Mark Lackey
Sprott Resource Corp.
SRHI-T
TOP PICK
Apr 09, 2008
Eric Sprott put together a little resource company that is largely metallurgical coal. Own a company out of West Virginia with about 4 million tons that should be mining by 2010. Metallurgical coal has doubled in price and there are great margins here. Also has a phosphate company. A good way to play phosphate and coal.
Buying management for less than cash in the bank. One idea they are working on is Earth1, which is a partnership with the First Nations group in Saskatchewan. Will develop a huge agriculture business. Long-term bet but a smart one.
Very shrewd resource investors. Own silver and gold bullion and cash. Recently made an acquisition of a natural gas company and are getting in at a very low point of the natural gas cycle. Conservative NAV of $4.
(A Top Pick Sept 25/09. Up 32.4%.) Still likes. Have about $230 million in cash and liquid assets as well as about $100 million in investments, the main one One Earth, an agricultural with the first Nations in Saskatchewan. Could be a home run. A long-term hold.
Masters of the resources game. If you believe in resources and gold, this is a channel that you can use. Should work well as long as resources work well.
Good, long-term track record. Has volatility, so use a chart with the longest term you can get. This is one where you buy on the dips. Good management.
Base metals are forming a bottom anyway. It is reasonable to assume SCP will do better than it has done in the recent past. He has only contemplated buying it.