TORONTO, ONTARIO--(Marketwire - Aug. 16, 2011) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) today announces that the value of its investment portfolio as at July 31, 2011, the end of its 2012 second fiscal quarter, was approximately $102.3 million including a cash balance of $3.7 million. This equates to a value of $1.17 per share based on Aberdeen's investment portfolio alone and does not include the value of its gold royalties and other assets. This report of the portfolio value is not equivalent to the "Net Asset Value" or "NAV" or Shareholders' Equity that has been previously reported by Aberdeen as it does not include assets and liabilities of the Company that are not treated as investments. Rather, this report refers only to the cash, equity investments (private and public), option-type investments (e.g. warrants) and corporate debt/loans receivable of the Company, which are marked-to-market at the end of the quarter.
The value of the investment portfolio decreased from the first quarter results for the period ending April 30, 2011 by approximately $14.6 million or 12.5%. On a year-over-year basis, the value of our investment portfolio has increased by $40.6 million or 65.8%. Second quarter financial results are expected to be released on or before September 14, 2011, and will include up-to-date shareholders' equity value (previously referred to as "net asset value") which includes the value for our royalties as well as other assets and liabilities. Aberdeen plans to hold a conference call at that time to discuss full results for the second quarter.
|July 31, 2011||April 30, 2011||January 31, 2011|
|Cash on hand (incl. o/s settlement)||3,742,624||0.04||7,427,116||0.09||14,049,856||0.16|
|Equity accounted investment||-||-||-||-||-||-|
David Stein, Aberdeen's President and COO, commented, "The junior equity markets continued to weaken during our second quarter and this made a material impact on our portfolio. The S&P TSX Venture Index was down 12.1% during the same period, so basically our portfolio performed in line with the market over this short period of significant weakness. We still see a very bright outlook, as commodity prices remain robust. As the majority of the value of our investments are dedicated to advanced-stage or producing companies, we are confident these companies, such as Sulliden Gold Corporation Ltd, Black Iron Inc., and Forbes & Manhattan Coal Corp. will benefit from these high prices.
The record gold prices create exciting opportunities for many of our investments in the portfolio, even though the recent equity performance has been disappointing, and we have maintained our gold and precious metals weighting consistent throughout the year, and we continue to have a positive outlook as the traditional gold demand season commences in August-September".
During this period of weakness, Aberdeen has been putting capital to work opportunistically to achieve its long-term growth objectives. In Q2, Aberdeen made the following significant new investments:
Normal Course Issuer Bid
Aberdeen purchased and cancelled 1,062,200 shares of Aberdeen at an average price of $0.8737 as part of its on-going Normal Course Issuer Bid during the six months ended July 31, 2011, and issued 1,967,500 shares for options exercised, for a net addition of 905,300 shares.
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 Company's intention will be to optimize the return on its investment over a minimum 2-year investment time frame.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Twitter: AberdeenAAB.
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 second quarter results of the Company, implying or regarding 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 and commodity 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.