A Global Resource Investment Corporation and Merchant Bank

Transcription

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

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 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 1. Market Value of investment portfolio (Apr 30/10) VS Current Share Price ~ $70M ~ C$0.80 /share C$0.39/share *Excludes value of two gold royalties We are VERY undervalued TSX:AAB 4

5 2. Gold Royalty paid quarterly > $500K 3. Private investment upside Taking public to improve portfolio liquidity/value Forbes Coal Brazil/Amazon Potash Temujin Mining 4. Ongoing high quality deal flow Supporting next generation of investments TSX:AAB 5

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 Marketing M&A World class team Proven track record Actively building companies and creating value TSX:AAB 6

7 Active Investment Private Micro-cap Merchant Banking Short-term investments Bridge financing Fee income Shells Royalty Revenue Seed financings Active role in management & BOD Support financially in early ages Provides upside to higher gold prices Backed by 8 Moz reserves and 25 Moz resources Targets % From initial investment + 10 % pa + Warrants $ 2.0M - $ 2.5M pa TSX:AAB 7

8 Source high potential resource deal Seed financing AAB provides managed risk capital 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 TSX:AAB 8

9 Aberdeen s recent success: $1.22 $0.60 $0.52 Avg Cost $0.38 $0.34 Avg Cost $0.20 Avg Cost $0.52 $0.19 $0.14 Forbes & Manhattan success: TSX:AAB 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 Q

10 Equity Portfolio Value of top 5 holdings (April 30, 2009): C$36M C$0.40/share 1. Crocodile Gold 2. Dacha Capital 3. Temujin Mining (PVT) 4. Sulliden Gold 5. Avion Gold 20other investments Potash Oil & Gas Mining Gold Royalties 1% gold NSR Buffelsfontein Mine (Simmers & Jack) Mine Waste Solutions (First Uranium) 8 Moz reserves 25 Moz resources US$2.2M Current net over next 12 months Cash Always evaluating new investments. Typical entry point: C$1-5M TSX:AAB 10

11 Asset Class Public Equities & Warrants By Commodity Debt Public Equities Bulks Agricultural Gold & Precious Metals Warrants TSX:AAB 11

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 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 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 Share Structure Major Shareholders TSX:AAB Shares Issued & Outstanding Warrants (Exercise price $1.00, Expiry Date June 6, 2012) Options Fully Diluted 87.5M 37.5M 6.9M 132M Share Price (June 16, 2010) $0.38 Market Capitalization $33.2M 52 week High/Low $0.52/$0.12 Management & Directors RAB Capital Top Gold US Global TD 14% Shareholders Equity (Q1) = $1.19/share TSX:AAB 15

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 George Faught, C.A. Chief Executive Officer David Stein, CFA, MSc. President & Chief Operating Officer Stephan Theron Chief Financial Officer Board of Directors Stan Bharti, P.Eng. Executive Chairman George Faught, C.A. Director David Stein, CFA, MSc. Director Hon. Pierre S. Pettigrew Director Advisory Board Bruce Humphrey Chairman of Investment Committee Bernard Wilson, C.A. Director Mike Hoffman, P.Eng. Director Jean-Guy Lambert, MBA TSX:AAB Director 16

17 Contact Details David Stein President & COO Mike McAllister Investor Relations A Forbes & Manhattan Group Company