Net Tangible Asset Backing (NTA)

As Argo's assets have a ready market value, the net tangible asset (NTA) value per share can be calculated by dividing the value of the net assets of the Company by the number of Argo shares on issue. The resultant value per share is known as the NTA backing and assists investors with their investment decision making process as they can guage whether the shares are selling on the Australian Securities Exchange at a premium or a discount to this figure.

The net tangible asset backing of Argo Investments Limited shares at 31 August, 2010 was $5.84 per share.

The Company is a long-term investor and does not intend disposing of its long-term investment portfolio. However, under current accounting standards the Company is required to provide for tax that may arise should the portfolio be disposed of on 31 August, 2010. After deducting this theoretical provision, the above figure would be $5.32 per share.

It should be noted that the monthly NTA backing data listed below is historic and has not been adjusted for share issues.