Olive Resource Capital Inc. · TSXV:OC
Olive Resource Capital — Investor Presentation (September 2023)
22 slides from Olive Resource Capital's investor presentation, September 2023
Slide 1: Building a Better Resource Investment Company
TSX.V OC BUILDING A BETTER RESOURCE INVESTMENT COMPANY September 2023 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 analogy and long-term shareholder return goal
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: Creating a New Breed of Investment Issuer
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 6: 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 7: 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 Down 5.5% since June 20211 – TSXv Materials Index Down 45.8% of AUM 26.2% • Chaired Rockcliff Metals (CSE:RCLF – 57.0% of
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, 2023) C$0.03 Management & Directors 5.9% 52-Week Trading Range C$0.02 – C$0.045 HNW Mining Executives/Investors Basic Shares Outstanding 111.8M 12.1% Options1 4.6M FD Shares Outstanding 116.4M Market Capitaliza
Slide 10: Investments
Investments TSXV OC Olive-Resource.com
Slide 11: Portfolio Performance Under New Management
PERFORMANCE UNDER NEW MANAGEMENT 1,2,3,4 140 $0.60 120 $0.50 105.5 100 100.0 $0.40 Portfolio Performance NAV Per Share 94.1 80 $0.30 73.8 60 $0.20 $0.138 $0.129 $0.126 $0.118 $0.108$0.108 $0.116 $0.115 $0.113 $0.116 $0.106 $0.101 40 $0.073 $0.078 $0.075 $0.067 $0.10 $0.069 $0.064 $0.065 $0.060$0.059
Slide 12: Current Portfolio
CURRENT PORTFOLIO 1,2 Investment Breakdown (%) Largest Investments NAV C$ Per Share % of Portfolio Working Capital Other & Liquid Investments, 1 Rockcliff Metals (CSE:RCLF) $ 0.033 48.8% Investments, 18.0% 3.3% 2 Black Sheep Income Corp. (Private) $ 0.011 16.6% 3 Nevada Zinc Corp. (TSXV:NZN) $ 0.006
Slide 13: Portfolio Breakdown
PORTFOLIO BREAKDOWN1 Asset Breakdown by Commodity/Industry (%) Asset Breakdown by Stage (%) Finance, Precious 1.1% Exploration, Real Estate, Metals, 4.5% 9.5% Production/Revenue 20.1% , 29.4% Healthcare, 6.9% Energy, 0.6% Uranium, 0.2% Copper, 52.7% Industrial Development, Metals, 61.1% Fertilizer,
Slide 14: Investment Themes for 2023
INVESTMENT THEMES FOR 2023 High Inflation and rapid Interest Rate increases have resulted in a race to liquidity as the market expectations are for a recession in 2023. While this increases volatility in the short-term, it does not derail medium to longer term themes. Precious Metals Electrification
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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