It is no secret that shareholders in the energy and resource sector have taken a hit in recent months, as investment firms tally what has been a tough 2015 third quarter.
“This year has been a challenging one for our portfolio investments,” says David Goodman, CEO of Dundee Corporation. “Lower energy and resource prices, and the impact of their decline on other segments of the economy, including real estate, are clearly manifested in our reported results.”
The company reported a net loss attributable to shareholders of $235.9 million ($4.05 per share) compared with a net loss of $78.7 million ($1.44 per share) during the same quarter the previous year.
Goodman believes investments in each of Dundee Precious Metals and DREAM Unlimited Corp. are undervalued in the current market, and are marked to market in Dundee’s financial results.
“The change in the market value of these two investments,” says Goodman, “combined with the write down of our investment in United Hydrocarbon, account for 90% of our reported net loss before non-controlling interests during the period.”
During the current quarter, Dundee Corporation wrote down the carrying value of its resource properties held through its investment in United Hydrocarbon by $215.2 million, reflecting its fair value in a market with severely depressed energy prices.
On a year-to-date basis, the net loss attributable to shareholders was $404.2 million ($$7.03 per share), compared with a net loss of $140.2 million ($2.68 per share) during the first nine months for 2014.