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Aberdeen Announces Q2 2009 NAV of $1.10 Per Share and Q2 2009 Financial Results

09/15/2008

Download this Press Release (PDF 33 KB)

  • Realized Gain of $6.9 million on Acquisition of Quinto Mining
  • Continues Share Buyback Under Issuer Bid
  • Realized Royalty Income of $1.8 million
  • Aberdeen to Host Conference Call on Tuesday, September 16th, 2008 at 10:00 am ET
FOR IMMEDIATE RELEASE

Toronto, Ontario, September 15th, 2008: ABERDEEN INTERNATIONAL INC. (“Aberdeen”, or the “Company”) (Toronto Stock Exchange: AAB) is pleased to announce that it has released its financial results for the quarter ending July 31 2008.

As at July 31, 2008, Aberdeen’s Net Asset Value (“NAV”) was $111.2 million, or $1.10 per share.

The components of Aberdeen’s NAV are as follows:
  • Cash and cash equivalents of $7.7 million;
  • Portfolio Investments at fair value of $71.0 million;
  • Discounted Cash Flow value of Convertible Royalty Loan Facility on the Buffels Gold operation of $48.2 million;
  • Other assets of $5.5 million; less
  • Total liabilities of $21.2 million (including $17.7 million in future tax liabilities).
  • Shares outstanding at the end of the quarter of 101,209,073.
Aberdeen will host a conference call to update shareholders on Tuesday, September 16, 2008 at 10:00 am ET, which Stan Bharti, Executive Chairman and George Faught, President and CEO, will moderate.

Conference call date: Tuesday, September 16, 2008
Conference call time: 10:00 am ET
Dial-in numbers: 416-695-6140 - Local and International
877-323-2010 - North America Toll Free

Key investment highlights for the quarter included Vast Exploration Inc., a junior oil and gas explorer who acquired a significant exploration block in Kurdistan Iraq; Crowflight Minerals Inc., a Nickel exploration and development company with production slated to begin September 2008 and Allana Resources, an exploration and development firm with Potash assets in Argentina.

Stan Bharti, Chairman of Aberdeen stated, “This quarter, Aberdeen has realized its first significant gain in its portfolio with the closing of the Quinto Mining Corporation transaction, a stock which we held for less than six months before realizing our gain. In addition, we have made significant investments this quarter in Oil and Gas as well as Agriculture to take advantage of growing commodity pricing in these sectors.”

Subsequent to the end of the quarter, the Company’s NAV has been impacted by the general retreat in the resource sector and as a result, as at September 5, 2008, our portfolio value has dropped 34% since July 31, 2008 to approximately $46.5 million.

George Faught, Aberdeen’s President and CEO, stated, “Continued progress in our portfolio and new investments were key highlights of the second quarter. However, the general decline in the equity markets over the past couple of months has eroded much of the appreciation in our portfolio to date. We would re-iterate that our investment strategy calls for us to generally hold investments for 18 to 24 months to optimize the return. We see the current market as being a liquidity driven correction and still believe that the fundamentals of our investment portfolio will ultimately bring significant value appreciation to our shareholders.”

On January 31, 2008, Aberdeen announced it had initiated a Normal Course Issuer Bid (“NCIB”) to purchase for cancellation its common shares through the facilities of the Toronto Stock Exchange. Based on the public float of 81,888,340 common shares, the Company may repurchase for cancellation a maximum of 8,188,834 shares through January 31, 2009.

Subsequent to the end of the quarter, Aberdeen repurchased an additional 6,334,734 common shares at a cost of $0.25 per share. To date, the Company has repurchased 8,056,334 common shares under the NCIB at an average cost of $0.32 per share.

Mr. Faught also states “We feel that the ability to re-purchase Aberdeen shares at such discounted prices represents a highly accretive transaction for our shareholders.”

Aberdeen continues to receive royalty income on both the Buffels underground operation and the First Uranium Tailings recovery project. The Aberdeen Convertible Loan Agreement is due to mature December 31, 2008. Aberdeen will call for conversion to equity prior to the loan maturing.