Queen's Road Capital Investment Ltd. · TSX:QRC
Queen's Road Capital Investment — Investor Presentation (September 2021)
22 slides from Queen's Road Capital Investment's investor presentation, September 2021
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 September 2021
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 • QRC’s general investment criteria: • Commodity a
Slide 5: QRC Leadership Team
QRC Leadership Team Hong Kong Directors Overseas Director Warren Gilman – Chairman & CEO Michael Cowin – Independent Director • CEO of Queen’s Road Capital Investment Ltd. • Principal at Corom Funds Management • Mining engineer (family office for the Cowin Family) • 26 years at CIBC running mining i
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 Directors & 02/25 Expiry ($0.30) 11,000,000 Offic
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 $1.00 900,000 Announcement of US$5m Los Andes Investment (TSXV: LA) $0.90 800,000 $0.80 700,000 $0.70 600,000 $0.60 500,000 $0.50 Announcement of C$21m 400,000 $0.40 Osisko Green Investment (TSXV: GOGR) 300,000 $0.30 Announcement of US$20m Adriatic Investment (ASX: ADT) 2
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 10
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
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
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
Investment Portfolio Adriatic Metals is a silver-zinc development company that is developing the 100%-owned Vares project located in Bosnia & Herzegovina. Vares is a high- grade silver rich (~50% of revenue from precious metals) deposit located Ticker Share Price near surface in a historical mining
Slide 16: Investment Portfolio
Investment Portfolio Los Andes is focused on developing the 100%-owned Vizcachitas copper- molybdenum porphyry project located in Chile. The Vizcachitas project is one of the largest advanced copper deposits in the Americas and is set to Ticker Share Price become Chile’s next major copper mine. The
Slide 17: Investment Portfolio
Investment Portfolio Osisiko Green is special purpose acquisition corporation (SPAC) with the purpose of effecting an acquisition of a business involved in the shift away from fossil fuels to green energy such as the mining of battery metals. Osisko Ticker Share Price Green is led by Sean Roosen, Jo
Slide 18: Investment Portfolio
Investment Portfolio Current Portfolio NAV Distribution Current Portfolio NAV Distribution (By Investment Type) (By Commodity) Converts: Black Cash Copper Cash Scholes Option Battery Metals* 1% Converts: Debt 3% 1% 8% 10% Principal 22% Converts: In- the-Money Zinc-Silver Option 13% 26% Equity Uraniu
Slide 19: Investment Portfolio
Investment Portfolio Cash & Equity Investments IRR Cash NXE 222% GOGR n/m Other Convertible Debenture Investments NXE 7.5% coupon 159% ADT 8.5% coupon 19% ISO 8.5% coupon 355% LA NXE 8.0% coupon 9% US$ $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $55.0 $60.0 $65.0 $70.0 Initial In
Slide 20: Investment Portfolio
Investment Portfolio • QRC has generated unrealized gains exceeding US$100m since its first investment in May 2020 with its NAV per share tripling over the same period. $0.90 GOGR 1.6 $0.85 1.4 $0.80 $0.75 1.2 $0.70 LA Price / NAV Multiple (x) NAV / Share (CAD) $0.65 1.0 $0.60 0.8 $0.55 ADT $0.50 0.
Slide 21: QRC Investment Portfolio
QRC Investment Portfolio • Illustrative Cash Flow based on US$100 million investment base Investment Portfolio Shareholder Return Item Weight Return Regular Dividend US$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
Slide 22: Thank You!
QUEEN’S ROAD CAPITAL INVESTMENT LTD. (TSXV: QRC) Thank You!
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