Slide 1: 2023 Annual Results
2023 Annual Results February 21, 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: 2023 Review
2023 Review • Grew AUM by $5.3 billion to $28.7B • $1.1B in net sales • Finished clean-up of legacy non-core businesses o Exited Canadian broker dealer and Korea • Expanded ETF product suite with 7 new ETF launches in U.S. and Europe • Completed successful Private Strategies capital raises • Launche
Slide 5: Assets under management
Assets under management Growth Composition In billions $ In billions $ Sprott Inc. | 5
Slide 6: Earnings results – 3 and 12 months ended
Earnings results – 3 and 12 months ended 3 months ended 12 months ended (EBITDA in millions $) (EBITDA in millions $) (1) EBITDA is a non-IFRS measure. See slide 2 and 19. Includes corporate costs, non-reportable segment profit (loss), consolidation and elimination entries. Please see Note 14 of the
Slide 7: Capital management
Capital management Balance sheet liquidity • After paying down 55% of our debt facility in 2023, cash, cash equivalents and liquid co-investments (i.e. co- investments that can be monetized <90 days) continue to account for over 70% of our balance sheet liquidity (1) Loan facility • During the quart
Slide 8: Evolution of Exchange Listed Products Suite
Evolution of Exchange Listed Products Suite • Diversification of product suite by category and geography translating into strong AUM growth • Product suite has grown from 5 offerings to 16 offerings and $3.6B in AUM to $23.7B • 7 new ETFs launched in 2023 o 2 critical material ETF launches pending E
Slide 9: The World Leader in Uranium Investing
The World Leader in Uranium Investing $9.0B $5.3B AUM* AUM Growth of 143%* Fund January 1, 2023 February 15, 2024 Sprott Physical Uranium Miners Trust (SPUT) $2.9B $6.5B Sprott Uranium Miners ETF (URNM) $827MM $1.9B Sprott Uranium Miners UCITS ETF (URNM) $30MM $305MM Sprott Junior Uranium Miners ETF
Slide 10: Spot Uranium Price History
Spot Uranium Price History (in Real and Nominal Dollar Terms) In prior cycles, uranium peaked at $US170/lb and $US200/lb in today’s dollar terms Source: Bloomberg, Nuexco, IMF, BofA Global Research estimates, February 8, 2024 Sprott Inc. | 10
Slide 11: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • $310M in net sales in 2023 • Trusts traded at wider discounts in H2 2023 • Industry-wide, precious metals exchange-listed products are experiencing redemptions Physical Trust Sales (in millions $) $1,338 $1,219 $1,187 $890 $630 $645 $593 $474 $478 $201 $21
Slide 12: Exchange Listed Products: Physical Trusts
Exchange Listed Products: Physical Trusts • Strong AUM growth of $3.9B or 23% in 2023 o SPUT AUM increased $2.9B or 101% Physical Trust AUM (in billions $) $20.7 $21.0 $20.3 $19.2 $18.4 $18.0 $18.4 $18.5 $18.3 $17.5 $17.9 $17.7 $16.4 Note: YTD numbers as of Feb. 6, 2024 Sprott Inc. | 12
Slide 13: ETF Product Suite: Flows
ETF Product Suite: Flows • Strong ETF flows since August, driven by uranium funds ETF Flows (in millions $) $204 $154 $156 $141 $139 $50 $24 $5 $(2) $(5) Note: YTD numbers as of Feb. 6, 2024 Sprott Inc. | 13
Slide 14: ETF Product Suite: AUM
ETF Product Suite: AUM • Exceptional AUM growth of $1.3B or 106% in 2023 o URNM AUM increased $851MM or 103% ETF AUM (in billions $) $3.0 $2.5 $2.4 $2.1 $2.0 $1.6 $1.4 $1.4 $1.4 $1.3 $1.3 $1.3 $1.3 Note: YTD numbers as of Feb. 6, 2024 Sprott Inc. | 14
Slide 15: Managed Equities
Managed Equities • Performance continues to be challenged • Investor interest in mining equities remains muted industry wide, despite historically low valuations relative to metals prices • Managed Equities segment reported modest redemptions in 2023 • We remain committed to the sector and believe i
Slide 16: Private Strategies
Private Strategies • Monitoring and harvesting LF-II investments • Actively assessing new investment opportunities for LF-III Lending • Recently added new co-investment vehicles to expand capacity • Ongoing monitoring of portfolio investments Streaming • Actively assessing new investment opportuniti
Slide 17: Summary
Summary • Continuing to drive meaningful AUM growth • Building scale in critical materials product suite o Uranium strategies now account for ~30% of total AUM, as of Feb. 16, 2024 • Strong pipeline of new products o URNJ UCITS launching Feb. 22, 2024 • Long-term trends support positioning in precio
Slide 18: Supplemental Financial Information
Supplemental Financial Information
Slide 19: Revenues
Revenues 3 months ended 12 months ended In millions $ Q4 Q4 Q4 Q4 2023 2022 2023 2022 Management fees 34.5 28.4 132.3 115.4 Trailer, sub-advisor and fund expenses (2.0) (1.2) (6.7) (4.6) Direct payouts (1.3) (1.1) (5.3) (4.9) Carried interest and performance fees 0.5 1.2 0.9 3.3 Carried interest and
Slide 20: Expenses
Expenses 3 months ended 12 months ended In millions $ Q4 Q4 Q4 Q4 2023 2022 2023 2022 Compensation 16.7 17.0 74.2 77.1 Direct payouts (1.3) (1.1) (5.3) (4.9) Carried interest and performance fee payouts - internal (0.2) (0.6) (0.5) (1.6) Commission expense - internal (0.2) (1.6) (2.5) (9.1) Severanc
Slide 21: EBITDA reconciliation
EBITDA reconciliation 3 months ended 12 months ended In millions $ Q4 Q4 Q4 Q4 2023 2022 2023 2022 Net Income 9.7 7.3 41.8 17.6 Adjustments: Interest expense 0.8 1.1 4.1 2.9 Provision for income taxes 1.2 2.4 8.5 7.4 Depreciation and amortization 0.7 0.7 2.8 3.4 EBITDA (1) 12.3 11.5 57.2 31.4 Other