Sprott Resource Corp. Second Quarter Conference Call August 11, 2014
Speakers Steve Yuzpe Chief Executive Officer Michael Staresinic Chief Financial Officer Sprott Resource Corp. 3
Q2 Business Update High level of activity year-to-date 1 partial disposition 3 new investments Continuing to diversify portfolio Strengthening pipeline of opportunities Portfolio companies advancing business plans Providing…
Long Run Exploration (LRE) Transaction Sold one third of LRE holdings in April through a bought deal offering for net proceeds of 64.3 million SRC now owns 23 million LRE shares 9.7 million in dividend income expected annually from…
InPlay Oil Corp. (InPlay) Investment SRC invested 19.5 million for 19.9% ownership of InPlay Calgary-based energy exploration and development company Led by experienced management with strong technical skills Strategy to build a…
Corsa Coal Corp. (Corsa) Investment SRC to invest 36.2 million to fund Corsas strategic acquisition of PBS Coals Limited (PBS Coals) PBS Coals was previously purchased by OAO Severstal in 2008 for US877 million SRC investing in…
Corsa Transaction Rationale Metallurgical coal market in the midst of a cyclical downturn Long-term fundamentals for the sector are attractive Potential to create shareholder value through both operational improvements and…
Independence Contract Drilling (ICD) IPO ICD completed IPO on New York Stock Exchange on Aug. 8 (NYSE: ICD) The offering was priced at US11.00 per share and last traded at 11.06 on Aug. 8 SRC owns 4.5MM shares of ICD ICD continues…
Investment Portfolio Energy & Energy Services Mining Agriculture Long Run Exploration Ltd. Corsa Coal One Earth Farms Corp. 99.8 MM INVESTED 36.2* MM INVESTED 57.5MM INVESTED 11.9% OWNERSHIP 19.9**% OWNERSHIP 54.0% OWNERSHIP…
Investment Types Factors Innovation Development Producing Sectors Energy and Energy Services Mining Agriculture Duration Longer term 4-5 years 2-4 years (up to 5 years) IRR requirement 40%-50% 30%-40% 20% Management Low High…
Summary of Financial Information millions (except for per share amounts) Q2 2014 Q1 2014 Q4 2013 Net Asset Value (NAV) 377 379 366 NAV per share 3.84 3.85 3.71 Sprott Resource Corp. 12
Balance Sheet Value of Investment in millions Portfolio NAV of 377MM or 3.84 per share 350 Cash of 58.1MM as of June 30, 2014 340 Expected cash of 13MM after 330 completion of Corsa investment and SRCs participation in the…
Income Statement millions (except for per share amounts) Q2/2014 Q2/2013 Investment income 5.0 (81.8) Expenses General and administrative expenses 1.4 0.4 Management fees and compensation 2.2 2.0 Transaction costs 3.8 - Income…
Outlook 18 to 24 month window to capitalize on depressed valuations in certain resource sectors and partner with proven management teams Strengthening pipeline of new deals Currently seeing attractive opportunities in mining,…
2014 Business Objectives Accelerate business through: Increased investment activity Closer collaboration with broader Sprott Group Continue to support our existing investee companies Add energy team in Calgary Enhance stakeholder…
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