Speakers Steve Yuzpe Chief Executive Officer Michael Staresinic Chief Financial Officer Sprott Resource Corp. 3
Introduction Sell-off in the energy sector continued to weigh on SRC NAV and share price in Q1 Energy prices began to recover late in the quarter and in the early part of Q2 SRCs NAV and share price have increased subsequent to the…
Summary of Quarterly Financial Information millions (except for per share amounts) Q1 2015 Q4 2014 Total Assets 217.2 241.7 Liabilities (15.3) (14.0) Net Asset Value (NAV) 201.9 227.7 NAV per share 2.06 2.33 Sprott…
Income Statement millions (except for per share amounts) Q1 2015 Q4 2014 Investment loss (24.0) (130.1) Expenses General, administrative expenses, transaction costs 0.6 1.3 and foreign exchange gains on cash balances Management…
Liquidity Profile Current cash balance is 2MM, with 1.7MM in commitments, dependent on certain milestones 12MM drawn on 20MM credit facility with Sprott Inc. 60MM in liquid public company investments 35MM in illiquid public company…
Priorities Improve liquidity through appropriate monetizations Reduce discount to NAV Position portfolio companies for recovery in the resource sector Secure new capital to deploy into out-of-favour commodity sectors Sprott…
Capital Allocation SRC is committed to allocating capital in the following order of priority: Share buyback under NCIB, when trading at an appropriate discount to NAV Supporting existing investments New investments Sprott…
Management Commitment to Reduce NAV Discount Discount to NAV as of March 31, 2015 was 55% SRC is committed to reducing the discount to NAV through: Repositioning the portfolio to improve liquidity Buying back and cancelling shares…
Valuation process Each private company is valued at least once a year, on a staggered basis SRC engages respected independent 3rd party valuation firms with industry-specific expertise Valuators are given full access to portfolio…
Portfolio Construction Public vs. Private % of Market Cap Sector Breakdown Oil and gas Unlisted exploration, securities production 8% and services - Public 26% Agriculture 33% Net Cash and Listed Securities Oil and gas…
Relationship with Sprott Inc. SRCs relationship with SII provides us with a range of unique benefits Management and Board of SRC are committed to the highest standards of transparency and ethical operations SRC has an independent…
Investment Portfolio Investment Type / Stage Fair Value % Ownership Probable Exit Independence Contract Drilling Public / Growth 39.9MM 18.6% Public Market InPlay Oil Private / Growth 24.0MM 19.9% Acquisition Long Run Exploration…
Summary SRC believes we are seeing the beginnings of a recovery in the energy sector that is being driven by supply/demand fundamentals Agricultural businesses continue to perform Focused on working with portfolio companies to…
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