Sprott Inc. · TSX:SII
Sprott — Sprott Resource Holdings — Q3 2017 Earnings Presentation
12 slides from Sprott's earnings presentation, Nov 13, 2017
Slide 1: 2017 Q3 Results Conference Call
Sprott Resource Holdings Inc. 2017 Q3 Results Conference Call November 13, 2017 SPROTT RESOURCE HOLDINGS INC.
Slide 2: Disclaimer
Disclaimer Forward-Looking Information Certain statements in this presentation 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”, “
Slide 3: Speakers
Speakers Steve Yuzpe Chief Executive Officer Rick Rule Chief Investment Officer Michael Staresinic Chief Financial Officer 2 SPROTT RESOURCE HOLDINGS INC.
Slide 4: YTD Update
YTD Update • Over the past 18 months, we have repositioned SRHI portfolio to focus on a few material holdings • Completed business combination with Adriana Resources Inc. • Raised $45MM in equity financing • Exited a number of legacy positions • Completed material investment in Chilean copper produc
Slide 5: MTV Transaction
MTV Transaction • In October, SRHI invested US$40MM for a 70% equity position in MTV • MTV owns 100% of the currently producing Minera Tres Valles copper mining and refining complex located in Salamanca, Chile • Vecchiola Group, a premier Chilean mining services and construction company, continues t
Slide 6: Why MTV?
Why MTV? • MTV meets all of our investment criteria and represents an excellent opportunity to create meaningful shareholder value • The addition of a producing and cash-flowing copper investment diversifies SRHI mining portfolio • Provides copper exposure in a strengthening price environment • Copp
Slide 7: Why We Like Chile
Why We Like Chile • Chile is home to the largest concentration of top-tier Top Global Copper Producers3 copper deposits Chile • Accounts for 28% of annual global production 20% Peru 28% China • Home to 29% of world’s known reserves 3% 4% US 4% Australia 4% 12% DRC Congo • Premier mining jurisdiction
Slide 8: Why We Like Copper
Why We Like Copper Copper Supply & Demand Outlook (refined basis) • Long-term supply/demand fundamentals support 26 4.5Mt of new production capability improved copper prices 24 needed from greenfield projects 22 • 5-year market created tremendous opportunities for Mt Cu 20 counter-cyclical investors
Slide 9: Summary of Quarterly Financial Information
Summary of Quarterly Financial Information September 30, March 31, $ millions (except for per share amounts) 2017 2017 Total Assets $133.0 $139.7 Total Liabilities $0.9 $2.1 Net Asset Value (NAV)1 $132.1 $137.6 NAV per share2 $0.21 $0.27 1 NAV is the total equity attributable to shareholders of SRHI
Slide 10: Balance Sheet and Liquidity Profile
Balance Sheet and Liquidity Profile $ millions September 30, 2017 March 31, 2017 Cash and cash equivalents $75.7 $50.6 Working capital1 $75.4 $49.4 Investment Portfolio Mining $30.7 $39.4 Agriculture $12.6 $29.6 Energy $13.4 $19.2 $56.7 $88.2 Cash and public company investments $111.8 $98.2 1 Workin
Slide 11: Income Statement – Three Months Ended
Income Statement – Three Months Ended $ millions (except for per share amounts) September 30, 2017 June 30, 2017 Investment loss1 $8.0 $21.7 Expenses General and administrative expenses 0.3 0.4 Management fees and compensation 0.7 0.8 Transaction costs 0.6 0.4 Foreign currency translation loss 0.9 -
Slide 12: Summary
Summary • SRHI portfolio is repositioned to focus on a number of material holdings • MTV • Corsa Coal • InPlay Oil • We believe MTV has significant upside potential and we will update our shareholders on technical / resource reports as they become available • Over $30MM in cash available to support
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