Slide 1: Sprott Inc. 2022 First Quarter Results
Sprott Inc. (NYSE/TSX: SII) 2022 First Quarter Results May 6, 2022 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: 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: Q1 2022 and YTD Highlights
Q1 2022 and YTD Highlights • All divisions performed well in Q1 o Net fund sales matched record high set in Q1 2021 at $1.4B o SPUT, PHYS and PSLV accounted for majority of sales • Expanded energy-transition franchise with acquisition of URNM • Equity fund sales gradually improving and turned modest
Slide 5: Historical AUM summary
Historical AUM summary AUM in billions $ 23.7 0.8 1.4 0.8 3.6 34% CAGR 1.4 0.8 3.3 1.0 3.3 0.6 17.9 0.8 0.6 1.1 15.0 0.4 0.9 12.2 0.7 1.2 6.0 6.8 3.7 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Mar. 31, 2022 Exchange listed products Managed equities Private strategies Other
Slide 6: Segment results
Segment results • Net income for the 3 months ended March 31, 2022 was $6.5 million, up $3.3 million from the 3 months ended March 31, 2021 • Adjusted base EBITDA for the 3 months ended March 31, 2022 was $18.2 million, up $3.6 million (24%) from the 3 months ended March 31, 2021 Adjusted base EBITD
Slide 7: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Record high sales in Q1 - $1.35B • SPUT, PHYS and PSLV accounted for majority of flows • Platform has potential for powerful growth when multiple strategies are in capital raising positions • Exchange Listed Product AUM up 22% ($3.3B) YTD as of May 4, 2022
Slide 8: Sprott Physical Uranium Trust
Sprott Physical Uranium Trust • Continued strong growth in Q1 on largely institutional demand • AUM peaked at $3.5B in April before correction in uranium sector • $639MM in Q1 sales • SEC has rejected initial listing application o SPUT application failed to meet NYSE listing standards due to absence
Slide 9: URNM Acquisition Expands Uranium Platform
URNM Acquisition Expands Uranium Platform • Sprott is now the largest manager of uranium investments1 with $4B AUM • Acquisition of NorthShore Uranium Mining ETF closed on April 22, 2022 o Transaction added $1.1B AUM as of acquisition date o Fund now trading on NYSE as Sprott Uranium Miners ETF (NYS
Slide 10: Managed Equities
Managed Equities • Absolute performance has rebounded; strong relative to broad equity markets • Investors rotating from growth to value stocks • Interest in mining equities is gradually increasing o Managed equities segment returned to positive net sales in Q1 o Sprott Gold Equity Fund recorded thr
Slide 11: Private Strategies
Private Strategies • Combined Lending and Streaming strategies AUM $1.4B as of March 31, 2022 • Strong originations in Q1 o Lending team funded first tranche of $185MM project debt facility to Marathon Gold o Streaming and Royalty team partnered with Ontario Teachers’ Pension Plan to invest in a $22
Slide 12: Brokerage
Brokerage • Canadian platform still providing strong results but activity levels have slowed with a more difficult environment for junior miners • Majority of U.S. brokerage AUA has now been converted to AUM in Managed Equities segment Sprott Inc. | 12
Slide 13: Summary
Summary • Both precious metals and energy-transition are growing areas o Possible inflection point as rising rates, inflation and de-globalization drive investors to alternative investments • Continuing to deliver strong AUM growth and financial results • Sales and marketing efforts are translating
Slide 14: Supplemental Financial Information
Supplemental Financial Information
Slide 15: Revenues
Revenues 3 months ended Q1 Q1 In millions $ 2022 2021 Management fees 22.5 27.2 Trailer, sub-advisor and fund expenses (0.9) (0.6) Direct payouts (1.4) (0.9) Carried interest and performance fees 2.0 7.9 Carried interest and performance fee payouts- internal (1.0) (4.6) Carried interest and performa
Slide 16: Expenses
Expenses 3 months ended Q1 Q1 In millions $ 2022 2021 Compensation 21.8 22.6 Direct payouts (1.4) (0.9) Carried interest and performance fee payouts - internal (1.0) (4.6) Commission expense - internal (3.1) (5.3) Severance, new hire accruals and other (0.5) - Net compensation (1) 15.7 11.8 Severanc
Slide 17: EBITDA reconciliation
EBITDA reconciliation 3 months ended Q1 Q1 In millions $ (except for per share amounts) 2022 2021 Net Income 6.5 3.2 Per share 0.26 0.13 Adjustments: Interest expense 0.5 0.4 Provision for income taxes 2.7 2.7 Depreciation and amortization 1.0 1.1 EBITDA (1) 10.6 7.4 Other adjustments: (Gain) loss o