Abderdeen International Corporate Presentation


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Abderdeen International Corporate Presentation

  1. 1. A Global Resource Investment Company and Merchant Bank Own a Piece of Our ExperienceTSX:AAB OTCPS:AABVFJune 2012 A Forbes & Manhattan Group Company
  2. 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. 3. 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 (67% IRR Since Inception, 4.5 Years) Significant exposure to gold in current portfolio Exciting investments in other resource sectors TSX:AAB 3
  4. 4. Aberdeen’s Shareholders Own:1. Investment Portfolio ~ $61.8 M Market Value (April 30, 2012) ~ C$0.71* /share*Excludes value of two gold royaltiesTSX:AAB 4
  5. 5. Dividend of $0.02/year to be paid2. Dividend – 4.0% Yield semi-annually on March 31st and September 30th ~$500-700K3. Gold Royalties paid quarterly* *Royalty Sold effective May 31st • Bonus shares that will vest at No4. Performance Driven Upside Cost upon performance milestones on several holdings5. Ongoing high quality deal flow Supporting next generation of investmentsTSX:AAB 5
  6. 6. 121% 3.0 Years Since Oct 2009 67% 4.5 Years Since Incept.TSX:AAB 6
  7. 7. Portfolio Value Shareholders Equity Stock Price $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 2008 2009 2010 2011 2012TSX:AAB 7
  8. 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. 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 Fee income + WarrantsRoyalty Revenue* Provides upside to higher gold prices Backed by 8 Moz reserves and 2.5+ $ M pa 25 Moz resources * Deal Pending for Gold Royalty SaleTSX:AAB 9
  10. 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. 11. Bull Market• Opportunistic for portfolio growth• Investments in private companies Bear Market• Unlock value by taking • Opportunistic from investments public and investment perspective corporate sales/mergers • Investments in distressed assets and public companies • Assist in restructuring to unlock value TSX:AAB 11
  12. 12. Aberdeen’s recent success: $2.32 $1.18 SOLD (Exited position at $1.80-$2.32) Avg Cost $0.48 $0.26 $0.34 $0.14 Avg CostForbes & Desert Sun Mining (Gold) Consolidated Thompson (Iron Ore)Manhattan 3,750% return in 4 years 4,500% return in 3 yearssuccess: $735M sale price to Yamana Gold $ 4.9B sale price to CliffsTSX:AAB 12
  13. 13. Asset Class By Commodity Public Private Equities Gold & Precious Metals Strategic *February 29, 2012TSX:AAB 13
  14. 14. Sulliden Gold (TSX-SUE) Canadian-based gold development company with assets in Peru Developing the Shahuindo Gold Project, its 100%-owned flagship property located in a prolific gold producing district in northern Peru, close proximity to Barrick’s Lagunas Norte and Newmont’s Yanacocha operating mines Low cost, low capital mining scenario, forecasting production of ~150,000 oz per year, financed to construction Feasibility study underway with expected completion by fall 2012 TSX:AAB 14
  15. 15. TSX-v: EAS  Engaged in the exploration, acquisition and development of mineral properties in Asia with a key focus on Indonesia and Mongolia  Current focus on the multi-million ounce Miwah high sulfidation epithermal gold deposit located in Aceh, Indonesia. Currently @ 3.28 MMoz  In 2011, East Asia Minerals became a member of the Forbes & Manhattan Group of CompaniesCapital StructureCommon Shares 110,221,582Warrants 29,950,000Options 6,708,000Fully Diluted 146,879,58252-wk High/Low $8.24 / $0.41Market Cap C$65 million TSX:AABCash C$19 million 15
  16. 16. 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 • Sold gold royalties share buybacks exceptional results for $20.9 million • Increase dividend• Cannot replicate our (May 31, 2012) • Pursue other business with public • Increase liquidity corporate growth holdings, therefore and reduce market opportunities large valuation gap is risk not warranted • Organic portfolio growth • 2012 warrants ($37.5 mm)TSX:AAB 16
  17. 17. PORTFOLIO GROWTH  Sale of gold royalties (closed May 31st) will provide new cash for investment into high quality, extremely undervalued world class assets.  New investments in precious metals, iron ore, coal, agri-minerals and energy set to continue the momentum in 2012  3 – 4 private investments to list in next 12 months – more value and liquidity  Performance shares expected to vest for Aguia and Forbes Coal  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 17
  18. 18. Contact Details David Stein Mike McAllister President & COO Manager, Investor Relations 416-861-5812 416-309-2134 dstein@aberdeeninternational.ca mmcallister@aberdeeninternational.ca www.aberdeeninternational.ca Follow us:TSX:AAB A Forbes & Manhattan Group Company
  19. 19. TSX:AAB 19
