Sprott Resource Corp Ord SCPZF

One Earth Farms Significantly undervalued on Balance Sheet

[pmac2015]

The One Earth Farms position, which was valued based on the fair market value of it's tangible assets, is extremely undervalued. The company has transitioned to generating most of it's sales and income in the processing and distribution of meats which is why a net book valuation is no longer most useful. They reported sales growth for the most recent 9 months period of 150%. So the position value very well could have doubled in the past 9 months but because we are not provided with adequate detail investors are left guessing. 

Which leads me to question managements assertion that they are in fact working to close the discount gap by providing more transparent valuations. I would argue that they are doing the opposite and the fattening discount would imply the market agrees with me.