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American Alliance Financial & Funding Group

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  1. American Alliance Financial & Funding Group Corporate Summary – March 2008

  2. Legal THIS CORPORATE SUMMARY DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY FROM ANY PERSON IN ANY STATE OR OTHER JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL, OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO, OR TO A PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH AN OFFER OR SOLICITATION. THERE IS NO PUBLIC MARKET FOR THE SECURITIES, AND NONE IS EXPECTED TO DEVELOP IN THE FUTURE. THEREFORE, INVESTORS SHOULD BE AWARE THAT THEY MIGHT BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS. This Executive Summary contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. For example, forward-looking statements may predict future economic performance, describe plans and objectives of management for future operations and make projections of revenue and other financial items. Prospective investors should not rely on such forward-looking statements because the matters they describe are subject to known (and unknown) risks, uncertainties and other unpredictable factors, many of which are beyond our control.

  3. AAFFG Company Profile A financial services institution with its vast assets under management, unique approach, dynamic relationships, and core expertise. Leading global conduit focused on the following sectors: • Banking • Energy • Mining and Minerals • Government • Technology

  4. AAFFG Mission AAFFG is dedicated to creating value for its stakeholders and operating under the premise to: Reinvest a significant portion of its net proceeds into the betterment of communities of the world it engages.

  5. Corporate Structure

  6. AAFFG Key Management Steven V. Cross – Chairman & Chief Executive Officer Robert Tunnison – Executive Administrative Assistant   Phillip Long – Chief Financial Officer CD Rowsell – Senior Executive Vice President, Investments Gary Wiess – Senior Vice President, Commodities Alexander Chang – Executive Vice President, Legal Counsel – Asia Thomas L. Woodall – Senior Vice President, Chief Legal – Americas William C. Brannan – Senior Vice President, Economics & International Planning Richard Scales – Senior Vice President, Financial Management Jim Lewis – Chief Geologist Paul Pomp – Chief Silica Engineer Gordon Pomp – Silica Production Manager Steven Hopkins – Project Lifeguard Supervisor (EDCU – Utah Governors Office) Stacy Hopkins – Chief EDCU Coordinator

  7. Limited Partnerships and Joint Ventures

  8. AAFFG Corp - Financial Projections • All figures in $USD • 5 Year NPV = $5.25 billion (Taxes and Depreciation not included in all calculations) • Based on Investment Capital of $252 million over 27 month period • Investment Recovery (Cumulative Break‑even) Q2 2009 • Cash Flow Positive Q1 2009 (Peak Cumulative Loss ~ $94 million)

  9. Balance Sheet

  10. Oil Contracts

  11. Oil Contracts Financial Projections • 5 Year Net Present Value = 1.1 billion (8% discount rate) • No Initial Capital Investment Required

  12. Summary of Silica Leases • The 3 distinct mineral leases on 40,000+ acres contain an estimated 50 billion tons of quartz silica rock of very high purity, as well as an abundance of quartz crystals of gemstone and fiber optic quality. • The British Columbia sites are located near rail facilities connected to port facilities at Vancouver, BC or Prince Rupert, BC. The Idaho site is also close proximity to rail facilities. • Geologic sampling has revealed exceedingly pure samples of silica comprised of 97.7% to 99.3% silica, with iron oxide contents ranging from 0.02% to 0.05%. Majority of prospect is covered with only 2-4 inches of overburden consisting of moss and light soils. • Underlying the main silica deposit, there is an inferred gold deposit varying from 600-800 feet in depth from the surface. • AAFFG is General Partner owning 51% of the limited partnership and 40% of net revenues.

  13. Location of British Columbia and Idaho Silica Sites

  14. Silica Diverse Uses • Glass (a colorless, high-purity form is called fused silica) • Silica gel (used as desiccants in new clothes, leather goods, electronics) • Raw material for ceramics such as earthenware, stoneware and porcelain. • Raw material for the production of Portland cement. • Food additive in powdered foods or to absorb water • Electronic insulator as the natural oxide coating grows on silicon is a electric insulator, possessing high chemical stability. • Raw material for aerogel for spacecraft, defense. • Extraction of DNA due to its ability to bind to the nucleic acids. • Added to medicinal anti-foaming agent • As hydrated silica in toothpaste (abrasive to fight away plaque.) • As fumed silica as pharmaceutical excipients. Improving flow properties of materials required for modern tablet and capsule

  15. Pure Silica Hi-Tech Uses • Solar Panels created from Silicon Wafers • Optical Components - lenses, prisms, reflectors, mirrors, filters, optical flats. • Analytical Instruments - UV spectrophotometer cells, fire control devices, reticle substrates,interferometer plates • Semiconductor Electronic - Microcircuit substrates, microwave devices, photomasks, sputter plates, excimer lasers • Lasers - beam splitters, brewster windows, medical/industrial systems, Q-switches, UV excimers • Energy - Laser fusion research, isotope separation, solar cell covers. • Spacecraft/Aircraft - Docking light covers, windows, re-entry heat shields, ring laser gyros. • Fiber optics

