Investor FAQ
Frequently Asked Questions
Where are your common shares traded?
How many shares does Sprott Resource Corp. have outstanding?
Do you have any warrants outstanding?
What is the relationship between Sprott Resource Corp., Sprott Inc. and Sprott Asset Management LP?
What fees does Sprott Resource Corp. pay to Sprott Consulting Limited Partnership?
Can you explain the incentive fee payable SCLP under the management services agreement?
Do you have a stock option plan?
What is your current NAV (net asset value)?
Where can I access your latest financial reports and other regulatory filings?
Where are your common shares traded?
Our shares trade on the Toronto Stock Exchange under the symbol SCP.
How many shares does Sprott Resource Corp. have outstanding?
We have 113,341,333 shares outstanding as at December 31, 2010.
CIBC Mellon Trust Company. For further information on the transfer agent’s services, please visit www.cibcmellon.com.
Do you have any warrants outstanding?
There are currently no warrants outstanding. For more information about Sprott Resource Corp. warrants, visit the Warrantholder Information page
What is the relationship between Sprott Resource Corp. and Sprott Consulting Limited Partnership (SCLP)?
Sprott Consulting Limited Partnership manages the affairs of Sprott Resource Corp. pursuant to the terms of a management services agreement.
Where can I get a copy of the management services agreement between Sprott Resource Corp. and Sprott Consulting Limited Partnership?
A copy of the management services agreement can be obtained by clicking here.
What is the relationship between Sprott Resource Corp. and Sprott Inc. and Sprott Asset Management LP?
We have common officers and directors with Sprott Inc. As well, Sprott Inc. is the sole limited partner of Sprott Consulting Limited Partnership, the manager of Sprott Resource Corp. Sprott Asset Management LP also manages a discretionary trading account for Sprott Resource Corp.
What fees does Sprott Resource Corp. pay to Sprott Consulting Limited Partnership?
We pay an annual management fee to SCLP equal to 2% of Sprott Resource Corp.’s Net Asset Value (as defined in the MSA) calculated and payable each calendar quarter based on the average Net Asset Value of Sprott Resource Corp. during each calendar quarter.
Depending on our profitability we may also pay at the end of the year an annual incentive fee to SCLP equal to 20% of: (a) the pre-tax profits of Sprott Resource Corp. for the period from January 1 to December 31, minus (b) the average Net Asset Value (as defined in the MSA) of Sprott Resource Corp. from January 1 to December 31 multiplied by the percentage return of the Canadian 30-Year Generic Bond Index (Bloomberg Ticker: GCAN30YR Index) or any successor index for the same period (up to a maximum of 12%).
Can you explain the incentive fee payable to SCLP under the management services agreement?
The incentive fee is only payable if two things occur: (i) Sprott Resource Corp. has profits in a given year; and (ii) profits exceed the “hurdle.” The hurdle is, generally speaking, determined by multiplying the percentage return on the Canadian 30-Year Generic Bond Index by the average Net Asset Value (as defined in the MSA) of Sprott Resource Corp. from January 1 to December 31. Profits are equal to net earnings from the annual income statement. Other comprehensive income, which would include unrealized gains, is not considered profits for purposes of determining the incentive fee.
Assuming Sprott Resource Corp. is profitable and such profits exceed the hurdle, 20% of pre-tax profits for the year above the hurdle are paid at the end of the year to SCLP. If in a given year the hurdle is not met, then before an incentive fee can be payable in a subsequent year, aggregate pre-tax profits for the year, together with pre-tax profits for periods with no incentive fee payable, must exceed the hurdle for that subsequent year together with the hurdle for the period(s) in which no incentive fee was payable.
Do you have a stock option plan?
Yes. Only independent directors are issued options under the plan. There are 270,000 options outstanding as at December 31, 2010.
What is your current NAV (net asset value)?
We do not disclose our NAV on a current basis. Our net assets (total asset – total liabilities) as of the most recently completed quarter can be obtained from our financial statements.
Where can I access your latest financial reports and other regulatory filings?
Please click here to access our latest financial reports. All regulatory filings, including financial reports, can be found on SEDAR (www.sedar.com).