Sprott Gold Miners ETF · AMEX:SGDM
Sprott Gold Miners ETF — Sprott Junior Gold Miners ETF — Investor Presentation (November 2023)
23 slides from Sprott Gold Miners ETF's investor presentation, Nov 6, 2023
Slide 1: Sprott Junior Gold Miners ETF (SGDJ)
Sprott Junior Gold Miners ETF (SGDJ) Q3 2023 V3_11.06.2023
Slide 2: Global Leader in Precious Metals and Energy Transition Investments
Global Leader in Precious Metals and Energy Transition Investments US$25.4B in AUM1 Sprott (SII) is publicly listed on the NYSE and TSX Exchange Listed Products Managed Equities Private Strategies $20.3B AUM $2.5B AUM $2.6B AUM • Physical Bullion Trusts • Flagship U.S. Gold Equity Mutual • Bespoke c
Slide 3: Sprott Junior Gold Miners ETF (SGDJ)
Sprott Junior Gold Miners ETF (SGDJ) Sprott Junior Gold Miners Exchange Traded Fund (NYSE Arca: SGDJ) seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index (Ticker: SOLJGMFT), wh
Slide 4: Sprott Junior Gold Miners ETF (SGDJ)
Sprott Junior Gold Miners ETF (SGDJ) Portfolio Characteristics1 Company Domicile Breakdown1 (As of 9/30/2023) (As of 9/30/2023) • Number of Issuers: 41 • Market Cap (millions): $33,311 • Largest Market Cap (millions): $1,941 • Smallest Market Cap (millions): $92 • Weighted Avg. Company Market Cap (m
Slide 5: SGDJ: Reasons to Consider
SGDJ: Reasons to Consider • Provides true junior mining exposure • Max market capitalization of $2 billion at time of inclusion • Index co-designed with Solactive utilizing customized factors to weight stocks: Momentum for junior explorers/developers and revenue growth for junior producers • Semi-an
Slide 6: Sprott Junior Gold Miners ETF Performance History
Sprott Junior Gold Miners ETF Performance History Performance: Average Annual Total Returns* (%) MONTH END AS OF 9/30/2023 1 MO 3 MO YTD 1 YR 3 YR 5 YR S.I.1 Sprott Junior Gold Miners ETF (Net Asset Value) -10.59 -6.93 -10.15 10.56 -14.60 3.09 2.02 Sprott Junior Gold Miners ETF (Market Price)2 -10.8
Slide 7: Sprott's 2023 Outlook on Gold and Gold Equities
Sprott’s 2023 Outlook on Gold and Gold Equities Gold Bullion • In Q3, there was a retrenchment in gold markets, pulling its year-to-date (YTD) return down to 1.35%. Gold closed the quarter at $1,849 per ounce. • Near-term support appears to be around $1,820 per ounce, with the 200-day moving average
Slide 8: Asset Class Performance: Gold Leading the Pack
Asset Class Performance: Gold Leading the Pack Gold vs. Stocks, Bonds and USD Returns for Period from 12/31/1999-9/30/2023 Compound Annual Returns 700 8.14% Bull Market 600 Post GFC Precious Metals 500 Bull Market 6.60% Index (Base = 100) 400 300 3.80% 200 100 0.17% Click to edit Master title style
Slide 9: Gold is an Alternative Currency
Gold is an Alternative Currency Spot gold’s average performance, measured in the world’s four leading fiat currencies, has been positive in 20 of the past 23 years/periods (far right column) Gold in Gold in Gold in Gold in Gold in Gold's Average Year Canadian Dollar U.S. Dollar Euro Yuan Yen Perform
Slide 10: We Believe Fundamentals Support a Long-Term Uptrend in Gold
We Believe Fundamentals Support a Long-Term Uptrend in Gold • Central bank balance sheets, government deficits and fiat M2 growth are all experiencing simultaneous growth • Other financial markets are increasingly correlated and tied to this growth • The gold sector is likely to provide valuable pro
Slide 11: Gold Miners Offering Deep Value versus Gold Bullion
Gold Miners Offering Deep Value versus Gold Bullion • There has historically been a strong correlation between the price of gold and gold mining stocks, although they are not always in sync • Gold mining equities are now near a 35-year low vs. gold, at a ratio of 0.06. The ratio of miners to gold wo
