Aberdeen Reports Shareholders' Equity of $1.19 Per Share and Quarter End Financial Results
Jun 15, 2010 07:00 ET
- Investment Portfolio Increases to $69.7 Million or $0.80 Per Share
- Royalty Income of $514,074 Received in the First Quarter
- Asset Base Continues to Benefit From Strong Gold Price Environment and Enviable Global Resource Deal Flow
TORONTO, ONTARIO--(Marketwire - June 15, 2010) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the first fiscal quarter of 2011, ending April 30, 2010.
As at April 30, 2010, Aberdeen's Shareholders' Equity (or Net Asset Value, "NAV") was $104.1 million, or $1.19 per share. Aberdeen's shareholders' equity increased by $1.0MM from Q4 2010. During the quarter, Aberdeen realized a gain on investments of $6,260,639 during the three month ended April 30, 2010 reflecting a continued recovery of the investment portfolio as a result of higher gold prices and a broad rebound in the junior mining and exploration sector. Aberdeen has strategically rebalanced its investment portfolio to allow for a greater exposure to both strategic metals and energy, while maintaining significant exposure to the gold price through several large gold equity investments and our gold royalties. Aberdeen received royalty revenue of $514,074 from 45,000 oz sold at Simmer & Jack's Buffelsfontein Mine and First Uranium's Mine Waste Solutions Tailings Recovery Operations during the quarter ending April 30, 2010. Aberdeen received a further $245,887 for advisory services related to financing loans and $201,744 in interest income on outstanding loans.
Investment Portfolio Continues To Deliver Value
April 30, 2010 January 31, 2010 October 31, 2009
Shares out-standing 87,503,839 87,503,839 87,503,839
$ $/Shares $ $/Shares $ $/Shares
-----------------------------------------------------------------
Cash 958,746 0.011 3,266,356 0.037 5,808,265 0.066
Investments
Publicly traded 38,169,821 0.436 38,408,733 0.439 36,174,560 0.413
Private 11,316,313 0.129 7,734,541 0.088 3,176,142 0.036
Non- trading warrants
Intrinsic value 6,836,960 0.078 6,058,725 0.069 3,065,390 0.035
Option value 3,530,797 0.040 4,825,560 0.055 5,913,334 0.068
-----------------------------------------------------------------
10,367,757 0.118 10,884,285 0.124 8,978,724 0.103
-----------------------------------------------------------------
Portfolio Investments 59,853,891 0.684 57,027,559 0.652 48,329,426 0.552
Equity accounted investment 1,142,005 0.013 - - 1,798,533 0.021
Loans receivable 7,720,654 0.088 8,264,387 0.094 1,771,173 0.020
Total 69,675,296 0.796 68,558,302 0.783 57,707,397 0.659
-----------------------------------------------------------------
-----------------------------------------------------------------
The value of Aberdeen's investment portfolio remained stable over the quarter despite significant volatility in the small-capitalization resources group. We realized some significant gains in the quarter while reinvesting the proceeds in several new opportunities. In particular, during the first quarter we sold part of our position in Crocodile Gold to realize a gain of 278% from our average cost base (prior to the start of the quarter) and an almost 10-fold gain from our original investment. Crocodile Gold is a good example of how Aberdeen may benefit from early stage investments. Crocodile Gold began as a significant private investment that was listed publicly in November, 2009. Crocodile Gold has been successful at gaining investor recognition for its growing gold production assets in Northern Territory, Australia since its public listing, and we still see potential for significant gains from this investment. We also see Crocodile Gold as a model for the execution of future private investments and will look repeat this kind of success in the future with significant private investments such as Forbes & Manhattan Coal, Temujin Mining and Brazil/Amazon Potash. Aberdeen also made further investments in publicly traded strategic metal companies, Dacha Capital and Rodinia Minerals during the quarter, acting on a theme of rare metals used in new technologies, which we believe is in its infancy today, but will gain recognition by investors over time.
Simmer Loan Agreement
On February 16, 2009, shareholders of Simmer & Jack voted against the conversion to equity of the Loan Facility thereby granting to Aberdeen a 1% Life of Mine NSR on all the Northwest assets of Buffels Gold Mines. Aberdeen has received and continues to receive the 1% royalty from both Simmers and First Uranium for the Buffels underground operation and the Mine Waste Solutions project.
During fiscal 2010 Aberdeen filed a statement of claim against Simmer and Jack and against First Uranium seeking payment of the outstanding Graduated Royalty from October 16th 2008 to December 31 2008. The claim also included the unpaid loan principal for US $10 million for a total of US$11.4 MM in claimed damages. Our lawyers in South Africa have informed us that a trial has been scheduled for November 18, 2010.
