Sprott Resource Holdings Press Releases

Print

Press Release

Sprott Resource Corp announces strong third quarter 2008 results

        TORONTO, Nov. 14 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today  announced its financial results for the three and nine month periods ended  September 30, 2008. The consolidated financial statements and related  management's discussion and analysis can be found on SEDAR (www.sedar.com).Highlights for Q3 and Year-to-Date ("YTD") periods:        -   Q3 2008 net earnings of $67.15 million or $0.76 per basic share          compared to a net loss of $468,332 or $0.02 per basic share for          Q3 2007      -   YTD net earnings of $73.84 million or $1.13 per basic share compared          to $707,580 or $0.05 per basic share for the prior year      -   Ended Q3 2008 with cash, cash equivalents and short-term investments          of $155.57 million      -   Ended Q3 2008 with other portfolio investments of $270.46 million          (including 27.14 million shares of PBS Coals Limited ("PBS") valued          at $217.48 million)      -   Ended Q3 2008 with net assets of $370.84 million      -   Subsequent to quarter end, completed the sale of 27.14 million shares          of PBS for proceeds of $140.82 million      -   Also subsequent to the quarter end, provided funding of $27,173,400          to Waseca Energy Inc. ("Waseca"), a newly created private oil and gas          company, in exchange for a 79.72% interest"We had an excellent third quarter, realizing value for the investments  made over the past year. This strengthened our balance sheet and demonstrated  our ability to execute our strategy," said Kevin Bambrough, President and CEO  of SRC. "We believe that current credit crisis will create exceptional  investment opportunities in the natural resource sector. With our strong  balance sheet, we are very well positioned."        Financial Review        For Q3 2008 net earnings were $67.15 million or $0.76 per basic share  compared to a net loss of $468,332 or $0.02 per basic share for Q3 2008. YTD  net earnings were $73.84 million or $1.13 per basic share compared to $707,580  or $0.05 per basic share for the prior year. The increase in net earnings was  primarily a result of gains realized from the sale of securities, in  particular the sale of 17.05 million PBS shares.      General and administrative expenses, increased for Q3 2008 to $20 million  compared to $647,318 for Q3 2007. General and administrative expenses for the  YTD period increased to $22.33 million compared to $1.31 million for the prior  year. The increase is due to $20.45 million in YTD management fees and  incentive fees paid or accrued to Sprott Consulting Limited Partnership  ("SCLP"), which are included in net earnings.      At the end of Q3 2008, SRC had portfolio investments of $270.46 million,  consisting of $241.08 million of publicly traded securities and $29.38 million  of securities in private companies. The publicly traded securities include  27.14 million PBS shares valued at $217.48 and $9.67 million in  exchange-traded funds that track the performance of gold or silver bullion.      Subsequent to the quarter, SRC sold its remaining 27.14 million shares of  PBS for proceeds of $140.82 million. SRC no longer owns any PBS shares.      Also subsequent to Q3 2008, SRC purchased an additional $24.83 million in  publicly traded securities, including $19.64 million in exchange-traded funds  that track the performance of gold bullion. SRC intends to convert all its  holdings in exchange-traded funds that track the performance of gold or silver  bullion into gold or silver bullion during Q4 2008.      The normal course issuer bid (the "NCIB") announced on August 26, 2008  has now been completed. A total of 8 million common shares were purchased for  cancellation under the NCIB for an average price of $2.45 per common share.  There are now 81,807,229 common shares outstanding, taking into consideration  all common shares purchased under the NCIB that will be cancelled.        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.          

Stay informed with
Sprott's Insights

Subscribe today to receive the latest perspective from Sprott.

Important Message

You are now leaving Sprott.com and entering a linked website. Sprott has partnered with ALPS in offering Sprott ETFs. For fact sheets, marketing materials, prospectuses, performance, expense information and other details about the ETFs, you will be directed to the ALPS/Sprott website at SprottETFs.com.

Continue to Sprott Exchange Traded Funds

Important Message

You are now leaving Sprott.com and entering a linked website. Sprott Asset Management is a sub-advisor for several mutual funds on behalf of Ninepoint Partners. For details on these funds, you will be directed to the Ninepoint Partners website at ninepoint.com.

Continue to Ninepoint Partners