Aberdeen International Corporate Presesentation


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Aberdeen International Corporate Presesentation

  1. 1. A Global Resource Investment Company and Merchant Bank Own a Piece of Our ExperienceTSX:AAB OTCPS:AABVFJanuary 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 ~ $100.1 M Market Value (Oct 31, 2011) ~ C$1.15* /share*Excludes value of two gold royaltiesTSX:AAB 4
  5. 5. Dividend of $0.02/year to be paid2. Dividend – 3.3% Yield semi-annually on March 31st and September 30th3. Gold Royalties paid quarterly ~$500-700K • 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. 121% 3.0 Years Since Jan 09 67% 4.5 Years Since Incept.TSX:AAB 6
  7. 7. $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 Portfolio Value Shareholders Equity $0.00 Stock Price 2008 2009 2010 2011TSX: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 + Warrants Fee incomeRoyalty Revenue Provides upside to higher gold prices Backed by 8 Moz reserves and 2.5+ $ M pa 25 Moz resourcesTSX: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: $2.32 $1.57 $0.69 SOLD (Exited position at $1.80-$2.32) $0.57 Avg Cost $0.48 $0.26 Avg Cost $0.34$0.05 $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 11
  12. 12. Asset Class By Commodity Public Bulks Equities Gold & Precious Metals *October 12, 2011TSX:AAB 12
  13. 13. Black Iron Inc. (BKI-TSX) 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% iron Similar size and grade to Consolidated Thompson (Canada), recently sold for $4.9 billionTSX:AAB 13
  14. 14. Temujin Mining  World class licenses covering two of the most exciting advanced projects on Oyu Tolgoi copper-gold belt in Mongolia  First work program completed Oyut Ulaan (among Ivanhoe’s top exploration projects)  Currently working on bringing this investment public (expected in early 2012)  Recent deal announced for sale of East Bronze Fox Project to Kincora CopperTSX:AAB 14
  15. 15. Aberdeen compares favorably with the “better-known” resource investment companies Sprott Resource Pinetree Capital Corp. 0.8x Shareholders’ Equity (Sept 30, 2011) 0.5x SE (est.) 0.8x SE (Oct 16, 2011) 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 15
  16. 16. Bull Market • Opportunistic for portfolio growth • Investments in private Bear Market companies • Unlock value by taking • Opportunistic from investment investments public and perspective corporate sales/mergers • Investments in distressed assets and public companies • Assist in restructuring to unlock valueTSX:AAB 16
  17. 17. 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 • Increase liquidity share buybacks exceptional results and reduce market • Increase dividend • Cannot replicate risk • Pursue other our business with • Organic portfolio corporate growth public holdings, growth opportunities therefore large • 2012 warrants valuation gap is not ($37.5 mm) warranted • Sell royaltiesTSX:AAB 17
  18. 18. PORTFOLIO GROWTH  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 18
  19. 19. Contact Details David Stein Mike McAllister President & COO Manager, Investor Relations 416-861-5812 416-309-2134 dstein@aberdeeninternational.ca mmcallister@aberdeeninternational.caFollow us: A Forbes & Manhattan Group Company
  20. 20. TSX:AAB 20
  21. 21. Share Structure Major ShareholdersTSX:AAB Management &Shares Issued & OutstandingWarrants 86.2M 37.5M Directors 15%(Exercise price $1.00, Expiry Date June 6, 2012)Options 6.9M AXAFully Diluted 131.4M US Global Investors TD Asset MgmtShare Price (Feb 3, 2012)Market Capitalization $0.62 $53.4M Luxor Asset Mgmt Sentry Investments 9%52 week High/Low $1.02/$0.53 Dimensional Fund Meyer Handelman Co. Shareholders’ Equity (Q3-11) = $1.31/share TSX:AAB 21
  22. 22. 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 22
  23. 23. Our Active Strategy Lowers The RiskCastillian – legacy position,Aberdeen led restructuring andrefinancing with conv. deb ($0.06share + ½ wt $0.10). Unrealizedgain of 50% Sulliden – owned for 2+ yrs, added selectively to position Alexis – did not own it – Bought small positionTSX:AAB 23
  24. 24. Investment Portfolio Top 5 holdings 1. Sulliden Gold Value at (Oct 31, 2011): 2. Temujin (Pvt) 3. Crocodile Gold 20 other investments 4. Forbes & Manhattan Coal Agriculture C$ 100.1M 5. Black Iron Oil & Gas Mining Top 5 holdings = 32% 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
  25. 25. 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 25