Corporate Presentation 2010


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Corporate Presentation 2010

  1. 1. A Premier Merchant Bank Focused on Building Resource Companies August 2010
  2. 2. Agenda • Company Overview • Our Business Model • Our Delivered Results 2
  3. 3. Overview of Forbes & Manhattan Leading Private Merchant Bank Focused on the Global Resource Sectors Headquartered in Toronto, Canada with Offices, Operations and Assets Across the Globe World-Class, Multi-Disciplinary Team of Professionals Successful Track Record of Identifying High Quality Assets and Advancing them from Discovery through to Production 3
  4. 4. Overview of Forbes & Manhattan Access to Timely Capital We finance early exploration to development companies across most resource sectors Fast Time to Close We have taken less than 4 weeks from a signed term sheet to transaction closing Integrated Leadership We take direct involvement at the Management, Board and Technical Advisory levels Extensive Investment Banking / Capital Raising Relationships Our network spans leading institutional funds, investment banks, private equity, retail brokers as well as senior industry professionals across the globe 4
  5. 5. What We Bring Industry Leading Technical Knowledge & Accomplished Financial Markets Professionals Stan Bharti Advisory Chairman & CEO Board Technical Legal Financial Admin / Team Team Team Accounting • Over 25 engineers • 4 full-time • Over 30 people • Over 15 • Over 25 geologists securities with expertise in accounting and lawyers – M&A administration • Expertise in all – Investment banking staff mining, energy & agriculture products – Corporate development – Investor relations 5
  6. 6. Who We Are A Qualified and Experienced Leadership Team Stan Bharti, P.Eng, Founder, Chairman and CEO • International financier with 30 years experience in mergers and acquisitions of resource companies George Faught, CA, COO David Argyle, MBA, Agriculture John Begeman, P.Eng, Mining David Gower, P.Geo, Mining Investment Banking & Mike Hoffman, P.Eng, Mining Transaction Team Allan Pickett, Agriculture Julian Bharti Rene Bharti Ahmed Said, P.Eng, Energy Dan Bruno Peter Tagliamonte, P.Eng, MBA, Mining Mark Eaton Simon Taylor, P.Geo, Agriculture Patrick Gleeson Fred Leigh Simon Marcotte Helio Diniz, Brazil Operations Scott Moore Li Feng, Asian Markets David Stein Aaron Wolfe Charles Mostert, African Markets Tony Wonnacott 6
  7. 7. Who We Are With an International Advisory Board General Lewis MacKenzie, Canada • Served in the Canadian Forces for 36 years; led the UN peacekeeping mission in Sarajevo Hon. Pierre Pettigrew, Canada • Served as Canadian Federal Minister of Foreign Affairs General Sir Michael Rose, U.K. • Former SAS Commander for the British Army and a highly decorated General General Jay Garner, U.S.A. • Served in the U.S. military for 36 years, including command of Air Missile Defense Units in the Gulf War Feneral Ron Hite, U.S.A. • Served 33 years in the U.S. military, culminating as Senior Military Advisor to the Army Chief of Staff General Chuck Wald, U.S.A. • Air Force, Deputy Commander, European Command including Africa General George Joulwan, U.S.A. • U.S. Army, Former Supreme Allied Commander, Europe General Tony Zinni, U.S.A. • U.S. Marines, Former Commander in Chief of U.S. Central Command – includes all Middle East Countries General Larry Gillespie, U.S.A. • Highly decorated, including Distinguished Flying Cross, Soldier‟s Medal and Meritorious Service Medal Peter Boot, South America • 25 years in the financial markets; 15 with ING Group in Brazil, Curacao, Venezuela, Paraguay and Bolivia 7
  8. 8. The F&M Group At A Glance Market Capitalization of F&M Group Companies >$4B Employees & Consultants >150 Group Companies >30 Total Funds Raised in last 4 Years >$3B Number of Resource Projects in F&M Group >40 Number of Producing Assets in F&M Group 7 Number of Countries F&M Group has Projects 22 8
  9. 9. The F&M Group At A Glance Forbes & Manhattan Forbes Forbes Forbes Forbes METALS & MINING AGRICULTURE ENERGY FINANCIAL GROUP GROUP GROUP GROUP Forbes Forbes BASE & PRECIOUS SPECIALTY METALS GROUP METALS GROUP China Mining United Fund 9
  10. 10. Agenda • Company Overview • Our Business Model • Our Delivered Results 10
