Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Sprott Resource Holdings (TSX: SRHI) no longer has a stake in US coal miner Corsa Coal (TSXV: CSO), disposing of the 16.24 million common shares that it held at C$0.22 per share for aggregate gross proceeds of C$3.57 million.
These shares represent approximately 17.1% of Corsa’s issued and outstanding share capital.
Corsa operates four metallurgical coal mines across Pennsylvania and Maryland, with operational capacity to produce over 1.6 million tonnes of coal per year.
Sprott is currently focused on expanding its Minera Tres Valles copper mining operation in Chile, in which it has a 70% ownership.
The company says it sold its holdings in Corsa for investment purposes.
Shares of Corsa Coal were down 6.8% to C$0.20 a share at market close Wednesday, with a market capitalization of C$19.4 million.
Shares of SRHI dropped 10.7% on the TSX at Wednesday’s close. The company’s market capitalization is C$8.5 million.
