Blackhawk Resource earns $646,249 in fiscal 2014 Blackhawk Resource Corp (2) (C:BLR)
Shares Issued 22,179,706
Last Close 10/30/2014 $0.065
Monday November 17 2014 - News Release
Mr. Dave Antony reports
BLACKHAWK ANNOUNCES FINANCIAL RESULTS
Blackhawk Resource Corp. has released its financial results for the year ended June 30, 2014, and is providing an update on its investment strategy.
HIGHLIGHTS
-- On March 3, 2014, Blackhawk received conditional approval to become an Investment Issuer. -- In the year ended June 30, 2014, Blackhawk had net income of $646,249, which equates to 0.03 per share. -- As at June 30, 2014, Blackhawk has $3,634,181 in working capital. -- As at June 30, 2014, Blackhawk held $2,834,287 in current investments or 78% of its working capital. -- As at June 30, 2014, net asset value per share ("NAV per share") was $0.17.
On February 18, 2014, Blackhawk announced it will be pursuing a change in business. After a thorough evaluation of the Corporation's existing resources and a review of strategic options for the Corporation generally, the Corporation determined that to optimize shareholder value, it would refocus its business operations from an "oil and gas issuer" to an "investment issuer". Blackhawk believes that its network of business contacts, the depth of experience of its management team and its overall entrepreneurial approach will enable it to identify and capitalize upon investment opportunities as an "investment issuer".
On March 3, 2014, Blackhawk received conditional approval of the proposed change of business; the Corporation's primary focus will be to seek returns through investments in the equity and debt instruments of other companies and other assets.
Since receiving conditional approval the Corporation has begun to both evaluate investment opportunities and has made a number of investments to date. The broad investment strategy of the Corporation relies on the expertise of the management and board, to source and evaluate investment opportunities that will provide above average returns. The goal of this strategy is to develop a portfolio of investments that will continue to provide positive cash flow, including equity, debt instruments and direct asset investments, in certain situations. The Corporation is not intending to be industry specific, but will review investment opportunities on the basis of the return and risk profile. In time Blackhawk hopes to be able to distribute a portion of these earnings back to its shareholders through a sustainable dividend.
OVERALL PERFORMACE
As at June 30, 2014, the Corporation held total investments of $2,834,287 comprised of equity type investments equaling $2,229,800 and debt type investments of $604,487. In addition the Corporation held cash balances of $1,375,325. This asset allocation is concurrent with the shift in the Corporation's focus from oil and gas to investments.
Blackhawk still continues to hold certain producing non-operated oil and gas properties, as well as the Gross Overriding Royalty it acquired during the year. These oil and gas properties are carried at a value of $244,307.
As at June 30, 2014, NAV per share was $0.17 as compared to $0.14 at June 30, 2013.
Investments at fair value by sector consist of the following as at June 30, 2014: ---------------------------------------------------------------------------- Total fair % of total fair Sector Cost value value ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Construction and real estate $ 175,500 $ 203,005 9% Oil and gas infrastructure 696,363 722,325 32% Oil and gas services 233,000 234,500 11% Oil and gas producers 488,096 491,070 22% Mining 170,000 342,900 15% Technology and other 251,121 236,000 11% ---------------------------------------------------------------------------- Total $2,014,079 $ 2,229,800 100% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Debt instrument investments consist of the following as at June 30, 2014: ---------------------------------------------------------------------------- June 30, 2014 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Short term loans $ 450,197 Debenture 154,290 ---------------------------------------------------------------------------- Total investments held to maturity $ 604,487
The amounts at which the investments could be disposed of may differ from their carrying values.
CURRENT INVESTMENTS
As at September 30, 2014, the Corporation held investments totaling $2,787,165. The Corporation continues to look for opportunistic investments with potential growth. The investments have been in a number of sectors as seen in the table below.
Investments at fair value by sector consist of the following as at September 30, 2014: ---------------------------------------------------------------------------- Total fair % of total fair Sector Cost value value ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Construction and real estate $ 211,000 $ 228,505 13% Oil and gas producers 591,696 510,377 30% Mining 472,415 567,090 33% Technology and other 421,909 411,438 24% ---------------------------------------------------------------------------- Total $1,697,020 $ 1,717,610 100% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Debt instrument investments consist of the following as at September 30, 2014: ---------------------------------------------------------------------------- September 30, 2014 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Short term loans $ 760,728 Debenture 158,827 ---------------------------------------------------------------------------- Total investments held to maturity $ 919,555
The amounts at which the investments could be disposed of may differ from their carrying values.
In addition the Corporation held cash balances of $664,933. This asset allocation is concurrent with the shift in the Corporation's focus from oil and gas to investments.
Blackhawk still continues to hold certain producing non-operated oil and gas properties, as well as the Gross Overriding Royalty it acquired during the year. These oil and gas properties are carried at a value of $242,307.
As at September 30, 2014, NAV per share was $0.16
The Corporation's strategy is focused on investing in multiple companies across a variety of sectors across North America. Blackhawk strives to continue to increase its investable capital and its growth by investing in equity and debt instruments of companies and generating positive returns for shareholders.
Now that the annual filings have been completed, Blackhawk will promptly make applications for an order from each of the Alberta Securities Commission and British Columbia Securities Commission, seeking the full revocation of the cease trade orders previously issued by Alberta Securities Commission and British Columbia Securities Commission on October 31, 2014 and November 5, 2014, respectively.
Additional information is available on our website at www.blackhawkcorp.ca.
We seek Safe Harbor.