March 3, 2009 / 2:26 PM / in 9 years

UPDATE 1-Sprott Resource 2008 earnings soar on PBS gain

*helped by gain from sale of PBS Coal stake

March 3 (Reuters) - Sprott Resource Corp SCP.TO, which invests in the natural resources sector, on Tuesday said net profit soared to C$134.2 million in 2008, helped mainly by gains it recorded from the sale of its stake in PBS Coal Ltd.

Net earnings on a per share basis rose to C$1.94 per basic share versus C$0.09 per basic share a year ago.

In August, Sprott Resource had said it would receive proceeds of about C$225.3 million as its share from the sale of PBS to Russia’s largest steel maker OAO Severstal (CHMF.MM).

The Alexei Mordashov-controlled OAO Severstal had agreed to acquire PBS Coals in a C$900 million deal.

Sprott Resource ended 2008 with cash, cash equivalents and short-term investments of C$203.5 million and with portfolio investments of C$28.6 million.

Shares of Sprott Resource closed at C$2.25 Monday on the Toronto Stock Exchange. ($1=1.281 Canadian Dollar) (Reporting by Chakradhar Adusumilli in Bangalore)

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