Some comments from Adrian Day on SCP.to:
"AD: Yes, Sprott Resource Corp. (TSX:SCP). If you buy Sprott, which is quite a liquid company, you get it at a discount to NAV. Net asset is about $5.20. The stock’s been trading at about $4.65. You also get great management—Kevin Bambrough and company—and a great balance sheet. As you know, Sprott has direct and indirect investments in different resource areas—buying whole companies, sponsoring companies or growing them. When the companies reach a certain level, ideally it’ll spin off a certain amount of the shareholding into a public company.
TER: You said it’s currently in gold, oil and gas, agriculture and fertilizer. Tell us about the last two on that list.
AD: The agriculture play is very interesting, a joint venture (JV) with First Nations—One Earth Farms Corp. First Nations owns more than a million acres of farmland. It’ll be a big business, one of the largest commercial farms in North America—really quite staggering. It’s still a private company, but it’s selling some shares in a secondary offering, raising $40M–$80M. If it brings in the maximum, it will take Sprott’s stake down to 24%. In a year or two, it’ll IPO. That’s what it’s trying to do—take a direct investment, build up the company and IPO it."
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