Sprott Resource Corp. Announces 2016 Third Quarter Results

TORONTO, Nov. 08, 2016 (GLOBE NEWSWIRE) -- Sprott Resource Corp. ("SRC" or the "Company") (TSX:SCP)  today announced its financial results for the three-months ended September 30, 2016.

Third Quarter and Year-to-Date Highlights
  • As of the date hereof, the Company holds cash of $12.0 million after repaying its debt facility in full on October 13, 2016
  • Year-to-date, SRC has generated approximately $43.0 million in proceeds through the monetization of investments
  • SRC has exited over 90% of its entire position in Independence Contract Drilling, Inc. ("ICD"), generating net proceeds of approximately $27.5 million
  • In November, SRC sold its remaining position in its Royalty investment for gross proceeds of $0.6 million
  • In October, SRC invested $10 million in InPlay Oil Corp. ("InPlay Oil") to support its asset purchase and business combination with Anderson Energy Inc.
  • In October, SRC invested an additional $1 million in Corsa Coal Corp. ("Corsa Coal") as part of a $23 million financing

Financial Summary
  • Net Asset Value ("NAV") at September 30, 2016 of $105.7 million ($1.09 per share) compared to December 31, 2015 of $107.3 million ($1.11 per share)
  • For the three-months ended September 30, 2016, the Company recorded net income of $10.9 million ($0.11 earnings per basic and diluted share) compared to a net loss of $54.6 million ($0.56 loss per basic and diluted share) for the three-months ended September 30, 2015. Net income for the three-months ended September 30, 2016 is primarily comprised of net unrealized gains on investments of $12.3 million
  • As at September 30, 2016, the Company had working capital of $10.2 million with approximately $53 million in public company investments and $42 million in private company investments

"Over the past ten months, we have taken a number of steps to strengthen our balance sheet by exiting legacy and other investments in order to focus on our core holdings with the greatest potential to create value for our shareholders," said Steve Yuzpe, CEO of SRC. "Through these dispositions, we have generated approximately $43.0 million in cash, which has enabled us to eliminate all of SRC's outstanding debt and to participate in follow-on offerings for InPlay Oil and Corsa Coal, two of our core portfolio holdings."