SPROTT RESOURCE CP (OTCMKTS:SCPZF): Announces 2013 Third Quarter Results

On November 14, 2013, Sprott Resource Corp. (OTCMKTS:SCPZF) announced its financial results for the period of 3 and 9 months ended September 30, 2013.

For the period of 3 months ended September 30, 2013, Sprott Resource Corp. (OTCMKTS:SCPZF) reported a net loss which is attributable to shareholders of the company for an amount of $8 million or $0.08 loss per basic and diluted share respectively as compared to a net loss of $56.8 million or $0.53 loss per basic and diluted share respectively for the same period a year ago.

The amount of net loss of the company for the period of 3 months ended September 30, 2013, was mainly as a result of the impairment of certain AFS investments for an amount of $5.9 million, the impairment ofStonegate for an amount of $8.5 million, management fees for an amount of $2.3 million and general and administrative expenses for an amount of $2.9 million which was offset by an increase in the fair market value and gain on disposal of gold bullion for an amount of $10.1 million and a deferred income tax recovery for an amount of $1.3 million.

For the period of 3 months ended September 30, 2013,Sprott Resource Corp. (OTCMKTS:SCPZF) has purchased and canceled 0.9 million common shares under its normal course issuer bid at an average cost of$3.30 per share for a collective cost of $2.9 million. Since the quarter end, as at the date in this regard, the company has purchased and cancelled an additional common shares for an amount of 0.5 at an average cost of $2.88 per share million under the NCIB for a total cost of $1.5 million.

The amount of equity attributable to the shareholders was reduced to $383.4 million as at September 30, 2013 from $459.9 million as at December 31, 2012. The $76.5 million reduction in equity attributable to the shareholders of the company was mainly as a result of a reduction in the value of gold bullion from market value changes and disposal of $41.5 million reduction in property, plant and equipment for an amount of $16.6 million, increase in the margin account and credit facility for an amount of $50.9 million and a reduction in cash and cash equivalents for an amount of $5 million which was offset by increases in the amount of Goodwill for an amount of $6.7 million and exploration and evaluation assets for an amount of $14.8 million.

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