Sprott Resource Corp. Announces Outstanding 2008 Results

About this update from Winchester Equity Corporation

[{"type":"text","content":"\n\n\n\nTORONTO, March 3 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today\nannounced its financial results for the year ended December 31, 2008. The\nconsolidated financial statements and related management's discussion and\nanalysis can be found on SEDAR (www.sedar.com).\n\n\nHighlights for 2008:\n\n- Net earnings for 2008 of $134.2 million or $1.94 per basic share\n compared to net earnings of $2 million or $0.09 per basic share for\n 2007\n- Ended 2008 with cash, cash equivalents and short-term investments\n (Government of Canada Treasury Bills) of $203.5 million\n- Ended 2008 with holdings of 40,475 ounces of gold and 1,783,013\n ounces of silver bullion, valued at $68 million as at December 31,\n 2008\n- Ended 2008 with portfolio investments of $28.6 million\n- Ended 2008 with net assets of $284.8 million or $3.48 per share\n (undiluted) based on shares outstanding as at December 31, 2008\n\n\n"We are very proud that in this hostile financial environment our\nmanagement team produced such spectacular results," said Eric Sprott, Chairman\nof SRC.\n\n\n"Our strategy focuses on managing risk by adjusting our invested capital\nto reflect market conditions. Last year demonstrated our ability to execute on\nthis strategy, as we benefited from the rise in the resource market and then\npreserved capital after the market and economy deteriorated," said Kevin\nBambrough, President and CEO of SRC. "The undeniable strength and quality of\nour balance sheet leaves us well positioned to take advantage of investment\nopportunities that will undoubtedly arise at the bottom of this cycle."\n\n\nFinancial Review\n\n\nFor 2008 net earnings were $134.2 million or $1.94 per basic share\ncompared to net earnings of $2 million or $0.09 per basic share for 2007. The\nincrease in net earnings was primarily a result of gains realized from the\nsale of securities, in particular the sale of SRC's shares in PBS Coals\nLimited.\n\n\nGeneral and administrative expenses increased for 2008 to $43.3 million\ncompared to $2 million for 2007. The increase is due to $39.6 million in\nmanagement fees and incentive fees paid or accrued to Sprott Consulting\nLimited Partnership ("SCLP") pursuant to the management services agreement\nbetween SRC and SCLP.\n\n\nAt the end of 2008, SRC had portfolio investment...

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