Sprott Resource Corp (SCP.TO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Sprott Resource Corp (SCP.TO)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Amark$p	5/20/2010 8:29:18 PM
	of 247

Current NAV is now calculated at US$4.89 vs. US$3.65 share price. SCP discount to NAV = 25.4% box.net My best understanding now is to use C$28.6M Sprott Corporate cash balance (page 11 of MD&A) rather than the C$81.1M consoldiated balance. Although SPC has $81M cash on a consolidated basis, some of this cash in regards to Stonegate and Orion should be included in their share price (i.e. OIP and ST) which is calculated via their market cap. Valuing cash is a complicated issue, and it is likely that my calcs are still not fully accurate, but hopefully they are now materially accurate. For example, my understanding is the non-controlling interest for certain investments may impact SCP cash balance. Also, I am unsure on how the cash balances at Waseca and One Earth may or may not impact the valuations reported. Nonetheless, I believe using the C$28.6M Sprott Corporate cash balance is a viable means to proceed for now, and believe should be materially accurate. (Although one could make the case that OIP and ST are now trading below their NAV, the best way to analyze SCP's NAV is to conclude the stock market is correct and thus continue to use SCP market cap ownership for OIP and ST). $0 value continues to be assigned to SCP's $23.9M in Private Investments which is conservative and more than offsets the $14,4M of SCP public investements which have likely lost 33% of their value in the market decline. Current NAV is now calculated at US$4.89 vs. US$3.65 share price. SCP discount to NAV = 25.4% Today's 9+% drop in OIP and ST share prices materially impacted SCP's NAV as well as the 2+% drop in the C$.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next