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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.
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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
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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.
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AAFFG Key ManagementSteven V. Cross – Chairman & Chief Executive Officer
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
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Balance SheetASSETS LIABILITIES
Cash $50,000 Accounts payable
$2,444,577
Accounts receivable $0 Short-term notes $0
Short Term Investments $0 Taxes payable $0
Prepaid expenses $0 Accrued payroll $ 4,477,083
Total Current Assets $50,000 Total Current Liabilities $ 6,921,660
Investments – LP (Non Minerals and Mining) $ 1,969,730 Long Term Notes Payable
$ 7,578,000
Investments - LP Mining and Minerals
(Valuation * Rev Share) $3,214,355,000,000
Total Long Term Assets $3,214,357,019,730 Total Long Term Liabilities $7,578,000
STOCKHOLDERS EQUITY
Paid in Capital $0
Retained earnings $3,214,342,520,070
Total Shareholders' Equity $3,214,342,520,070
TOTAL ASSETS $3,214,357,019,730 TOTAL LIABILITIES & EQUITY $3,214,357,019,730
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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.
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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
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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
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Potential Silica Buyers/Partners
• Chemical Manufactures (DuPont, Dow, BASF, Pharmaceuticals)
• Petro-chemical Processors
• Solar Industry
• Electronics Industry
• Glass Industry
• Construction Industry
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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)
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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
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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
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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)
2008 2009 2010 2011 2012 5 Year
Total Silica Revenue $ 53,100,000 $ 699,840,000 $ 1,465,920,000 $ 2,669,760,000 $ 5,508,000,000 $10,396,620,000
Total Operating Expenses $ 39,825,000 $ 454,896,000 $ 879,552,000 $ 1,468,368,000 $ 2,754,000,000 $ 5,596,641,000
Total Profit $ 13,275,000 $ 244,944,000 $ 586,368,000 $ 1,201,392,000 $ 2,754,000,000 $ 4,799,979,000
Cumulative Total Profit $ 13,275,000 $ 258,219,000 $ 844,587,000 $ 2,045,979,000 $ 4,799,979,000 $ 4,799,979,000
AAFFG Profit $ 5,088,750 $ 93,895,200 $ 224,774,400 $ 460,533,600 $ 1,055,700,000 $ 1,839,991,950
AAFFG Cumulative Profit $ 5,088,750 $ 98,983,950 $ 323,758,350 $ 784,291,950 $ 1,839,991,950 $ 1,839,991,950
AAFFG Total Investment $ 27,000,000 $ 42,000,000 $ - $ - $ - $ 69,000,000
AAFFG Cumulative Investment $ 27,000,000 $ 69,000,000 $ 69,000,000 $ 69,000,000 $ 69,000,000 $ 69,000,000
AAFFG Net Cash Flows $ (21,911,250) $ 51,895,200 $ 224,774,400 $ 460,533,600 $ 1,055,700,000 $ 1,770,991,950
Cumulative Net Cash Flows $ (21,911,250) $ 29,983,950 $ 254,758,350 $ 715,291,950 $ 1,770,991,950 $ 1,770,991,950
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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
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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)
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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)
2008 2009 2010 2011 2012 5 Year Total
Total Metals Revenue $ 45,695,658 $ 1,200,724,583 $ 3,587,259,879 $ 7,099,533,516 $ 8,186,454,796 $ 20,119,668,432
Total Operating Expenses $ 36,556,520 $ 952,675,017 $ 2,421,964,126 $ 3,233,779,880 $ 4,077,465,248 $ 10,722,440,791
Total Profit $ 9,139,138 $ 248,049,566 $ 1,165,295,753 $ 3,787,003,636 $ 4,003,989,548 $ 9,213,477,641
Cumulative Total Profit $ 9,139,138 $ 257,188,704 $ 1,422,484,458 $ 5,209,488,093 $ 9,213,477,641 $ 9,213,477,641
AAFFG Profit $ 3,655,655 $ 99,219,827 $ 466,118,301 $ 1,546,301,454 $ 1,643,595,819 $ 3,758,891,056
AAFFG Cumulative Profit $ 3,655,655 $ 102,875,482 $ 568,993,783 $ 2,115,295,237 $ 3,758,891,056 $ 3,758,891,056
Total Investment $ 54,000,000 $ 56,000,000 $ 15,000,000 $ - $ - $ 125,000,000
Cumulative Investment $ 54,000,000 $ 110,000,000 $ 125,000,000 $ 125,000,000 $ 125,000,000 $ 125,000,000
AAFFG Cash Flows $ (50,344,345) $ 43,219,827 $ 451,118,301 $ 1,546,301,454 $ 1,643,595,819 $ 3,633,891,056
AAFFG Cumulative Cash Flows $ (50,344,345) $ (7,124,518) $ 443,993,783 $ 1,990,295,237 $ 3,633,891,056 $ 3,633,891,056