  20. 20. Share Structure Major ShareholdersTSX:AAB Management &Shares Issued & OutstandingOptions 86.5M 6.0M Directors 15%Fully Diluted 92.5M AXA US Global InvestorsShare Price (June 6, 2012) $0.44 Freestone CapitalMarket Capitalization $38.1M TD Asset Mgmt Sentry Investments 11%52 week High/Low $0.92/$0.40 Dimensional Fund Meyer Handelman Shareholders’ Equity (Jan 31, 2012) = $1.12/share TSX:AAB 20
  21. 21. Strong management with a DEPTH of experience in the resource sector and a PROVEN trackrecord at building companies from the seed level through to highly successful exits 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 Ptolemy 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 21
  22. 22. Aberdeen compares favorably with the “better-known” resource investment companies Sprott Resource Pinetree Capital Corp. 0.9x Shareholders’ Equity (March 31, 2012) 0.5x SE (est.) 0.5x SE (April 30, 2012) 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 shareholders • Pay dividendTSX:AAB 22
  23. 23. F&M Provides Industry Leading Technical Knowledge & Accomplished Financial Markets Professionals Technical Legal Financial Admin / Team Team Team Accounting • Over 25 engineers • 6 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 & – Corporate agriculture products development – Investor relations Financing World class team Proven track Marketing record M&A Actively building companies and creating valueTSX:AAB 23
  24. 24. Investment Portfolio Top 5 holdings 1. Sulliden Gold Value at (April 30, 2012): 2. Belo Sun 3. Forbes & Manhattan Coal 20 other investments 4. Brazil Potash Agriculture C$ 61.8M 5. Black Iron Oil & Gas Mining Top 5 holdings = 51% of PortfolioGold Royalties* 8 Moz reserves Cash1% gold NSR 25 Moz resources Always evaluating new investments. TypicalBuffelsfontein Mine entry point: US$2.5M(Simmers & Jack)Mine Waste Solutions Current net over next C$ 1-5M(First Uranium) 12 months * Gold Royalty Sold (May 31, 2012)TSX:AAB 24
  25. 25. Scandinavian Metals Castillian Silver Bear Pitch Black Cap-Ex Alexis Cap-Ex Desert Eagle Alderon Sulliden Black Iron Castillian East Asia Alexis Alexis East Asia Rodina Copper One Longford Copper One TemujinBell Copper Dacha Vast Exploration Copper OneBell Copper Sagres Alder Resources Sagres Allana Brazil Potash East Asia Sagres Belo Sun East Asia Aguia Sulliden Aguia Castillian Largo Aguia Rodina Irati Forbes Coal Legacy Platinum Allana F&M Headquarters Fertilizer/Ag Output Forbes Offices Iron Ore/ Specialty Metals Energy Strategic MetalsTSX:AAB Precious & Base Metals
  26. 26. TSX: BKI  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% ironCapital Structure  Similar size and grade to ConsolidatedCommon Shares 57,414,132 Thompson (Canada), recently sold for $4.9Warrants 21,829,348 billionOptions 6,871,999  Experienced Management TeamFully Diluted 86,115,47952-wk High/Low $1.16 / $0.25Market Cap $42 million TSX:AAB 26
  27. 27.  Iron ore company with significant landholding inTSX-v: CEV the Labrador Trough, near Schefferville, Quebec. The company is focused on the development of its wholly owned Block 103 property  Management led by former Consolidated Thompson.  Huge land position of 121,000 hectares with access to existing and planned infrastructureCapital Structure  Flat lying iron ore sheet at surface covering 12kmCommon Shares 57,414,132 by 2km area based on 26 drill holes with averageWarrants 21,829,348 drill indicated width of 110m and average gradeOptions 6,871,999 of 30.5% FeFully Diluted 86,115,479  2011 exploration drilling program completed52-wk High/Low $1.25 / $0.25 6,000 meters. 15,000 meters planned for 2012Market Cap $25 million  NI 43-101 resource expected December 2012 TSX:AAB  PEA expected March 2013 27
  28. 28. Strategic Platinum Holdings in South Africa A growing platinum company in the midst of acquiring exploration and development assets on the Bushveld complex in South Africa with a focus on platinum with by-products (palladium, rhodium, vanadium, chromium, nickel) 21.9% of Sable Platinum Holdings (~178MMoz 4PGMs) on the Doornpoort, Klipfontein, Syfterfontein, Bank, and Abrina projects Recent acquisition of Naboom Platinum Mine, South Africa’s first platinum mine which produced during the 1920’s via shallow underground and open pit mines with little modern exploration to date. Near surface mineralization with exceptionally high grades (7-20 g/t) Looking for fit between short-term production at Naboom and long-term potential of Sable Platinum. Constantly evaluating additional opportunities in current market TSX:AAB 28
  29. 29. Gold and Base Metals in Sweden & Norway  Resource stage polymetallic project in Norway  Early to advanced stage exploration projects in Sweden  Skellefte Field, Sweden: 100% interest in > 23,180 hectares with multiple VMS targets  Bergslagen, Sweden: 100% interest in 10,766 hectares adjacent to world- class VMS-skarn type deposits of over 100MT  Grong Area, Norway: 40% interest in 14,067 hectares with multiple VMS deposits  Proposed dual listing on TSX-v andTSX:AAB Sweden within 12 months 29