Resinco® Capital Partners Inc. 2012 results
VANCOUVER, British Columbia--(BUSINESS WIRE)-- Resinco® Capital Partners Inc. ("Resinco" or the "Company") announces its financial results for the year ended December 31, 2012 and reports a net loss of $0.4 million or $0.00 per share versus a net loss of $18.8 million or $0.15 per share for 2011. At December 31, 2012 the Company held investments with a fair value of $9,242 million or $0.08 per share compared to $9,197 million at December 31, 2011, an increase of 0.5%. The TSX Venture Exchange, being the representative equities market on which most of the Company's publicly traded early-stage resource investments are listed, declined 35% in 2011 and a further 17% in 2012.
Resinco recorded a net realized and unrealized gain on the sale of investments of $1,287 million in the year ended December 31, 2012 compared to a net realized and unrealized loss of $17,037 million in the comparative year. Resinco's investment portfolio at December 31, 2012 included shareholdings in 13 public companies and 6 private companies compared to 15 and 9 respectively at December 31, 2011.
During the fourth quarter of 2012, the Company introduced a broad range of initiatives to reduce costs and streamline its corporate administration organization. The strategic business decision to outsource 'back-office" functionality was driven by a need to lower operating costs due to the depressed state of the junior resource market sector in which Resinco operates. The Company no longer provides corporate services to any of its early stage investee companies. The Chief Executive Officer has reduced his fees by 45% to reflect the need for costs savings to occur in all areas of the business. Reduced salaries and fees, and outsourcing company finance and corporate compliance functions is expected to result in an annualized net reduction in costs of up to $1.2 million a year or approximately 70% of 2012 operating expense costs of $1.73 million.
About Resinco® Capital Partners Inc.
Resinco (Resource Investment Company) is a global investment company that specializes in providing early stage financing to private and public exploration and mining companies in the hard rock minerals, precious metals, rare-earth minerals, oil, gas, water and renewable energy markets.
For more information on Resinco, please visit www.resincocp.com.
On behalf of the Board of Directors
RESINCO® CAPITAL PARTNERS INC.:
President and CEO
For more information, please contact
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. Such statements are based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company's business, including risks related to mineral exploration and development. Consequently, actual results may vary materially from those described in the forward-looking statements.
KEYWORDS: North America Canada
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