aberdeen international - corporate presentation

17
A Global Resource Investment Corporation and Merchant Bank TSX:AAB June 2010 - AGM A Forbes & Manhattan Group Company

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Page 1: Aberdeen International - Corporate Presentation

A Global Resource Investment Corporation and Merchant Bank

TSX:AAB

June 2010 - AGM

A Forbes & Manhattan Group Company

Page 2: Aberdeen International - Corporate Presentation

TSX:AAB

Cautionary Statement

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.

Page 3: Aberdeen International - Corporate Presentation

TSX:AAB

At a Glance

3

Global resource investment company and merchant bank

Focused on private, micro- and small-cap resource companies

Unique, value-added approach to investingActively builds companies to unlock valueTargeting triple digit returnsBenefits from Forbes & Manhattan’s infrastructure and deal flow

Broad investment mandate in resource sectorSignificant exposure to gold in current portfolioInvestments in energy, metals, bulks, agriculture

Page 4: Aberdeen International - Corporate Presentation

TSX:AAB

Value Proposition

4

~$70MMarket Valueof investment portfolio (Apr 30/10)

~C$0.80 /share

Current Share Price

VS

C$0.39/share

We are VERY

undervalued

1.

*Excludes value of two gold royalties

Page 5: Aberdeen International - Corporate Presentation

TSX:AAB

Value Proposition

5

>$500K Gold Royalty paid quarterly

2.

3. Forbes Coal

Brazil/Amazon Potash

Temujin Mining

Private investment upsideTaking public to improve portfolio liquidity/value

4. Ongoing high quality deal flow

Supporting next

generation of investments

Page 6: Aberdeen International - Corporate Presentation

TSX:AAB

Unlocking Value through F&M

6

Technical Team

Financial Team

Legal Team Back Office

Forbes & Manhattan expertise

Over 80 professionals in Toronto plus international operations teams

Forbes & Manhattan benefits:

FinancingMarketing

M&A

World class team

Proven track record

Actively building companies and creating value

Page 7: Aberdeen International - Corporate Presentation

TSX:AAB

Our Business

7

Merchant BankingShort-term investmentsBridge financingFee incomeShells

Royalty RevenueProvides upside to higher gold

pricesBacked by 8 Moz reserves and 25 Moz resources

Private

Micro-cap

Seed financingsActive role in management & BODSupport financially in early ages

Active Investment

+100%

From initial investment

+10% pa

+ Warrants

$2.0M -

$2.5M

pa

Targets

Page 8: Aberdeen International - Corporate Presentation

TSX:AAB

Investment Methodology

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

Page 9: Aberdeen International - Corporate Presentation

TSX:AAB

$0.20

$1.22

$0.14

$0.52

$0.19

$0.60

Proven Track Record

9

Aberdeen’s recent success:

Forbes & Manhattan success:

$0.52

$0.38 $0.34

Avg Cost

Avg Cost Avg Cost

Desert Sun Mining (Gold) 3,750% return in 4 years

$735M sale price to Yamana Gold

Consolidated Thompson (Iron Ore)4,500% return in 3 years

Production commenced Q1 2010

Page 10: Aberdeen International - Corporate Presentation

TSX:AAB

Key Assets

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$2.2MCurrent net over next 12 months

C$36M

Value of top 5 holdings(April 30, 2009):

1. Crocodile Gold2. Dacha Capital3. Temujin Mining (PVT)

4. Sulliden Gold5. Avion Gold

C$0.40/share

20other investmentsPotashOil & GasMining

C$1-5M

Always evaluating new investments. Typical entry point:

Page 11: Aberdeen International - Corporate Presentation

TSX:AAB

Our Investment Portfolio

11

Cash

Public Equities

Warr

ants

Debt

Private

Asset Class

Gold & Precious Metals

Bas

e M

etal

s

Ener

gyAgricultural

Bulks

Industrial/

Strategic

Public Equities & Warrants By Commodity

Page 12: Aberdeen International - Corporate Presentation

TSX:AAB

Private Holdings

12

F&M “Forbes” Coal

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

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

Page 13: Aberdeen International - Corporate Presentation

TSX:AAB

Outlook

13

Portfolio Leveraged To Gold And Junior Market

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

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

Page 14: Aberdeen International - Corporate Presentation

TSX:AAB

Addressing The Valuation Discount

14

Investor Relations

Business Growth

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

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

Page 15: Aberdeen International - Corporate Presentation

TSX:AAB

Capital Structure

15

Share Structure Major Shareholders

Management & DirectorsRAB CapitalTop GoldUS GlobalTD

14%

Shareholders’ Equity (Q1) = $1.19/share

TSX:AAB

Shares Issued & Outstanding 87.5M

Warrants (Exercise price $1.00, Expiry Date June 6, 2012)

37.5M

Options 6.9M

Fully Diluted 132M

Share Price (June 16, 2010) $0.38

Market Capitalization $33.2M

52 week High/Low $0.52/$0.12

Page 16: Aberdeen International - Corporate Presentation

TSX:AAB

Management & Board of Directors

16

George Faught, C.A.

Chief Executive Officer

David Stein, CFA, MSc.

President & Chief Operating Officer

Stephan Theron

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

Page 17: Aberdeen International - Corporate Presentation

David SteinPresident & [email protected]

Contact Details

Mike McAllisterInvestor [email protected]

A Forbes & Manhattan Group Company