Aberdeen International - Corporate Presentation


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Aberdeen International - Corporate Presentation

  1. 1. A Global Resource Investment Corporation and Merchant Bank TSX:AAB June 2010 - AGM A Forbes & Manhattan Group Company
  2. 2. 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. TSX:AAB 2
  3. 3. Global resource investment company and 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 Investments in energy, metals, bulks, agriculture TSX:AAB 3
  4. 4. 1. Market Value ~ $70 M of investment portfolio (Apr 30/10) ~ C$0.80 /share VS Current Share Price C$0.39/share We are VERY undervalued *Excludes value of two gold royalties TSX:AAB 4
  5. 5. 2. Gold Royalty paid quarterly > $500 K Private investment upside Forbes Coal 3. Taking public to improve portfolio liquidity/value Brazil/Amazon Potash Temujin Mining Ongoing high quality deal Supporting next 4. flow generation of investments TSX:AAB 5
  6. 6. Forbes & Manhattan expertise Technical Team Financial Team Legal Team Back Office Over 80 professionals in Toronto plus international operations teams Forbes & Manhattan benefits: Financing World class Proven track Marketing team record M&A Actively building companies and creating value TSX:AAB 6
  7. 7. Active Investment Targets Private Micro-cap Seed financings Active role in management & BOD + 100% From initial Support financially in early ages investment Merchant Banking Short-term investments Bridge financing + 10% pa Fee income + Warrants Shells Royalty Revenue Provides upside to higher gold prices $2.0 M - Backed by 8 Moz reserves and $2.5 M 25 Moz resources pa TSX:AAB 7
  8. 8.   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 provides care taker managed management risk capital   Identify capital requirements Actively creating value for shareholders TSX:AAB 8
  9. 9. Aberdeen’s recent success: $1.22 $0.60 $0.52 $0.38 $0.34 Avg Cost Avg Cost Avg Cost $0.52 $0.20 $0.19 $0.14 Forbes & Desert Sun Mining (Gold) Consolidated Thompson (Iron Ore) Manhattan 3,750% return in 4 years 4,500% return in 3 years success: $735M sale price to Yamana Gold Production commenced Q1 2010 TSX:AAB 9
  10. 10. Equity Portfolio Value of top 5 holdings (April 30, 2009): 1.  2.  Crocodile Gold Dacha Capital 20other investments 3.  Temujin Mining Potash 36M (PVT) C$ 4. Sulliden Gold Oil & Gas 5. Avion Gold Mining C$0.40/share Gold Royalties 8 Moz reserves Cash 1% 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 10
  11. 11. Asset Class Public Equities & Warrants By Commodity Bulks Public ral Debt Equities Agricultu Gold & Precious Metals ants Warr TSX:AAB 11
  12. 12. F&M “Forbes” Coal   Export grade coal, world class asset, producing 1 million tonnes per year ROM   Excellent infrastructure  close to ports   Can TRIPLE production in 2-3 years, strong financial position   Future exploration projects in Southern Africa Temujin Exploration   World class licenses covering 3 of the most prospective anomalies on Oyu Tolgoi copper-gold belt in Mongolia   120 km strike length of strong copper and gold anomalies on 5 licenses   Limited drilling, no work done since 2005, vastly improved geopolitical climate TSX:AAB 12
  13. 13. Portfolio Leveraged To Gold And Junior Market   Market set-back in May-June, but most holdings have performed well.   Large warrant positions provide additional leverage   We do not manage the portfolio for the short-term!   Exceptional upside as markets improve and companies execute Private Holdings To Deliver And Unlock Value   Forbes Coal expected to list by Fall 2010   Amazon/Brazil Potash to spin off three companies   Two expected to be public by year-end   Additional pleasant surprises coming from other holdings   Temujin will take longer to incubate, but looks promising TSX:AAB 13
  14. 14. Investor Relations   Hired Mike McAllister as Manager, IR   World-class website by July 2010   New focus by management to market our great story and our successes/resource investment outsourcing   Focus on retail and small/generalist institutions Business Growth   More success expected from pre-IPO investments   JV funds to accretively accumulate assets – ‘early days’ Corporate Activity   Complete share buy-back   Result from Simmer & Jack litigation TSX:AAB 14
  15. 15. Share Structure Major Shareholders TSX:AAB   Management & Shares Issued & Outstanding Warrants     87.5M   37.5M   Directors 14% (Exercise  price  $1.00,  Expiry  Date  June  6,  2012)     Options   6.9M   RAB Capital Fully Diluted   132M   Top Gold US Global Share Price (June 16, 2010)   $0.38   TD Market Capitalization   $33.2M   52 week High/Low   $0.52/$0.12   Shareholders’ Equity (Q1) = $1.19/share TSX:AAB 15
  16. 16. 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 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 Stephan Theron 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, MBA TSX:AAB Director 16
  17. 17. Contact Details David Stein Mike McAllister President & COO Investor Relations 416-861-5812 416-309-2134 dstein@aberdeeninternational.ca mmcallister@aberdeeninternational.ca A Forbes & Manhattan Group Company