Frequently Asked Questions
Where are your common shares traded?
How many shares does Sprott Resource Corp. have outstanding?
Do you have any warrants outstanding?
I own Sprott Resource Corp. warrants. How do I exercise them?
What is the relationship between Sprott Resource Corp. and Sprott Asset Management Inc.?
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)?
What is your current cash position?
Where can I access your latest financial reports and other regulatory filings?
Do you have any analyst coverage?
Our shares trade on the Toronto Stock Exchange under the symbol SCP.
We have 96,191,427 shares outstanding as at December 31, 2009.
CIBC Mellon Trust Company. For further information on the transfer agent’s services, please visit www.cibcmellon.com.
We have 16,594,284 warrants exercisable at $4.25 (as at December 31, 2008). These warrants expire on December 31, 2010. We may accelerate the expiration date if the price of our common shares closes at or above $6.00 per common share for a period of 20 consecutive trading days. The $4.25 Warrants are listed on TSX under the symbol SCP.WT.
Any warrantholder wishing to exercise warrants should forward to the warrant agent, CIBC Mellon Trust Company, the warrant certificate together with a duly completed and executed exercise form, in the form attached to the warrant certificate and a certified cheque or bank draft for the required amount.
CIBC Mellon's address is:
CIBC Mellon Trust Company
199 Bay Street
Commerce Court West, Securities Level
Toronto, Ontario
M5L 1G9
Please do not send funds or exercise forms to us.
For complete details on how to exercise your warrants, you should review the terms of the warrant indenture relating to the warrants, a copy of which can be obtained by clicking here ($4.25 Warrants).
- 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 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.
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 month-end 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 month-end Net Asset Value (as defined in the MSA) of Sprott Resource Copr. 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%).
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 month end 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.
Yes. Only independent directors are issued options under the plan. There are 265,000 options outstanding as at June 30, 2009.
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.
We do not disclose our current cash position. Our current cash position as of the most recently completed quarter can be obtained from our financial statements.
Please click here to access our latest financial reports. All regulatory filings, including financial reports, can be found on SEDAR (www.sedar.com).
The following analysts provide coverage on Sprott Resource Corp.:
Cormark Securites Inc.
Mr. Marc Robinson (416) 943-4224
Wellington West Capital Markets Inc.
Mr. Robert B. Winslow, CFA (416) 847-3403
Mr. Eric Winmill, CFA (416) 847-3404
This list is subject to change.
Please note that any opinions, estimates or forecasts regarding Sprott Resource Corp.'s performance made by analysts covering Sprott Resource Corp. are theirs alone and do not represent the opinions, forecasts, or predictions of Sprott Resource Corp. or its management. Sprott Resource Corp. does not by its reference above imply any endorsement of or concurrence with such information, conclusions or recommendations.