Sprott Announces Q3 Results
Sprott Resource Corp. Announces Third Quarter Results
TORONTO, Nov. 14, 2011 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC" or the "Company") today announced its financial results for the three and nine month periods ended September 30, 2011.
"During the third quarter, the broad market decline and continued volatility drove energy prices down, despite the ongoing tightness in oil supply. We believe the fundamentals for this sector remain extremely compelling and that the recent downturn presents opportunities to invest in oil and gas producers at very attractive valuations," said Kevin Bambrough, Chief Executive Officer of the Company. "On this weakness, the Company continued to add to its position in Guide Exploration Ltd. ("Guide") (formerly Galleon Energy Inc.). We recently began a review of strategic initiatives for Waseca Energy Ltd. ("Waseca"). Since the end of 2010, Waseca's production has more than tripled to 3,400 barrels a day, which represents significant value creation for our shareholders."
"In the agriculture segment, One Earth Farms Corp. ("One Earth Farms") recently completed harvest operations on 96 thousand acres of cropland," said Steve Yuzpe, Chief Financial Officer of the Company. "The majority of the harvested crop is currently being stored for sale throughout the year as historically the average prices begin to trend up following the end of harvesting season."
Achievements by SRC and Subsidiaries in Q3 2011 (and to the date hereof):
Investment Portfolio
- SRC added to its position in Guide and owns as of the date hereof approximately 18.2% of the total issued and outstanding common shares, based on information contained in documents publicly filed by Guide. As at September 30, 2011, SRC owned approximately 15.6% of the common shares. SRC has acquired the common shares of Guide for investment purposes. SRC may purchase or sell securities of Guide in the future on the open market, in private transactions or otherwise, depending on market conditions and other factors material to the investment decisions of SRC.
- SRC purchased an option for $500,000 on November 11, 2011 to acquire an interest in a western United States coal deposit. After completion of the exploratory drilling, the Company may exercise the option and invest approximately $20 million over a period of two years, at the end of which SRC would own approximately 86% of the coal deposit.
- As global and energy markets declined in the quarter, SRC suffered a substantial reduction of value in its investment portfolio, particularly in its portfolio investments in WestFire Energy Ltd. ("WestFire") and Guide. However, SRC management believes that the energy sector will remain strong despite the declines in this quarter.
Rest of news release linked here:
https://micro.newswire.ca/release.cgi?rkey=1911145313&view=58517-4&Start=&htm=0
GLTA