  11. 11. Our Business Model 1. A clear focus: “stick 2. Disciplined to the knitting” investment & technical – we focus on what approach we know best − clear criteria 4. Deliver excellent 3. Build assets returns – strong active management 11
  12. 12. 1. A Clear Focus Resource Companies Are Our Core Business >30 companies with assets in 22 countries Full range of resource investments: precious metals, energy, fertilizer, bulk commodities Corporate Headquarters Regional Offices 12
  13. 13. 2. Disciplined Investment Approach We Know What We Are Looking For Excellent assets Significant growth potential Strong local and political relationships Long term ability to build assets Potential exit in 3-6 years 13
  14. 14. 3. Build Assets We are NOT We BUILD traders… Assets 14
  15. 15. 4. Deliver Excellent Results Select Success Stories with Tremendous Returns Price Per Share and Returns >$7.00 >$9.00 $7.00 >$1.00 $0.20 $0.22 $0.86 $0.20 Cost Sale Exit Cost Market Cost IPO Exit Cost Market (Mar „10) (Mar „10) • ~4,000% return in 4 • ~4,000% return over years • 715% return over • >400% return in less 4 years 2 years than 18 months • Sold to Yamana Gold • Market cap nearly $2B for $735M • Market cap $C1.5 B • Market Cap $230M 15
  16. 16. In Summary What Sets Forbes & Manhattan Apart • Extensive International Network – Political leaders, industry experts, strong technical and developmental team, financial experts, high net-worth individuals and institutional investors – Track record of securing Asian and other international financing and off-take agreements • Proven Business Model – First class team of specialists  take project from concept to operating success and have done this successfully numerous times – we are asset builders, not stock traders • Excellent Results – Ability to raise money on large scale and deliver outstanding results 16
  17. 17. Select List of Group Companies Primary Country Market Cap Company Name Main Product(s) of Operations (Recent) Constd. Thompson Canada Iron Ore $2,300M Desert Sun Mining Brazil Gold Production $735M Crocodile Gold Corp. Australia Gold Production $230M First Uranium Corp. South Africa Uranium & Gold $210M Avion Gold Corp Mali Gold Production $180M Vast Exploration Kurdistan (Iraq) Oil & Gas $155M Sulliden Gold Peru Near-Term Gold Producer $80M Crowflight Minerals Canada Nickel Production $116M Alexis Minerals Canada Gold Production $65M Belo Sun Mining Corp. Brazil Gold Production $70M Alderon Resource Corp. Canada Iron Ore $61M Largo Resources Brazil Strategic Metals $55M Longford Energy Canada Oil & Gas $40M Aberdeen Int'l Global Resource Investment $40M Allana Potash Ethiopia Potash $52M Rodinia Minerals U.S.A. Lithium $21M Apogee Minerals Bolivia Silver / Zinc $10M Dacha Capital N/A Rare Earth Investment $17M Newport Mining (ASX) Brazil Phosphate $15M Brazil Potash Corp. Brazil Potash Private Co. Forbes Coal South Africa Coal Private Co. Atlantic Potash Brazil Potash Private Co. 17
  18. 18. Contact Information Corporate Headquarters 65 Queen Street West Tel: +1 (416) 861-1685 Suite 805, P.O. Box 71 Fax: +1 (416) 861-8165 Toronto, Ontario, Canada M5H 2M5 If you wish to submit or discuss a specific idea, please submit your company information or business proposal to: 18
  19. 19. Agenda • Company Overview • Our Business Model • Our Delivered Results 19
  20. 20. Case Study: Desert Sun Mining Founded and Built Desert Sun Mining 1980 – 1999 1999 – 2001 2002 – 2006 Gold Producer Mining Suspended Desert Sun Ownership • Anglo-American • Low gold prices • Acquired property developed / operated in 2002 • Modernized operations • William Resources operated • Aggressive growth plan through exploration • Produced 700,000 • Built to production as a oz gold 100,000 oz / year producer 20
  21. 21. Case Study: Desert Sun Mining Key Steps in Developing Desert Sun Mining Date Key Step 2004 April Began Jacobina Mine redevelopment 2005 July Began commercial production at Jacobina 2005 September Formalized development plan 2005 December Increased resources in Jacobina Mine area through aggressive exploration 2006 April Sold to Yamana Gold for $735M 21
