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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (43012)	6/15/2011 10:13:49 AM
From: E_K_S	1 Recommendation Read Replies (1) \| Respond to of 78659

Hi Jurgis - Been going through the Sprott Resources 2010 annual report and from what I see their vast collection of partnerships began from 2007 forward. They did make a substantial gain from the sale of their coal assets. Their 83% ownership in Waseca Energy is an Oil & Gas development company that Paul Senior might find has significant value. They have grown their production by over 100% from the prior year and are on schedule to completed 62 developmental wells in 2011. Their development is on 45,000 acres located in central Alberta and Saskatchewan Canada. This is a very interesting company w/ a collection of "hard" assets ranging from Agriculture land, fertilizer operations, gold and Oil. That I like and each generates their own revenue stream. The way the company is structured w/ a separate management company earns a base fee of 2% of the NAV (paid quarterly) plus a very liberal profit sharing arrangement (as much as 20% of the net profits from each partnership). It's almost like a hedge fund. You give a lot of the upside away with such an arrangement. Lots of things done w/ warrants & stock options in 2007 to raise capital to arrive at today's company structure. As I make my way through their annual reports I am sure I will learn more about their operations and profitability. At least I should get some new ideas on companies to but especially in the Ag area. I probably would not invest in this group because of the way compensation is made to the management company. I do like their collection of assets. I have been trying to build a similar collection for my portfolio. EKS