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Aberdeen International Corporate Presesentation


Aberdeen International Corporate Presentation September

Aberdeen International Corporate Presentation September

Published in Economy & Finance , Business
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  • 1. A Global Resource Investment Company and Merchant Bank Own a Piece of Our ExperienceTSX:AAB OTCPS:AABVFSeptember 2011 A Forbes & Manhattan Group Company
  • 2. This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forwardlooking information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt ofall necessary approvals, the outcome of legal proceedings, the issue of permits, the size and quality of the company’s mineralresources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs,demand and market outlook for metals, future metal prices and treatment and refining charges, the financial results of the companythe future financial or operating performance of the Company, the prospective mineralization of the properties, planned explorationprograms, anticipated production schedule and terms and the availability and likelihood of future acquisitions. Generally, forwardlooking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "isexpected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations ofsuch words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "beachieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements of the Company to be materially different from those expressed orimplied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical andsocial uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry.Although the Company has attempted to identify important factors that could cause actual results to differ materially from thosecontained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. TheCompany does not undertake to update any forward-looking information, except in accordance with applicable securities laws.This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. Thesecurities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S.Securities Act and applicable state securities laws or an exemption from such registration is available.TSX:AAB 2
  • 3. Aberdeen’s Shareholders Own:1. Investment Portfolio ~ $102.3 M Market Value (July 31, 2011) ~ C$1.17* /share*Excludes value of two gold royaltiesTSX:AAB 3
  • 4. Dividend of $0.02/year to be paid2. Dividend – newly initiated semi-annually on March 31st and September 30th3. Gold Royalties paid quarterly >$500K • Taking companies public to4. Private & Performance Driven Upside improve portfolio liquidity/value • Bonus shares that will vest at No Cost upon performance milestones5. Ongoing high quality deal flow Supporting next generation of investmentsTSX:AAB 4
  • 5. Global resource investment company / merchant bank Focused on private, micro- and small-cap resource companiesUnique, value-added approach to investing Actively builds companies to unlock value targeting triple digit returns over 2-5 years Leverages Forbes & Manhattan’s infrastructure and deal flowBroad investment mandate in resource sector First Class Performance (2 Yr =258%)* Significant exposure to gold in current portfolio Exciting investments in other resource sectors*Jan. 31, 2011 results TSX:AAB 5
  • 6. 258% 2 Year 115% 83% 3 Year 1 Year*Jan. 31, 2011 results TSX:AAB 6
  • 7. $1.80$1.60$1.40$1.20$1.00$0.80 Portfolio Value Shareholders Equity$0.60 Stock Price$0.40$0.20$0.00 TSX:AAB 7
  • 8. Forbes & Aberdeen’s Manhattan’s Success Capital Expertise• Seed Level Financings • International Network • Enhanced Returns• Maintain Active Role • Geologists/Engineers • Proven Track Record• Public & Private • Legal/Admin/IR • Successfully growing Companies • Accounting the Portfolio Value Actively building companies and creating valueTSX:AAB 8
  • 9. Active Investment TargetsPrivateMicro-cap Seed financings Active role in management & BOD + 100% From initial Support financially in early stages investmentMerchant Banking Short-term investments Bridge financing + 10% pa + Warrants Fee incomeRoyalty Revenue Provides upside to higher gold prices $2.0 M - Backed by 8 Moz reserves and $2.5 M 25 Moz resources paTSX:AAB 9
  • 10. Our Active Strategy Lowers The Risk 1. We invest at “seed” level when valuation is at its lowest • Often we are involved structuring the deal for ourselves • Keep large warrant positions and/or debt for upside and protection 2. We maintain active role as a company partner • Assist management in early stages • Leverage F&M network to recruit key operational people • Retain board seat(s) 3. We offer diversification • Diversified over number of investments (commodity exposure, stage of development, etc.) • Maintain financial flexibility for new opportunities while giving shareholders good upside exposure to our successes.TSX:AAB 10
  • 11. Aberdeen’s recent success: $2.33 $2.02 $0.82 $0.57 Avg Cost Avg Cost $0.48 $0.26 $0.34$0.05 $0.14 Avg Cost Desert Sun Mining (Gold) Consolidated Thompson (Iron Ore)Forbes &Manhattan 3,750% return in 4 years 4,500% return in 3 yearssuccess: $735M sale price to Yamana Gold Production commenced Q1 2010TSX:AAB 11
  • 12. Asset Class By Commodity Public Equities Energy Warrants Gold & Precious Metals Cash *March 31, 2011TSX:AAB 12
