Despite maintaining a high level of activity in third quarter of 2014, SPROTT RESOURCE CP (OTCMKTS:SCPZF) saw its efforts amount to a net loss of $10.1 million against a net income of $44.9million reported the same quarter in 2013. The third quarter also saw the company investing $36.4 million in Corsa as well as participating in an initial public offering of Independence Contract Drilling, Inc. valued at US$115 million.
SPROTT RESOURCE CP (OTCMKTS:SCPZF) notes that it continues to attain substantial gains in the rig building program as a result of the IPO. The company affirms that it remains well positioned financially to weather the ongoing decline in oil prices at the back of 12 fully contracted rigs, two of which are undergoing construction.
One Earth Farms Corp, SPROTT RESOURCE CP (OTCMKTS:SCPZF)’s agriculture positions, on the other hand, continues to attain significant progress having transitioned from crop farming operations. To become a vertically integrated cattle and branded food products business. Focus now shifts to integrating two newly made acquisitions completed on an $11 million financing.
The company remains committed to returning shareholder value through buybacks while providing financial support to existing portfolio companies. A newly secured $20 million revolving debt facility according to Chief Financial Officer, Michael Staresinic, is more than enough for offering financial flexibility in the tough resource markets.
It awaits to be seen the kind of earnings that SPROTT RESOURCE CP (OTCMKTS:SCPZF) will post for the fourth quarter having sunk into losses in the third quarter. Despite registering losses in the third quarter, Sprott Resource Corp saw its Net Asset Value for the three months ending September 30, 2014 come in at $366. Million or 3.73 a share compared to December’s 31, 2013 of $366.2 million. During the quarter, the company also completed new investments valued at $51.2 million that it hopes will generate value going forward.