Commodity Quest AB - Presentation Q3 TICKER - COMQ

Transcription

1 Commodity Quest AB - Presentation Q3 TICKER - COMQ

2 Disclaimer All presentations and their appendices (hereinafter referred to as Investor Presentations ) published on have been prepared by Commodity Quest AB( COMQ or the Company ) exclusively for information purposes. The presentations have not been reviewed or registered with any public authority or stock exchange. Recipients of these presentations may not reproduce, redistribute or pass on, in whole or in part, these presentations to any other person. The distribution of these presentations and the offering, subscription, purchase or sale of securities issued by the Company in certain jurisdictions is restricted by law. Persons into whose possession these presentations may come are required by the Company to inform themselves about and to comply with all applicable laws and regulations in force in any jurisdiction in or from which it invests or receives or possesses these presentations and must obtain any consent, approval or permission required under the laws and regulations in force in such jurisdiction, and the Company shall not have any responsibility or liability for these obligations. These presentations do not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom is unlawful to make such an offer or solicitation in such jurisdiction. [IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THESE PRESENTATIONS ARE STRICTLY CONFIDENTIAL AND ARE BEING FURNISHED SOLELY IN RELIANCE UPON APPLICABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. 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NONE OF THE COMPANY S SHARES HAVE BEEN OR W ILL BE QUALIFIED FOR SALE UNDER THE SECURITIES LAWS OF ANY PROVINCE OR TERRITORY OF CANADA. THE COMPANY S SHARES ARE NOT BEING OFFERED AND MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN CANADA OR TO OR FOR THE ACCOUNT OF ANY RESIDENT OF CANADA IN CONTRAVENTION OF THE SECURITIES LAWS OF ANY PROVINCE OR TERRITORY THEREOF. IN RELATION TO THE UNITED KINGDOM, THESE PRESENTATIONS AND THEIR CONTENTS ARE CONFIDENTIAL AND THEIR DISTRIBUTION (WHICH TERM SHALL INCLUDE ANY FORM OF COMMUNICATION) IS RESTRICTED PURSUANT TO SECTION 21 (RESTRICTIONS ON FINANCIAL PROMOTION) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER IN RELATION TO THE UNITED KINGDOM, THESE PRESENTATIONS ARE ONLY DIRECTED AT, AND MAY ONLY BE DISTRIBUTED TO, PERSONS WHO FALL WITHIN THE MEANING OF ARTICLE 19 (INVESTMENT PROFESSIONALS) AND 49 (HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC.) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 OR WHO ARE PERSONS TO WHOM THE PRESENTATIONS MAY OTHERWISE LAWFULLY BE DISTRIBUTED.] The contents of these presentations are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal business, investment and tax advice. There may have been changes in matters which affect the Company subsequent to the date of these presentations. Neither the issue nor delivery of these presentations shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in these presentations. These presentations include and are based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the Company or assumptions based on information available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness or such information and statements. An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in these presentations, including, among others, risks or uncertainties associated with the Company s business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in these documents.

3 Structure & Ownership Management Strategy & Assets Q Benchmark Oil & Gas COMQ Services Kilmanjaro Gold Summary & Outlook Pictures Questions & Answers

4 Structure & Ownership Benchmark Oil & Gas went public in 2006 Organizational restructuring with establishment of Commodity Quest as financial holding company in 2010 Management change and financial restructuring in 2012 Large and varied shareholder base with more than 4000 shareholders Listed on Aktietorget Stockholm Top 12 Shareholders Bustein AS ,8% SIX SIS AG ,9% Tindrin ,9% Handelsbanken Equities Norge ,1% Banque Invik SA ,0% Gimmersta AB ,4% Avanza Pension ,1% Nordnet Pension ,9% Edelfors AS ,1% Cavaletto AS ,9% Falkbolagen AB ,1% Totalt Top 12 Shareholders ,6% Total outstanding shares %

5 Management Pål Mörch, CEO Background in Investment Banking and Corporate Finance for 12 years. Specialized in Oil and Minerals. Financial planning and structuring. Worked closely with several listed Oil and Mineral companies worldwide in all different sizes. Former Board member of Tomsk Refining and currently the Chairman and President of Benchmark Oil & Gas Co. Background with Kuwait Petroleum, Swedish Match and Dellner Couplers Since 2008, CEO for International Advisory Management AB Involved with Commodity Quest since 2010; Chairman of the Board since 2011 Håkan Gustafsson, Chairman

6 Strategy & Assets Investment in small and medium-sized enterprises in the commodity and resources sector Seeking active ownership participation in holdings Creating shareholder value through different dividend / divestments Asset Benchmark Oil & Gas Co. Ownership interest 64% Oil exploration, prospecting and production Ilocano Minerals LLC 20% Sand & Gravel production Sector Region Shareholder activity Orange Field, Texas, US Northwest Luzon, Philipines Kopy Goldfields AB 7,3% Gold exploration Lena Goldfields, Irkutsk, Russia Benchmark Holding AB 100% Receivables Other liquid/non-liquid assets Cash 9 MSEK 5 MSEK 2 MSEK CEO, Board Chairman Board representative Board representative

