Aberdeen Announces Net Asset Value of $0.94 PABERDEEN INTERNATIONAL INC. ("Aberdeen" or the "Company") (TSX VENTURE: AAB) is pleased to announce that it has released its financial results for the quarter and nine months ended October 31, 2007.
During the quarter, Aberdeen has actively pursued its transition to a Global Investment and Merchant Banking Company focusing on making key investments in the Junior Resource Sector.
To highlight our focus as a Global Investment Company, Aberdeen will declare its NAV at the end of each quarter. For the 3rd quarter ended October 31, 2007, Aberdeen's NAV was $96.5 million, or $0.94 per share. Aberdeen's NAV is calculated as follows:
- Cash and cash equivalents of $43.6 million, or $0.43 per share, plus
- Estimated Fair Market Value of our Portfolio Investments of $23.0 million, or $0.22 per share, plus
- Discounted Cash Flow value of our Royalty Loan Facility on the Buffels Gold property held by Simmer and Jack PTY (SJ: SIM) and First Uranium Corporation (TSX: FIU) of $42.5 million, or $0.41 per share, plus
- Other assets of $2.3 million, or $0.02 per share, less
- Total liabilities of $14.9 million, or $0.14 per share (including $12.8 million in future tax liabilities)
Stan Bharti, Chairman of Aberdeen stated, "this quarter has seen Aberdeen complete its transition to a publicly traded investment company focused on the junior resource sector. We have made a number of strategic investments in line with our business model that should have an enormous impact on our NAV over the next 18 months. In our investment in Central Sun Mining, we identified a great asset with high potential that was underfunded and in need of a strategic focus on its most valuable projects. We provided the direction to re-capitalize the company, re-structure its share capital and brought the technical expertise to grow its exploration potential." Mr. Bharti also commented that, "in addition to our public investments we have taken significant positions in a number of private companies where we can maximize our seed level participation from an economic and board representation level. Couple this with a valuble asset such as our Simmers Royalty Loan, which is demonstrating increasing value and our share price should clearly be more reflective of our NAV of $0.94."
During the 3rd quarter, Aberdeen recorded earnings of $3.6 million. The earnings include a $11.0 million unrealized gain on investments (after-tax: $7.0 million) along with royalty and interest income of $1.5 million, partially offset by a $2.1 million decline in the value of the Royalty Loan Facility, primarily due to a weaker US dollar. Aberdeen also incurred general and administrative expenses of $3.6 million, largely related to stock option expense ($2.2 million) and an accrued bonus on the portfolio gain ($1.1 million). Aberdeen also recorded a tax provision of $3.1 million, largely due to the strong earnings performance during the quarter.