Slide 1: 2024 Second Quarter Results
2024 Second Quarter Results August 7, 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: Q2 and YTD Review
Q2 and YTD Review • Assets Under Management (“AUM”) increased by $1.7 billion to $31.1B o Subsequent to quarter end, AUM increased to $31.5B, as of August 1, 2024 • Continued to build out critical materials offerings with the Initial Public Offering (“IPO”) of the Sprott Physical Copper Trust (“COP”
Slide 5: Assets under management
Assets under management 5-yr growth composition Product mix In billions $ In billions $ NOTE: As at August 1, 2024, AUM was $31.5 billion, up 2% from $31.1 billion at June 30, 2024 Sprott Inc. | 5
Slide 6: Earnings results – 3 and 6 months ended
Earnings results – 3 and 6 months ended In millions $ Net income (1) (1) Excluding the impact of last year’s realization of a non-recurring asset, our second quarter net income was up $14.2 million, and up $18.1 million for the six months ended June 30, 2024 Adjusted base EBITDA Sprott Inc. | 6
Slide 7: Treasury and balance sheet management
Treasury and balance sheet management Balance sheet liquidity • We had $29.7 million (Dec. 31, 2023: $20.7 million) of cash and cash equivalents. In addition, we had $97.8 million of co-investments (Dec. 31, 2023: $93.5 million), of which, $46.9 million (Dec. 31, 2023: $39.5 million) can be monetize
Slide 8: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Q2 was strongest quarter of sales in 2 years after net redemptions in Q1 • $319MM net sales driven by PHYS, PSLV, SPPP, SPUT, as well as $110MM in flows from COP launch Physical Trust Flows (in millions) $1,500 $1,338 $1,300 $1,187 $1,219 $1,100 $890 $900
Slide 9: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Physical Trusts AUM stands at $23.4B as of August 01, 2024 up $2.6B YTD Physical Trust AUM (in billions) $23.3 $22.8 $23.5 $23.4 $22.1 $21.1 $20.5 $21.3 $20.3 $20.7 $18.4 $18.0 $18.4 $18.5 $18.3 $19.2 $17.5 $17.9 $17.7 $16.4 Jan-23 Feb-23 Mar-23 Apr-23 May
Slide 10: ETF Product Suite: Flows
ETF Product Suite: Flows • Strong ETF flows YTD driven largely by Uranium Miner ETFs (URNJ and URNM UCITS) • ~$200MM in net sales during Q2. Sales broadening across ETF offerings ETF Flows (in millions) $300 $250 $200 $154 $156 $141 $139 $133 $150 $105 $100 $79 $50 $5 $50 $24 $11 $5 $- $(1) $(5) $(2
Slide 11: ETF Product Suite: AUM
ETF Product Suite: AUM • ETF suite AUM currently stands at $2.51B YTD • AUM hit record high of $3.1B in Q2 and has nearly doubled over last 18 months ETF AUM (in billions) $3.50 $3.1 $3.00 $2.9 $2.8 $2.7 $2.6 $2.5 $2.6 $2.6 $2.5 $2.50 $2.4 $2.1 $2.0 $2.00 $1.6 $1.50 $1.4 $1.3 $1.4 $1.4 $1.3 $1.3 $1.
Slide 12: Sprott Physical Copper Trust
Sprott Physical Copper Trust • Completed IPO of Sprott Physical Copper Trust (“COP”) in June • Raised gross proceeds of $110MM • ATM program was initiated in early July • Team is focused on marketing COP to network of institutions built through 3 years of SPUT marketing as well as new generalist aud
Slide 13: Managed Equities
Managed Equities • Strong performance from precious metals equity strategies in H1 o Flagship Gold Equity fund up 20.1% YTD with performance improving relative to peer group • Managed equities reported $36MM in net redemptions during Q2 and $106MM in net redemptions in H1 Sprott Inc. | 13
Slide 14: Private Strategies
Private Strategies • Monitoring and harvesting LF-II investments Lending • Actively assessing new investment opportunities for LF-III Streaming • Ongoing monitoring of portfolio investments Sprott Inc. | 14
Slide 15: Summary
Summary • Positioning in precious metals and critical materials investments is delivering results • AUM reaching all-time highs • Positive YTD net sales despite volatile market conditions • Client engagement at record levels • Expanding critical materials strategies to gain market share in growing c
Slide 16: Supplemental Financial Information
Supplemental Financial Information
Slide 17: Revenues
Revenues 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2024 2023 (1) 2024 2023 (1) Management fees 38.1 32.9 74.4 64.1 Fund expenses (2.7) (1.9) (4.9) (3.7) Direct payouts (1.4) (1.3) (2.9) (2.5) Carried interest and performance fees 0.7 0.4 0.7 0.4 Carried interest and performance fee pay
Slide 18: Expenses
Expenses 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2024 2023 (1) 2024 2023 (1) Compensation 19.2 21.5 37.2 41.0 Direct payouts (1.4) (1.3) (2.9) (2.5) Carried interest and performance fee payouts - internal (0.3) (0.2) (0.3) (0.2) Commission expense - internal (0.4) (0.5) (0.6) (2.2) S
Slide 19: EBITDA reconciliation
EBITDA reconciliation 3 months ended 6 months ended In millions $ Q2 Q2 Q2 Q2 2024 2023 (1) 2024 2023 (1) Net income for the period 13.4 17.7 24.9 25.4 Adjustments: Interest expense 0.7 1.1 1.5 2.3 Provision for income taxes 5.4 6.1 9.2 8.7 Depreciation and amortization 0.6 0.7 1.1 1.5 EBITDA (2) 20