Sprott Resource Holdings Inc. Announces 2017 First Quarter Results
Sprott Resource Holdings Inc. Announces 2017 First Quarter
Results
TORONTO, May 03, 2017 (GLOBE NEWSWIRE) -- Sprott Resource Holdings Inc. (TSX:SRHI) ("SRHI" or
the "Company") today announced its financial results for the three -months ended March 31, 2017. SRHI
was formed in February 2017 via a business combination between Sprott Resource Corp. ( “SRC”) and
Adriana Resources Inc. ("ADI").
Summary
Successfully completed the business combination between SRC and ADI and concurrently
completed a financing for gross proceeds of $15 million
Successfully closed a marketed financing in late April for gross proceeds of $30 million
As of the date hereof, the Company holds net cash1 of approximately $77.0 million and no
debt
Expanded team, adding Rick Rule as chief investment officer and Mike Harrison as
managing director
Financial Summary2
Net Asset Value ("NAV") at March 31, 2017 of $137.6 million ($0.27 per share) compared to
December 31, 2016 of $110.8 million ($0.38 per share)
For the three-months ended March 31, 2017, the Company recorded a net loss of $19.2
million ($0.05 per basic and diluted share) compared to net income of $5.0 million ($0.02
per basic and diluted share) for the three-months ended March 31, 2016
As at March 31, 2017, the Company had cash of $50.6 million, public company investments
of $47.6 million and $40.6 million in private company investments
"In February, we completed a transformative transaction that combined Sprott Resource Corp. and Adriana
Resources Inc. to create Sprott Resource Holdings Inc.," said Steve Yuzpe, CEO of SRHI. “The result of this
transaction, and subsequent related financings, is that SRHI is now a unique, resource -focused investment
vehicle with a strong portfolio of holdings, no debt and $78 million in cash. We welcome the shareholders
from both companies and our new shareholders from our financing in April."
"We are pleased with the progress we have made in narrowing the discount to NAV at which our shares
have recently traded. During the first quarter of 2017, SRHI's discount to NAV narrowed from more than
55% to less than 26%," added Mr. Yuzpe.
"With $78 million in cash and no debt, we will apply our capital and talent to a few exceptional opportunities
and management teams," said Rick Rule, CIO of SRHI. "We appreciate the trust our shareholders have
placed in us to execute this strategy and we are committed to making every effort to keep you informed
about our progress towards our objectives."
SRHI Net Asset Value as at March 31, 2017
The following table outlines SRHI's estimated equity attributable to shareholders and investment ownership
as at March 31, 2017. Please see the Company's unaudited condensed interim consolidated financial
statements and notes thereon, and management's discussion and analysis for the three -months ended
March 31, 2017 for additional information.
1 net cash is a non -IFRS measure and is comprised of cash and cash equivalents less total liabilities
2 comparative figures are of SRC only and per share amounts have been adjusted on a 3:1 basis to reflect
the equivalent share exchange ratio entered into for the business combination of ADI and SRC
As at March 31, 2017, the fair value of the Company's public and private company investments was $47.6
million and $40.6 million respectively.
Conference Call Details
SRHI will hold a conference call to discuss its results for the three -months ended March 31, 2017 today,
Wednesday, May 3, 2017 at 8:00am Toronto time. To participate in the call, please dial (866) 322 -9569 ten
minutes prior to the scheduled start of the call and provide conference ID: 16728588. A taped replay of the
conference call will be available until Wednesday, May 10, 2017 by calling (855) 859-2056. The conference
call will be webcast live at www.sprottresource.com and http://edge.media -server.com/m/p/se5qgzte
About Sprott Resource Holdings Inc.
SRHI is a publicly-listed corporation transitioning into a diversified holding company focused on holding
businesses in the natural resource industry. Based in Toronto, SRHI is a member of the Sprott Group of
Companies and is managed by a team of leading resource investment professionals. SRHI ’s current
holdings are concentrated in the mining, energy and agriculture sectors. SRHI takes an active role in the
companies in which it invests and is committed to being a high -value partner to the management teams it
backs and the co -investors who invest alongside SRHI. For more information about SRHI, please visit
www.sprottresource.com.
Forward -Looking Information
As at SRHI
Ownership
(undiluted)
(in millions except per share amounts and issued and outstanding common
shares)
March 31,
2017
Cash and cash equivalents and other assets net of liabilities $ 49.4
Investments owned, at fair value
Energy production and services
InPlay Oil Corp. Public 14.0 11.4%
R.I.I. North America Inc. Private 5.2 19.2 15.4%
Mining
Corsa Coal Corp. Public 32.5 17.2%
Lac Otelnuk Mining Ltd. Private 5.8 40.0%
Virginia Energy Resources Inc. Public 1.1 39.4 16.5%
Agriculture
One Earth Farms Corp. Private 13.4 49.98%
Union Agriculture Group Private 16.3 29.7 6.3%
Estimated total equity attributable to shareholders (NAV) $ 137.7
Number of common shares issued and outstanding as at March 31, 2017 510,488,999
NAV per share $ 0.27
Certain statements in this press release contain forward -looking information (collectively referred to herein
as the "Forward -Looking Statements") within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify Forward -Looking Statements. In particular, but
without limiting the forgoing, this press release contains Forward -Looking Statements pertaining to
expectations regarding application of capital and talent.
Although SRHI believes that the Forward -Looking Statements are reasonable, they are not guarantees of
future results, performance or achievements. A number of factors or assumptions have been used to
develop the Forward -Looking Statements, including the continued availability of quality management.
Actual results, performance or achievements could vary materially from those expressed or implied by the
Forward-Looking Statements should assumptions underlying the Forward -Looking Statements prove
incorrect or should one or more risks or other factors materialize, including: (i) general economic, market
and business conditions; (ii) commodity price fluctuations and uncertainties and, in particular the price of oil
and gas; (iii) risks associated with the oil and gas industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of estimates and projections relating to
reserves, production, costs and expenses, and health, safety and environmental risks); (iv) risks
associated with the farming industry in general (e.g., weather risks, operational risks in production; the
uncertainty of estimates and projections related to livestock); (v) risks associated with the food
manufacturing and retail business in general (e.g., a rise in the cost of inputs, a drop in pricing and/or sales
volumes, food safety); (vi) risks associated with the mining industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of estimates and projections relating to
reserves, production, costs and expenses, and health, safety and environmental risks); (vii) other risks
associated with SRHI's portfolio companies' industries; and (viii) those risks disclosed under the heading
"Risk Management" in SRHI's MD&A for the three -months ended March 31, 2017. The Forward -Looking
Statements speak only as of the date hereof, unless otherwise specifically noted, and SRHI does not
assume any obligation to publicly update any Forward -Looking Statements, whether as a result of new
information, future events or otherwise, except as may be expressly required by applicable Canadian
securities laws.
For further information:
Glen Williams
Director of Communications
T: (416) 943 -4394