Aberdeen International Inc. · TSX:AAB
Aberdeen International — Investor Presentation (July 2016)
25 slides from Aberdeen International's investor presentation, July 2016
Slide 1: Exclusive Private Mining Investments, Equity Expertise
July 2016 78 46 Pt Pd 4 195.08 Li 106.42 6.94 EXCLUSIVE PRIVATE MINING INVESTMENTS EQUITY EXPERTISE TSX:AAB OTCPS:AABVF
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, without limitation, statements regarding progress in development of mineral properties, future production and sales vo
Slide 3: Building for Our Future
Building for Our Future In 2015, Aberdeen announced three important transactions: The closing of the $28 million acquisition of a South African based platinum group metals producer with Pala investments to create African Thunder Platinum The creation of Ore Acquisition Partners with Landmark Partner
Slide 4: Our Value Proposition
Our Value Proposition Value Investment Value Investment Growth $25 million $45 million Sal de los $5 million for 20% Ownership Angeles $5 million $15 million additional 30% in Lithium (8m shares of LIX) Lithium ownership Producer African $25 million* Go-Public Event ~$40 million Thunder $15 million
Slide 5: Principal Investments
Principal Investments Aberdeen has two exclusive mining projects: Sal de los Angeles Lithium and African Thunder Platinum Investment in these exclusive projects has allowed Aberdeen to: § Enter projects on the ground level or to inexpensively invest in assets with significant turnaround potential §
Slide 6: Mining for a Green Future
Mining for a Green Future Lithium and Platinum Group Metals are both important strategic metals with compelling environmental benefits Lithium Platinum Group Metals Lithium Ion batteries have become the Platinum and Palladium are critical in industry standard for the rechargeable their use as autoca
Slide 7: Why Lithium?
Why Lithium? Lithium is the lightest of all solid elements Worldwide Lithium Usage and the first element in the alkali metals Other group. 8% Metalurgical Powders Properties: Glass and 10% Ceramics § Silvery white, soft and reacts 32% Chemical and Pharma immediately with air and water. 17% § Conside
Slide 8: Demand Driven By Technology
Demand Driven By Technology Between 2003 and 2007 the battery Li-ion Battery Demand industry doubled its consumption of 140,000 lithium carbonate due to the increase 120,000 50,000 tonnes in mobile phones, laptops and 100,000 estimated for the assorted electronic devices. for the EV car LiCo Tonnage
Slide 9: Sal de los Angeles Lithium Project
Sal de los Angeles Lithium Project A near-term lithium project in South America owned with JV partner Lithium X § A Lithium brine project situated in mining friendly Salta Province § The Project currently owns >90% of the Salar and controls 100% of the prospective producing area § Current land posit
Slide 10: Sal de los Angeles Lithium Project
Sal de los Angeles Lithium Project § A historic 2.8 Mt lithium carbonate equivalent from an in-situ inferred brine resource of 4.9 Mt lithium carbonate equivalent § Favorable Historical Preliminary Economics: § Production of 15,000 tonnes lithium carbonate per year and approximately 51,000 tonnes of
Slide 11: Lithium Cost Curve
Lithium Cost Curve Estimated Project Cash Cost Source: Roskill Estimates 2014 Canada Lithium no longer in production. Galaxy operations no longer include mining and purchase concentrates TSX:AAB 11
Slide 12: Why Platinum Group Metals?
