TORONTO, ONTARIO--(Marketwire - Aug. 7, 2012) - Marret Resource Corp. (TSX:MAR) ("Marret" or the "Company") (formerly Primary Corp.) announces that it has reported a total comprehensive loss for the quarter ended June 30, 2012 of $2.2 million. The loss was largely due to the continued weakness in the equity portion of the Company's portfolio as a result of weak market conditions in the resource sector. As of June 30, 2012, the Company had total assets of $112.7 million, liabilities of $8.1 million, shareholders' equity of $104.6 million and a net asset value per share of $5.39. The financial statements along with management's discussion and analysis can be found on SEDAR (www.sedar.com) or on Marret's website (www.primarycorp.ca).
The Marret portfolio maintained a defensive stance due to its cautious view of the markets. The Company has continued to reduce its equity holdings while increasing its fixed income positions. This shift in the portfolio has provided a significant increase in the yield realized while still retaining the liquidity to take advantage of opportunities which present themselves.
The Company believes that one positive aspect of a weak commodity and growth environment is that it produces more investment opportunities. Many small resource companies are seeking capital and equity prices are at levels where this is not a viable option. The mining sector is more advanced in this process but natural gas weighted energy companies are beginning to move into situations where we deem attractive.
The Company is not bullish on the resource sectors, but believes the current portfolio is attractive. The yield is attractive despite the defensive stance and there is material room to increase the yield as the right deals surface. The goal is to achieve modest increases in the net asset value while controlling risk until the resource cycle turns and be positioned to create sizeable capital gains once this occurs.
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 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 and has over $6.0 billion of assets under management. Marret Asset Management and its experienced team of investment professionals led by Barry Allan specialize exclusively in fixed income and, particularly, in high yield debt strategies.
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Forward-Looking Information
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 anticipated use of the net proceeds of the Offering. 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.
Contact Information:
Barry Allan
Chief Executive Officer
416.214.5800