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Aberdeen Reports Shareholders' Equity of $1.12 Per Share and Quarter End Financial Results


TORONTO, ONTARIO -- (MARKET WIRE) -- 09/15/10 -- ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX: AAB) is pleased to announce that it has released its financial results for the second fiscal quarter of 2011, ending July 31, 2010. For more information please see the Company's quarterly financial statements and Management's Discussion and Analysis ("MD&A") posted on www.sedar.com.

As at July 31, 2010, Aberdeen's Shareholders' Equity (or Net Asset Value, "NAV") was $98.0 million, or $1.12 per share. Aberdeen's shareholders' equity decreased by $5.0 MM from $104 million at the end of Q1 2011. The Company witnessed tough conditions in the equity markets, especially with small-capitalization stocks, which make up much of the equity portfolio, however, many of the Company's largest holdings have rebounded since the end of the quarter. During the quarter, Aberdeen realized a gain on investments of $778,055 on sales made in the normal course of business, as well as royalty revenue of $439,715, interest income of $184,149 and advisory fees of $129,572. Throughout the year, Aberdeen has strategically rebalanced its investment portfolio, to allow for a greater exposure to both strategic metals and energy, yet the overall portfolio remains strategically weighted heavily towards gold. During the quarter, Aberdeen's assets decreased by $9.2 million, primarily due to the drop in the value of the equity portfolio in the quarter. This was partially offset by a drop in liabilities of $3.1 million, largely due to lower future income taxes expected. On a year-over-year basis, Aberdeen's shareholders' equity increased by $8.8 million or 9.9%. Note that the reference to shareholders' equity is similar to previous references to Net Asset Value or "NAV" by Aberdeen.

Aberdeen received royalty revenue of $439,715 from 34,999 oz sold at Simmer & Jack's Buffelsfontein Mine and First Uranium's Mine Waste Solutions Tailings Recovery Operations during the quarter ending July 31, 2010, compared to $514,074 in the previous quarter.

Business And Investment Outlook

Gold Investments (Public): Aberdeen is bullish about the short and long-term fundamentals for the gold sector, and remains heavily weighted in gold between several of our largest equity holdings as well as our gold royalties. The gold price has entered its strongest seasonal demand period, where typically much of the physical buying for the year tends to occur. Given the lack of direction and potential risk remaining in the overall economic picture, we expect gold investment demand to remain healthy for short term. During Q2 our largest gold investments, Sulliden Gold (TSX: SUE), Crocodile Gold (TSX: CRK) and Avion Gold (TSX VENTURE: AVR), as a whole, suffered significant corrections in value, during the quarter, partly due, in our view, to seasonal weakness in the gold price and overall small-cap equity sector, and partly due to certain company-specific operational issues. Despite this, since end of the quarter, in the opinion of the Company, our gold holdings have performed extremely well, led by Sulliden Gold, up 43% since the end of the quarter. We are pleased that Sulliden has emerged as our largest single investment position, and continue to see upside as it develops the Shahuindo gold project into a mine, and explores the district sandwiched between Peru's two largest gold mines, Yanacocha and Alto Chicama.

Other Investments (Public): Currently Aberdeen's two largest publicly-traded positions are Allana Potash (TSX VENTURE: AAA), developing a potash project in Ethiopa, and Dacha Capital (TSX VENTURE: DAC), which holds a strategic stockpile of physical rare earth metals. Both stocks suffered significant declines in value in our second quarter. Consequently, the Company decreased its holdings slightly in both companies to allocate resources to other investments, however both companies remain large holdings, with excellent long-term fundamentals.

Private Investments: Aberdeen is pleased to be able to demonstrate that our private investment strategy is achieving excellent returns and liquidity for our portfolio. Of a number private holdings, one achieved a public listing in Q2 (Newport Mining) (ASX: NMN), and another is scheduled to complete a public listing later in September (Forbes & Manhattan Coal ("Forbes Coal"), merging with Nyah Resources) (TSX VENTURE: NRU).

Through an agreement with Newport Mining (proposed to be renamed Aguia Resources) and Amazon Potash (one of Aberdeen's private holdings), Aberdeen acquired 1,521,583 common shares, 4,145,556 series A performance shares, and 3,318,763 series B performance shares. The series A and series B performance shares vest in the event that Newport Mining achieves certain resource estimate milestones as determined under the JORC classification. For more details, please see Aberdeen's quarterly financial disclosure. David Stein, Aberdeen's President and COO stated "The Newport spin-out from Amazon Potash is a great example of the hidden value that lies in our investment portfolio. With a minimal cost base we believe we have little downside in Newport, but should the JORC resource meet our expectations, the combination of greater share price potential and vesting of performance warrants could make this investment one of our largest and most successful holdings over the next 1-2 years".

Aberdeen currently holds 1,705,196 common shares and 1,100,000 performance shares in Forbes Coal, which raised more than $35 million pursuant to a special warrant financing at $2.80 per share which closed in July 2010. Aberdeen's performance shares vest upon Forbes Coal achieving certain financial and/or production metrics at its mining operations.

Both of these transactions demonstrate that Aberdeen's core business of investing in and nurturing early-stage resource investments with exceptional upside has been successful despite the recent ups and downs of the market. We continue to work with our investee companies to add value for Aberdeen shareholders as well as selectively reviewing and analysing new investment opportunities.

Normal Course Issuer Bid

During the quarter ending July 31, 2010, no shares were purchased, however subsequent to the quarter end, 558,000 shares have been purchased for cancellation at an average cost of $0.38. As of the time that Aberdeen's Q2 financial statements were prepared, 6,977,000 shares remain eligible for purchase and cancellation under Aberdeen's Normal Course Issuer Bid ("NCIB"). Aberdeen's current NCIB expires on February 4, 2011. Aberdeen expects to continue to purchase shares over the remainder of the fiscal year, depending on market conditions and other investment opportunities that may be available.

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/or (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 and follow us on Twitter: AberdeenAAB.

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", "will" and include without limitation, statements regarding the impact of the appointment on Aberdeen; 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.

Aberdeen International Inc:
Mike McAllister
Manager, Investor Relations
+1 416-309-2134

Aberdeen International Inc:
David Stein
President and COO
+1 416-861-5812