TSX: SIL
NYSE MKT: SILU
TORONTO, March 1, 2013 /CNW/ - Sprott Resource Lending Corp. (the
"Company" or "Sprott Resource Lending") today reported its financial
results for the three and twelve months ended December 31, 2012. All
figures are in Canadian dollars except where noted.
The overall resource loan and bond portfolio of the Company currently
stands at approximately $168 million, increasing by $23 million
from December 31, 2012. In addition, Sprott Resource Lending currently
has $15 million in binding loan commitments and signed term sheets. The
Company's pipeline of new lending opportunities continues to run in
excess of $90 million.
Fourth Quarter and Year End Highlights
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For the year ended December 31, 2012, the Company had interest income on
resource loans of $16.3 million versus $11.4 million for the year ended
December 31, 2011. For the quarter ended December 31, 2012, the Company
recorded interest income on resource loans of $4.3 million compared to
$5.1 million for the quarter ended December 31, 2011.
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As at December 31, 2012, book value was $1.52 per common share, compared
to $1.61 per common share as at December 31, 2011. Despite strong
earnings from resource lending activities, the decrease is primarily a
result of write downs on the Company's historical real estate portfolio
of $22.0 million, net of recoveries, or $0.15 per common share. The
Company had a net loss for the year ended December 31, 2012 of $5.3
million (or $0.04 per common share) versus net income of $2.5 million
(or $0.02 per common share) for the year ended December 31, 2011.
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During its second full year of operations, the resource loan portfolio
grew from $119.8 million as at December 31, 2011 to $131.0 million as
at December 31, 2012.
Narinder Nagra, President and Chief Operating Officer, commented: "2012
was a successful year for Sprott Resource Lending. Our pipeline
continues to grow as the relative attractiveness of our capital
solution becomes better known within the resource industry. Given the
currently tough resource equity markets, we are well positioned to
deploy secure additional lending opportunities. Our lending business
has produced attractive top line returns which, on a risk adjusted
basis, we feel is a highly attractive strategy to generate returns in
the resource sector. We remain confident that we will continue to build
this business to become a global leader in the industry and look
forward to a successful 2013."
Dividend Details
The Board of Directors has approved the payment of a quarterly dividend
of $0.015 per common share. The dividend of $0.015 is for payment on
March 28, 2013 to shareholders of record on March 12, 2013. This is the
Company's seventh consecutive quarterly dividend. The Company hereby
notifies its shareholders that it will designate the full amount of
such dividend as an "eligible dividend" for purposes of the Income Tax
Act (Canada).
Normal Course Issuer Bid
Under the normal course issuer bid initiated April 9, 2012, the Company
has repurchased and cancelled 6,853,627 of its common shares at an
average price of $1.46 per common share, leaving the Company with
146,976,919 common shares outstanding as at December 31, 2012.
Financing
In light of capital position and new lending opportunities, the Company
is considering several working capital debt proposals to facilitate new
loan growth.
Real Estate
Sprott Resource Lending has residual real estate assets with a book
value of $31.5 million. The real estate consists of four properties in
Western Canada, all of which are currently are in the process of
liquidation. The Company currently has one of the larger properties
under a conditional purchase and sale agreement.
Conference Call
Sprott Resource Lending plans an investor conference call to discuss its
financial results at 10:00 am ET today. The call can be accessed live
by dialing local (647) 427-7450 and toll free (888) 231-8191.
The call will be recorded and a replay made available approximately one
hour after the live call ends. Individuals can access the replay by
dialing local (416) 849-0833 or toll free (855) 859-2056 and entering
pass code 56026240 followed by the number sign. The replay will be
available until 11:59 p.m. ETMarch 8, 2013.
About Sprott Resource Lending Corp.
Sprott Resource Lending (www.sprottlending.com) specializes in lending to resource companies on a global basis.
