Aberdeen Corporate Presentation


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Aberdeen Corporate Presentation - November

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Aberdeen Corporate Presentation

  1. 1. A Global Resource Investment Company and Merchant Bank TSX:AAB November 12, 2010 A Forbes & Manhattan Group Company
  2. 2. TSX:AAB This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the proposed use of the proceeds of the financing, the receipt of all necessary approvals, the outcome of legal proceedings, the issue of permits, the size and quality of the company’s mineral resources, 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 company the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms and the availability and likelihood of future acquisitions. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social 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 those contained 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 materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company 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. The securities 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. 2
  3. 3. TSX:AAB 3 Global resource investment company / merchant bank Focused on private, micro- and small-cap resource companies Unique, value-added approach to investing Actively builds companies to unlock value Targeting triple digit returns Benefits from Forbes & Manhattan’s infrastructure and deal flow Broad investment mandate in resource sector Significant exposure to gold in current portfolio Exciting investments in energy, metals, bulks, agriculture
  4. 4. TSX:AAB4 ~$86MInvestment Portfolio Market Value (Oct 31/10) ~C$0.99* /share 1. *Excludes value of two gold royalties, adjusted to reflect buy-back post Q2 Aberdeen’s Shareholders Own:
  5. 5. TSX:AAB 5 >$500K Gold Royalties paid quarterly2. 3. Forbes Coal Brazil/Amazon Potash Temujin Mining, etc. Private investment upside Taking public to improve portfolio liquidity/value 4. Ongoing high quality deal flow Supporting next generation of investments
  6. 6. TSX:AAB 6 Technical Team Financial Team Legal Team Back Office Forbes & Manhattan expertise Over 80 professionals in Toronto plus international operations teams Forbes & Manhattan benefits: Financing Marketing M&A World class team Proven track record Actively building companies and creating value
  7. 7. TSX:AAB 7 Merchant Banking Short-term investments Bridge financing Fee income Shells Royalty Revenue Provides upside to higher gold prices Backed by 8 Moz reserves and 25 Moz resources Private Micro-cap Seed financings Active role in management & BOD Support financially in early stages Active Investment +100% From initial investment +10% pa + Warrants $2.0M - $2.5M pa Targets
  8. 8. TSX:AAB  Source high potential resource deal  “Seed financing”  AAB provides managed risk capital 8  Develop business plan  Build management team/BOD  AAB acts as care taker management  Identify capital requirements  Early-stage (pre-IPO) financing  AAB participates  Execute business plan  GO PUBLIC Actively creating value for shareholders
  9. 9. TSX:AAB 9 Aberdeen’s recent success: $0.26 $1.49 $0.48 Avg Cost $0.20 $1.42 $0.52Avg Cost Forbes & Manhattan success: 3,750% return in 4 years 4,500% return in 3 years Desert Sun Mining (Gold) Consolidated Thompson (Iron Ore) $735M sale price to Yamana Gold Production commenced Q1 2010 $0.14 $1.02 $0.34Avg Cost
  10. 10. TSX:AAB 10 Gold Royalties Equity Portfolio Cash 1% gold NSR Buffelsfontein Mine (Simmers & Jack) Mine Waste Solutions (First Uranium) 8 Moz reserves 25 Moz resources US$2.2M Current net over next 12 months C$41.9M Value of top 5 holdings (Oct 31, 2010): 1. Sulliden Gold 2. Crocodile Gold 3. Temujin Mining (PVT) 4. Forbes Coal 5. Avion Gold 20other investments Agriculture Oil & Gas Mining C$1-5M Always evaluating new investments. Typical entry point:
  11. 11. TSX:AAB 11 Asset Class Cash Public Equities Private Gold & Precious Metals Public Equities & Warrants By Commodity *July 31, 2010
  13. 13. TSX:AAB 13 F&M “Forbes” Coal  Export grade coal from two mines, producing 0.5 million tonnes per year saleable  Excellent infrastructure  close to ports  Can TRIPLE production in 2-3 years, strong financial position  Diverse product lines – both thermal and metallurgical markets  Future growth projects in Southern Africa  Public listing completed in September (FMC-TSX)
  14. 14. TSX:AAB 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 6 licenses  Limited drilling, no work done since 2005, vastly improved geopolitical climate  Drilling started August 2010 - $1.5 MM program underway
  15. 15. TSX:AAB 15 Aberdeen’s recent success: $0.70M $1.61M $0.71M $3.86M Cost base $0.26 Current Price $0.60 Cost base $0.11 Current Price $0.60 Performance Shares Vested Performance Shares Vested Performance Shares Vested $2.64M $5.37M $2.64M $8.84M Cost base $1.55 Current Price $2.80 Cost base $0.94 Current Price $2.80 $0.15M $0.91M $0.90M $5.39M Cost base $0.10 Current Current Price $0.60 Cost base $0.10 Current Price $0.60 Current Current
  16. 16. TSX:AAB 16 Portfolio Leveraged To Gold And Junior Market Private Holdings To Deliver And Unlock Value  Forbes Coal listed in September  Amazon Potash to spin off three companies (Aguia, Potash Atlantico, Brazil Potash)  Two expected to be public by year-end  Additional pleasant surprises coming from other holdings  Temujin now drilling, will continue to incubate for huge potential  Gold holdings have performed exceptionally well since August. (SUE up 106% in 3 months)  Large warrant positions provide additional leverage  We do not manage the portfolio for the short-term!  Exceptional upside as markets improve and companies execute
  17. 17. TSX:AAB 17 Investor Relations Business Growth  World-class website (Launched August, 2010)  New focus by management to market our great story and our successes/resource investment outsourcing  Focus on retail and small/generalist institutions  Vesting of performance shares/warrants  More success expected from pre-IPO investments  JV funds to accretively accumulate assets – ‘early days’ Corporate Activity  Continue share buy-back  Result from Simmer & Jack litigation
  18. 18. TSX:AAB 18 Share Structure Major Shareholders Management & Directors RAB Capital Top Gold US Global 14% Shareholders’ Equity (Q2) = $1.12/share* Share Price (Nov 12, 2010) $0.61 Market Capitalization $52.1M 52 week High/Low $0.65/$0.32 TSX:AAB Shares Issued & Outstanding 86.8M Warrants (Exercise price $1.00, Expiry Date June 6, 2012) 37.5M Options 8.5M Fully Diluted 132.9M *Q3 Shareholder Equity to be released Dec 15th
  19. 19. TSX:AAB 19 George Faught, C.A. Chief Executive Officer David Stein, CFA, MSc. President & Chief Operating Officer Ryan Ptolomy Chief Financial Officer Advisory Board Board of Directors Strong management with a DEPTH of experience in the resource sector and a PROVEN track record at building companies from the seed level through to highly successful exits Management Team Bruce Humphrey Chairman of Investment Committee Stan Bharti, P.Eng. Executive Chairman George Faught, C.A. Director David Stein, CFA, MSc. Director Hon. Pierre S. Pettigrew Director Bernard Wilson, C.A. Director Mike Hoffman, P.Eng. Director Jean-Guy Lambert, MBA Director
  20. 20. David Stein President & COO 416-861-5812 dstein@aberdeeninternational.ca Contact Details Mike McAllister Investor Relations 416-309-2134 mmcallister@aberdeeninternational.ca A Forbes & Manhattan Group CompanyFollow us on Twitter: AberdeenAAB