  16. Potential Silica Buyers/Partners • Chemical Manufactures (DuPont, Dow, BASF, Pharmaceuticals) • Petro-chemical Processors • Solar Industry • Electronics Industry • Glass Industry • Construction Industry

  17. Initial Silica - Production and Pricing • 10,000 metric tons per month mined in Year 1 from each of the 3 North American mines. Overview of pricing of silica production: • Raw decorative silica stone = $120 per ton. • OR crush and grind silica stone into granular silica = $6,000 a ton. • OR grind granular into powder = $7,500 a ton. • OR by heat in a refinery furnace into a gel = $6,500 an ounce ($208,000,000 a ton)

  18. Risk Factors – Silica Production • No customers to purchase the commodities, inadequate demand. • Change in Technology • Environmental, Local Permits • Production Health Risks – Silicosis • Delays due to weather, equipment failure, staffing

  19. Risk Mitigations – Silica Production • Company actively pursuing silica buyers from diverse industries • Company plan to ramp up production and refineries as demand and technology evolves • Company working closely with local and national governments to secure permits and partnerships • Company outsourcing production to experienced mining producers to reduce injury, equipment misuse, and staff training

  20. Silica Financial Projections • 5 Year Net Present Value = $1.3 billion (8% discount rate) • Based on Investment of $69 million over 14 months • Investment Recovery (Cumulative Break‑even) in Q3 2009 • Cash Flow Positive Q2 2009 (Peak Cumulative Loss ~ $22 million)

  21. Metals and Mining Overview • AAFFG receives 40% of gross profit from Appleman LP, Card LP, and Composite Corp JV • Total Reserve Value > $300 billion • Appleman LP owns mineral deposits of 50 million tons on 1,280 acres in Colorado • Value of reserves in 2005 ~ $851 billion, today’s value > $2 trillion • 54,300,000 oz. gold • 704,700,000 oz. silver • 61,100,000 oz. platinum • 86,900,000 oz. palladium • Economic life of mine = 20 years • 5 Year estimate gross revenue = $13.6 billion

  22. Card LP Gold Overview • Card LP includes inferred 7 million ounces of Gold at 600-800 feet (below the Silica) • Market value of gold reserves ~ $7 billion • Economic life is 20 years • 5 Year estimated gross revenue = $803 million • Initial investment capital = $69 million (included in silica investment)

  23. Composite Corp JV Overview Composite Corp JV purchase rights to 4.2 million tons of mineral tailings in Nevada • Market value of reserves ~ $72 billion • Quantity of minerals • 2,727,333 oz. gold (.64 oz/ton) • 17,898,124 oz. silver (4.2 oz/ton) • 20,454,998 oz. platinum (4.8 oz/ton) • 2,045,500 oz. palladium (.48 oz/ton) • 3,025,635 oz. rhodium (.71 oz/ton) • Economic life = 12 years, $65 million initial capital investment • 5 Year estimate gross revenue = $6.5 billion

  24. Precious Metals Projections • 5 Year Net Present Value = $2.6 billion (8% discount rate) • Investment Recovery (Cumulative Break‑even) in Q1 2010 • Based on Investment of $125 million over next 27 months • Cash Flow Positive Q1 2009 (Peak Cumulative Loss ~ $50 million)

  25. Oil Exploration Overview • AAFFG receives 58% of revenues from wholly owned subsidiary - Aces Oil & Gas • Aces owns lease claims covering 37,000 acres in Nye County, Nevada • Reserves of 140 million barrels at shallow depths (~5,500 feet) • Based on $100 per barrel less 50% for contingency = $7 billion • Further deep reserves of 1.8 billion barrels (> 12,000 feet) or valuation of $90 billion • Economic life is 20 years with 60% derived in Years 1-5

  26. Why Nye County Nevada • 2 of the largest producing wells in the lower 48 states currently active in Nye County • Only 24 months expected return on investment from initial strike to explore, develop, and produce the prospect • Up to 100 wells can be drilled in the area • Huge upside with the extensive oil at deeper structures and expected large deposits of natural gas • AAFFG has spent $5 million on satellite, assays, and extensive drill sampling.

  27. Oil Investment Analysis • Approximately $56 million required to relocate, establish 20 wells • Additional $244 million to optimize exploration • Extensive interest from future buyers including Oil companies and Government entities. • Demand is assured

  28. Oil Exploration Financial Projections • All figures in $USD • 5 Year Net Present Value = $473 million (8% discount rate) • Investment Recovery (Cumulative Break‑even) in Q1 2010 • Based on Investment of $56 million over next 17 months • Cash Flow Positive Q2 2009 (Peak Cumulative Loss ~ $22 million)

  29. Investment Opportunities • Strategic, Equity, Diversified Position in AAFFG Corporation (Parent/Holding Co.) • Investment in AAFFG LLC Limited Partnerships & Joint Ventures: • Pure Silica (USA, Canada, China) • Metals Mining and Tailings (USA) • Oil Exploration and Drilling (USA)