  22. 22. Case Study: Desert Sun Mining Realized Significant Value on Desert Sun Mining Result: Desert Sun Mining sold for $735M to Yamana Gold $1.00 DSM Share Price $0.00 3/2/2003 05/14/03 08/22/03 2/12/2003 11/3/2004 06/21/04 09/29/04 7/1/2005 04/19/05 07/28/05 7/11/2005 02/15/06 22
  23. 23. Case Study: Consolidated Thompson Founded Consolidated Thompson Iron Mines • World Class Iron Ore Project in Quebec • Production: Q1 2010 • Built from exploration stage in 2005 through development to 2010 production – Completed scoping study, 3 feasibility studies, secured off-take and financing with China and have all environmental permits in place • Market cap when F&M got involved was $1 million; built to current market cap of nearly $2 billion • Have raised approximately CAD$1 billion , including a strategic $240 million investment from Wuhan Iron & Steel Co. (WISCO) 23
  24. 24. Case Study: Consolidated Thompson Building Bloom Lake Iron Ore Mine Production: Q1 2010 24
  25. 25. Case Study: Consolidated Thompson Value Realized: Peak Market Cap over CAD$1 Billion >$9.00 • >4,000% return over 3 years • Market cap $2.3B $0.22 25
  26. 26. Case Study: First Uranium Created First Uranium Corporation • Focused on the development of its South African uranium and gold mines • Forbes & Manhattan cut the deal with Simmers & Jack as a uranium spin-off • Seed financed First Uranium at $0.86 per share • Initiated and completed a $7 per share IPO on the Toronto Stock Exchange with the assistance of RBC Capital Markets • Low-cost, near-term operator 26
  27. 27. Case Study: First Uranium Value Realized: Peak Market Cap CAD$1 Billion $10 - $12 • 1,400% return over 2 years • Peak Market cap $0.86 $C1.5B Cost Exited 2007 27
  28. 28. Case Study: Crocodile Gold Created / Turned Around Crocodile Gold Corp • New emerging gold producer – Northern Territory, Australia • Assets purchased by Forbes & Manhattan out of receivership – 4 mines (3 underground, 1 open pit) – NI 43-101 compliant reserves and resources of 4.4 million ounces gold – 2.5 million tonne per year mill – Exploration licenses and mining leases totaling >3,500 km2 • Low technical risk (recently producing assets – Nov. 2008, now back in commercial production) • Substantial potential to increase reserves and resources Northern Territory • Raised over CAD$100 million to date • Current Market Capitalization: $200 million 28
  29. 29. Case Study: Crocodile Gold Immediate Production Gold Production (000’s oz) >200,000 oz >100,000 oz 2009 2010 Future Commence production 29
  30. 30. Case Study: Avion Gold Founded Avion Gold Corp • Acquired Tabakoto / Segala mine in Mali, West Africa from Nevsun Resources mid 2008 for USD$20 million – current market cap CAD$192 million – Over $150 million in infrastructure spent by Nevsun: brand new mill, accommodations, roads and power facilities all in place • Avion, via its expert team, turned around the operation and is in production – 2.7 million ounce resource with significant exploration upside • Result: current market cap $192 million • We can build value in struggling assets where other cannot – our technical team is one of the best in the world MALI 30
  31. 31. Case Study: Avion Gold We Build Value Where Others Cannot Milling Facility – 96% Au recovery Fuel Supply – contracted Camp – houses 150 staff Power Supply – purchased 2008 31
  32. 32. Case Study: Avion Gold Production Ramping Up Gold Production (000’s oz) Potential to double production ~75,000 - 80,000 oz ~50,000 oz 2009 2010 Future 32
  33. 33. Case Study: Newport Mining Founded / Created Newport Mining Limited (ASX: NMN) • New emerging phosphate producer in Brazil • Conditional agreement to acquire 2 phosphate projects – Both in excellent locations close to infrastructure and in mining friendly jurisdictions • Lucenta Project has an initial exploration target of 40-50Mt @ average grade of 10- 14% P2O5 • Mata de Corda Project has outcropping mineralization with historical rock chip results of up to 23.2% P2O5 – Initial land position of 83,362 hectares with additional areas identified • Exceptional demand for phosphate – Brazil is a net importer (49%) of phosphate needs • Low technical risk – within 150 km of the 3 largest phosphate mines in Brazil • Potential to increase reserves and resources 33