Marret Resource Corp. Releases Q2 2013 Financial Statements
TORONTO, ONTARIO--(Marketwired - Aug. 1, 2013) - Marret Resource Corp. (TSX:MAR) ("Marret" or the "Company") announces that it has reported a total comprehensive loss for the three months ended June 30, 2013 of $6.8 million or $0.35 per share (2012 - loss of $2.2 million or $0.12 per share) and a total comprehensive loss for the six months ended June 30, 2013 of $8.6 million or $0.44 per share (2012 - loss of $9.8 million or $0.51 per share). As of June 30, 2013, the Company had total assets of $110.4 million, liabilities of $13.8 million, shareholders' equity of $96.6 million and a net asset value per share of $4.977. The financial statements along with management's discussion and analysis can be found on SEDAR (www.sedar.com) or on Marret's website (www.marret.com).
Despite overweighting energy vs. materials and debt vs. equity, the Company's portfolio still had negative returns in the first 6 months. The severity of the sell offs in the Mining & Materials sector has been extreme and even a very conservative portfolio of primarily debt of high quality companies wasn't immune to losses. The core problems in the sector - weaker commodity prices and major capital commitments to large, risky and perhaps marginal projects - will not be solved quickly. Commodity prices are being suppressed by weaker growth in China and perhaps a quicker transition to an economy focused on consumption and services rather than fixed investment. The U.S. Dollar is a further headwind as the U.S. economy is outperforming Asia and Europe (best of a weak group) and U.S. equities are attracting strong capital flows. These larger trends are unlikely to reverse in 2013 but the Manager believes that valuations in the resource sector understate most company's fundamentals.
The portfolio continues to have a defensive posture but the Company believes valuations are attractive. It will likely be several quarters before the portfolio begins to shift more aggressively towards equities. In the meantime the portfolio yield is adequate to cover operating costs plus payment of a monthly dividend.
About Marret Resource Corp.
Marret Resource Corp. is focused on natural resource lending. The Company's business is primarily directed to investing in public and private debt securities of and making term loans (including bridge and mezzanine debt) to issuers in a broad range of natural resource sectors, including energy, base and precious metals and other commodities, and issuers involved in exploration and development, and may also include financing other resource‐related businesses and investing in public and private equity and quasi‐equity securities. The Company seeks to generate income mainly from its lending activities, while taking advantage of additional upside through equity participation in the companies which it finances.
Marret Asset Management Inc. is the Company's investment manager and is responsible for implementing Marret Resource Corp.'s investment strategy and managing its investment portfolio.
About Marret Asset Management Inc.
Marret Asset Management is an employee-owned firm based in Toronto led by Barry Allan which specializes in fixed income and, particularly, in high yield debt strategies.
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This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the Company's investment and macroeconomic views. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such risks include, but are not limited to, market conditions and the other risks identified in the short form prospectus dated June 23, 2011 and the Company's annual information form, in both cases under the heading "Risk Factors". There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.