong financial health, with sufficient undeployed cash and marketable securities of approximately $80 million.
  
  
• At June 30, 2020 common shareholders' equity was $391.0 million, or book value per share of $6.62, compared to $518.8 million, or book value per share of $8.72, at December 31, 2019, a decrease of 24.1% primarily related to the net loss in the first six months of 2020.

There were 59.0 million and 61.0 million weighted average shares outstanding during the second quarters of 2020 and 2019 respectively. At June 30, 2020 there were 29,032,975 subordinate voting shares and 30,000,000 multiple voting shares outstanding.