Aberdeen Corporate Presentation Feb 2011


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Aberdeen Corporate Presentation Feb 2011

  1. 1. A Global Resource Investment Company and Merchant Bank Own a Piece of Our ExperienceTSX:AAB OTCPS:AABVFFebruary 2011 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 (2 Yr =258% )* Significant exposure to gold in current portfolio Exciting investments in other resource sectors*Jan. 31, 2011 results TSX:AAB 3
  4. 4. Aberdeen’s Shareholders Own:1. Investment Portfolio ~ $123.7 M Market Value (Jan 31/11) ~ C$1.43* /share*Excludes value of two gold royaltiesTSX:AAB 4
  5. 5. 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 5
  6. 6. 258% 2 Year 115% 83% 3 Year 1 Year* *UnauditedTSX:AAB 6
  7. 7. F&M Provides Industry Leading Technical Knowledge & Accomplished Financial Markets Professionals Technical Legal Financial Admin / Team Team Team Accounting • Over 25 engineers • 5 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 7
  8. 8. 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 8
  9. 9.  Source high  Develop  Early-stage  Execute potential business plan (pre-IPO) business plan resource financing deal  Build  GO PUBLIC management  AAB  “Seed team/BOD participates financing”  AAB  AAB acts as -Black Iron provides care taker -Potash Atlantico managed management -Forbes Coal risk capital  Identify capital -Aguia Minerals requirements Actively -”S.A. Platinum” -Pitchblack creating value -Temujin Mining for shareholdersTSX: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. Aberdeen’s recent success: $2.71 $1.75 $1.37 $0.52$0.20 Avg Cost $0.26 $0.48 $0.34 Avg Cost $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. 12. Asset Class Public Equities & Warrants By Commodity Base Metals Public Equities Cash Bulks Gold & Precious Metals Warrants *December 31, 2010TSX:AAB 12
  13. 13. F&M “Forbes” Coal (FMC-TSX) $300 $250 $200 (US$ /tonne) $150 $100 $50 $0 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Richards Bay Thermal Coal Spot Price McCloskey/Xinhua Infolinks Coking Coal Price  Export grade coal from two mines  Excellent infrastructure  close to ports  Potential to TRIPLE production in 2-3 years, strong financial position  Diverse product lines – both thermal and metallurgical markets  Future growth projects in Southern Africa  Thermal Coal Prices up 57% in the last 6 monthsTSX:AAB 13
  14. 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 underwayTSX:AAB 14
  15. 15. Aberdeen’s recent success: $8.1M $3.4M $12.7M $7.7M $1.4M$0.7M $0.7M $2.6M $2.6M $0.2M $1.4M Cost Current Cost Current Cost Current Cost Current $0.9M Current Cost Current Cost base Price base Price base Price base Price base Price base Price $0.26 $0.53 $0.11 $0.53 $1.55 $4.52 $0.94 $4.52 $0.10 $0.90 $0.10 $0.90 Current Performance Current Performance Current Performance Shares Shares Shares Vested Vested Vested TSX:AAB 15
  16. 16. Valuation (discount) and size are limiting factors to our business modelFor our business model, AUM of $250 MM - $500 MM is optimal • Establish new • Work on reducing • Continue to fund(s) to raise discount to point maximize current money at NAV and where we can raise asset base through be paid as an asset money for accretive steady returns manager growth • Sell royalty assets • Transition into fund • Continuation of • Vest performance management current business warrants business modelAlso will use share buybacks and dividends to further return value to shareholdersTSX:AAB 16
  17. 17. Aberdeen compares favorably with the “better-known” resource investment companies Sprott Resource Pinetree Capital Corp. 1.2x Shareholders’ Equity (adj. Oct 31) 0.5x SE (est.) 1.0x SE (est. Dec 31) 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 17
  18. 18. Portfolio Leveraged To Gold And Junior Market  New investments in iron ore, coal, agri-minerals and energy set to continue the momentum in 2011  Unique access to seed financings on great resource assetsPerformance Shares To Deliver Huge Upside Over Next 2 years  Aguia first resource in mid 2011 would trigger shares to vest  Forbes Coal on track to meet first EBITDA target by mid 2011Private Holdings To Deliver And Unlock Value  3 companies in process with IPO’s coming in the next 12 months (Black Iron, Potash Atlantico, Private Oil & Gas Company to merge with Sagres Energy)  Temujin will continue to incubate for huge potential  Brazil Potash: drilling world-class resource in Amazon BasinTSX:AAB 18
  19. 19. Contact Details David Stein Mike McAllister President & COO Investor Relations 416-861-5812 416-309-2134 dstein@aberdeeninternational.ca mmcallister@aberdeeninternational.caFollow us on Twitter: AberdeenAAB A Forbes & Manhattan Group Company
  20. 20. TSX:AAB 20
  21. 21. Share Structure Major ShareholdersTSX:AABShares Issued & OutstandingWarrants 86.7M 37.5M Management & Directors 17%(Exercise price $1.00, Expiry Date June 6, 2012)Options 8.5MFully Diluted 132.7M US Global TD Asset MgmtShare Price (Feb 23, 2011) $0.92 Luxor Asset Mgmt 8%Market Capitalization $79.8M Sprott Asset Mgmt52 week High/Low $1.02/$0.32 Shareholders’ Equity (Q3) = $1.33/share TSX:AAB 21
  22. 22. 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 Hon. Pierre S. Pettigrew Director Advisory Board Bernard Wilson, C.A. Bruce Humphrey Director Chairman of Investment Committee Mike Hoffman, P.Eng. Director Jean-Guy Lambert, MBATSX:AAB Director 22
  23. 23. Our Active Strategy Lowers The RiskCastillian – legacy position,Aberdeen led restructuring andrefinancing with conv. deb ($0.06share + ½ wt $0.10). Unrealizedgain of 267% Sulliden – owned for 2+ yrs, added selectively to position Alexis – did not own itTSX:AAB 23
  24. 24. Investment Portfolio Top 5 holdings 1. Sulliden Gold Value at (Oct 31, 2010): 2. 3. Forbes Coal Macusani Yellowcake 20other investments Agriculture 86M 4. Allana Potash Oil & Gas C$ 5. Temujin (Private) Mining Top 5 holdings = 47% 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 24