Outlook and Investment Highlights
During Q1 we added to positions in Dacha Capital, Forbes & Manhattan Coal ("Forbes Coal") and Temujin Mining. Temujin Mining is a private exploration and development company focused on the Oyu Tolgoi district of Mongolia with copper and gold projects. During the quarter we were successful in completing a financing to cover the cash portion of the acquisition costs for three very large copper-gold exploration projects. Temujin is currently planning preliminary exploration work, while planning for a drill program on its first target in the coming months. Forbes Coal is in the process of acquiring two high-quality coal mines (export grade thermal coal and PCI/anthracite coal) in South Africa. Subject to successfully completing the acquisition it is anticipated that Forbes Coal will seek a public listing by the fall of 2010. Dacha Capital is taking advantage of growth in the rare earth metals market by stockpiling physical metal supplies, focusing on metals with restricted supply and/or stronger fundamentals.
During the quarter we acquired significant new positions in Verena Minerals ("Verena") and Rodinia Minerals ("Rodinia"). Verena is developing the Volta Grande project in Northern Brazil with a current gold resource of 715,000 oz indicated and 1,388,000 oz inferred. Verena's management has recently been restructured and it is embarking on a new drill program to expand the resource before further feasibility work is undertaken. The project has excellent exploration potential, good geographic location in Brazil and it rebalances our portfolio's gold exposure after the sale of other investments (including Crocodile Gold).
Rodinia is a lithium development company with two leading projects. Rodinia recently reported high grades of lithium and potassium (potash) at its Salar de Diablillos project in Argentina, which Rodinia believes may suggest the potential for a large resource of lithium-bearing brine. Earlier in the year, Rodinia also announced drill results with respect to its Clayton Valley project in Nevada that indicated lithium concentrations comparable to the brine source that has historically produced lithium at the Silver Peak operations immediately to the north.
Finally, Aberdeen would like to note that we did not complete any share purchases as part of our Normal Course Issuer Bid during the first quarter. During the first quarter Aberdeen was fortunate to see tremendous deal flow and was able to redeploy its capital into several new opportunities that we believe have exceptional long-term investment merit. We have already seen the pace of transactions slowing in recent months, and expect that we will be able to methodically complete our buy-back program over the remainder of the fiscal year.
About Aberdeen International Inc:
Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; and/or (ii) are undervalued in foreign capital markets. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation's intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.
Aberdeen International Inc.
Please visit the Company's web site at www.aberdeeninternational.ca.
Cautionary Notes
Cautionary Note Regarding Forward-Looking Information This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, valuations of investments, proposed transactions and investments, investment philosophy, Simmers litigation, liabilities and commitments and royalties. 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: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; other inherent risks of the mining industry and investment 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.
For more information, please contact Aberdeen International Inc.
David Stein
President and COO
(416) 861-5812
dstein@aberdeeninternational.ca
or
Aberdeen International Inc.
George Faught
CEO
(416) 861-5887
or
Aberdeen International Inc.
Stan Bharti
Executive Chairman
(416) 861-5876
www.aberdeeninternational.ca
- Investment Portfolio Increases to $69.7 Million or $0.80 Per Share
- Royalty Income of $514,074 Received in the First Quarter
- Asset Base Continues to Benefit From Strong Gold Price Environment and Enviable Global Resource Deal Flow
TORONTO, ONTARIO--(Marketwire - June 15, 2010) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the first fiscal quarter of 2011, ending April 30, 2010.
As at April 30, 2010, Aberdeen's Shareholders' Equity (or Net Asset Value, "NAV") was $104.1 million, or $1.19 per share. Aberdeen's shareholders' equity increased by $1.0MM from Q4 2010. During the quarter, Aberdeen realized a gain on investments of $6,260,639 during the three month ended April 30, 2010 reflecting a continued recovery of the investment portfolio as a result of higher gold prices and a broad rebound in the junior mining and exploration sector. Aberdeen has strategically rebalanced its investment portfolio to allow for a greater exposure to both strategic metals and energy, while maintaining significant exposure to the gold price through several large gold equity investments and our gold royalties. Aberdeen received royalty revenue of $514,074 from 45,000 oz sold at Simmer & Jack's Buffelsfontein Mine and First Uranium's Mine Waste Solutions Tailings Recovery Operations during the quarter ending April 30, 2010. Aberdeen received a further $245,887 for advisory services related to financing loans and $201,744 in interest income on outstanding loans.
