Slide 1: 2024 Third Quarter Results
2024 Third Quarter Results November 6, 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: Q3 and YTD Review
Q3 and YTD Review • Grew AUM by $2.4 billion to $33.4B in Q3 o Subsequent to quarter end, AUM has increased to $34.2B as of 11/01/2024 • $589MM in net sales during the quarter • Precious metals prices driving asset growth o Gold has posted gains every month of 2024 and is up approximately 32% YTD o
Slide 5: Assets Under Management
Assets Under Management 5-yr growth composition Product mix In billions $ In billions $ NOTE: As at November 1, 2024, AUM was $34.2 billion, up 2% from $33.4 billion at September 30, 2024 Sprott Inc. | 5
Slide 6: Earnings Results – 3 and 9 Months Ended
Earnings Results – 3 and 9 Months Ended In millions $ Net income (IFRS) Adjusted base EBITDA (Key non-IFRS measure) Sprott Inc. | 6
Slide 7: Treasury and Balance Sheet Management
Treasury and Balance Sheet Management Balance sheet liquidity • We had $43.5 million of cash and cash equivalents (December 31, 2023 - $20.7 million). In addition, the Company had $89.4 million of co-investments (December 31, 2023 - $93.5 million) of which $40 million (December 31, 2023 - $39.5 mill
Slide 8: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Q3 was strongest quarter of sales in 2 years • $617MM net sales driven primarily by inflows to PHYS/PSLV Physical Trust Sales (in millions) $1,338 $1,187 $1,219 $890 $630 $645 $617 $593 $474 $478 $429 $201 $210 $149 $113 $128 $123* $(2) $(49) $(215) 1Q2020
Slide 9: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Investor interest in gold returning after a period of decoupling between gold prices and physically-backed gold ETF flows Physically Backed Gold ETFs and Gold Prices $3,000 94 $2,800 92 $2,600 90 Millions Oz Gold $2,400 88 US$/oz $2,200 86 $2,000 84 $1,800
Slide 10: PHYS and PSLV Steadily Capturing Market Share
PHYS and PSLV Steadily Capturing Market Share • PHYS and PSLV have delivered dramatic gains in market share over the past 5 years o Shares outstanding of the largest open-ended gold ETF have been virtually flat while PHYS shares outstanding have increased by 109% o Shares outstanding of the largest
Slide 11: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Physical Trusts AUM stands at $25.7B as of November 1, 2024 • AUM up ~50% since January 2023 Physical Trust AUM (in billions) $25.9 $25.1 $25.7 * $23.3 $23.5 $23.5 $22.8 $22.1 $20.3 $20.7 $21.1 $20.5 $21.3 $19.2 $18.4 $18.4 $18.5 $18.3 $17.5 $17.9 $18.0 $1
Slide 12: ETF Product Suite: Flows
ETF Product Suite: Flows • $45MM in ETF net sales in Q3 • Strong ETF flows of $313MM YTD as of November 1, 2024 driven largely by Uranium Miners ETFs (URNJ and URNM UCITS) ETF Flows (in millions) $313 * $156 $154 $141 $139 $133 $105 $78 $50 $27 $33 $5 $11 $19 $(2) $(1) $(98) Jul-23 Aug-23 Sep-23 Oct
Slide 13: ETF Product Suite: AUM
ETF Product Suite: AUM • ETF suite AUM currently stands at $2.8B as of November 1, 2024 • AUM recovering since August 2024 as uranium equity performance has improved ETF AUM (in billions) $3.1 $2.9 $2.8 $2.7 $2.8 $2.7 $2.8* $2.6 $2.6 $2.6 $2.5 $2.4 $2.4 $2.0 $2.1 $1.6 $1.4 $1.3 $1.4 $1.4 $1.3 $1.3 $
Slide 14: Managed Equities: Performance and Flows
Managed Equities: Performance and Flows • Strong performance from precious metals equity strategies in Q3 o Flagship Gold Equity fund up 21.4% in Q3 and 36.3% YTD • Managed equities reported $55MM in net redemptions during Q3 and $167MM in net redemptions for the 9 months ended 9/30/2024 o Investor
Slide 15: 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. | 15
Slide 16: Summary
Summary • AUM has reached record highs each quarter of 2024 • Sales momentum continues to accelerate after a slower first six months of 2024 • Strong client engagement across all channels o Institutional o Family office o RIA • Focus on precious metals and critical materials positions Sprott to bene
Slide 17: Supplemental Financial Information
Supplemental Financial Information
Slide 18: Revenues
Revenues 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 2024 2023 (1) 2024 2023 (1) Management fees 38.7 32.9 113.1 97.0 Fund expenses (2.4) (1.7) (7.3) (5.4) Direct payouts (1.5) (1.5) (4.4) (4.0) Carried interest and performance fees 4.1 0.0 4.8 0.4 Carried interest and performance fee pa
Slide 19: Expenses
Expenses 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 (1) (1) 2024 2023 2024 2023 Compensation 18.5 16.9 55.7 58.0 Direct payouts (1.5) (1.5) (4.4) (4.0) Carried interest and performance fee payouts - internal 0.0 0.0 (0.3) (0.2) Commission expense - internal (0.1) (0.1) (0.7) (2.3) Sever
Slide 20: Adjusted Base EBITDA Reconciliation
Adjusted Base EBITDA Reconciliation 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 2024 2023 (1) 2024 2023 (1) Net income for the period 12.7 6.8 37.6 32.1 (2) 27% 20% 28% 29% Net income margin Adjustments: Interest expense 0.9 0.9 2.5 3.2 Provision for income taxes 5.7 (1.3) 14.9 7.3 Depre