7 Q Financials: Net revenue: (TSEK) Earnings after tax: (TSEK) Earnings per share: 4,04 (SEK) Capital per share: 10,57 (SEK) Highlights: Investment in Crown energy through guarantee issue. Cost cutting Benchmark, Oil & Gas; operations turned profitable Benchmark Oil & Gas; higher valuation of reserves (in TSEK) Q Q YTD-2012 YTD-2011 Net Revenue Other Revenue Operating Costs EBITDA Net Financials Earnings after Tax Change in liquid assets (in SEK) Earnings per share 4,04-0,21 3,38-1,44 Capital per share 10,57 7,37 10,57 7,37

8 Benchmark Oil & Gas Overview/History Company Overview Established in 2006 Production of oil in mature oil fields Low-cost production Orange field, TX In production since 1930s Field is believed to hold million BOE in place New Management in 2012 Company restructuring Financial restructuring Aggressive cost cutting Turned profitable Q3-2012

9 Benchmark Oil & Gas - Production Production update Recompleted wells, most put in production Terminated gas generators with negative margins Built pipeline between injection wells to stabilize production Production increased from 50 (Jan, 2012) to 90 BOEPD (Sept, 2012) Target production of BOEPD by yearend producing wells Going forward Permit new disposal well Continue recompletions Reprocess data to identify replacement wells and prospects Further increase production Investigate possible acquisitions

10 Benchmark Oil & Gas - Reserves Reserves update ($1000) Total Proven reserves: $43,917.8 PDP (Proven Developed Producing): $8,890.5 PBP (Proven Behind Pipe): $35,027.3 Reserves forecast Reserves increasing based on lower lifting cost. Reprocessing our seismic to identify real potential for Orange Field Target increased proven reserves by 30% Reserves update march 2013 (if suitable)

11 Benchmark Oil & Gas - Financials Cost overview Overhead reduced by 70% in 2012 Finished major work over program costing 1 MUSD Operating costs cut by 70% in 2012 Production costs cut to 55 USD per BOE (2011: 95 USD) Recompletion works about to finish (Q3-Q4) Financials Complete refinancing in 2012 Bank debt: 650 KUSD (down from 2,1 MUSD June,2011) Payables: 500 KUSD (down from 1,1 MUSD Dec, 2011) BMOG tax deductibles of 23 MUSD Company operating with solid profitability from September 2012 (in USD 000) Q Q Q YTD-2012 Net Revenue Production costs Gross profit 93 (198) Overhead costs EBITDA (31) (400) (41) (472) Depreciation / Depletion (104) (132) (129) (364) Non-operating costs (27) (20) (23) (70) Net Income (162) (552) (193) (907)

12 COMQ Services & COMQ Singapore Affiliated companies structured to service and support main investments in Benchmark and IMCC. Company structure and business model to take shape as underlying assets in each company are developed

13 Kilimanjaro Gold Tanzania as an investment location Strong economic growth Political situation stable, foreign investor friendly Natural resources and mineral exploration booming Tanzania is extremely rich in minerals Africa s third largest gold producer Medium scale mining underdeveloped opportunity Mara Mine North East Tanzania, Mara region; Musoma-Mara Greenstone Belt One Mining License; Gold Production ; estimated remaining reserves oz Planned activities: Geophysics, geochemistry, drilling Short term objectives: Tailings 17,000 oz; start production / cash flow Medium & long term objectives: Prove ore reserves min oz; eventually prove reserves of 1 million oz.

14 Kilimanjaro Gold Kilimanjaro Gold Investment opportunity Focus on medium scale gold projects in Tanzania Value creation by successful exploration Objective 1 million oz. gold per project Attractive project portfolio Strong management team Public listing share Nasdaq OMX First North spring 2013 Kilimanjaro Gold Investment opportunity 10% of shares i Kilmanjaro Gold to be distributed as dividend to Commodity Quests existing shareholders Target to divest by year-end 2012 (similar structure as the Crown Energy transaction of 2011, which represented a value of 12 MSEK to Commodity Quest s shareholders)

15 Summary & Outlook Summary Capital pr share 10,57 SEK Operations basically break even Q3 Dividend of Benchmark Oil & Gas Holding AB Q4 Update Continue strong EBITDA from oil operations Finish dividend Possible acquisitions Credit line in Benchmark Reach BOPD Update on IMCC Outlook for 2013 Further increase production Increase capital per share Target dividend from operations in Benchmark Other investments and acquisitions Change report layout to be more transparent Focus on creating shareholder value and investor confidence

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22 Questions & Answers