Health & Fitness
Health and Fitness
Health and Fitness
Wed, May 19, 2010
Tue, May 18, 2010 Aberdeen International Reports Value of Investment Portfolio and Cash of $0.80 Per Share at End of First Quarter
TORONTO, ONTARIO--(Marketwire - May 18, 2010) - ABERDEEN INTERNATIONAL INC. ("Aberdeen" or the "Company") (TSX:AAB) today announces that the value of its investment portfolio for the first quarter of fiscal 2011 at April 30, 2010 was approximately $70.1 million including a cash balance of $2.1 million, and loans receivable of $7.4 million. This relates to a total value of $0.80 per share and does not include the value of our gold royalties. The cash total includes cash to be received from transactions awaiting settlement at the end of the quarter. The value of the investment portfolio increased quarter over quarter by approximately $1.7 million or 2.4%. First quarter financial results are expected to be released by June 15, 2010, and will include up-to-date shareholders' equity value (previously referred to as "net asset value") which includes value for our royalties.
| Investment Portfolio Performance | |||||
| (unaudited) | |||||
| (millions) | April 30, 2010 | Jan 31, 2010 | Jan 31, 2009 | ||
| Cash and Cash Equivalents1 | 2.1 | 3.3 | 1.4 | ||
| Investments | |||||
| Publicly Traded | 38.2 | 38.4 | 21.7 | ||
| Private2 | 12.1 | 7.7 | 7.2 | ||
| Non-Trading Warrants | |||||
| Intrinsic Value | 6.8 | 6.1 | 0.3 | ||
| Option Value | 3.5 | 4.8 | 3.3 | ||
| Corporate Debt/Short-Term Loans Receivable3 | 7.4 | 8.3 | 4.0 | ||
| TOTAL | 70.1 | 68.6 | 37.9 | ||
| Shares Outstanding (millions) | 87.5 | 87.5 | 94.9 | ||
| $/share | 0.80 | 0.78 | 0.40 | ||
| Notes: | |||||
| 1 - Includes transactions awaiting settlement for cash at the end of Q1 2010 | |||||
| 2 - Includes equity-accounted private investments | |||||
| 3 - Includes receivable on sale of mineral property for $1.0 MM in Jan 31, 2009 period | |||||
David Stein, Aberdeen's President and COO, commented, "Our share price continues to trade at a significant discount to the value of our investment portfolio, and we see significant upside for our shareholders by closing that valuation gap. Furthermore, the $0.80 per share value of our investment portfolio and cash, does not include the value of our gold royalties which provide regular income to the Company and even further value to our shareholders, particularly in the current near-record gold price environment.
During the past quarter we were cautious about the sustainability of the small cap equities rally and subsequently realized certain gains. We elected to re-invest our cash in several private companies that we are working closely with, including Temujin Mining, which is exploring for copper and gold in Mongolia, and Forbes & Manhattan Coal ("Forbes Coal'), which is in the process of acquiring two high-quality coal mines in South Africa. Some of our larger public holdings performed poorly in the quarter particularly Crocodile Gold and Sulliden Gold, but this was partially offset by excellent performance from Allana Potash Corp., Alderon Resource Corp. (new investment) and Dacha Capital Inc. (added to our position in Q1). Further, we anticipate that two of our core private holdings, Forbes Coal and Brazil Potash may list publicly before the end of the year and we expect these investments to add significant value to the Company, since we currently carry these investments at our cost base."
Aberdeen continues to have a high weighting in gold equities, with five of its top ten equity holdings being gold companies, including its largest two holdings: Crocodile Gold and Sulliden Gold.
| Summary of Aberdeen's Portfolio Including Top Holdings | ||
| (unaudited) | ||
| Publicly traded | (millions) | |
| Crocodile Gold Corp. | 7.4 | |
| Sulliden Gold Corp. | 7.0 | |
| Dacha Capital Inc. | 5.9 | |
| Avion Gold Corp. | 4.1 | |
| Other | 13.8 | |
| Total Public | 38.2 | |
| Private | 12.1 | |
| Non-trading Warrants | ||
| Crocodile Gold Corp. | 2.8 | |
| B2Gold Corp. | 2.4 | |
| Dacha Capital Inc. | 1.7 | |
| Other | 3.4 | |
| Total warrants | 10.4 | |
| Corporate debt/short-term loans receivable | 7.4 | |
| Cash | 2.1 | |
| Total Portfolio | 70.1 | |
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; (ii) are undervalued in foreign capital markets; and (iii) operate in jurisdictions with moderate local political risk. 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.
For additional information, please visit our website at [ www.aberdeeninternational.ca ].
Cautionary Note
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "anticipates", "will" and includes without limitation, statements with respect to the future financial or operating performance of the Company and the investments; valuations of investments; proposed transactions and investments; ; past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the future intentions of the Company with regard to its shareholdings; the Company's plan of business operations; and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
