Aberdeen International Corporate Presentation


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Aberdeen International Corporate Presentation

  1. 1. A Global Resource Investment Company and Merchant Bank<br />TSX:AAB<br />September 2, 2010<br />A Forbes & Manhattan Group Company <br />
  2. 2. Cautionary Statement<br />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. <br />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.<br />2<br />
  3. 3. At a Glance<br />3<br />Global resource investment company / merchant bank<br /> Focused on private, micro- and small-cap resource companies<br />Unique, value-added approach to investing<br />Actively builds companies to unlock value<br />Targeting triple digit returns<br />Benefits from Forbes & Manhattan’s infrastructure <br /> and deal flow<br />Broad investment mandate in resource sector<br />Significant exposure to gold in current portfolio<br /> Exciting investments in energy, metals, bulks, <br /> agriculture<br />
  4. 4. Value Proposition<br />4<br />For $36 M<br />Aberdeen’s Shareholders Own:<br />~$60M<br />1. <br />Investment Portfolio<br />Market Value (July 31/10)<br />~C$0.69*/share<br />*Excludes value of two gold royalties<br />
  5. 5. Value Proposition<br />5<br />>$500K <br />2. <br />Gold Royalty paid quarterly<br />Forbes Coal<br />Brazil/Amazon Potash<br />Temujin Mining<br />Private investment upside<br />Taking public to improve portfolio liquidity/value <br />3. <br />Supporting next generation of investments<br />Ongoing high quality deal flow<br />4. <br />
  6. 6. Unlocking Value through F&M<br />6<br />Forbes & Manhattan expertise <br />Technical Team<br />Financial Team<br />Legal Team<br />Back Office<br />Over 80 professionals in Toronto plus international operations teams<br />Forbes & Manhattan benefits: <br />Financing<br />Marketing<br />M&A<br />World class team<br />Proven track record<br />Actively building companies and creating value<br />
  7. 7. Our Business<br />7<br />Targets<br />Active Investment<br />+100%<br />Seed financings<br />Active role in management & BOD<br />Support financially in early stages<br />Private<br />Micro-cap<br />From initial investment<br />Merchant Banking<br />Short-term investments<br /> Bridge financing<br />Fee income<br /> Shells<br />+10% pa<br />+ Warrants<br />$2.0M-<br />Royalty Revenue<br />Provides upside to higher gold prices<br /> Backed by 8 Mozreserves and <br /> 25 Mozresources<br />$2.5M<br />pa<br />
  8. 8. Investment Methodology<br />8<br /><ul><li>Develop business plan
  9. 9. Build management team/BOD
  10. 10. AAB acts as care taker management
  11. 11. Identify capital requirements
  12. 12. Early-stage (pre-IPO) financing
  13. 13. AAB participates
  14. 14. Execute business plan
  15. 15. GO PUBLIC
  16. 16. Source high potential resource deal
  17. 17. “Seed financing”
  18. 18. AAB provides managed risk capital</li></ul>Actively creating value for shareholders<br />
  19. 19. Proven Track Record<br />9<br />Aberdeen’s recent success:<br />$0.48<br />Avg Cost<br />Entry<br />Price<br />$0.34<br />Avg Cost<br />$0.52<br />Avg Cost<br />Desert Sun Mining (Gold) <br />Forbes & Manhattan success:<br />Consolidated Thompson (Iron Ore)<br />3,750% return in 4 years<br />4,500% return in 3 years<br />$735Msale price to Yamana Gold<br />$735Msale price to Yamana Gold<br />Production commenced Q1 2010<br />Production commenced Q1 2010<br />
  20. 20. Key Assets<br />10<br />Equity Portfolio<br />Value of top 5 holdings<br />(July 31, 2010):<br />20other investments<br />Crocodile Gold<br />Forbes Coal (PVT)<br />Temujin Mining (PVT)<br />4. SullidenGold<br />5. AvionGold<br />Agriculture<br />Oil & Gas<br />Mining<br />C$28.4M<br />C$0.32/share<br />Gold Royalties<br />Cash<br />8 Mozreserves <br />1% gold NSR <br />25 Mozresources<br />Always evaluating new investments. Typical entry point:<br />Buffelsfontein Mine<br />(Simmers & Jack)<br />Mine Waste Solutions(First Uranium)<br />US$2.2M<br />C$1-5M<br />Current net over next 12 months<br />
  21. 21. Our Investment Portfolio<br />11<br />Asset Class<br />Public Equities & Warrants By Commodity<br />Cash<br />Warrants<br />Debt<br />Industrial/Strategic<br />Bulks<br />Agricultural<br />Private<br />Public Equities<br />Gold & Precious Metals<br />Energy<br />Base Metals<br />
