Sprott Resource Holdings Press Releases


Press Release

Sprott Resource Corp. Announces Outstanding 2008 Results


        TORONTO, March 3 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today  announced its financial results for the year ended December 31, 2008. The  consolidated financial statements and related management's discussion and  analysis can be found on SEDAR (www.sedar.com).Highlights for 2008:        -   Net earnings for 2008 of $134.2 million or $1.94 per basic share          compared to net earnings of $2 million or $0.09 per basic share for          2007      -   Ended 2008 with cash, cash equivalents and short-term investments          (Government of Canada Treasury Bills) of $203.5 million      -   Ended 2008 with holdings of 40,475 ounces of gold and 1,783,013          ounces of silver bullion, valued at $68 million as at December 31,          2008      -   Ended 2008 with portfolio investments of $28.6 million      -   Ended 2008 with net assets of $284.8 million or $3.48 per share          (undiluted) based on shares outstanding as at December 31, 2008"We are very proud that in this hostile financial environment our  management team produced such spectacular results," said Eric Sprott, Chairman  of SRC.      "Our strategy focuses on managing risk by adjusting our invested capital  to reflect market conditions. Last year demonstrated our ability to execute on  this strategy, as we benefited from the rise in the resource market and then  preserved capital after the market and economy deteriorated," said Kevin  Bambrough, President and CEO of SRC. "The undeniable strength and quality of  our balance sheet leaves us well positioned to take advantage of investment  opportunities that will undoubtedly arise at the bottom of this cycle."        Financial Review        For 2008 net earnings were $134.2 million or $1.94 per basic share  compared to net earnings of $2 million or $0.09 per basic share for 2007. The  increase in net earnings was primarily a result of gains realized from the  sale of securities, in particular the sale of SRC's shares in PBS Coals  Limited.      General and administrative expenses increased for 2008 to $43.3 million  compared to $2 million for 2007. The increase is due to $39.6 million in  management fees and incentive fees paid or accrued to Sprott Consulting  Limited Partnership ("SCLP") pursuant to the management services agreement  between SRC and SCLP.      At the end of 2008, SRC had portfolio investments of $28.6 million,  consisting of $12.5 million of publicly traded securities and $16.1 million of  securities in private companies.      As at December 31, 2008, SRC had 81,807,229 outstanding common shares.  This takes into consideration 8,000,000 common shares purchased and cancelled  pursuant to a normal course issuer bid completed by SRC in 2008 at an average  cost of $2.46 per common share and the issuance of 39,179,279 common shares in  2008 through the exercise of share purchase warrants (36,933,970), stock  options (474,000) and the issuance of shares to complete the acquisition of  the Mantaro Phosphate Project (1,771,309).        About Sprott Resource Corp.        SRC is a Canadian based company, the primary purpose of which is to  invest, directly and indirectly, in natural resources. Through acquisitions,  joint ventures and other investments, SRC seeks to provide its shareholders  with exposure to the natural resource sector for the purposes of capital  appreciation and real wealth preservation. SRC is well positioned to draw upon  the considerable experience and expertise of both its Board of Directors and  Sprott Consulting Limited Partnership ("SCLP"), of which Sprott Asset  Management Inc. is the sole limited partner. Pursuant to a management services  agreement between SCLP and SRC, SCLP provides day-to-day business management  for SRC as well as other management and administrative services.        Forward Looking Statements        Certain statements contained herein may constitute "forward-looking  statements" under applicable securities laws. Some of the forward-looking  statements may be identified by words such as "expects", "anticipates",  "should", "believes", "plans", and similar expressions. These statements are  based on current estimates, factors and assumptions, including expectations  regarding the SRC's future strategy and business and the execution of its  existing plans. These statements involve known and unknown risk. No assurance  can be given that any events anticipated by the forward-looking statements  will occur. Actual results and future events could differ materially from  those expressed in, or implied by, the forward-looking statements. As a  result, readers are cautioned not to place undue reliance on these  forward-looking statements. These forward-looking statements are made as at  the date of this news release. SRC does not undertake any obligation to  publicly update or revise any of these forward-looking statements, except as  required by applicable securities laws.          

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