Sprott Inc. · TSX:SII

Sprott — Non-Deal Roadshow (October 2007)

12 slides from Sprott's roadshow presentation, October 2007

  1. Slide 1: Sprott Growth Fund

    SPROTT GROWTH FUND Sprott Asset Management Inc. Sprott Growth Fund Peter Hodson, CFA Senior Portfolio Manager October 2007 HIGHLIGHTS OF 2006 – First Year Return 21% (Series A) – Special situations were a positive factor (Thompson Creek Metals, Hudbay, Thera Technologies) – Successful sector weighti

  2. Slide 2: 2007 Outlook

    SPROTT GROWTH FUND 2007 OUTLOOK – Fear has taken over – fear of recession, fear of inflation, fear of credit, fear of risk – Fear Creates Opportunities: 1987, 1991, 1998, 2002, 2007? – When cash is not cash: What could be worse? – Valuations at 12-year lows – Was August 16, 2007 this cycle’s “crash“

  3. Slide 3: 2007 Outlook Continued; Value versus Growth

    SPROTT GROWTH FUND 2007 OUTLOOK CONTINUED – Growth has been out of favour until recently as market has moved to dividend products and safety. – Valuations are reasonable considering growth rates and rate expectations. – S&P 500 Value Index is at 16.6 P/E, with 2.33% dividend yield, up 6.7% YTD. – S&

  4. Slide 4: Investment Process: Solid Management Characteristics

    SPROTT GROWTH FUND INVESTMENT PROCESS INVESTMENT PROCESS – Experience – History – problem solving – “Street” savvy Solid – Motivation: shares vs. salary Management Characteristics – Trustworthiness – Business plan – Plan for success – Exit strategy Slide 8

  5. Slide 5: Investment Process: Company Characteristics and Competitive Advantage

    SPROTT GROWTH FUND INVESTMENT PROCESS – Industry vs. company growth Company – Barriers to entry Characteristics – Size of Market – Cyclically/seasonally Slide 9 INVESTMENT PROCESS – Technological edge – Patent – Low-cost producer Competitive – New market Advantage – New service – Big Brother relatio

  6. Slide 6: Investment Process: Maintaining the Competitive Advantage

    SPROTT GROWTH FUND INVESTMENT PROCESS – R&D expenses – Move faster Maintain the Competitive – Drive costs lower Advantage – Acquire competitors – Be paranoid of industry threats Slide 11 INVESTMENT PROCESS – Access to capital – Cash flow positive Survive First – – Earnings Prosper Later – Partnershi

  7. Slide 7: Investment Process: Clean Accounting and Valuations

    SPROTT GROWTH FUND INVESTMENT PROCESS – Clean accounting – Good auditors Keep – Don’t over promise Things Clean – Meet expectations – Deal with problems – Communicate to the street Slide 13 INVESTMENT PROCESS – PEG Ratio – Price/Sales – Price/Earnings – Price/Research Expenses Valuations – Book Valu

  8. Slide 8: Summary

    SPROTT GROWTH FUND SUMMARY + Strong industry, growing company + Competitive edge + Keeping the advantage Good + Well financed Management + Able to communicate to investors + Attractive valuation = Worthwhile Investment Slide 15 THE SPROTT GROWTH FUND

  9. Slide 9: Strategy and Performance

    SPROTT GROWTH FUND INVESTMENT STRATEGY – Specifically designed to be different and non-correlated to other Sprott Funds. – Diversified across industry sectors and asset classes. – Bottom Up Approach and slightly shorter-term focus. – Smaller size fund that will have the flexibility to take advantage

  10. Slide 10: Fund

    SPROTT GROWTH FUND SPROTT GROWTH FUND Investment Manager: Peter Hodson, CFA Type of Fund: Equity Growth, Capital Appreciation Securities Offered: Mutual Fund Trust Units Launch Date: January 16, 2006 Launch NAV: $10 per unit Fund Codes: SPR 101 (Series A), SPR 201 (Series F) Registered Tax Plan Stat

  11. Slide 11: Focus on Growth

    SPROTT GROWTH FUND FOCUS ON GROWTH Absolute Software Priceline.com Purchased Purchased December 2006 June 2006 Consistent outperformance and 100% growth at 20 times earnings, plus industry leadership $400 million cash Source: www.bigcharts.com Slide 21 QUESTIONS?

  12. Slide 12: Contact Information

    SPROTT GROWTH FUND CONTACT INFORMATION Sprott Asset Management Inc. Royal Bank Plaza, South Tower Suite 2700 Toronto, ON M5J 2J1 T: 416 943 6707 Toll Free: 866 299 9906 F: 416 362 4928 Email: invest@sprott.com Web: www.sprott.com Slide 23 DISCLAIMER The opinions, estimates and projections ("informat

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