Slide 1: 2024 First Quarter Results
2024 First Quarter Results May 8, 2024 NYSE/TSX:SII
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: Q1 and YTD Review
Q1 and YTD Review • Grew AUM by $0.6 billion in Q1 to $29.4B o Subsequent to quarter end, AUM increased by $1.8B to $31.2B, as of May 6, 2024 • $284MM in net redemptions during the period o First quarter of net redemptions in 4 years o Trend has reversed early in Q2 • Expanded Critical Materials off
Slide 5: Assets under management
Assets under management Growth Composition In billions $ In billions $ NOTE: As at May 6, 2024, AUM was $31.2 billion, up 6% from $29.4 billion at March 31, 2024 Sprott Inc. | 5
Slide 6: Earnings results – 3 months ended
Earnings results – 3 months ended Adj. base EBITDA margin • Q1 2024: 58% • Q1 2023: 57% (1) Adj. base EBITDA is a non-IFRS measure. See slide 2 and 18. Includes corporate costs, non-reportable segment profit (loss), consolidation and elimination entries. Please see Note 12 of the financial statement
Slide 7: Capital management
Capital management Balance sheet liquidity • Cash and cash equivalents including liquid co-investments (i.e. co-investments that can be monetized <90 days) continue to account for over 70% of our balance sheet liquidity (1) Loan facility • We have a $75MM revolving facility, of which $24.2MM is curr
Slide 8: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • $215MM in net redemptions during Q1 as precious metals trusts traded at wider discounts • Stronger precious metals and uranium prices late in the Q1 and into Q2 have resulted in $211MM in net sales as of May 6, 2024 Physical Trust Sales (in millions) $1,33
Slide 9: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Physical Trust AUM was $21.3B as of March 31, 2024 and has increased to $22.7B as of May 6, 2024 • Physical Trusts are benefitting from stronger gold, silver and uranium prices as well as strong flows in the majority of our Trusts early in Q2 Physical Trus
Slide 10: ETF Product Suite: Flows
ETF Product Suite: Flows • February pullback in uranium and uranium equity prices led to redemptions in Feb/March, largely from the Sprott Uranium Miners ETF (URNM) • $88MM in Q2 net sales as of May 6, 2024 as prices have recovered ETF Flows (in millions) $425 $203 $40 $104 $88 $48 $14 $24 $16 $11 Q
Slide 11: ETF Product Suite: AUM
ETF Product Suite: AUM • ETF product suite AUM was $2.6B as of March 31, 2024 and has increased to $2.9B as of May 6, 2024 ETF AUM (in billions) $2.9 $2.6 $2.5 $2.0 $1.3 $1.4 $1.2 $1.2 $1.1 $0.4 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 QTD SGDJ SGDM SETMETF SETMUCITS L
Slide 12: Managed Equities
Managed Equities • Strong performance from precious metals equity strategies late in Q1 and into Q2 o Sprott Gold Equities fund up 7.3% in Q1 and up 11.2% YTD, leading peer group • Managed equities reported $70MM in net redemptions during Q1 o Majority of outflows related to legacy European accounts
Slide 13: Private Strategies
Private Strategies • Monitoring and harvesting LF-II investments • Actively assessing new investment opportunities for LF-III Lending • Recently added new co-investment vehicles to expand capacity • Ongoing monitoring of portfolio investments Streaming • Actively assessing new investment opportuniti
Slide 14: Summary
Summary • AUM currently at all-time high, supported by strong precious metals and uranium prices • Interest in critical minerals investments is surging as it becomes clear that electricity demand in the developed world is poised to increase o Critical materials strategies accounted for 27% of total
Slide 15: Supplemental Financial Information
Supplemental Financial Information
Slide 16: Revenues
Revenues 3 months ended In millions $ Q1 Q1 2024 2023 (1) Management fees 36.4 31.2 Fund expenses (2.2) (1.8) Direct payouts (1.5) (1.2) Carried interest and performance fees 0.0 0.0 Carried interest and performance fee payouts- internal 0.0 0.0 Carried interest and performance fee payouts- external
Slide 17: Expenses
Expenses 3 months ended In millions $ Q1 Q1 2024 2023 (1) Compensation 18.0 19.6 Direct payouts (1.5) (1.2) Carried interest and performance fee payouts - internal 0.0 0.0 Commission expense - internal (0.2) (1.7) Severance, new hire accruals and other 0.0 (1.3) 16.3 15.4 Net compensation (2) Severa
Slide 18: EBITDA reconciliation
EBITDA reconciliation 3 months ended In millions $ Q1 Q1 2024 (1) 2023 Net income for the period 11.6 7.6 Adjustments: Interest expense 0.8 1.2 Provision for income taxes 3.8 2.6 Depreciation and amortization 0.6 0.7 EBITDA(2) 16.7 12.2 Adjustments: (Gain) loss on investments (1.8) (2.0) Stock based