Slide 1: 2023 Second Quarter Results
2023 Second Quarter Results August 9, 2023 NYSE/TSX:SII Contrarian. Innovative. Aligned
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements in this presentation or the accompanying oral remarks contain forward-looking information and forward-looking statements (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian and U.S. securities l
Slide 3: Speakers
Speakers Whitney George, CEO, Sprott Inc. Kevin Hibbert, CFO, Sprott Inc. John Ciampaglia, CEO, Sprott Asset Management Sprott Inc. | 3
Slide 4: Q2 2023 and YTD Highlights
Q2 2023 and YTD Highlights • Assets Under Management declined slightly during Q2, due largely to softer precious metals prices but are up YTD o Investment performance was mixed • Recorded net sales during the quarter, despite headwinds • Closed new partnerships in our Private Strategies segment o Sp
Slide 5: Historical AUM summary
Historical AUM summary AUM in billions $ 25.1 0.7 0.7 2.6 1.9 0.8 2.7 2.8 1.4 0.8 3.3 1.0 3.3 19.1 0.6 18.1 0.8 0.6 0.4 1.1 15.0 0.9 12.2 6.0 6.8 Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 Jun 30, 2023 Exchange listed products Managed equities Private strategies Non-core AUM Sp
Slide 6: Earnings results – 3 mth, 6 mth and historical
Earnings results – 3 mth, 6 mth and historical CAGR: 18% (1) EBITDA is a non-IFRS measure. See slide 2 and 16. Net of corporate costs, consolidation, elimination, and non-reportable segment entries of ($2.6MM) (Q2 2022: ($1.7MM)) in the quarter and ($5MM) (YTD 2022: 3.3MM)) on a YTD basis. Please se
Slide 7: Strong balance sheet
Strong balance sheet As at June 30, 2023 Cash and cash equivalents $20MM o 5% of total assets Co-investments $99MM o 26% of total assets Total debt $34MM (1) o 8% debt-to-capital ratio Net cash and co-investments $85MM o 22% of total assets (1) During the quarter, the Company repaid $20MM from its o
Slide 8: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Solid Q2 results given challenging market environment: $149MM in net sales • Industry flows into precious metal ETFs YTD have been soft despite stronger metal prices • Uranium markets remains resilient in light of recessionary fears and softer commodity pr
Slide 9: Exchange Listed Products: Energy Transition Funds
Exchange Listed Products: Energy Transition Funds • Growing interest from global investors, spurred by U.S. Inflation Reduction Act and EU Green Deal • Expanding suite of energy transition ETFs incorporating Sprott’s mining and metals expertise • Multi-decade capital spending and infrastructure buil
Slide 10: Managed Equities
Managed Equities • Challenging quarter for gold stocks, offsetting Q1 gains • Performance was largely in line with benchmarks • Continuing to incubate actively managed Sprott Energy Transition Materials Fund Sprott Inc. | 10
Slide 11: Private Strategies
Private Strategies • Combined Lending and Streaming Strategies AUM of $2.6B as of June 30, 2023 • Sprott Private Resource Lending Fund III closed during Q2 • Streaming and Royalty team closed Annex Fund subsequent to quarter end • Private Strategies team increasing focus on energy transition materia
Slide 12: Summary
Summary • Steady quarter despite some headwinds • Net sales trend remains intact • Benefiting from strategy expansion in Private Strategies segment • During the quarter, we continued to return capital to our shareholders through our normal quarterly dividend and share buybacks. In addition, we paid
Slide 13: Supplemental Financial Information
Supplemental Financial Information
Slide 14: Revenues
Revenues 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2023 2022 2023 2022 Management fees 33.2 30.6 64.7 57.8 Trailer, sub-advisor and fund expenses (1.6) (1.3) (3.2) (2.1) Direct payouts (1.3) (1.3) (2.5) (2.7) Carried interest and performance fees 0.4 - 0.4 2.0 Carried interest and perf
Slide 15: Expenses
Expenses 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2023 2022 2023 2022 Compensation 21.6 19.4 40.7 41.2 Direct payouts (1.3) (1.3) (2.5) (2.7) Carried interest and performance fee payouts - internal (0.2) - (0.2) (1.0) Commission expense - internal (0.5) (2.0) (2.2) (5.2) Severance, ne
Slide 16: EBITDA reconciliation
EBITDA reconciliation 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2023 2022 2023 2022 Net Income 17.7 0.8 25.4 7.2 Adjustments: Interest expense 1.1 0.5 2.3 1.0 Provision for income taxes 6.1 1.7 8.7 4.4 Depreciation and amortization 0.7 1.0 1.5 1.9 EBITDA (1) 25.6 3.9 37.8 14.5 Other ad