  • 13. Black Iron Inc. (BKI-TSX) Excellent infrastructure  access to power, rail and port facilities Close to 5 other operating mines including Arcelor Mittal’s iron ore complex 814 MT of measured, indicated inferred resources at 31-32% iron Similar size and grade to Consolidated Thompson (Canada), recently sold for $4.9 billionTSX:AAB 13
  • 14. Temujin Mining  World class licenses covering 3 of the most exciting advanced projects on Oyu Tolgoi copper-gold belt in Mongolia  80 km strike length of strong copper and gold anomalies on 5 licenses  New work program starting on East Bronze Fox target (one of Ivanhoe’s former top exploration projects)  Good results from initial program in 2010TSX:AAB 14
  • 15. Aberdeen’s recent success: $7.0M $5.6M $4.3M $2.6M $2.6M $0.2M $1.0M $0.9M Cost Current Cost Current Cost Current Cost Current base Price base Price base Price base Price $1.55 $2.50 $0.94 $2.50 $0.10 $0.63 $0.10 $0.63 Current Performance Current Performance Shares Shares Vested VestedTSX:AAB 15
  • 16. Aberdeen compares favorably with the “better-known” resource investment companies Sprott Resource Pinetree Capital Corp. 1.3x Shareholders’ Equity (Dec 31, 2010) 0.5x SE (est.) 0.7x SE (Mar 31, 2011) 5-10 positions 20-30 positions 400+ positions • Large size, well financed, • Small market cap • Large size, liquidity brand name mgmt • Combination of liquid • Holds many passive • 40% in cash and gold public, private holdings, minority positions, • Equity accounting gold royalties marked-to-market (private holdings) means • ACTIVELY participates quarterly (good visibility) revaluation events are with management to • Shareholders’ equity rare optimize value and tracks TSXV index • Heavily weighted to protect interests • Little to no impact for agriculture and energy • Big investment wins individual positions • Expensive management have a material impact fees to shareholdersTSX:AAB 16
  • 17. Bull Market • Opportunistic for portfolio growth • Investments in private Bear Market companies • Unlock value by taking • Opportunistic from investment investments public and perspective corporate sales/mergers • Investments in distressed assets and public companies • Assist in restructuring to unlock valueTSX:AAB 17
  • 18. Aberdeen has a UNIQUE and SUSTAINABLE business model that needs to bebetter recognized PRIORITY #1 PRIORITY #2 PRIORITY #3 • Tell our story • Increase assets • Manage capital through enhanced under structure marketing efforts management • Execute regular • Continue to post • Increase liquidity share buybacks exceptional results and reduce market • Increase dividend • Cannot replicate risk • Pursue other our business with • Organic portfolio corporate growth public holdings, growth opportunities therefore large • 2012 warrants valuation gap is not ($37.5 mm) warranted • Sell royaltiesTSX:AAB 18
  • 19. PORTFOLIO GROWTH  New investments in precious metals, iron ore, coal, agri-minerals and energy set to continue the momentum in 2011  2 or 3 private investments to list in next 12 months – more value and liquidity  Forbes Coal and Aguia performance shares expected to vest shortly  Unique access to seed financings on great resource assetsCORPORATE GROWTH  Reducing discount to shareholder’s equity  Increasing AUM should increase liquidity and reduce discountTSX:AAB 19
  • 20. Contact Details David Stein Mike McAllister President & COO Manager, Investor Relations 416-861-5812 416-309-2134 dstein@aberdeeninternational.ca mmcallister@aberdeeninternational.caFollow us: A Forbes & Manhattan Group Company
  • 21. TSX:AAB 21
  • 22. Share Structure Major ShareholdersTSX:AAB Management &Shares Issued & OutstandingWarrants 87.5M 37.5M Directors 17%(Exercise price $1.00, Expiry Date June 6, 2012)Options 6.9MFully Diluted 131.9M US Global Investors Freestone CapitalShare Price (Sept 14, 2011)Market Capitalization $0.74 $64.8M TD Asset Mgmt Luxor Asset Mgmt 12%52 week High/Low $1.02/$0.43 Sentry Investments Dimensional Fund Shareholders’ Equity (Q2-11) = $1.42/share TSX:AAB 22
  • 23. Strong m anagem ent w ith a DEP TH of ex perience in the resource sector and a P ROVEN trackrecord at building com panies from the seed level through to highly successful ex its Management Team Board of Directors George Faught, C.A. Stan Bharti, P.Eng. Chief Executive Officer Executive Chairman David Stein, CFA, MSc. George Faught, C.A. President & Chief Operating Officer Director Ryan Ptolomy David Stein, CFA, MSc. Chief Financial Officer Director Richard Bishop Hon. Pierre S. Pettigrew Vice President of Investments Director Bernard Wilson, C.A. Director Mike Hoffman, P.Eng. Director Jean-Guy Lambert, MBATSX:AAB Director 23
  • 24. Our Active Strategy Lowers The RiskCastillian – legacy position,Aberdeen led restructuring andrefinancing with conv. deb ($0.06share + ½ wt $0.10). Unrealizedgain of 267% Sulliden – owned for 2+ yrs, added selectively to position Alexis – did not own it – Bought small positionTSX:AAB 24
  • 25. Investment Portfolio Top 5 holdings 1. Sulliden Gold Value at (July 31, 2011): 2. Temujin (Pvt) 3. Forbes & Manhattan Coal 20 other investments 4. Black Iron Agriculture C$ 102.3M 5. Allana Potash Oil & Gas Mining Top 5 holdings = 55% of PortfolioGold Royalties 8 Moz reserves Cash1% gold NSR 25 Moz resources Always evaluating new investments. Typical Buffelsfontein Mine entry point: US$2.2M (Simmers & Jack) Mine Waste Solutions Current net over next C$ 1-5M (First Uranium) 12 months TSX:AAB 25