TORONTO, ONTARIO--(Marketwire - June 14, 2012) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the first quarter of 2013, ended April 30, 2012. For more information please see the Company's Condensed Interim Financial Statements and Management's Discussion and Analysis ("MD&A") posted on SEDAR at www.sedar.com.
As at April 30, 2012, Aberdeen's Shareholders' Equity (or Net Asset Value, "NAV") was $79.2 million, or $0.91 per share. Aberdeen's shareholders' equity decreased by $16.9 million from $96.1 million at the end of Q4 2012. The decrease in shareholders' equity was due to the performance of Aberdeen's investment portfolio in the first quarter, which decreased $16.9 million or 23.4% to $55.4 million. In the first quarter of 2013, the Company continued to experience the impact of very weak market performance for small capitalization mining and resource stocks. On a year-over-year basis, Aberdeen's shareholders' equity decreased by $51.1 million. Note that the reference to shareholders' equity is similar to previous references to Net Asset Value or "NAV" by Aberdeen.
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April 30, 2012
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January 31, 2012
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April 30, 2011
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Shares outstanding
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86,898,239 |
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86,100,139 |
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86,194,639 |
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$ |
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$/Shares |
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$ |
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$/Shares |
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$ |
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$/Shares |
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Cash on hand
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2,034,272 |
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0.02 |
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7,372,118 |
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0.09 |
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7,427,116 |
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0.09 |
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Investments
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Publicly traded
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41,332,712 |
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0.476 |
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51,916,759 |
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0.603 |
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72,493,614 |
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0.841 |
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Private
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12,902,827 |
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0.148 |
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16,325,377 |
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0.190 |
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16,174,365 |
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0.188 |
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Non-trading warrants
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Intrinsic value
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- |
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- |
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1,915,000 |
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0.022 |
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12,827,595 |
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0.149 |
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Option value
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1,154,730 |
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0.013 |
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2,170,214 |
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0.025 |
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2,654,523 |
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0.031 |
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1,154,730 |
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0.013 |
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4,085,214 |
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0.047 |
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15,482,118 |
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0.180 |
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Portfolio Investments
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55,390,269 |
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0.637 |
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72,327,350 |
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0.840 |
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104,150,097 |
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1.208 |
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Loans receivable
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4,383,312 |
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0.050 |
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3,459,778 |
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0.040 |
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4,743,836 |
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0.055 |
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Total
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61,807,853 |
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0.711 |
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83,159,246 |
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0.966 |
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116,321,049 |
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1.350 |
Aberdeen reported net earnings of $(15.9) million or $(0.18) per share for the quarter ended April 30, 2012 on total revenue of $(18.5) million. Revenue was comprised of $(19.2) million from net investment losses, $0.6 million from royalties, $0.1 million from interest, advisory and other income. For the three months ending April 30, 2011, Aberdeen reported net earnings of $(3.9) million or $0.04 per share on total revenue of $(3.1) million ($(3.8) million from net investment losses, $0.5 million from royalties, $0.2 million from interest).
Aberdeen received royalty revenue of $559,503 from approximately 33,000 ounces of gold sold at Simmer & Jack's Buffelsfontein Mine and First Uranium's Mine Waste Solutions Tailings Recovery Operations during the first quarter ending April 30, 2012, compared to $519,103 in the previous year. On May 31, 2012, the Company completed the sale of its royalties to Premier Royalty Corporation for an aggregate price of $20.9 million, receiving cash payment of $11.5 million and a convertible debenture payable to Aberdeen in the amount of $9.4 million (see press dated April 25, 2012).
Normal Course Issuer Bid ("NCIB")
During the quarter ending April 30, 2012, 101,900 common shares were purchased for cancellation at an average cost of $0.57. Subsequent to April 30, 2012, the Company has purchased for cancellation an additional 384,900 common shares at an average cost of $0.46. 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.
Aberdeen's President and CEO, David Stein, noted: "Our Q1 was one of the most difficult quarters for junior stocks and resource stocks we have experienced, nevertheless we are pleased with the success of setting up our holdings for potential future gains by greatly increasing the liquidity of our portfolio. During the quarter we made relatively few investments, but succeeded in the sale of our gold royalties and announcing strategic transactions with Temujin Mining Corp. More recently, a similar strategic transaction was announced through our investment in Scandinavian Metals Inc. with Portex Minerals, which has exciting zinc-rich polymetallic resources in Spain and Portugal. The intention is to create a bigger metals player in Western Europe by combining the assets with Scandinavian Metals Inc., which has polymetallic projects in Norway and Sweden. By using our capital to invest in and aid the creation of larger more significant junior resource companies, we feel we can drive exceptional long-term returns in the context of a secular bull market for commodities."
Q1 Conference Call
The Company plans to host a conference call on June 15, 2012 at 10:30 AM (EST). To participate in the call please dial:
| International: |
+1 416 340 2218 |
| Toll Free North America: |
866 226 1792 |
| Toronto Area: |
416 340 2218 |
To register and listen to the webcast of the call, please go to Aberdeen's website at www.aberdeeninternational.ca. A webcast play back recording will remain on the Company's website after the completion of the call.
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 a 24 to 36 month investment time frame.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook and 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 potential strategic transactions; 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.
Contact: Mike McAllister
Company Name: Aberdeen International Inc.
Contact Title: Manager, Investor Relations
Phone: +1 416-309-2134
Other1: info@aberdeeninternational.ca
Contact: David Stein
Company Name: Aberdeen International Inc.
Contact Title: Chief Executive Officer
Phone: +1 416-861-5812
Other1: dstein@aberdeeninternational.ca
Other2: www.aberdeeninternational.ca
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