UPDATE: Sprott Resource Corp Down More Than 1%, Nearer Yr Lows As Announces Q3
Sprott Resource Corp. (SCP.TO) is down more than 1% and nearer a year low of $3.65 as it reported a net loss of $56.8 million for the three-months ended September 30, 2012 compared to net income of $20.0 million for the same period in 2011. The net loss for the quarter was largely attributable to an impairment charge of $80.2 million.
The impairment is predominately a reversal of the accounting gain recorded on the WestFire and Orion Oil and Gas Corporation ("Orion") merger that occurred on June 30, 2011. The Company recorded a $77 million gain on June 30, 2011 as a result of the merger. The Company's current carrying value of WestFire is nominally higher than the original investment cost base of Orion.
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