Sprott Resource Holdings Inc. Announces 2017 Second Quarter Results
FOR IMMEDIATE RELEASE
Sprott Resource Holdings Inc. Announces 2017 Second Quarter Results
TORONTO, August 2, 2017 (TSX: SRHI) - Sprott Resource Holdings Inc. ("SRHI" or the "Company") today announced its financial results
for the three-months ended June 30, 2017. SRHI was created in F ebruary 2017 via a business combination between Sprott Resource Corp.
(“SRC”) and Adriana Resources Inc. ("ADI").
Summary
• Closed a $30 million gross proceeds marketed financing on April 18, 2017
• Currently holds $77 million of net cash1
• Sold 25% of investment in Union Agriculture Group for USD$2 million in July 2017
• Conducted due diligence on 72 investment opportunities year-to-date
Financial Summary2
• As at June 30, 2017, the Company had cash of $76.0 million, public company investments of $36.4 million and $30.9 million in
private company investments
• Net Asset Value ("NAV") at June 30, 2017 of $142.6 million ($0.23 per share) compared to December 31, 2016 of $137.8 million
($0.27 per share)
• For the three-months ended June 30, 2017, the Company recorded a net loss of $23.3 million ($0.04 per basic and diluted share)
compared to a net loss of $17.5 million ($0.06 per basic and diluted share) for the three-months ended June 30, 2016 , primarily
comprised of unrealized losses as a result of marking-to-market the investment portfolio
"During the second quarter of 2017, we completed a $30 million marketed public offering and our net cash position today is appr oximately
$77 million," said Steve Yuzpe, CEO of SRHI. "With a strong bal ance sheet, SRHI is well positioned to pursue new accretive inve stment
opportunities at what we think is an attractive stage of the natural resource cycle."
"We have continued to deliver on our promise to monetize non-core holdings and are also actively working to deploy capital into accretive
new investments," added Mr. Yuzpe. "In July, we further strengt hened our balance sheet through the sale of approximately 25% of our non-
core position in Union Agriculture Group, realizing proceeds of USD$2 million. Our deal pipeline is strong and we are currently looking at
commodities exhibiting the most attractive long-term fundamentals. As always, we are focused on buying businesses where we beli eve the
expertise of the Sprott team has the greatest potential to cr eate meaningful value for our shar eholders. We are optimistic that we will
complete one or more material transactions by year end."
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 ex change ratio for SRC shareholders entered
into for the business combination of ADI and SRC
SRHI Net Asset Value as at June 30, 2017
The following table outlines SRHI's estimated equity attribut able to shareholders and investment ownership as at June 30, 2017. Please see
the Company's unaudited condensed interim consolidated financia l statements and notes thereon, and management's discussion and
analysis for the three and six-months ended June 30, 2017 for additional information.
As at June 30, 2017, the fair value of the Company's public and private company investments was $36.4 million and $30.9 million
respectively.
As at SRHI
Ownership
(undiluted)
(in millions except per share amounts and issued and outstanding
common shares) June 30, 2017
Cash and cash equivalents and other assets net of liabilities $ 75.3
Investments owned, at fair value
Energy production and services
InPlay Oil Corp. Public 10.8 11.4 %
R.I.I. North America Inc. Private 5.2 16.0 15.4%
Mining
Corsa Coal Corp. Public 24.4 17.2%
Lac Otelnuk Mining Ltd. Private 6.5 40.0%
Virginia Energy Resources Inc. Public 1.3 32.2 16.5%
Agriculture
One Earth Farms Corp. Private 9.2 49.98%
Union Agriculture Group Private 9.9 19.1 4.5%
Estimated total equity attributable to shareholders (NAV) $ 142.6
Number of common shares issued and outstanding as at June 30, 2017 630,488,999
NAV per share $ 0.23
Conference Call Details
SRHI will hold a conference call to discuss its results for the three and six-months ended June 30, 2017 today, Wednesday, Augu st 2, 2017
at 10:00am Toronto time. To participate in the call, please dial (855) 458-4215 ten minutes prior to the scheduled start of the call and provide
conference ID: 62365099. A taped replay of the conference call will be available until Wednesday, August 9, 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/4xbuzq5u
About Sprott Resource Holdings Inc.
SRHI is a publicly-listed corporation transitioning into a di versified holding company focused on holding businesses in the nat ural resource
industry. Based in Toronto, SRHI is a member of the Sprott Group of Companies and is managed by a team of leading resource inve stment
professionals. SRHI’s current holdings are concentrated in the mining, energy and agriculture sectors. SRHI takes an active rol e 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-invest ors who
invest alongside SRHI. For more information about SRHI, please visit www.sprottresource.com.
Forward-Looking Information
Certain statements in this press release contain forward-looking information (collectively referred to herein as the "Forward-L ooking
Statements") within the meaning of applicable securities laws. T he 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-Look ing Statements. In
particular, but without limiting the forgoing, this press releas e contains Forward-Looking Statements pertaining to completion of one or more
material transactions by year end.
Although SRHI believes that the Forward-Looking Statements are reas onable, they are not guarantees of future results, performan ce or
achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including the contin ued
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 r isks or
other factors materialize, including: (i) general economic, mark et and business conditions; (ii) co mmodity 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 respec t to exploration or development projects or capital expenditu res; the
uncertainty of estimates and projections relating to rese rves, production, costs and expenses, and health, safety and environme ntal risks);
(iv) risks associated with the farming industry in general (e .g., weather risks, operational risks in production; the uncertain ty of estimates and
projections related to livestock); (v) risks associated with the food manufacturing and retail business in general (e.g., a ris e 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 wi th respect to exploration or development projects or capi tal
expenditures; the uncertainty of estimates and projections re lating to reserves, production, costs and expenses, and health, sa fety and
environmental risks); (vii) other risks associated with SRHI's po rtfolio companies' industries; (viii) those risks disclosed un der the heading
"Risk Management" in SRHI's Management's Discussion and Analysis ("MD&A") for the three and six-months ended June 30, 2017; and (ix)
those risks disclosed under the heading "Risk Management" in SRHI's MD&A for the three-months ended March 31, 2017. The Forwar d-
Looking Statements speak only as of the date hereof, unless otherwi se specifically noted, and SRHI does not assume any obligati on to
publicly update any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as m ay be
expressly required by applicable Canadian securities laws.
For further information:
Glen Williams
Director of Communications
T: (416) 943-4394
Source: Sprott Resource Holdings Inc.