Sprott Resource Holdings Press Releases


Press Release

Sprott Resource Corp. Announces Second Quarter 2009 Results


        TORONTO, Aug. 13 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC" or the  "Company") today announced its financial results for the three-and six-month  periods ended June 30, 2009. The consolidated financial statements and related  management's discussion and analysis can be found on SEDAR (www.sedar.com) and  www.sprottresource.com.Financial Highlights for Q2 2009 and Year to Date ("YTD") 2009:        Consolidated Income Statements      -------------------------------------------------------------------------                         Three Month   Three Month     Six Month     Six Month                        Period Ended  Period Ended  Period Ended  Period Ended                       June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008      -------------------------------------------------------------------------      Net earnings       (loss) ($000's)           490         6,959          (681)        6,683      Earnings (loss)       per share - basic        0.01          0.13         (0.01)         0.13      Earnings (loss)       per share - diluted      0.01          0.11         (0.01)         0.12      -------------------------------------------------------------------------          Consolidated Balance Sheets      -------------------------------------------------------------------------                                                                As at                                                         June 30,      Dec. 31,                                                            2009          2008                                                          $000's        $000's      -------------------------------------------------------------------------      Cash, cash equivalents and short-term       investments                                      $172,008      $203,547      Gold & silver bullion (at cost)                    $61,930       $61,930      Portfolio investments                              $40,665       $28,564      Total Assets                                      $301,547      $314,286        Current liabilities                                 $3,189       $21,946      Total Liabilities                                  $10,199       $29,530      Net assets (total assets minus total       liabilities)                                     $291,348      $284,756      Net assets/share                                     $3.55         $3.48      -------------------------------------------------------------------------          Operational Highlights for Q2 2009 and YTD:        -   Investment portfolio grew to $40.7 million compared to $28.6 million          at December 31, 2008. Growth was the result of net invested capital          of $5.5 million and $6.6 million unrealized gains in the market value          of the investments.      -   One Earth Farms seeded 12,000 acres of crops at three First Nations          farms in Saskatchewan, consisting of 2/3 canola and 1/3 wheat and          barley. The fall harvest should begin in September and grain sales          thereafter.      -   Waseca Energy's oil revenues (net of royalties) grew by 154% to          $753 thousand from $296 thousand in the first quarter of 2009."We believe that the global economy will deteriorate further but will  also be subject to extreme volatility. The Company's strong cash balance  securely positions us to take advantage of this period of prolonged economic  weakness. As well, we aim to build value for our shareholders by focusing on  long-term supply/demand trends within the resource sector and on building,  financing and supporting our current subsidiaries," said Kevin Bambrough,  President and CEO of Sprott Resource Corp. "Since our overall economic outlook  remains bearish, we will continue to maintain a conservative investment  approach and seek to capitalize on pockets of strength."Financial Review        Working CapitalAs at June 30, 2009, the Company had current assets of $240.8 million,  consisting primarily of cash and cash equivalents ($73.5 million), Government  of Canada T-bills ($98.5 million) and gold and silver bullion ($61.9 million).  Current liabilities of $3.2 million consist of accounts payable and accrued  liabilities ($3.0 million) and capital tax payable ($230 thousand).      Working capital decreased to $237.6 million from $246.2 million at  December 31, 2008. The decrease in working capital is a result of net  purchases of public securities, the purchase of property, plant and equipment  and operating losses at One Earth Farms and Waseca.        Net Assets        As at the end of Q2 2009, net assets increased to $291.3 million from  $139.1 million at the end of Q2 2008 and from $284.8 million at the end of  December 31, 2008. Net assets per share were $3.55 at June 30, 2009.        Net Revenue        Waseca's oil sales are currently the Company's only operating revenue.  Net revenue for Q2 2009 was $753 thousand compared to nil in Q2 2008. 2009 YTD  net revenue was $1.0 million compared to nil for the same period in the prior  year.        Operating Expenses        Operating expenses, including general and administrative expenses,  management fees, and incentive fees, for Q2 2009 increased to $4.0 million  from $1.7 million in Q2 2008. Operating expenses increased to $7.2 million for  the 2009 YTD period from $2.4 million in the prior year period. The increase  in operating expenses is primarily related to the consolidation of Waseca and  One Earth Farms and their expanding operations.      As at June 30, 2009, the Company had 82,007,224 common shares issued and  outstanding.        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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