Why Platinum Group Metals? 2015 Worldwide Platinum Usage Investment 0% Platinum is a silvery white metal and is the most scarce mineral of the PGM group but it is the Industrial 22% most widely used. This is the reason Platinum is Autocatalysts 44% considered the most precious of metals. Platinum Je
Slide 13: Platinum/Palladium Demand
Platinum/Palladium Demand Demand Platinum Forecast Supply and Demand § Slowed in short-term due to slow down 8,000 in global growth, but with the 6,000 000 oz 4,000 Volkswagen scandal we expect more 2,000 focus on emissions standards - (2,000) Supply § Rebounding slightly from lost production Surplu
Slide 14: African Thunder Platinum
African Thunder Platinum A Platinum Group Metals (PGM) Producer in South Africa African Thunder Platinum or ATP is a private company that Aberdeen founded with partner Pala Investments in late South Africa 2014 – each hold 47.5%. Location: (Bushveld Complex – Eastern Limb) ATP holds two strategic lo
Slide 15: African Thunder Platinum
African Thunder Platinum Derisking the Smokey Hills PGM Mine § Underground mining and capital development was the focus at the Smokey Hills PGM Mine for much of 2015. § The mine experienced production of 234,000 tonnes of ore at a head grade of 3.1 g/t 4E PGM (platinum, palladium, rhodium and gold)
Slide 16: PGM Cost Curve – Well Positioned
PGM Cost Curve – Well Positioned Smokey Hills (Estimated 60,000 oz/yr, $725/oz) Kalplats (Estimated 100,000 oz/yr, $600/oz) Spot PGM basket (Oct 13 2105) TSX:AAB 16
Slide 17: Portfolio Management
Portfolio Management Aberdeen has been selected by Landmark Partners, a U.S. based investment manager, to advise on and manage the Ore Acquisition Partners LP. As part of this arrangement Aberdeen will be receiving: § $8.1 million in cash + proceeds of the sale of 325,000 shares of Tahoe Resources (
Slide 18: A Proven Track Record in Creating Value
A Proven Track Record in Creating Value 2009 Return $11.20 mm $56.0 mm Premier Royalties 5.0x $6.25 mm $17.50 mm Avion Gold 2.8x $13.61 mm $25.0 mm Sulliden Gold 1.9x $6.97 mm $16.0 mm Crocodile Gold 2.3x $1.81 mm $8.50 mm Allana Potash 4.7x $2.81 mm $9.0 mm Belo Sun 3.2x 2014 Investment Return TSX:
Slide 19: A Team with Experience
A Team with Experience Aberdeen has built its company with strong management who have a depth of experience in the resource sector and a proven track record at building companies from the seed level through to highly successful exits. Management Board of Directors David Stein, CFA, MSc. Stan Bharti,
Slide 20: What’s Next?
What’s Next? Private Equity Investments § Unlock Value by focusing on African Thunder Platinum § Use both investments (African Thunder and Sal de los Angeles) as a platform for mid-tier low-cost production in their sectors § Go-public events within 12-24 months Corporate Growth § Deliver value to sh
Slide 21: Corporate Structure
Corporate Structure TSX: AAB Major Shareholders Shares Issued & • Management & Insiders 26% 88.9 million Outstanding • Canadian High Net Worth Options 3.08 million Investors 17% Warrants ($0.30) 10.0 million • Lloyd Miller (Family Office) 13% • Sulliden Mining Capital 5% Fully Diluted 102.0 million
Slide 22: TSX:AAB OTCPS:AABVF
David Stein Rob Hopkins President & CEO Manager, Investor Relations 416-861-5812 416-861-5899 dstein@aberdeeninternational.ca info@aberdeeninternational.ca Follow us: www.aberdeeninternational.ca TSX:AAB OTCPS:AABVF
Slide 23: Appendix 1: Mineral Resource Details
Appendix 1: Mineral Resource Details Table 1 - Brine Resource Estimate, Diablillos Lithium-Potash Project, Salta, Argentina as of May 2, 2016 Aquifer Recoverable Specific S. G. Concentration Recoverable Recoverable Recoverable Recoverable Brine Yield Tonnage LCE PE BAE Volume (1000m3) (%) Li K B Li
Slide 24: Appendix 2: Preliminary Economic Assessment
Appendix 2: Preliminary Economic Assessment Production Case: 15,000 tpa LC 25,000 tpa LC NPV at 8% discount rate $561 million $964 million IRR 34% 36% Total Initial Capital Costs $144 million $220 million Operating Costs per tonne LC* $1,519 $1,486 Operating Costs per tonne LC with potash and ($703)
Slide 25: Appendix 2: Preliminary Economic Assessment
Appendix 2: Preliminary Economic Assessment The Company notes that this does not include an analysis of after tax economics. Generally speaking, applicable taxes for mining in the Puna region of Salta, Argentina are subject to a federal income tax rate of 35% and export duties, or retentions, of 5%
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