Sprott Inc. · TSX:SII
Sprott — Sprott Resource Holdings — Q4 2017 Earnings Presentation
16 slides from Sprott's earnings presentation, Mar 5, 2018
Slide 1: Q4 2017 Conference Call & MTV Update
Sprott Resource Holdings Inc. Q4 2017 Conference Call & MTV Update March 5, 2018 Q4 2017 Results Conference Call & MTV Update Sprott Resource Holdings Inc. | 1
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Information Certain statements in this presentation or the accompanying oral remarks, including in response to questions, contain forward-looking information (collectively referred to herein as the “Forward-Looking Statements”) within the mea
Slide 3: Disclaimer: Qualified Persons and Non-IFRS Measures
Disclaimer Qualified Persons Michael G. Hester, Vice President, Independent Mining Consultants, Inc., M.S. Mining Engineering and Ing. Gabriel Vera, President, GV Metallurgy, Engineer, both independent Qualified Persons as defined by NI 43-101, supervised the preparation of the scientific and techni
Slide 4: Speakers
Speakers Steve Yuzpe Chief Executive Officer Rick Rule Chief Investment Officer Michael Staresinic Chief Financial Officer Mike Harrison Managing Director Q4 2017 Results Conference Call & MTV Update Sprott Resource Holdings Inc. | 4
Slide 5: 2017 Achievements
2017 Achievements • Completed business combination with Adriana Resources Inc. • Raised $45 million in equity financing • Exited Union Agriculture, a legacy position • Completed US$39.9 million investment in Chilean copper producer, Minera Tres Valles (“MTV”) Q4 2017 Results Conference Call & MTV Up
Slide 6: MTV Update
MTV Update • MTV produced 5,951 tonnes of copper cathode in 2017 at cash cost of US$2.37/lb per recoverable pound placed on the heap leach pad • Completed the first phase of technical studies: o NI 43-101 compliant mineral resource estimate for nine deposits o Pre-feasibility study for implementatio
Slide 7: NI 43-101 Mineral Reserve and Resource Estimates
NI 43-101 Mineral Reserve and Resource Estimates • Mineral reserve and mineral resource estimates were completed by Independent Mining Consultants, Inc. (“IMC”) of Tucson, Arizona • Based on 771 diamond drill holes totaling 145,500 meters • Table below summarizes the mineral reserves and mineral res
Slide 8: MTV Property Map
MTV Property Map Q4 2017 Results Conference Call & MTV Update Sprott Resource Holdings Inc. | 8
Slide 9: Don Gabriel Expansion Feasibility Study Results
Don Gabriel Expansion Feasibility Study Results • Feasibility study illustrates the potential to Don Gabriel Production Schedule increase production from the currently producing Don Gabriel Manto open pit 20,000 1.25 deposit • This is the first stage of the expansion of 16,000 1.00 the MTV operation
Slide 10: Salt Leach Pre-Feasibility Study Results
Salt Leach Pre-Feasibility Study Results Don Gabriel Salt Leach Impact(1) • Pre-feasibility study highlights opportunity to improve sulfide copper processing, using a chloride media leaching • Potential to increase copper recoveries by 10%, a 60% reduction of leaching cycle time, and up to 25% reduc
Slide 11: MTV Investment Recap
MTV Investment Recap ü Operating mining complex with significant infrastructure in place ü Production expected to more than double ü Exposure to copper that exhibit attractive long-term market fundamentals ü Located in Chile, ranked 8th out of 91 jurisdictions as the most attractive mining investmen
Slide 12: Summary of Quarterly Financial Information
Summary of Quarterly Financial Information $ millions (except for per share amounts) December 31, 2017 March 31, 2017 Total Assets $152.8 $140.2 Total Liabilities $2.0 $2.4 Net Asset Value (NAV) (1)(2) $150.8 $137.8 NAV per share(2) $0.22 $0.27 (1) NAV is the total equity attributable to shareholder
Slide 13: Balance Sheet and Liquidity Profile
Balance Sheet and Liquidity Profile $ millions (except for per share amounts) December 31, 2017 March 31, 2017 Cash and cash equivalents $36.2 $50.6 Working capital (1) $35.3 $48.8 Investment portfolio: Mining $91.0 $40.2 Energy 15.2 19.2 Agriculture 9.2 29.6 Total investment portfolio $115.4 $89.0
Slide 14: Income Statement – Three Months Ended
Income Statement – Three Months Ended $ millions (except for per share amounts) December 31, 2017 September 30, 2017 Investment gain (loss) (1) $12.3 $(8.0) Expenses: General and administrative expenses $0.5 $0.3 Management fees and compensation $0.7 $0.7 Transaction costs $0.4 $0.6 Foreign current
Slide 15: Summary
Summary • SRHI portfolio is repositioned to focus on a number of material holdings o MTV o Corsa Coal o InPlay Oil • We believe MTV has significant upside potential as evidenced by the results of recent technical studies • Over $36 million in cash available to support existing holdings as appropriat
Slide 16: Contact Details
Contact Details Royal Bank Plaza, South Tower 200 Bay Street, Suite 2600 Toronto, Ontario M5J 2J1 www.sprott.com Steve Yuzpe President and Chief Executive Officer, Sprott Resource Holdings Inc. Business: 416.977.7333 [email protected] Glen Williams Managing Director, Investor Relations Business: 416
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