TORONTO,
Feb. 27, 2014 /CNW/ - Sprott Inc.
(TSX:SII) today announced that for the fourth quarter and year
ended December 31, 2013, it will
record a non-cash charge of approximately $90 million related to the impairment of goodwill
associated with the 2011 acquisition of Sprott Global Resource
Investments, Ltd. (formerly Global Resource Investments, Ltd.),
Sprott Asset Management USA Inc.
(formerly Terra Resource Investment Management, Inc.) and Resource
Capital Investment Corporation (collectively, the "Global
Companies"). This was determined following the results of the
annual impairment test required under International Financial
Reporting Standards. The final amount of the charge will be
determined following completion of the audit of Sprott's 2013
annual consolidated financial statements and will be reported in
conjunction with the Company's year-end reporting.
The impact on consolidated net income is
estimated to be approximately ($0.37)
per share. This is a non-cash charge and will not affect the
Company's ongoing operations. The charge was determined in relation
to the revenues of the acquired assets, which were reduced
primarily due to the protracted decline in the junior resource
sector between 2011 and the end of 2013. Management expects
that a recovery in the natural resources sector will drive
improving revenues for the Global Companies.
Sprott is scheduled to release its audited
annual consolidated 2013 financial statements on or about
March 27, 2014.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to
achieving superior returns for its clients over the long term. The
Company currently operates through five business units: Sprott
Asset Management LP, Sprott Private Wealth LP, Sprott Consulting
LP, Sprott Resource Lending Corp. and Sprott U.S. Holdings Inc.
Sprott Asset Management is the investment manager of the Sprott
family of mutual funds and hedge funds and discretionary managed
accounts; Sprott Private Wealth provides wealth management services
to high net worth individuals; and Sprott Consulting provides
management, administrative and consulting services to other
companies. Sprott Resource Lending provides lending services to
mining and energy sectors. Sprott U.S. Holdings Inc. includes
Sprott Global Resource Investments Ltd, Sprott Asset Management
USA Inc., and Resource Capital
Investments Corporation. Sprott Inc. is headquartered in
Toronto, Canada, and is listed on
the Toronto Stock Exchange under the symbol "SII". For more
information on Sprott Inc., please visit www.sprottinc.com.
Forward-Looking Information and
Statements
This news release contains certain
forward-looking information and statements (collectively referred
to herein as "Forward-Looking Statements") within the meaning of
applicable securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify Forward-Looking Statements. In particular, but
without limiting the forgoing, this news release contains
Forward-Looking Statements pertaining to: (i) an anticipated
non-cash charge related to the impairment of goodwill associated
with the 2011 acquisition of the Global Companies (the "Charge");
(ii) determination and reporting of the final amount of the Charge;
(iii) the estimated impact on consolidated net income and effect on
Sprott Inc.'s ("SII") ongoing operations; and (iv) recovery of the
natural resources sector and related improvement of revenues for
the Global Companies. Forward-Looking Statements are based on
a number of expectations or assumptions which have been used to
develop such information and statements but which may prove to be
incorrect, including, but not limited to: (i) the natural resource
markets and price of natural resources; (ii) the future outlook for
the natural resources sector; and (iii) the future revenues to be
generated by the Global Companies. SII will publish the final
Charge in its audited December 31,
2013 financial statements. The final Charge could vary
significantly from the range provided in this news release.
Although SII believes the expectations and assumptions reflected in
such Forward-Looking Statements are reasonable, undue reliance
should not be placed on Forward-Looking Statements because SII can
give no assurance that such expectations and assumptions will prove
to be correct. The Forward-Looking Statements included in this news
release are not guarantees of future performance and should not be
unduly relied upon. Such information and statements,
including the assumptions made in respect thereof, involve known
and unknown risks, uncertainties and other factors, which may cause
actual results or events to differ materially from those
anticipated in such Forward-Looking Statements, including, without
limitation: (i) general economic, market and business conditions;
(ii) those risks listed under the heading "Managing Risk" in SII's
Management's Discussion & Analysis for the nine months ended
September 30, 2013; (iii) those risks
listed under the heading "Risk Factors" in SII's annual information
form dated March 26, 2013; and (iv)
other risks, which are beyond the control of SII or its
subsidiaries. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the Forward-Looking
Statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied
by the Forward-Looking Statements contained in this news release.
The Forward-Looking Statements contained in this news release speak
only as of the date of this news release, and SII does not assume
any obligation to publicly update or revise any of the included
Forward-Looking Statements, whether as a result of new information,
future events or otherwise, except as may be expressly required by
applicable securities laws.
SOURCE Sprott Inc.