Investment Portfolio Continues To Deliver Value
April 30, 2010 January 31, 2010 October 31, 2009
Shares out-standing 87,503,839 87,503,839 87,503,839
$ $/Shares $ $/Shares $ $/Shares
-----------------------------------------------------------------
Cash 958,746 0.011 3,266,356 0.037 5,808,265 0.066
Investments
Publicly traded 38,169,821 0.436 38,408,733 0.439 36,174,560 0.413
Private 11,316,313 0.129 7,734,541 0.088 3,176,142 0.036
Non- trading warrants
Intrinsic value 6,836,960 0.078 6,058,725 0.069 3,065,390 0.035
Option value 3,530,797 0.040 4,825,560 0.055 5,913,334 0.068
-----------------------------------------------------------------
10,367,757 0.118 10,884,285 0.124 8,978,724 0.103
-----------------------------------------------------------------
Portfolio Investments 59,853,891 0.684 57,027,559 0.652 48,329,426 0.552
Equity accounted investment 1,142,005 0.013 - - 1,798,533 0.021
Loans receivable 7,720,654 0.088 8,264,387 0.094 1,771,173 0.020
Total 69,675,296 0.796 68,558,302 0.783 57,707,397 0.659
-----------------------------------------------------------------
-----------------------------------------------------------------
The value of Aberdeen's investment portfolio remained stable over the quarter despite significant volatility in the small-capitalization resources group. We realized some significant gains in the quarter while reinvesting the proceeds in several new opportunities. In particular, during the first quarter we sold part of our position in Crocodile Gold to realize a gain of 278% from our average cost base (prior to the start of the quarter) and an almost 10-fold gain from our original investment. Crocodile Gold is a good example of how Aberdeen may benefit from early stage investments. Crocodile Gold began as a significant private investment that was listed publicly in November, 2009. Crocodile Gold has been successful at gaining investor recognition for its growing gold production assets in Northern Territory, Australia since its public listing, and we still see potential for significant gains from this investment. We also see Crocodile Gold as a model for the execution of future private investments and will look repeat this kind of success in the future with significant private investments such as Forbes & Manhattan Coal, Temujin Mining and Brazil/Amazon Potash. Aberdeen also made further investments in publicly traded strategic metal companies, Dacha Capital and Rodinia Minerals during the quarter, acting on a theme of rare metals used in new technologies, which we believe is in its infancy today, but will gain recognition by investors over time.
Simmer Loan Agreement
On February 16, 2009, shareholders of Simmer & Jack voted against the conversion to equity of the Loan Facility thereby granting to Aberdeen a 1% Life of Mine NSR on all the Northwest assets of Buffels Gold Mines. Aberdeen has received and continues to receive the 1% royalty from both Simmers and First Uranium for the Buffels underground operation and the Mine Waste Solutions project.
During fiscal 2010 Aberdeen filed a statement of claim against Simmer and Jack and against First Uranium seeking payment of the outstanding Graduated Royalty from October 16th 2008 to December 31 2008. The claim also included the unpaid loan principal for US $10 million for a total of US$11.4 MM in claimed damages. Our lawyers in South Africa have informed us that a trial has been scheduled for November 18, 2010.
Outlook and Investment Highlights
During Q1 we added to positions in Dacha Capital, Forbes & Manhattan Coal ("Forbes Coal") and Temujin Mining. Temujin Mining is a private exploration and development company focused on the Oyu Tolgoi district of Mongolia with copper and gold projects. During the quarter we were successful in completing a financing to cover the cash portion of the acquisition costs for three very large copper-gold exploration projects. Temujin is currently planning preliminary exploration work, while planning for a drill program on its first target in the coming months. Forbes Coal is in the process of acquiring two high-quality coal mines (export grade thermal coal and PCI/anthracite coal) in South Africa. Subject to successfully completing the acquisition it is anticipated that Forbes Coal will seek a public listing by the fall of 2010. Dacha Capital is taking advantage of growth in the rare earth metals market by stockpiling physical metal supplies, focusing on metals with restricted supply and/or stronger fundamentals.
During the quarter we acquired significant new positions in Verena Minerals ("Verena") and Rodinia Minerals ("Rodinia"). Verena is developing the Volta Grande project in Northern Brazil with a current gold resource of 715,000 oz indicated and 1,388,000 oz inferred. Verena's management has recently been restructured and it is embarking on a new drill program to expand the resource before further feasibility work is undertaken. The project has excellent exploration potential, good geographic location in Brazil and it rebalances our portfolio's gold exposure after the sale of other investments (including Crocodile Gold).
Rodinia is a lithium development company with two leading projects. Rodinia recently reported high grades of lithium and potassium (potash) at its Salar de Diablillos project in Argentina, which Rodinia believes may suggest the potential for a large resource of lithium-bearing brine. Earlier in the year, Rodinia also announced drill results with respect to its Clayton Valley project in Nevada that indicated lithium concentrations comparable to the brine source that has historically produced lithium at the Silver Peak operations immediately to the north.
Finally, Aberdeen would like to note that we did not complete any share purchases as part of our Normal Course Issuer Bid during the first quarter. During the first quarter Aberdeen was fortunate to see tremendous deal flow and was able to redeploy its capital into several new opportunities that we believe have exceptional long-term investment merit. We have already seen the pace of transactions slowing in recent months, and expect that we will be able to methodically complete our buy-back program over the remainder of the fiscal year.
About Aberdeen International Inc:
Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; and/or (ii) are undervalued in foreign capital markets. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation's intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.
Aberdeen International Inc.
Please visit the Company's web site at www.aberdeeninternational.ca.
Cautionary Notes
Cautionary Note Regarding Forward-Looking Information This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, valuations of investments, proposed transactions and investments, investment philosophy, Simmers litigation, liabilities and commitments and royalties. 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: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; other inherent risks of the mining industry and investment 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.
For more information, please contact Aberdeen International Inc.
David Stein
President and COO
(416) 861-5812
dstein@aberdeeninternational.ca
or
Aberdeen International Inc.
George Faught
CEO
(416) 861-5887
or
Aberdeen International Inc.
Stan Bharti
Executive Chairman
(416) 861-5876
www.aberdeeninternational.ca
Comments
Post a Comment