Slide 12: Junior Miners Cheap Relative to Senior Miners
Junior Miners Cheap Relative to Senior Miners North American junior mining stocks are trading at a significant discount to their underlying NAVs vs. senior mining stocks. 80% 60% 40% Premium/Discount to NAV 20% 0% -20% -40% -37.1% -60% Click to edit Master title style -80% -74.9% -100% Senior Miners
Slide 13: Gold Miners Present Attractive Relative Value and Fundamentals
Gold Miners Present Attractive Relative Value and Fundamentals Gold mining equities are trading multiples lower than the S&P 500 and with greater profitability and lower leverage Gold Miners (GDM) S&P 500 Comments EV/EBITDA 10.11x 14.15x GDM Lower Dividend Yield 2.34% 1.61% GDM Higher Net Debt/EBITD
Slide 14: Gold Miners Out-Yielding Stocks
Gold Miners Out-Yielding Stocks Gold miners’ dividend yield is currently 0.9% greater than the S&P 500 after historically under yielding the S&P 500 Index 3.5% 3.0% 2.6% 2.5% 2.0% Yield 1.7% 1.5% 1.0% 0.5% Click to edit Master title style 0.0% 2/29/12 2/28/13 2/28/14 2/28/15 2/29/16 2/28/17 2/28/18
Slide 15: Gold Supply Factors: Discovery & Production
Gold Supply Factors: Discovery & Production • Despite record spending on exploration, new gold discoveries are less frequent • As gold production trends higher and discoveries dwindle, ore quality has become more marginal; there are not enough quality deposits to sustain future production without go
Slide 16: Gold Supply Continues to Decline
Gold Supply Continues to Decline Declining gold supply may drive gold prices higher and support M&A • Mine lives in the gold sector are at the • Major gold discoveries have declined lowest levels in more than ~30 years significantly Average Mine Life versus Change in Supply Gold Production 1985-2021
Slide 17: Cost per Ounce to Buy vs. Build
Cost per Ounce to Buy vs. “Build” • There can be a 50%+ discount for buying ounces through M&A compared to discovering new ounces • Buying reserves eliminates the time and uncertainty associated with exploration • May lead to higher valuations of well positioned mid-cap companies Average Cost per Di
Slide 18: Gold Equities: M&A Repositioning to Fill the Power Vacuum
Gold Equities: M&A Repositioning to Fill the Power Vacuum 2023 highlights thus far include Newmont Mining’s acquisition of Australian gold and copper miner Newcrest for ~US$17 billion in what is the largest ever gold mining deal. B2Gold Corp. acquired Sabina Gold & Silver Corp for ~US$900 million fo
Slide 19: Consider Adding Gold to Your Portfolio
Consider Adding Gold to Your Portfolio Replacing bonds and stocks with gold bullion within a 60/40 portfolio allocation has historically enhanced returns while reducing risks Risk vs. Total Return Growth of $1 million 7.6% $4.30 $4.26 55% $4.25 Stocks Growth of $1m over Past 20 Years 7.5% 35% Bonds
Slide 20: Sprott Junior Gold Miners ETF (SGDJ)
Sprott Junior Gold Miners ETF (SGDJ) | 20
Slide 21: Sprott Regional and National Sales Coverage
Sprott Regional and National Sales Coverage Sprott Junior Gold Miners ETF (SGDJ) | 21
Slide 22: Contact Details
Contact Details Key Accounts Contact: John H. Kinnane, CIMA® Director, Key Accounts Telephone: 401.787.7525 Email: jkinnane@sprottusa.com | keyaccounts@sprottusa.com Global Sales Contact: Ed Coyne Senior Managing Partner, Global Sales Telephone: 646.599.0859 Email: ecoyne@sprottusa.com Distributor C
Slide 23: Important Disclosure
Important Disclosure Sprott ETFs This material must be preceded or accompanied by a prospectus. Sprott Gold Miners ETF and Sprott Junior Gold Miners ETF shares are not individually redeemable. Investors buy and sell shares of the Sprott Gold Miners ETF on a secondary market. Only market makers or “a
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