Sprott Inc. · TSX:SII
Sprott — Q3 2021 Earnings Presentation
19 slides from Sprott's earnings presentation, Nov 5, 2021
Slide 1: Sprott Inc. Q3 2021 Results
Sprott Inc. (NYSE/TSX: SII) Q3 2021 Results November 5, 2021
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 Peter Grosskopf, Whitney George, CEO, President, Sprott Inc. Sprott Inc. John Ciampaglia, Kevin Hibbert CEO, CFO, Sprott Asset Sprott Inc. Management Sprott Inc. | 3
Slide 4: Q3 and YTD 2021 Highlights
Q3 and YTD 2021 Highlights • Strong quarter despite lackluster precious metals prices o Fund flows continuing to drive asset growth • Sprott Physical Uranium Trust (“SPUT”) launch has exceeded expectations o Since July, SPUT has grown from $630MM in AUM to $1.6B as of October 31, 2021 • Expanding ur
Slide 5: AUM Summary
AUM Summary • AUM was $19 billion as at September 30, 2021, up $0.5 billion (3%) from June 30, 2021, and up $1.6 billion (9%) from December 31, 2020 AUM (in $billions) 18.6 19.0 17.4 17.1 1.5 1.4 1.3 1.0 1.4 1.4 1.0 1.0 2.7 2.4 2.8 2.5 Other Lending Managed Equities 13.4 13.8 Exchange Listed Product
Slide 6: Segment Results
Segment Results • Adjusted base EBITDA in the quarter was $16.7 million, up $4.7 million (39%) from the prior period and $46.4 million on a YTD basis, up $17 million (58%) from the prior period EBITDA (in $millions) EBITDA (in $millions) 3 month results 9 month results 16.7 46.4 2.3 9.6 12.0 3.5 6.7
Slide 7: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Q3 net sales of $593MM, powered by SPUT • SPUT contributed $459MM from mid-August to September 30, 2021 o Strong interest globally from institutions, family offices and individual investors • PHYS/PSLV sales gradually returning with stronger gold/silver pr
Slide 8: Sprott Physical Uranium Trust Update
Sprott Physical Uranium Trust Update • One of our most successful fund launches and acquisitions o July 19 NAV: $0.6B; October 31 NAV: $1.6B • Structural enhancements have modernized the vehicle making it more attractive and accessible to a larger audience • Daily net asset value and holdings provid
Slide 9: SPUT – Creating a More Active Spot Market
- 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 8/17/2021 8/19/2021 As of 10/26/2021 8/21/2021 8/23/2021 8/25/2021 8/27/2021 8/29/2021 8/31/2021 9/2/2021 9/4/2021 9/6/2021 9/8/2021 9/10/2021 9/12/2021 9/14/2021 9/16/2021 9/18/2021 Pounds Acquired 9/20/2021 9/22/2021 9/24/20
Slide 10: SPUT – Providing Price Discovery and Transparency
- 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 8/17/2021 8/19/2021 8/21/2021 8/23/2021 8/25/2021 8/27/2021 8/29/2021 8/31/2021 9/2/2021 9/4/2021 9/6/2021 9/8/2021 9/10/2021 Source: UxC, S&P Platts, and Numerco. As of 10/26/2021. 9/12/2021 9/14/2021 9/16/2021 9/18/2021 9/20
Slide 11: URNM ETF Transaction
URNM ETF Transaction • Announced agreement to acquire the exclusive licensing rights to the index tracked by the North Shore Global Uranium ETF (NYSE Arca: URNM) • Subject to the approval of a reorganization by both the Board of Trustees of the Exchange Traded Concepts Trust, of which URNM is a seri
Slide 12: Managed Equities
Managed Equities • Gold stocks struggled in the quarter – down 12-18% but have since rebounded in October • Team performed well in Q3 relative to both passive ETFs and most active competitors • Sharp swing from net redemptions to modest net sales year-over-year: o 2020 Q3 YTD: -$633MM o 2021 Q3 YTD:
Slide 13: Private Strategies
Private Strategies • Combined Lending and Streaming strategies AUM $1.4B as of Sept. 30, 2021 • LF2 deployed $61MM in Q3 o Delivering strong performance and returns on SII seed capital • Streaming fund secured $400MM in institutional commitments during Q3 o $105MM deployed to date • Currently planni
Slide 14: Brokerage
Brokerage • The brokerage businesses in both the US and Canada are performing above expectations • US broker AUM increased to $712MM from $356MM as of September 30, 2020 o Recently completed first close of new “PIPE” strategy • Canadian institutional broker managing larger transaction volume in both
Slide 15: Summary
Summary • Delivering strong financial performance and AUM growth despite volatility in precious metals • Marketing and sales team managing a heavy fundraising calendar • Early success of SPUT demonstrates potential to launch new products on exchange-listed products platform • URNM transaction will a
Slide 16: Supplemental Financial Information
Supplemental Financial Information
Slide 17: Revenues
Revenues 3 months ended 9 months ended Q3 Q3 Q3 Q3 In millions $ 2021 2020 2021 2020 Total net revenues 33.3 30.7 92.2 73.4 Key revenue highlights: Net fees (1) 26.1 18.9 73.0 47.8 Net commissions (1) 5.8 5.7 17.0 13.8 Finance income 0.6 0.8 2.7 2.3 Gains (losses) on investments 0.3 4.4 (1.8) 8.2 (1
Slide 18: Expenses
Expenses 3 months ended 9 months ended Q3 Q3 Q3 Q3 In millions $ 2021 2020 2021 2020 Total expenses 22.0 20.4 60.5 48.0 Key expense highlights: Net compensation (1) 12.8 12.3 35.4 28.1 Selling, general & administrative 3.7 2.5 10.5 8.8 (1) See the key performance indicators (non-IFRS financial measu
Slide 19: EBITDA Reconciliation
EBITDA Reconciliation 3 months ended 9 months ended Q3 Q3 Q3 Q3 In millions $ (except for per share amounts) 2021 2020 2021 2020 Net Income 8.7 8.7 23.0 20.3 Per share 0.35 0.36 0.92 0.83 Adjustments: Interest expense 0.3 0.3 0.9 0.9 Provision for income taxes 2.6 1.6 8.7 5.1 Depreciation and amorti