  22. 22. Core Private Holdings<br />12<br />F&M “Forbes” Coal<br /><ul><li>Export grade coal from two mines, producing 0.5 million tonnes per year saleable
  23. 23. Excellent infrastructure  close to ports
  24. 24. Can TRIPLE production in 2-3 years, strong financial position
  25. 25. Diverse product lines – both thermal and metallurgical markets
  26. 26. Future growth projects in Southern Africa
  27. 27. Public listing end of September 2010 (merge with Nyah Resources)</li></li></ul><li>Core Private Holdings<br />13<br />Temujin Mining<br /><ul><li>World class licenses covering 3 of the most exciting advanced projects on OyuTolgoi copper-gold belt in Mongolia
  28. 28. 80 km strike length of strong copper and gold anomalies on 6 licenses
  29. 29. Limited drilling, no work done since 2005, vastly improved geopolitical climate
  30. 30. Drilling started August 2010 - $1.5 MM program underway</li></li></ul><li>Short-Term Outlook<br />14<br />Positive Catalysts Expected Over Next 2 Quarters<br /><ul><li>Received 1.5 MM shares plus 7.5 MM Performance (Class A/B) Shares of Newport Mining (NMN-ASX) – Phosphate project in Brazil
  31. 31. Potentially worth $4.5 MM++ when Performance Shares vest
  32. 32. Drilling just underway to prove JORC resource
  33. 33. Forbes Coal completed equity financing at $2.80 per share
  34. 34. 180% unrealized return on initial investment, 460% unrealized return when Performance Shares vest (mid-2011)
  35. 35. RTO into public company (Nyah Resources) late September
  36. 36. Private Oil & Gas merging with Sagres Energy (SGI-V)
  37. 37. +800% potential unrealized return on initial $250,000 investment</li></li></ul><li>Longer-Term Outlook<br />15<br />Portfolio Leveraged To Gold And Junior Market <br /><ul><li>Market set-back in May-June, but most holdings have performed well and recovered strongly.
  38. 38. Large warrant positions provide additional leverage
  39. 39. We do not manage the portfolio for the short-term!
  40. 40. Exceptional upside as markets improve and companies execute</li></ul>Private Holdings To Deliver And Unlock Value<br /><ul><li>Forbes Coal expected to list by Fall 2010
  41. 41. Amazon/Brazil Potash to spin off three companies
  42. 42. Two expected to be public by year-end
  43. 43. Additional pleasant surprises coming from other holdings
  44. 44. Temujin now drilling, will continue to incubate for huge potential</li></li></ul><li>Addressing The Valuation Discount<br />16<br />Investor Relations<br /><ul><li>Hired Mike McAllister as Manager, IR
  45. 45. World-class website
  46. 46. New focus by management to market our great story and our successes/resource investment outsourcing
  47. 47. Focus on retail and small/generalist institutions</li></ul>Business Growth<br /><ul><li>More success expected from pre-IPO investments
  48. 48. JV funds to accretively accumulate assets – ‘early days’</li></ul>Corporate Activity<br /><ul><li>Complete share buy-back
  49. 49. Result from Simmer & Jack litigation</li></li></ul><li>Capital Structure<br />17<br />Share Structure<br />Major Shareholders<br />Management & Directors<br />RAB Capital<br />Top Gold<br />US Global<br />TD<br />14%<br />Shareholders’ Equity (Q1) = $1.19/share<br />
  50. 50. Management & Board of Directors<br />18<br />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 <br />Board of Directors<br />Management Team<br />George Faught, C.A. <br />Chief Executive Officer<br />David Stein, CFA, MSc.<br />President & Chief Operating Officer<br />Stephan Theron<br />Chief Financial Officer <br />Stan Bharti, P.Eng.<br />Executive Chairman<br />George Faught, C.A.<br />Director<br />David Stein, CFA, MSc.<br />Director<br />Hon. Pierre S. Pettigrew<br />Director<br />Bernard Wilson, C.A.<br />Director<br />Mike Hoffman, P.Eng.<br />Director<br />Jean-Guy Lambert, MBA<br />Director<br />Advisory Board<br />Bruce Humphrey<br />Chairman of Investment Committee<br />
  51. 51. Contact Details<br />David Stein<br />President & COO<br />416-861-5812<br />dstein@aberdeeninternational.ca<br />Mike McAllister<br />Investor Relations<br />416-309-2134<br />mmcallister@aberdeeninternational.ca<br />A Forbes & Manhattan Group Company <br />Follow us on Twitter: AberdeenAAB<br />