Olive Resource Capital Inc. · TSXV:OC
Olive Resource Capital — Investor Presentation (September 2022)
22 slides from Olive Resource Capital's investor presentation, September 2022
Slide 1: Building a Better Resource Investment Company
TSX.V OC BUILDING A BETTER RESOURCE INVESTMENT COMPANY September 2022 Olive-Resource.com
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation and United Stated federal securities laws. Forward- looking information includes, but is not limited to, information with respect to future operating a
Slide 3: Olive tree philosophy for long-term shareholder returns
Just as an Olive tree lives in a harsh environment and bears fruit for its owners for generations, the goal for Olive Resource Capital is to generate long-term returns for shareholders, while operating in the harsh environment of the junior resource space. TSXV OC Olive-Resource.com
Slide 4: Positioning Olive to Take Advantage of the Coming Commodity Bull Market
OVERVIEW Olive Resource Capital is a publicly listed resource-focused merchant bank and investment company. This structure provides three key advantages over traditional investment vehicles: Positioning 1. Available to All Investors 2. No Investment Restrictions 3. Liquidity for Investors without Di
Slide 5: What We Have Accomplished to Date
WHAT WE HAVE ACCOMPLISHED TO DATE Since the Management Change in June 2021 Olive has done the following: New Investments Outperforming Maximizing the Value of Legacy Investments Up 3% since June 20211 – TSXv Materials Index Down 24% 50.4% of AUM • Bell Copper (TSXV:BCU - Sold) – 167% return • Joined
Slide 6: Building It Better
BUILDING IT BETTER Investment Issuers like Olive Resource Capital have existed for years but there have been very few long -term successes. The issues are solvable – creating the potential for a better publicly listed resource investment company Challenges Typically Faced Olive’s Plan to Build it Be
Slide 7: The Path Forward
THE PATH FORWARD GOAL Phase 1 – Asset Growth Become a Getting to +C$50M Market Cap >C$250M Publically Listed Resource • Initate Rollover Flow-Through Fund Investment • Execute Share Swaps Company The Path to • Merge with Similar Companies • Active involvment in legacy +10% equity positions Creating
Slide 8: A Different Investment Approach
A DIFFERENT INVESTMENT APPROACH Investments are split into three portfolios: Merchant Banking, Quantitative & Hedging Merchant Banking Quantitative Driving Alpha Liquidity with Plus Beta Performance to Resources Focuses on taking advantage of value dislocations Uses a seven-step quantitative methodo
Slide 9: Capital Markets Profile
CAPITAL MARKETS PROFILE Share Ownership Capital Structure TSXV OC Share Price (August 31, 2022) C$0.040 Management & Directors 5.6% 52-Week Trading Range C$0.035 – C$0.105 HNW Mining Executives/Investors Basic Shares Outstanding 100.4M 13.5% Options1 5.6M FD Shares Outstanding 106.0M Market Capitali
Slide 10: Investments
Investments TSXV OC Olive-Resource.com
Slide 11: Performance Under New Management
PERFORMANCE UNDER NEW MANAGEMENT 1,2,3,4 140 $0.60 120 $0.50 103.0 Portfolio Performance 100 $0.40 NAV Per Share 76.3 80 $0.30 76.1 60 $0.20 48.3 $0.138 $0.129 $0.126 $0.113 $0.116 $0.118 $0.108 $0.108 $0.116 $0.115 $0.106 $0.101 40 $0.073 $0.078 $0.075 $0.10 20 $0.00 Jun-21 Jul-21 Aug-21 Sep-21 Oct
Slide 12: Current Portfolio
CURRENT PORTFOLIO 1,2 Top Investments Breakdown (%) Rockcliff Five Largest Investments NAV C$ Per Share % of Portfolio Other Metals Corp., Investments & 33.9% 1 Rockcliff Metals (CSE:RCLF) $ 0.025 33.9% Working Capital, 30.9% 2 Black Sheep Income Corp. (Private) $ 0.009 12.0% 3 Minera Alamos (TSXV:M
Slide 13: Portfolio Breakdown
PORTFOLIO BREAKDOWN1 Asset Breakdown by Commodity/Industry (%) Asset Breakdown by Stage (%) Finance, 3.5% Precious Real Estate, Exploration, Metals, 14.7% 6.5% Production/Revenue 16.6% , 41.0% Healthcare, 12.6% Energy, 3.1% Development, Uranium, Copper, 48.6% 0.5% 37.0% Industrial Royalty, Metals, 3
Slide 14: Investment Themes for H2 2022
INVESTMENT THEMES FOR H2 2022 High Inflation and Interest Rate increases have resulted in a race to liquidity. Real interest rates remain depressed and commodity prices have held up. Resource equities’ valuations remain steeply discounted offering opportunities. Precious Metals Electrification/Decar
Slide 15: The Olive Team
The Olive Team TSXV OC Olive-Resource.com
Slide 16: The Team Driving the Change
THE TEAM DRIVING THE CHANGE Derek Macpherson • 10 years of capital markets experience primarily in research at both bank owned and boutique investment banks P.Eng, MBA • As a Mining Analyst identified numerous early-stage and turnaround opportunities that were mispriced by the market Executive Chair
Slide 17: Board of Directors
BOARD OF DIRECTORS Derek Macpherson • 10 years of capital markets experience primarily in research at both bank owned and boutique investment banks P.Eng, MBA • Previously Senior VP, Investment Banking as well as a Mining Analyst at Red Cloud Securities Inc. Executive Chairman • President & CEO of G
Slide 18: Contact
TSX.V OC C O N TA C T Derek Macpherson Executive Chairman 416.294.6713 [email protected] Samuel Pelaez President & CEO 202.677.8513 [email protected] 82 Richmond Street East, Toronto, ON, M5C 1P1 Olive-Resource.com
Slide 19: Appendix
Appendix TSXV OC Olive-Resource.com
Slide 20: Quantitative Portfolio Process
APPENDIX 1 QUANTITATIVE PORTFOLIO PROCESS 1 Quantitative Single Factor Testing 2 Statistical Multi-Factor Construction 3 “Safe Harbour” 4 Asymmetric Risk Profile Selection 5 Active Trading Discipline Matrix 6 Options Overlay 7 Quarterly Reassessment TSXV OC Olive-Resource.com A– 1
Slide 21: Model Quantitative Portfolio Performance
APPENDIX 2 MODEL QUANTITATIVE PORTFOLIO PERFORMANCE 1 1. Based on back-testing the quantitative methodology, actual performance may differ from historical estimates of returns. TSXV OC Olive-Resource.com A– 2
Slide 22: Merchant Banking Portfolio Investment Evaluation
APPENDIX 3 MERCHANT BANKING PORTFOLIO INVESTMENT EVALUATION 1 Management – track record and capability 2 Balance Sheet – capital to move the project to the next stage 3 Scarcity – good assets in good jurisdictions are rare 4 Potential – what could this be? what does that mean to value? 5 Valuation –
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