Author Topic: SRHI.to - Sprott Resource Holdings  (Read 7457 times)

sculpin

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Re: SRHI.to - Sprott Resource Holdings
« Reply #10 on: February 08, 2019, 10:31:56 AM »
Inplay position should be worth triple from current level

At a $3.25 price the Inplay position would be worth $23 million or about $0.68 per SRHI share. Much higher if they were to assume WTI $65+ and a more realistic 5 multiple.

Canaccord catalysts Inplay 

Duvernay activity IPO holds ~48 section in the Eastern Duvernay. Offsetting activity by peers in the area could derisk the acreage. At $2M/section, this is worth ~$1.40/share.

2019 Multiple expansion Continued success in the Cardium could lead to a multiple expansion. At prevailing pricing (US$55 WTI), a 4.5x multiple puts the stock at $1.80.

Acquisition target With a discounted multiple and strong Cardium well results, IPO may become a takeout candidate.


Cardboard

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Re: SRHI.to - Sprott Resource Holdings
« Reply #11 on: February 08, 2019, 11:19:16 AM »
Cash, Corsa and InPlay are worth over $1.30/share right now. Both of these public securities are severely undervalued.

This does not take into account any of the other holdings.

Then you have the copper operating mine in Chile, or a great jurisdiction, the largest asset with NPV and feasibility study on expansion published recently by the company. It is already a low cost mine and on the way to be cheaper and to produce more.

If I were you Petec, I would not study this too long or buy and study after. The chart is now looking very good. Unlike Dundee there is really no cash burn and you have some of the smartest mind in the business overseeing this or Rick Rule and John Embry. A holding company trading for 20 to 25% of NAV...

Cardboard

petec

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Re: SRHI.to - Sprott Resource Holdings
« Reply #12 on: February 08, 2019, 11:57:25 AM »
Noted and I likely will, but I'd still like to know more!

Cardboard

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Re: SRHI.to - Sprott Resource Holdings
« Reply #13 on: February 08, 2019, 12:07:49 PM »
Heavier volume over last 10 sessions, just crossing 50 day moving average and I think that the nice pattern we are seeing is almost a perfect cup handle.

They will be all over this soon!

NorteCapital

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Re: SRHI.to - Sprott Resource Holdings
« Reply #14 on: February 08, 2019, 12:15:50 PM »
Cardboard, I've spent less than 1hr so I may be wrong but I do not see how MTV is a low cost mine. Their guidance says cash costs will be 2.2-2.5$ per lb for 2019. What can we expect for 2020-2022? Is it going to decrease dramatically?

sculpin

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Re: SRHI.to - Sprott Resource Holdings
« Reply #15 on: February 08, 2019, 12:35:40 PM »
Cardboard, I've spent less than 1hr so I may be wrong but I do not see how MTV is a low cost mine. Their guidance says cash costs will be 2.2-2.5$ per lb for 2019. What can we expect for 2020-2022? Is it going to decrease dramatically?

See page 10 of the corp presentation...

http://www.sprott.com/media/1216/srh-investor-presentation.pdf

sculpin

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Re: SRHI.to - Sprott Resource Holdings
« Reply #16 on: February 10, 2019, 09:26:44 AM »
From the most recent G&R research note...

Copper continues to be our favorite base metal.  Since peaking at $3.30 per lb. in June of this year, copper prices have pulled back 20%. Although much has been written about the slowing Chinese economy, according to the World Bureau of Metal Statistics (WBMS), Chinese copper consumption for the first 10 months of 2018 grew almost 6%, a significant acceleration compared to lackluster demand in 2015, 2016, and 2017. 

Also, after several years of meager, we believe we are beginning to see the first  signs of strong copper demand growth coming from India. In previous letters, we outlined how India is making a huge push to electrify the country and that we should expect to see a significant acceleration in Indian copper demand in the next several years.

Also global copper exchange inventories continue to fall, indicating to us that the copper market remains in deficit. On the supply side, global copper mine supply continues to stagnate. Over the last three years, we have repeatedly stressed how copper mine supply was going to  stagnate after growing strongly in 2015 and 2016 and our modelling has been confirmed by mine data.   According to WBMS, global copper mine supply (as reported on monthly basis) has shown no growth over the last two and a half years. Our models also tell us to expect little   copper mine supply growth as we move into the next decade.

With the prospect of extremely strong demand and little if any mine supply growth, we remain bullish towards copper and continue to recommend significant investment exposure to copper equities.

http://gorozen.com/research/commentaries


sculpin

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Re: SRHI.to - Sprott Resource Holdings
« Reply #17 on: February 11, 2019, 10:57:14 AM »
Sprott Resource Holdings Inc. Forms Special Committee

TORONTO, Feb. 11, 2019 (GLOBE NEWSWIRE) -- Sprott Resource Holdings Inc. (TSX: SRHI) (“SRHI” or “the Company”) announces that, in consultation with its significant shareholders including Sprott Inc., the Board of Directors of the Company has formed a Special Committee of the Board comprised solely of the Company's four Independent Directors which will be chaired by Terry Lyons, the current Chairman of the Board. The purpose of the Special Committee will be to review and evaluate potential measures to address the Company's market valuation. This review will be comprehensive and will look at all measures to maximize shareholder value. The Special Committee has engaged financial and legal advisors to assist in its evaluation.
About Sprott Resource Holdings Inc.

SRHI acquires and grows a portfolio of cash-flowing businesses and businesses expected to cash flow in the natural resource sector. Based in Toronto, SRHI is part of the Sprott Group of Companies and seeks to deploy capital to provide our investors with exposure to attractive commodities. For more information about SRHI, please visit www.sprottresource.com.

For further information:
Glen Williams
Managing Director, Investor Relations
T: (416) 943-4394
E: gwilliams@sprott.com

sculpin

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Re: SRHI.to - Sprott Resource Holdings
« Reply #18 on: February 12, 2019, 11:19:11 AM »
From Stockhouse...

Insider buys and extremely undervalued shares

Spoke to IR - Steve Yuzpe, CEO, puts 100% of his annual bonus into stock and 25% of salary into stock.  The entire board and insiders are blacked out one month before year end results and much of the last while due to recent developments. Board seats are blacked out much of the year. It sounds like whenever the blackout is lifted, there will be significant interest in insider buying.

I asked about the new committee to maximize shareholder value.  It is an independent committee to make non biased recommendations. IR is uncertain what will be recommended but it could range from A to Z, whatever maximizes shareholder value ranging from continue operating as is to complete liquidation of assets.

The current mine life of 6.5 years may be extended through further exploration and feasibility studies.  One confirmation is that MTV is funded at the project level, thus corporately protecting SRHI. 

Dividends are not off the table once cash flow starts.  They are expecting some cash flow at eh end of 2019. 2020 will be a transformational year for the company where the cash starts to roll in.

I look forward to hearing recommendations from the special committee, especially considering liquidation value is likely $5 CDN per share. Regardless of the recommendations and the direction they take, the share price at $1.35 today is a gift.   


Pondside47

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Re: SRHI.to - Sprott Resource Holdings
« Reply #19 on: February 13, 2019, 04:34:43 AM »
MTV may be funded at the project level but the debt is guaranteed by SRHI.