Mr.
Dave Antony reports
BLACKHAWK ANNOUNCES FINANCIAL RESULTS
Blackhawk Resource Corp. has released its financial results for the three months ended Sept. 30, 2014, and has provided an update on its investment strategy.
Highlights
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Net investment revenue for the three months ended Sept. 30, 2014, was $81,135.
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Realized gains, gross investment revenue and revenue from oil and gas
assets for the period were $275,006; this was offset by unrealized losses
of $193,871.
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As at Sept. 30, 2014, Blackhawk had $3,654,980 in working capital.
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As at Sept. 30, 2014, Blackhawk held $2,794,685 in current
investments, or 76 per cent of its working capital.
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As at Sept. 30, 2014, net asset value per share was 16 cents.
During the previous fiscal year, the corporation received conditional approval of the proposed change of business from an oil and gas issuer to an investment issuer; the corporation's primary focus will be to seek returns through investments in the securities of other companies and other assets.
Since receiving conditional approval, the corporation has begun to both evaluate investment opportunities and has made a number of investments to date. The broad investment strategy of the corporation relies on the expertise of management and the board to source and evaluate investment opportunities that will provide above-average returns for the shareholders. The goal of this strategy is to develop a portfolio of investments, which is expected to include equity, debt instruments and direct asset investments that will continue to provide positive cash flow returns. The corporation is not intending to be industry specific, but is reviewing investment opportunities under the return and risk profile of each. In time, the corporation hopes to be able to distribute a portion of these earnings back to its shareholders through a sustainable dividend.
Portfolio investments
As at Sept. 30, 2014, the corporation held total investments at fair value of $2,794,685 comprising equity-type investments of $1,717,610, debt-type investments of $1,077,075, and oil and gas assets of $237,910. In addition, the corporation held a cash balance of $666,189.
As at Sept. 30, 2014, net asset value per share was 16 cents, as compared to 17 cents at June 30, 2014.
Investments at fair value by sector as at Sept. 30, 2014, are shown in the attached table.
Total fair % of total
Sector Cost value fair value
Construction and real estate $ 211,000 $ 228,505 13%
Oil and gas producers 591,696 510,377 30%
Mining 472,415 567,090 33%
Technology and other 421,909 411,638 24%
Total $ 1,697,020 $ 1,717,610 100%
Debt instrument investments as at Sept. 30, 2014, are shown in the attached table.
Short-term loans $ 768,248
Mortgage 150,000
Debenture 158,827
Total investments held to maturity $ 1,077,075
Oil and gas investments as at Sept. 30, 2014, are shown in the attached table.
Non-operated properties $ 152,923
Gross overriding royalty (GORR) 84,987
Total $ 237,910
The corporation's strategy is focused on investing in multiple companies across a variety of sectors in North America. Blackhawk strives to continue to increase its investable capital and grow by investing in equity and debt instruments of companies and generating positive returns for shareholders.
We seek Safe Harbor.
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