Sprott Molybdenum Participation Corporation Releases results for the three and nine months ended September 30, 2007


    TORONTO, Nov. 8 /CNW/ - (TSX: MLY, MLY.WT) - Sprott Molybdenum
Participation Corporation (the "Corporation") announces its results for the
three and nine months ended September 30, 2007.
    Increase in net assets from operations after taxes, for the three and
nine months ended September 30, 2007, amounted to $28.6 million and $53.6
million respectively. For the third quarter, increase in net assets from
operations per common share was $0.64. The net asset value of the Corporation
increased from $5.40 at the end of the second quarter to $6.06 as at September
30, 2007.
    During the period from January 1 to September 30, 2007, the investments
in equities generated gains of $80.6 million or 49.05%; $44.3 million of the
total $80.6 million was generated in the third quarter. The largest gainers in
the portfolio included Thompson Creek Metals Company Inc. (formerly Blue Pearl
Mining Ltd.), Quadra Mining Ltd., General Moly, Inc. (formerly Idaho General
Mines Inc.) and Roca Mines Inc.
    Molybdenum oxide scheduled for delivery in the fourth quarter of 2007
decreased in value by $0.6 million in the third quarter, primarily due to
depreciation in the US dollar, but its overall increase in value since
acquisition was $1.8 million.
    Total unrealized gains for the periods from July 1 to September 30, 2007
and January 1 to September 30, 2007, including unrealized gains on equities,
contract to purchase molybdenum oxide and short-term investments, amounted to
$43.6 million and $82.7 million respectively.
    The most significant expenses of the Corporation for the three and nine
months ended September 30 were accrued incentive fees of $10.5 and $14.7
million, respectively, and management fees of $1.2 and $1.9 million,
respectively. Advisory fees of $0.4 million were paid to third party
investment advisors in the second quarter for consulting and advisory services
provided to the Corporation in relation to some of its more significant
investments; no such fees were incurred in the third quarter.
    In August of 2007 the Corporation initiated a normal course issuer bid.
The purpose of the normal course issuer bid is to provide the Corporation with
a mechanism to decrease the spread between the net asset value per share and
the market price of the shares. As at October 30, 2007, the Corporation has
purchased and cancelled a total of 499,100 common shares, 200,000 of which
were purchased subsequent to September 30, 2007.
    The Corporation is also currently negotiating an acquisition of a large
resource asset and continues to look for creative ways of acquiring physical
molybdenum metal.
    "We are very convinced that molybdenum prices have a very positive
outlook over the next three years and will not be surprised if they exceed all
time highs," commented Eric Sprott, Chairman, CEO and President.
    As at September 30, 2007, the holdings of the Corporation were as

    Portfolio Holdings
    Name of Security                                    % of Total Net Assets
    Thompson Creek Metals Company Inc.                                  26.17
    Quadra Mining Ltd.                                                  12.43
    Inca Pacific Resources Inc.                                         11.18
    General Moly, Inc. (formerly Idaho General Mines Inc.)               9.50
    Mercator Minerals Ltd.                                               7.93
    Roca Mines Inc.                                                      6.12
    Moly Mines Limited                                                   5.46
    International PBX Ventures Ltd.                                      2.34
    Virgin Metals Inc.                                                   1.72
    Torch River Resources Ltd.                                           1.40
    Galway Resources Ltd.                                                1.39
    Golden Phoenix Minerals, Inc.                                        1.19
    TTM Resources Inc.                                                   1.02
    Mosquito Consolidated Gold Mines Limited                             0.93
    Erdene Gold Inc.                                                     0.71
    Western Troy Capital Resources, Inc.                                 0.71
    Tournigan Gold Corp.                                                 0.51
    Georgia Ventures Inc.                                                0.41
    Amerigo Resources Ltd.                                               0.19
    Columbia Yukon Explorations Inc.                                     0.11
    Top portfolio holdings as a percentage of total net assets          91.42

    About Sprott Molybdenum Participation Corporation

    The Corporation is an investment holding company created to invest in
molybdenum assets. The primary investment objective of the Corporation is to
achieve capital appreciation by investing in securities of private and public
companies that explore for, mine and/or process molybdenum and by investing
in, holding, selling and otherwise transacting in all commercial forms of
molybdenum. It is not an investment strategy of the Corporation to actively
speculate with regards to short-term changes in molybdenum prices. The
Corporation's investment mandate will provide investors with several benefits.
It will provide investors with the opportunity to invest in commercial forms
of molybdenum, which is currently unavailable through an exchange. In
addition, it will provide investors with a diversified portfolio of securities
of private and public companies that explore for, mine and/or process

For further information:

For further information: Investor Services at 1-888-362-7172

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890