Headquartered in Toronto, the Company seeks to generate income from
lending activities as well as the upside potential of bonus
arrangements with borrowers generally tied to the underlying property
or shares of the borrower. Pursuant to a management services agreement
and partnership agreement, Sprott Lending Consulting Limited
Partnership ("SLCLP") provides Sprott Resource Lending day to day
business management as well as other management and administrative
services. SLCLP is a wholly owned subsidiary of Sprott Inc. (www.sprottinc.com), the parent of Sprott Asset Management LP (www.sprott.com), a leading Canadian independent money manager.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This press release includes certain statements that constitute
"forward-looking statements" and "forward looking information" within
the meaning of applicable securities laws (collectively referred to
herein as "Forward-Looking Statements"). The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will",
"project", "become", "should", "believe", "plans", "intends" and
similar expressions are intended to identify Forward-Looking
Statements. Such Forward-Looking Statements involve known and unknown
risks and uncertainties that may cause our actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by such
Forward-Looking Statements. Forward-Looking Statements may relate to
the Company's future outlook and anticipated events or results and may
include statements regarding the Company's future financial position,
business strategy, budgets, litigation, projected costs, financial
results, portfolio changes, taxes, plans and objectives. In particular,
but without limiting the forgoing, this news release contains
Forward-Looking Statements pertaining to: (i) future loan commitments;
(ii) the new lending opportunities pipeline and future growth of such
pipeline; (iii) future resource lending capabilities and ability to
generate returns; (iv) growth of the business to become a global leader
in the industry; (v) working capital debt proposals to facilitate new
loan growth; (vi) future monetization of the real estate portfolio and
related evaluations and processes; and (vii) the payment and
designation of future dividends.We have based these Forward-Looking Statements largely on our current
beliefs, expectations, projections and assumptions about, amongst other
things, future events and financial trends affecting the financial
condition of our business. These Forward-Looking Statements were
derived utilizing numerous assumptions regarding expected growth,
results of operations, performance and business prospects and
opportunities that, if proven incorrect, could cause our actual results
to differ materially from those in the Forward-Looking Statements.
While the Company considers these assumptions to be reasonable, based
on information currently available, they may prove to be incorrect.
Given the development nature of the real estate portfolio and lack of
comparable transactions, the timing and the amount of the real estate
portfolio monetization may be materially different from the
Forward-Looking Statements.
Forward-Looking Statements should not be read as a guarantee of future
performance or results. Forward-Looking Statements are based on
information available at the time those statements are made and/or
management's good faith beliefs, expectations, projections and
assumptions as of that time with respect to future events, and are
subject to known and unknown risks, uncertainties and other factors
that could cause actual performance or results to differ materially
from those expressed in or suggested by the Forward-Looking Statements,
including those listed under the heading "Risk Factors" in our annual
information form dated February 28, 2013. In addition, the payment of
dividends is not guaranteed and the amount and timing of any dividends
payable by the Company will be at the discretion of the Board of
Directors and will be established on the basis of the Company's
earnings and/or resource lending activities, the satisfaction of
solvency tests imposed by applicable corporate law for the declaration
and payment of dividends, and other relevant factors. Should one or
more of these risks or uncertainties materialize, or should beliefs,
expectations, projections and/or assumptions underlying the
Forward-Looking Statements prove incorrect, actual results, performance
or achievements could vary materially from those expressed or implied
by the Forward-Looking Statements contained in this press release To
the extent any Forward-Looking Statements constitute future-oriented
financial information or financial outlooks, as those terms are defined
under applicable Canadian securities laws, such statements are being
provided to describe the current potential of the Company and readers
are cautioned that these statements may not be appropriate for any
other purpose, including investment decisions. Forward-Looking
Statements contained in this press release speak only as of the date of
this press release and the Company does not assume any obligation to
publically update or revise any Forward-Looking Statements, whether as
a result of new information, future events or otherwise, except as may
be expressly required by applicable securities laws. If we update any
one or more Forward-Looking Statements, no inference should be drawn
that we will make additional updates with respect to those or other
Forward-Looking Statements. All Forward-Looking Statements contained in
this press release are expressly qualified in their entirety by this
cautionary notice.
SOURCE: Sprott Resource Lending Corp.
<p> For more information about Sprott Resource Lending, please visit SEDAR (<a href="http://www.sedar.com">www.sedar.com</a>) or contact: </p> <p> Peter Grosskopf, CEO<br/> 416-943-4998 </p> <p> Narinder Nagra, President and COO<br/> 604-488-8719 </p> <p> Jim Grosdanis, CFO<br/> 416-943-4698 </p>