Sprott Resource Corp. marks five-year anniversary with 28%1 IRR
Sprott Consulting surpasses $1 billion in total assets in its managed companies
TORONTO, Nov. 19, 2012 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott") today announced that Sprott Consulting LP (Sprott Consulting) has surpassed $1 billion in combined total assets in its managed companies. Sprott also congratulates Sprott Resource Corp. on marking five successful years of operation on September 5, 2012.
"Since launching Sprott Consulting in 2007 to capitalize on new and unique business opportunities, Kevin Bambrough and his team have established an impressive track record of value creation and demonstrated the ability to identify emerging trends well ahead of the broader market," said Eric Sprott, Chairman of Sprott. "Sprott Consulting's first venture, Sprott Resource Corp., was created to give investors access to private equity-type investments in the resource sector. Since beginning operations in 2007, that company has generated a five-year internal rate of return of approximately 28% and grown its total assets from $78 million to more than $580 million. Over the same time period, Sprott Consulting has expanded and diversified, successfully launching businesses in the resource lending, renewable power and energy finance sectors. Together, Sprott Consulting's managed companies now represent more than $1 billion in total assets. We are extremely proud of the accomplishments of Kevin and the entire Sprott Consulting team and look forward to their continued success over the next five years."
"Sprott Consulting provides individual and institutional investors with access to unique private equity and private debt type investment opportunities in the natural resource sector," said Peter Grosskopf, Chief Executive Officer of Sprott. "We are pleased with the progress of each of these companies and believe that they are all well positioned for continued growth. Reaching $1 billion in total assets in less than five years is a strong validation of the strategy and a testament to the abilities of our team."
"We are very proud of what we have been able to accomplish in five years at Sprott Resource Corp.," commented Kevin Bambrough, Chief Executive Officer of Sprott Resource Corp. "We have built a unique company focused on investing counter-cyclically in real assets that are ideally suited to perform well in today's uncertain economic environment. We believe our strategy will continue to deliver results and we are actively looking for new investment opportunities to create additional value for our shareholders."
On September 5, 2012, Sprott Resource Corp. passed its five-year anniversary under the management of SCLP. Sprott Resource Corp. has calculated an internal rate of return of approximately 28% for the period from September 30, 2007 to September 30, 2012. Over the same period, the S&P TSX Venture Composite Index declined at an annualized rate of -13.9%.
About Sprott Consulting
Sprott Consulting is a division of Sprott that provides active management services to public and private companies and partnerships formed to capitalize on unique business opportunities. Sprott Consulting brings deep bench strength with a highly-talented and knowledgeable team of professionals who have extensive experience and a proven ability to design creative solutions that lead to market-beating value improvement. Sprott Consulting's managed companies include:
- Sprott Resource Corp., (TSX: SCP) invests and operates through its subsidiaries in the natural resource sector
- Sprott Resource Lending Corp., (TSX: SIL, AMEX: SILU) a global lender to the resource industry focused on mezzanine and bridge financing
- Sprott Power Corp., (TSX: SPZ) a renewable power developer and operator with approximately 70MW in wind assets under management
- Toscana is based in Calgary and, through two subsidiaries, provides debt financing alternatives to companies engaged in the exploration and development of oil and gas in Western Canada and invests in medium to long life oil and natural gas assets
For more information about Sprott Consulting, please visit www.sprottconsulting.com.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to achieving superior returns for its clients over the long term. The Company currently operates through four business units: Sprott Asset Management LP, Sprott Private Wealth LP, Sprott Consulting LP, and Sprott U.S. Holdings Inc. Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting provides management, administrative and consulting services to other companies. Sprott Inc. is headquartered in Toronto, Canada, and its common shares are listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.
(1) Non-IFRS Financial Measure
Internal rate of return is a rate of return measure often used in investment analysis to compare investment opportunities. We believe providing an internal rate of return measure on a supplemental basis is helpful to investors in assessing the overall performance of Sprott Resource Corp. over the past five years. Non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Past performance is not a reliable indicator of future results.
The internal rate of return calculation incorporated cash flows beginning on September 30, 2007 related to issuance of Sprott Resource Corp. common shares, including through the exercise of warrants and stock options, the repurchase of common shares through normal course issuer bids and the payment of management fees and incentive fees and excludes income taxes paid. The calculation also includes management's estimate of the fair value of subsidiaries and entities over which Sprott Resource Corp. has significant influence, if different from the net asset value reflected in Sprott Resource Corp.'s financial statements. The internal rate of return calculation does not correlate perfectly with the performance of Sprott Resource Corp.'s quoted stock price from its listing on the listed on the Toronto Stock Exchange, or the compound annual growth rate of the net asset value due to the adjustments described above.
Forward-Looking Statements
This release contains "forward-looking statements" which reflect the current expectations of Sprott Inc. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements in this press release include, but are not limited to, statements with respect to Sprott Consulting LP and Sprott Resource Corp.'s growth and future performance. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, including with respect to the anticipated performance of the managed entities of Sprott Consulting LP. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, those listed under the heading "Risk Factors" in Sprott's annual information form dated March 27, 2012. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what Sprott believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Sprott does not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law.
SOURCE: Sprott Inc.