TORONTO, ONTARIO--(Marketwire - April 26, 2012) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the fiscal year ended January 31, 2012. For more information please see the Company's annual financial statements and Management's Discussion and Analysis ("MD&A") posted on SEDAR at www.sedar.com.
As at January 31, 2012, Aberdeen's Shareholders' Equity (or Net Asset Value, "NAV") was $96.1 million, or $1.12 per share. Aberdeen's shareholders' equity decreased by $17.9 million from $114.0 million at the end of Q3 2012. Note that the reference to shareholders' equity is similar to previous references to Net Asset Value or "NAV" by Aberdeen. The decrease in shareholders' equity was due to the performance of Aberdeen's investment portfolio in the fourth quarter, which decreased in value by 9.7% to $72.3 million and the definitive agreement entered into between Aberdeen and Premier Royalty Corporation with respect to the sale of the Company's two gold royalties resulting in a decrease in the carrying value of the gold royalties by $5.4 million. In 2012, the Company experienced the impact of very weak market performance for small capitalization mining and resource stocks, which make up the bulk of its investment portfolio. On a year-over-year basis, Aberdeen's shareholders' equity decreased by $40.2 million or 29.4%.
January 31, 2012 October 31, 2011 January 31, 2011
Shares outstanding 86,100,139 86,872,139 86,677,339
$/ $/ $/
$ Shares $ Shares $ Shares
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Cash on hand 7,372,118 0.09 8,316,461 0.10 14,049,856 0.16
Investments
Publicly traded 51,916,759 0.603 59,280,908 0.682 71,157,521 0.821
Private 16,325,377 0.190 17,624,515 0.203 18,579,608 0.214
Non-trading
warrants
Intrinsic value 1,915,000 0.022 2,757,980 0.032 13,060,800 0.151
Option value 2,170,214 0.025 471,610 0.005 2,011,811 0.023
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4,085,214 0.047 3,229,590 0.037 15,072,612 0.174
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Portfolio
Investments 72,327,350 0.840 80,135,012 0.922 104,809,740 1.209
Equity accounted
investment - - - - - -
Loans receivable 3,459,778 0.040 12,588,729 0.145 7,465,823 0.086
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Total 83,159,246 0.966 101,040,202 1.163 126,325,419 1.457
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During the year, Aberdeen's portfolio decreased by $43.1 million or 34.1% (or a 33.7% decrease in per share value after factoring in shares cancelled during the year).
2012 Investment Portfolio Changes
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Investment Portfolio, January 31, 2011 - 126,325,419
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Change due to markets (22,614,455)
Changes due to private investments (5,798,073)
Changes due to performance shares (2,694,072)
Loan paid or converted during the year (4,129,960)
Loan provisions taken during the year (1,251,875)
Change in cash on hand (6,677,738)
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Investment Portfolio, January 31, 2012 - 83,159,246
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Aberdeen reported net earnings of $(37.8) million or $(0.44) per share for the year ended January 31, 2012 on total revenue of $(36.9) million. Revenue was comprised of $(40.2) million from net investment losses, $2.4 million from royalties, $0.9 million from interest, advisory and other income. For the twelve months ending January 31, 2011, Aberdeen reported net earnings of $34.8 million or $0.40 per share on total revenue of $64.2 million ($60.9 million from net investment gains, $2.0 million from royalties, $1.3 million from interest, advisory).
Aberdeen received royalty revenue of $2,409,543 from approximately 152,000 ounces of gold sold at Village Main Reef's Buffelsfontein Mine and First Uranium's Mine Waste Solutions Tailings Recovery Operations, located in South Africa, during the year ending January 31, 2012, compared to $2,009,725 in the previous year. The Company entered into an agreement dated April 25, 2012 to sell its royalties for an aggregate price of $20.9 million, consisting of a cash payment of $11.5 million and the issuance by Premier Royalty Corporation of a convertible debenture payable to Aberdeen in the amount of $9.4 million. Closing of the transaction is expected to occur on May 31, 2012 and remains subject to customary closing conditions, receipt of all regulatory approvals, including the approval of the TSX and applicable approval of the South African Reserve Bank and includes a commitment by Aberdeen to obtain all necessary third party consents with respect to the assignment of Aberdeen's interest in the royalty to Premier Royalty Corporation. (See Press Release dated April 25, 2012)
Normal Course Issuer Bid ("NCIB")
During the year ending January 31, 2012, 2,544,700 common shares were purchased for cancellation at an average cost of $0.75. Aberdeen commenced another NCIB that will terminate on February 26, 2013 and to date has purchased 71,400 common shares for cancellation at an average cost of $0.60. 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.
Outlook
David Stein, Aberdeen's President and Chief Operating Officer, commented: "During the financial year ended 2012, Aberdeen experienced weak market conditions for small and micro-cap resource shares for practically the entire year. The underlying commodity prices for most of our investments remained very robust, and in our view the weakness was mostly caused by overall market conditions. Therefore, as market conditions improve we should experience significant upside with our current holdings. It is also worth noting that we took a 50% write-down on most of our private holdings in response to the weak market conditions we see in public markets. As investors at the riskiest end of the resource spectrum, we must be prepared to take a long-term view and endure this volatility. Nevertheless, we were able to make some great new investments in the past year that we believe will pay off handsomely in the future. We are also very proud to have recently announced a deal to realize immediate value for our South African gold royalties, and at the same time be part of the launch of an exciting new gold royalty company."
Q4 Conference Call
The Company plans to host a conference call on April 30, 2012 at 11:00 AM (EST). To participate in the call please dial:
International: +1 416 340 2216
Toll Free North America: 866 226 1792
Toronto Area: 416 340 2216
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 sale of the royalties; the anticipated timing with respect to the closing of the sale of the royalties; 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Aberdeen International Inc.
Mike McAllister
Manager, Investor Relations
+1 416-309-2134
info@aberdeeninternational.ca
Aberdeen International Inc.
David Stein
President, Chief Operating Officer
+1 416-861-5812
dstein@aberdeeninternational.ca
www.aberdeeninternational.ca
Source: Aberdeen International Inc.
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