TORONTO, ONTARIO–(Marketwired – Sept. 22, 2016) – ABERDEEN INTERNATIONAL INC. (“Aberdeen”, or the “Company”) (TSX:AAB) is pleased to announce that it has released its financial results for the second quarter ended July 31, 2016.
Highlights:
- Net income for the six months ended July 31, 2016 was $12.4 million or $0.13 per basic share;
- Aberdeen’s largest public shareholding by value, Lithium X Energy Corp., continues to trade well and closed at $2.27 per share on the TSX Venture on September 21, 2016;
- Completion of the NCIB by repurchasing and cancelling 6.6 million Aberdeen shares.
As at July 31, 2016, Aberdeen’s shareholders’ equity and net asset value (“NAV”) was $37.1 million, or $0.42 per share. Given the nature of Aberdeen’s operations, there is currently no difference between “shareholder equity” and “net asset value” for Aberdeen. On a year-over-year basis, Aberdeen’s shareholders’ equity increased by $9.5 million.
| July 31, 2016 | January 31, 2016 | July 31, 2015 | ||||||||
| Shares outstanding | 88,912,282 | 95,546,628 | 96,658,252 | |||||||
| $ | $/Shares | $ | $/Shares | $ | $/Shares | |||||
| Cash on hand | 319,206 | 0.004 | 604,613 | 0.006 | 412,186 | 0.004 | ||||
| Investments | ||||||||||
| Publicly traded | 19,016,290 | 0.214 | 2,754,448 | 0.029 | 8,950,692 | 0.093 | ||||
| Private | 17,652,452 | 0.199 | 19,322,417 | 0.202 | 15,313,996 | 0.158 | ||||
| Non-trading warrants | ||||||||||
| Intrinsic value | – | – | – | 0.000 | 137,000 | 0.001 | ||||
| Option value | 234,190 | 0.003 | 423,920 | 0.004 | 462,160 | 0.005 | ||||
| 234,190 | 0.003 | 423,920 | 0.004 | 599,160 | 0.006 | |||||
| Portfolio Investments | 36,902,932 | 0.415 | 22,500,785 | 0.235 | 24,863,848 | 0.257 | ||||
| Loans | 2,839,640 | 0.032 | – | – | – | – | ||||
| Total | 40,061,778 | 0.451 | 23,105,398 | 0.241 | 25,276,034 | 0.261 | ||||
For the three months ended July 31, 2016, Aberdeen reported a net loss of $0.3 million or $0.00 per basic share on total revenue of $0.7 million. Revenue was comprised of $0.7 million from net investment gains, $0.1 million from interest income and advisory fees. For the three months ending July 31, 2015, Aberdeen reported a net loss of $8.6 million or $0.09 per share on total revenue of $(7.9) million ($(8.1) million from net investment losses and $0.2 million from interest and dividend income and advisory fees).
For the six months ended July 31, 2016, Aberdeen reported net earnings of $12.4 million or $0.13 per share on total revenue of $14.3 million. Revenue was comprised of $14.1 million from net investment gains, $0.2 million from interest income and advisory fees. For the six months ending July 31, 2015, Aberdeen reported a net loss of $8.1 million or $0.08 per share on total revenue of $(6.3) million ($(6.8) million from net investment losses and $0.5 million from dividend income and advisory fees).
Aberdeen’s management is encouraged by the corporation’s solid performance during the first half of 2016 and is looking forward to continuing to build on that performance through the balance of the fiscal year. Management expects that its investment in African Thunder Platinum will continue to develop as the company takes steps to complete a going public transaction.
Concentrated Positions in a Few Companies Poised for Growth
Aberdeen has also acquired additional equity interests in a few companies management believes are positioned for significant and transformative growth in this continuing rally in commodity stocks. Aberdeen has acquired these positions for investment purposes and, given the positive outlook for these companies, Aberdeen may acquire additional securities in the future.
On September 20, 2016, Aberdeen acquired 983,000 Pitchblack Resources Ltd. (“Pitchblack”) common shares through a non-brokered private placement financing. Before this private placement, Aberdeen also had certain control and direction rights in respect of Ore Acquisition Partners (“OAP”), which also holds 295,800 Pitchblack common shares. Consequently, via its direct shareholdings and its certain control and direction rights in respect of OAP, Aberdeen can be considered to have ownership, control or direction over an aggregate of 1,278,800 Pitchblack common shares, which represents approximately 19.96% of the outstanding common shares.
Aberdeen also holds 6,800,000 common shares and 2,400,000 share purchase warrants of Fura Emeralds. Each warrant provides Aberdeen with a right to acquire one Fura common share at a price of $0.17 at any time prior to June 23, 2017. Upon exercise of these warrants, Aberdeen would hold 9,200,000 Fura common shares, which would represent about 24.8% of the outstanding common shares. Aberdeen has covenanted to the TSX Venture Exchange that it will not exercise any warrants if such exercise would result in Aberdeen holding more than 20% of the outstanding Fura common shares.
Aberdeen has also acquired a significant shareholding in Kombat Copper Inc. as it holds 9,205,000 common shares and 10,000,000 share purchase warrants. Each Kombat warrant entitles Aberdeen to acquire one common share at a price of $0.10 until February 17, 2017. Upon exercise of these warrants, Aberdeen would hold 19,205,000 Kombat common shares, which would represent approximately 13.2% of the outstanding Kombat common shares.
For a copy of any early warning report regarding these investments, please contact Ryan Ptolemy at +1.416.861.5882.
Normal Course Issuer Bid (“NCIB”)
During the six months ended July 31, 2016, the Company purchased and cancelled 6,634,346 shares at an average price of $0.18. The Company has now completed its NCIB for the year.
ABOUT ABERDEEN INTERNATIONAL
Aberdeen International is a global resource investment company and merchant bank focused on small capitalization companies in the mining and metals sector. African Thunder Platinum, Aberdeen’s premiere investment, is a lower-cost platinum group metals project in South Africa’s well-known Bushveld Complex. Aberdeen has further enhanced its investment holdings with its holding of 50% of Potasio y Litio de Argentina SA, which holds the Sal de los Angeles lithium project in Argentina.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook, Twitter, Linkedin and check out Aberdeen’s YouTube Channel.
Cautionary Notes
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 financial results of Aberdeen; 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 investments; 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.
Stan Bharti
Interim President and Chief Executive Officer
+1 416-861-2267
[email protected]
www.aberdeeninternational.ca
