Sprott Inc. · TSX:SII
Sprott — Investor Presentation (November 2023)
26 slides from Sprott's investor presentation, November 2023
Slide 1: Investor Presentation
Investor Presentation November 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: Corporate overview
Corporate overview As at September 30, 2023 History: Founded 1981 Locations: Toronto, New York, Connecticut With $25.4B in AUM, Employees: 127 Sprott is a global leader in precious metals and Assets Under $25.4B energy transition Management: material investments Exchange Listings: NYSE/TSX:SII Share
Slide 4: Purpose and values
Purpose and values We aspire to be the leading global asset manager focused on precious metals and energy transition materials As contrarian investors with a long-term investment horizon, we remain both patient and persistent. We will continue to innovate to bring our clients the best possible inves
Slide 5: Who we are
Who we are We are specialists. Our in-depth knowledge, experience and relationships separate us from the generalists and create compelling value for our shareholders and clients • Simple, highly profitable business model with industry leading operating margins (57%1) • Resilient revenue generation f
Slide 6: Specialty asset management
Specialty asset management Sprott’s total AUM as at September 30, 2023 was $25.4 billion Exchange Managed Private Listed Equities Strategies Products $20.3B AUM $2.5B AUM $2.6B AUM • Precious metals strategies • Precious metals strategies • Private lending LPs • Physical bullion trusts • Flagship U.
Slide 7: Track record of sector consolidation
Track record of sector consolidation Since 2016, Sprott has added $7.7 billion in AUM through 5 transactions 2016 2018 2020 2021 2022 Consolidates Acquires Acquires Acquires Acquires the North Central GoldTrust Central Fund of Tocqueville Gold management of Shore Global Uranium into Sprott Physical
Slide 8: Specialty asset management
Specialty asset management Sprott
Slide 9: Exchange listed products
Exchange listed products Sprott manages approximately $20.3 billion in our exchange listed products strategies Physical Trusts AUM (1) Sprott Physical Gold Trust $5.9B Sprott Physical Uranium Trust $4.6B Sprott Physical Gold and Silver Trust $3.9B Sprott Physical Silver Trust $3.8B Sprott Physical P
Slide 10: Exchange listed products: physical trusts
Exchange listed products: physical trusts • 5 exchange listed physical trusts • 4 dual listed on NYSE/TSX • 1 TSX listed • $18.3B AUM • Highly-scalable global platform Approximately 250,000 clients Sticky AUM relative to open-ended ETFs Well-positioned to add complementary strategies Valuable revenu
Slide 11: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Softer precious metals prices impacted sales of gold and silver funds in Q3 • SPUT was quiet in July/August before issuing $72MM via ATM in September Physical Trust Sales (in millions $) 1,338 1,187 1,219 890 630 645 593 474 478 201 128 201 149 113 (1) 1Q2
Slide 12: Energy transition investment strategies
Energy transition investment strategies • Energy Transition is an increasingly important area of focus for Sprott • In Q1 2023, the company expanded its energy transition investment strategies with 5 new Nasdaq-listed ETFS: o Sprott Energy Transition Materials ETF (SETM) o Sprott Lithium Miners ETF
Slide 13: ETF Product Suite: Flows
ETF Product Suite: Flows Strong performance in physical uranium attracting investor interest in the miners ETF Flows (in millions $) 154 135 52 24 5 (5) (2) Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Gold ETFs Energy Transition ETFs Sprott Inc. | 13
Slide 14: Managed equities
Managed equities Sprott’s gold investment team is one of the largest and most experienced in the sector • Sprott acquired the Tocqueville Gold Strategies in January 2020 to create an industry leader in gold equity investments • In-house technical team provides additional research and due diligence c
Slide 15: Private strategies
Private strategies Focused on strategies holding illiquid assets in order to carry out asset optimization and /or develop structured seniority Lending strategy Streaming strategy 86 investments (1) >$1.1B in capital commitments >$3.3B in originations (1) $861MM capital called to date (1) Since 2010
Slide 16: Financial overview
Financial overview Sprott
Slide 17: Growing AUM
Growing AUM AUM (in billions $) Sprott Inc. | 17
Slide 18: Strategically diversified yet aligned AUM
Strategically diversified yet aligned AUM AUM (in billions $) 25.4 (2) (1) (1) Primarily precious metals mining loans and streams Sprott Inc. | 18 (2) Primarily precious metals mining equities
Slide 19: Highly profitable and efficient operations
Highly profitable and efficient operations Strong earnings growth (1) Highly efficient operations Operating margins FTE efficiency Gross Number AUM/ revenue/ AUM of employee employee (in millions) employees (in millions) (in thousands) Current $25.4 127 $200 $1,010 YoY Change +21% -27% +64% +60% Spr
Slide 20: Segment results – 3 and 9 months ended
Segment results – 3 and 9 months ended Three months ended Nine months ended (EBITDA in millions $) (EBITDA in millions $) (1) Adjusted base EBITDA is a non-IFRS measure. See slide 2 and 26. Includes corporate costs, non-reportable segment profit (loss), consolidation and Sprott Inc. | 20 elimination
Slide 21: Balance sheet strength
Balance sheet strength Our financial flexibility is strong as represented in the below net investable cash and liquid co-investments analysis (1) (2) NB 1: Access to a $75 million revolving credit facility NB 2: Conservatively leveraged at an 8% debt-to-capital ratio (1) Liquid co-investments repres
Slide 22: Historical annual shareholder return
Historical annual shareholder return Jan 1, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2018 2018 2019 2020 2021 2022 Sprott Inc. 100 109.57 132.06 169.42 268.05 217.09 S&P/TSX Composite Total Return 100 91.12 111.97 118.25 148.00 139.48 Sprott Inc. | 22
Slide 23: ESG & sustainability
ESG & sustainability Sprott is committed to high standard ESG protocols • A signatory to the Principles for Responsible Investment, the world’s leading proponent of responsible investment • Committed to being an ESG leader in mining and metals investment management • Investment professionals across
Slide 24: Contact information
Contact information Glen Williams Managing Partner Investor and Institutional Client Relations; T 416 943 4394 gwilliams@sprott.com Sprott Inc. | 24
Slide 25: Appendix
Appendix Sprott
Slide 26: EBITDA reconciliation
EBITDA reconciliation 3 months ended 9 months ended In millions $ Q3 Q3 Q3 Q3 2023 2022 2023 2022 Net Income 6.8 3.1 32.1 10.3 Adjustments: Interest expense 0.9 0.9 3.2 1.8 Provision for income taxes (1.3) 0.7 7.3 5.1 Depreciation and amortization 0.7 0.7 2.2 2.6 (1) 7.0 5.4 44.9 19.9 EBITDA Other a