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  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Nothing jumped out at me. Glad they FINALLY gave some color on RII. I couldn't find anything on them before. Good to hear there is some extra value there. Rather have them understate the asset vs overstate it.

    I'm torn on the buyback program. They really have no cash to do it. They'd have to draw on the revolver to do anything sizable. Really hope the can sell UAG in the 2nd half and get some extra cash. They're behind schedule on this though, and its somewhat weak performance doesn't help. Might take longer than expected.

    It's good to hear the deal flow is strong, but they'll need some extra funding to do anything. No better time than now to buy distressed assets though.
    Jul 27, 2015. 08:14 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    I'm no expert when it comes to guessing commodity prices. It's hard to tell. But when oil and coal are at levels where prices are barely above the cost of production, it's hard to imagine things getting much worse. Then again, it might take a few big players going bankrupt, and an extreme decrease in supply before things turn around. I think coal is closer to this point than oil and gas.
    Jul 17, 2015. 10:44 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    SPOXF is Sprott Inc. It's essentially the parent 'Sprott' company. That's who SRC pays its management fees too
    Jul 17, 2015. 10:30 AM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Hi Geoffrut,

    Thanks for the commentary. Always appreciate it on tricky companies like this.

    I did back out SRC's outstanding debt in my valuation, which lowered their EV by the $12mm or so that's outstanding.

    While I agree that the company's calculation of NAV is rich, my bear case scenario incorporates a worse case scenario for each investment happening all at the exact same time. It's much more likely that a few end up doing better than expected, and the company trades high.

    I don't believe it's purely speculating on oil & gas prices going higher as well. Oil & gas prices can remain completely flat and SRC would still appreciate in value if for instance: OEF continued to grow due to demand in Organic & Natural foods, ICD was able to maintain utilization even in a terrible pricing environment, or Corsa is able to grow by consolidating the coal industry as competitors go bankrupt.

    While SRC would certainly benefit from increased oil & gas prices, their value isn't completely tied to that industry, and they could benefit from success in their other investments.

    Thanks again for the commentary. Great points.
    Jul 16, 2015. 09:09 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Let's hope so! I have a feeling it will be harder for management to sell then they think. Hopefully we'll get some good news soon.
    Jul 16, 2015. 02:40 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Thanks for the comments Ken.

    I see what you mean regarding the NAV. Yes, it's definitely trading at the highest gap in its history, but I think that's primarily because some of the company's valuations on its investments (particularly InPlay and OEOG) are a bit lofty. If they were to lower the pricing tables they used in the reserve supplement, that should probably chop a good chunk off their value. Some others probably warrant a discount as well. I'm curious to see if the make any changes to their valuations in Q2.

    UAG is certainly tricky. I tried to dig into them a good amount, but could barely find anything. I'm really curious as to why they backed off their previous IPO. Them going public right now would be a fantastic thing for SRC. Let's hope the mutual funds' valuations on UAG aren't too off the mark either. I knew they have been trying to sell their stake for awhile, so hopefully there's not some negative reason as to why they haven't sold it yet (losing money certainly wouldn't help).

    I definitely had a good laugh trying to value those cows!!! In all seriousness though, I think OEF could be huge for them if they pull it off right. It's definitely a growing, and very hard industry to break into, due to all the regulations around Natural and Organic. I think that will play out very well for them in the future.

    Thanks again,

    UB
    Jul 15, 2015. 07:59 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Thanks for the comments.

    They certainly haven't made the smartest decisions in the past. The dividend was a pretty terrible idea. The best we can hope for in the short term is a sale of UAG and the proceeds going toward a buyback or acquisition at dI stressed prices.

    Fingers crossed.
    Jul 15, 2015. 05:17 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Thank you!

    They seem separate enough to me. One of Sprott Inc's subsidiaries 'manages', SRC, and sends ideas over to them. Most of the ideas are private company based, and held at SRC. Sprott Inc's subsidiary basically makes out by getting the management fees from SRC.
    Jul 15, 2015. 03:20 PM | 1 Like Like |Link to Comment
  • A Smashed Car Is Gold To Copart [View article]
    Very true! Looks good to me.

    Thanks again!
    Jul 15, 2015. 01:43 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    It's certainly hard to see things going lower at this point, unless oil/coal somehow continue their downfall. I think that's already built into the stock price, and once those fears start to go away, the shares should benefit.
    Jul 15, 2015. 01:07 PM | 1 Like Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    No problem! Happy to hear you enjoyed it
    Jul 15, 2015. 12:29 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Yes, you're correct. I believe it was $500k for 2015.

    Maybe we'll get lucky and they'll up it to $1mm in 2016!
    Jul 15, 2015. 12:13 PM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Agreed. All that we need from management now is a sale of UAG (maybe some buybacks?). Besides that, there's not much they can do besides sit back and wait for the market to correct itself.
    Jul 15, 2015. 10:04 AM | 1 Like Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Not that I have seen. The only direct transaction they have with the Parent is their $20mm revolver, which might be on the high side interest-wise. I haven't seen any other funny business besides that.
    Jul 15, 2015. 09:56 AM | Likes Like |Link to Comment
  • Sprott Resource Corp.: Heads, I Win; Tails, I Win Even More? [View article]
    Thank you hotmix!
    Jul 15, 2015. 09:14 AM | Likes Like |Link to Comment
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119 Comments
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