Queen's Road Capital Investment Ltd. · TSX:QRC
Queen's Road Capital Investment — Investor Presentation (October 2020)
19 slides from Queen's Road Capital Investment's investor presentation, October 2020
Slide 1: Queen's Road Capital Investment Ltd. – Leading Financier to the Global Resource Sector
QUEEN’S ROAD CAPITAL INVESTMENT LTD. (TSXV: QRC) Leading Financier to the Global Resource Sector October 2020
Slide 2: Cautionary Statement
Cautionary Statement IMPORTANT: PLEASE READ THE FOLLOWING BEFORE CONTINUING. The information contained in this document has been prepared by QUEEN ’S ROAD CAPITAL INVESTMENT LTD. (“QRC” or the “Company”). The information contained in this document (a) is provided as at the date hereof and is subject
Slide 3: Queen's Road Capital (QRC)
Queen’s Road Capital (QRC) • QRC is a leading source of investment capital to resource companies and projects throughout the world • QRC focuses on investment structures which, where possible, limit downside and retain upside • Preference for convertible debenture structures • Income during life of
Slide 4: Queen's Road Capital (QRC)
Queen’s Road Capital (QRC) • QRC is managed by Warren Gilman and Alex Granger who have over 60 years of deal making and financing in the global resource sector • Directors & Officers own >9% of QRC which was acquired entirely through share purchases at an average cost of $0.35 per share • QRC’s gene
Slide 5: QRC Leadership Team
QRC Leadership Team Hong Kong Directors Overseas Directors Warren Gilman – Chairman & CEO John Anderson – Independent Director • CEO of Queen’s Road Capital Investment Ltd. • Practicing lawyer at Stikeman Elliott since • Mining engineer 1991 with a focus on public M&A • 26 years at CIBC running mini
Slide 6: Warren Gilman – CEF Track Record
Warren Gilman – CEF Track Record • Warren Gilman left CIBC in 2011 with the title of Vice Chairman & Head of Asia Pacific, responsible for all CIBC business activities in Asia • Joined CEF in 2011 & led it for the next 8 years until its closure in 2019 • CEF was owned 50% by CIBC & 50% by CK Hutchis
Slide 7: QRC Capital Structure
QRC Capital Structure • QRC is a tightly held company with 75% of the shares in the hands of three strategic investors as well as Directors & Officers. Float 14% Corom Pty Ltd Basic Shares Outstanding: 277,252,651 (Jack Cowin) 26% Options Outstanding 02/25 Expiry ($0.30) 11,000,000 Australasia High
Slide 8: QRC Capital Structure
QRC Capital Structure Corom Pty Ltd. (Jack Cowin) Tattarang Pty Ltd. (Andrew Forrest) • Corom Pty Ltd. is an investment vehicle owned and • Tattarang is one of Australia's largest private investment controlled by Mr. Jack Cowin, a Canadian-Australian groups established by the Forrest family. Dr Andr
Slide 9: QRC Share Price Performance
QRC Share Price Performance $0.90 900,000 $0.80 800,000 $0.70 700,000 Announcement of US$30m $0.60 $84 million capital raising; NexGen Investment (TSX: NXE) 600,000 Halt Lifted Announcement of US$20m Adriatic Investment (ASX: ADT) $0.50 500,000 $0.40 400,000 $0.30 300,000 Announcement of US$6m ISOEn
Slide 10: QRC Investment Structure
QRC Investment Structure Capital Investments Injections Investors QRC Investee (Cayman Islands) Companies (TSXV: QRC) Regular Interest Dividends & Caymans Payment Special incorporation & Hong on Converts & Dividends Kong residency Establishment supports tax Fees efficiency of investment returns
Slide 11: Why Focus on Converts?
Why Focus on Converts? Convert Royalty / Mining / Co Streaming Exploration Co Co Leverage to Commodity Prices ✘ ✘ ✘ Diverse Asset Base ✘ ✘ No Capital / Operating Cost Exposure ✘ ✘ Sustainable Dividend ✘ ✘ Low Overhead / G&A Cost Model ✘ ✘ Income Regardless of Production ✘ Upside from Underlying Equi
Slide 12: The Convert Model
The Convert Model • Investments in convertible 100% Equity Investment debentures offer: • Downside protected as debt Underlying Equity Share Price structure ranks ahead of 50/50 Equity / Convert shareholders • Full equity upside above the conversion price • Income regardless of macro / Downside 100%
Slide 13: Investment Portfolio – NexGen
Investment Portfolio NexGen is a uranium development company that owns & operates the Arrow uranium deposit located in Saskatchewan, Canada. Arrow is the world’s largest to-be-developed high-grade uranium deposit with a indicated mineral Ticker Share Price resource estimate of 179.5 mlbs U3O8 gradin
Slide 14: Investment Portfolio – IsoEnergy
Investment Portfolio IsoEnergy is a uranium development company that owns & operates the Hurricane uranium discovery located in Saskatchewan, Canada. Hurricane is the most exciting uranium discovery in the Athabasca basin since Arrow was Ticker Share Price discovered in 2014 with grades up to 33.9%
Slide 15: Investment Portfolio (Pending) – Adriatic Metals
Investment Portfolio (Pending) Adriatic Metals is a silver-zinc development company that owns & operates the Vares deposit located in Bosnia & Herzegovina. Vares is a high-grade silver rich (~50% of revenue from precious metals) deposit located close to Ticker Share Price surface in a historical min
Slide 16: QRC Investment Portfolio
QRC Investment Portfolio Pro Forma for ADT Portfolio Indicative Long-Term Portfolio NAV Distribution NAV Distribution 47% Equity Linked 35% Equity Linked Cash Equity Portion 5% of Convert Investments 25% Equity Investments 10% Debt Portion of Convert Investments 60% 53% Fixed Income 65% Fixed Income
Slide 17: QRC Investment Portfolio
QRC Investment Portfolio • QRC has already achieved healthy returns on its investment portfolio $25 Total Unrealized Return on Investment ~ 57.8% $20 +54.4% +37.3% US$ millions $15 $10 +118.1% $5 $0 NXE Equity Investment NXE Debenture Investment ISO Debenture Investment Original Investment Unrealize
Slide 18: QRC Investment Portfolio
QRC Investment Portfolio • Illustrative Cash Flow based on $100 million investment base Investment Portfolio Shareholder Return Item Weight Return Regular Dividend $4.5 million Special Dividend tbd Convertible Securities 85% 7.5% pa Equity Investments 10% nil Dividend Yield 4.5% Cash 5% 0.5% pa (on
Slide 19: Thank You!
QUEEN’S ROAD CAPITAL INVESTMENT LTD. (TSXV: QRC) Thank You!
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